Last year was shaping up to be a record year for hotel revenue in Chicago, according to Dustin Arnheim, senior vice president of sales and services for Choose Chicago.
“We are on a great trajectory with record-setting hotel revenue in the first half of the year, and, based upon current performance and expectations for the remainder of the year, we anticipate hitting a record, too,” says Arnheim when Illinois Meetings + Events spoke with him in November. “We’re projecting approximately $2.55 billion in hotel revenue this year.”
But despite the unprecedented revenue numbers, Arnheim says Chicago’s occupancy rates and room demand are still trailing 2019 levels. “While the revenue might be record-breaking, when you take into account adjustments for inflation, it’s not, from a profitability standpoint, anywhere close to 2019,” he explains. “It’s important to consider as our hotels and community evaluate: It’s not always an apples to apples comparison.”
Regardless, Arnheim says Chicago is seeing event attendance both achieving or surpassing 2019’s numbers. It’s still not a full recovery, he explains, but events like the NASCAR Chicago Street Race in July performed well and broke records for that time of year. Next summer, Chicago will host the 2024 Democratic National Convention—another big draw for the city. “That has brought a lot of positive momentum going into next year,” Arnheim says. “All eyes are definitely on Chicago.”
Looking to the future, Arnheim says there’s no crystal ball that can predict how hotel trends will ebb and flow, but he’s optimistic. “The cities that remained open during the pandemic are a step ahead in that recovery. And those cities who played it conservatively—and rightfully so—like Chicago, just have a little bit more catch-up,” he says, noting how many people were furloughed as businesses temporarily closed during city shutdowns. “But our industry’s recovering, and that story is no different in Chicago.”
