Chicago Hotel Market 2026: Occupancy, ADR, RevPAR and Recent Sales
The Hotelier Times · Midwest Desk
Downtown RevPAR is setting records on a tight supply base, while many hotels still trade at steep discounts. Occupancy, ADR, RevPAR, the pipeline and every Chicago-area sale we can source.
Last updated: October 30, 2026 · Refreshed as new Choose Chicago, CoStar and transaction data come in.
Chicago’s hotel market in 2026: downtown RevPAR is setting records on a tight supply base, while many hotels still trade at steep discounts to their prior prices. This page tracks the numbers that matter to owners, buyers and lenders: downtown and weekly CoStar performance, the thin construction pipeline, every Chicago-area sale we can source with a public price, hotels for sale, McCormick Place and airport demand, CMBS distress and brand conversions.
Last updated: October 30, 2026 · Refreshed as new Choose Chicago, CoStar and transaction data come in. New Oct. 29: Endeavor Hotels bought the Embassy Suites Chicago Lombard Oak Brook out of foreclosure for $24.1 million.
Full-year 2025 Central Business District figures: Choose Chicago, Hotel Performance 2025 (STR data, January 2026). Leisure room nights set a record at 8.2 million (+4.6%); group room nights fell 3.0% to 3.4 million.
June and Q2 figures: JLL’s Adam McGaughy in Hotel Management (Oct. 19, 2026), citing CoStar/STR; Q2 occupancy rose 5.9% and ADR 8.8%. Weekly figures: CoStar via Hotel News Resource (Oct. 29, 2026), during PACK EXPO International. CoStar did not publish Chicago’s occupancy for that week.
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2026 performance at a glance
Chicago’s 2025 baseline was solid but flat on rate: downtown demand rose 2.3% while U.S. hotel demand fell 0.5%, yet ADR rose just 0.6%. In 2026 rate and occupancy are rising together. June’s $285 downtown RevPAR beat the previous record from June 2018 by about 16%, and the trailing four weeks through Sept. 5 ran 17.5% ahead of 2025 (JLL citing CoStar/STR).
Fall is being carried by conventions. CoStar named Chicago among the top 25 markets’ biggest movers in the week of Sept. 19 (RevPAR up 41.8% on IMTS), the week ending Oct. 10 (occupancy 82.7% and RevPAR $210.18, up 21.1%, on APTA TRANSform and ACEP; Hotel Management) and the week ending Oct. 24 (PACK EXPO). Full 2026 year-to-date downtown occupancy, ADR and RevPAR levels are not publicly available in free releases, and no free public submarket breakdown comparable to Houston First’s exists for Chicago.
Supply and pipeline
| Year | Downtown daily room supply | Change | Hotels |
|---|---|---|---|
| 2024 | 47,009 | +580 | 164 |
| 2025 | 46,901 | −108 | 161 |
| 2026 | 46,857 | −44 (−0.1%) | 158 |
| 2027 (projected) | 47,583 | +726 (+1.5%) | 160 |
Source: Choose Chicago, Lodging Supply Update, August 2026 (year-end figures). Eight Sonder properties left the inventory, and a Kasa property (formerly Sonder) opened in July 2026.
The only major downtown hotel under construction is the 500-key Bally’s Chicago casino resort in River West, which topped off in May 2026; the permanent casino is set for early 2027 and the full resort for the second quarter of 2027, part of a $1.7 billion to $1.8 billion development (Bally’s, May 1, 2026). JLL notes it competes in a distinct, casino-anchored segment. Lodging Econometrics counts 30 renovation and conversion projects with 5,287 rooms in Chicago (Q3 2026).
Chicago-area hotel transactions, 2025–2026
2026 sales also appear in the Hotelier Times Transaction Tracker and on the Hotel Deal Map. Price per key is shown only where a price was publicly disclosed; per-key figures are our math.
| Date | Hotel | City | Keys | Price | Per key | Buyer / seller (source) |
|---|---|---|---|---|---|---|
| Oct 29, 2026 | Embassy Suites Chicago Lombard Oak Brook (out of foreclosure) | Lombard | 262 | $24.1M | $91,985 | Endeavor Hotels from a court-appointed receiver (prior owners Seaview Investors and Chelsea Hospitality Partners) (Hoodline) |
| Oct 25, 2026 | Seven-hotel Midway Airport portfolio | Chicago (Midway) | 1,057 | $68.0M | $64,333 | Endeavor Hotels from RLJ Lodging Trust; $90M Access Point Financial loan (Hoodline) |
| Oct 2026 | Royal Sonesta Chicago River North (now Hotel 505 River North) | Chicago | 261 | Undisclosed ($21M reported by Hoodline) | — | Manga Hotel Group (Loop North) |
| Sep 2026 | Courtyard, SpringHill Suites and Residence Inn Schaumburg (REO sales) | Schaumburg | 419 (162 / 132 / 125) | $19.4M ($11.0M / $4.2M / $4.2M) | $46,301 | Hanuman ORD Inc. from REO PFHP (CSMC 2017-PFHP) (KBRA KCP) |
| Sep 2026 | Wade Hotel (former W Chicago–Lakeshore) | Chicago | 520 | Reported $20M–$25M (under contract); not confirmed closed | About $43,000–$48,000 | Vinayaka Hospitality from Park Hotels & Resorts (CRE Direct) |
| Jun 2026 | La Quinta Inn & Suites by Wyndham Downtown Chicago | Chicago | 239 | $30.5M | $127,615 | JAMP Hotels from Highgate (with Cerberus); Alchemy arranged (Alchemy) |
| May 2026 | The Blackstone, Autograph Collection | Chicago | 335 | $43.2M | $128,955 | Vinayaka Hospitality from Fundamental Advisors and Sage Hospitality; JLL (CRE Direct) |
| May 2026 | Homewood Suites Chicago Downtown | Chicago | 233 | $29.0M | $124,464 | Entity tied to Prakash Patel from Brookfield (The Real Deal) |
| Mar 2026 | The Westin O’Hare | Rosemont | 525 | $50.0M | $95,238 | Fortress Investment Group from Clarion Partners (CRE Direct) |
| Feb 2026 | Holiday Inn Express Arlington Heights | Arlington Heights | 111 | Undisclosed | — | Private hotelier group from private investor group; Marcus & Millichap (Marcus & Millichap) |
| Dec 2025 | The Westin Michigan Avenue Chicago | Chicago | 752 | $72.0M | $95,745 | Vinayaka Hospitality from Pebblebrook Hotel Trust; $54M loan (Draper and Kramer) (Pebblebrook) |
| Jul 2025 | Virgin Hotels Chicago | Chicago | 250 | $77.4M | $309,600 | Accelerated Assets from Lionstone / Virgin Hotels JV (The Real Deal) |
| Jul 2025 | Hampton Inn / Homewood Suites Magnificent Mile | Chicago | 352 | $28.3M | About $80,400 | Entity tied to Ketu Amin / Vinayaka (Hoodline) |
| Mar 2025 | Home2 Suites by Hilton Schaumburg | Schaumburg | 107 | $13.1M | About $122,400 | Parag Patel venture (The Real Deal) |
Know of a Chicago hotel sale we missed? Send it to the Transactions Desk.
Chicago-area hotels for sale now
Five Chicago-area hotels are being marketed in public listings, led by two Gold Coast full-service hotels: the lender-owned Hilton Chicago/Magnificent Mile Suites and Braemar’s Sofitel Chicago Magnificent Mile. None has a published asking price.
| Hotel | City | Keys | Asking price | Per key | Broker |
|---|---|---|---|---|---|
| Hilton Chicago/Magnificent Mile Suites | Chicago | 345 | Unpriced (lender sale; REO) | — | JLL |
| Sofitel Chicago Magnificent Mile | Chicago | 415 | Unpriced | — | JLL (for Braemar Hotels & Resorts) |
| Super 8 by Wyndham Deerfield/Northbrook | Deerfield | 115 | Request for offers | — | Marcus & Millichap |
| Courtyard Chicago Arlington Heights/South | Arlington Heights | 147 | Not publicly available | — | Miller-Gomes / Marcus & Millichap |
| Courtyard Chicago Deerfield | Deerfield | 131 | Not publicly available | — | Miller-Gomes / Marcus & Millichap |
These hotels are listed by their brokers, not with The Hotelier Times; confirm availability with the broker. Selling a Chicago hotel? List it with us for a flat monthly fee, no commission.
CMBS distress and foreclosures
- Palmer House Hilton (1,641 rooms): in foreclosure on a $328.9 million CMBS loan plus $94.3 million of nonperforming mezzanine debt, per Trepp via CRE Daily (Oct. 1, 2026). Chicago accounts for $491.3 million of Hilton-flagged nonperforming CMBS balances.
- Hilton Chicago/Magnificent Mile Suites (345 rooms): $64.4 million CMBS balance, lender-owned since April 2023 and now marketed by JLL.
- Hotel Lincoln (184 rooms): loan matured March 6, 2026; Wilmington Trust filed a foreclosure on a $25.4 million balance in August (CREdocket).
- Club Quarters Central Loop (429 rooms): part of a Blackstone Club Quarters portfolio loan; the CMBS trust moved to take title (CRE Direct, Jan. 21, 2026).
- Resolved: the Embassy Suites Lombard sold out of receivership for $24.1 million (Oct. 29, 2026); the Schaumburg Marriott trio sold out of REO for $19.4 million (September 2026); and the former 21c Museum Hotel went to lender ACORE by deed in lieu in 2025 and has reopened as The RIVVY.
Follow every case on our Distressed Hotels desk.
What’s driving Chicago
- Record visitor spending. Chicago drew 56.8 million visitors in 2025 who spent a record $21.5 billion, though visitation remains below the 2019 peak (Choose Chicago, June 25, 2026).
- McCormick Place bookings. Forward citywide bookings were pacing at 104% of 2019 for 2027 and 113% for 2028 as of June 7, 2026, and JLL says McCormick Place room nights have a 93% historical correlation with downtown occupancy. Choose Chicago booked 65 future citywide conventions in 2025 (Feb. 10, 2026).
- O’Hare traffic. O’Hare handled 84.9 million passengers in 2025 (+6.0%; CDA) and 59.6 million through August 2026 (+5.6%), with July the busiest month in its history (City of Chicago, Oct. 22, 2026). Midway handled 19.4 million passengers in 2025, down 9.9% (CDA).
- Thin new supply. Downtown supply is shrinking slightly in 2026, and Bally’s is the only major hotel under construction.
- Discounted entry prices. Most 2025–2026 sales cleared well below their prior prices: the Midway portfolio sold for about half what RLJ paid in 2006, and the Westin O’Hare sold at a nearly 40% discount.
- Labor. UNITE HERE Local 1 strikes hit major downtown hotels in October 2026; the RevPAR impact has not been publicly quantified.
Brand conversions
The former 21c Museum Hotel at 55 E. Ontario reopened about Oct. 1, 2026 as The RIVVY, Tribute Portfolio (297 keys; Hotel Pulse). Manga Hotel Group took down the Royal Sonesta signage at 505 N. State St., now Hotel 505 River North, with its TOOR lifestyle brand planned (Loop North). The former W Chicago–Lakeshore operates as the Wade Hotel.
Run your own numbers with our price per key and cap rate calculators, and compare brand costs with our franchise fee comparison.
Sources
- Choose Chicago, Hotel Performance 2025 (STR), January 2026
- Choose Chicago, Lodging Supply Update, August 2026
- Hotel Management / JLL, Chicago’s hotels are breaking records (Oct. 19, 2026)
- CoStar via Hotel News Resource, week ending Oct. 24, 2026 (Oct. 29, 2026)
- CoStar via Hotel Management, week ending Oct. 10, 2026
- Choose Chicago, 56.8 million visitors in 2025 (June 25, 2026)
- Choose Chicago, Annual Meeting and 2026 outlook (Feb. 10, 2026)
- City of Chicago, O’Hare summer travel record (Oct. 22, 2026)
- Bally’s Chicago topping-out release (May 1, 2026)
- CRE Daily / Trepp, Hilton CMBS distress (Oct. 1, 2026)
- Hoodline, Endeavor buys Lombard Embassy Suites (Oct. 29, 2026)
- Hoodline, Midway portfolio sells for $68M (Oct. 25, 2026)
What’s next for Chicago hotels
- Labor talks remain the near-term operating risk — still unresolved as of Oct. 30, 2026. UNITE HERE Local 1 authorized a strike after contracts covering more than 7,000 workers at 46 Chicago hotels expired. Walkouts began Oct. 9 at six downtown hotels; those six later returned to work under a rolling strategy, while walkouts that began Oct. 18 at the Hilton Chicago and Hyatt Regency Chicago were still the active picket focus in late-October coverage, no ratified contract had been announced as of Oct. 30 (WTTW Oct. 19; CBS Chicago; Hotel Dive update Oct. 19).
- A new downtown hotel assessment funds tourism marketing. Effective May 1, 2026, hotels with 100+ rooms in designated Chicago ZIP codes owe a 1.5% Chicago Tourism Improvement District (CTID) transaction charge on gross short-term sleeping-room revenue, which hotels may pass through if separately disclosed (City of Chicago Finance). WTTW reported the City Council vote that created the TID raised the combined downtown hotel tax/fee stack from about 17.5% to 19%, with proceeds aimed at Choose Chicago marketing (WTTW March 18, 2026).
- Tight CBD supply still underpins pricing power. Choose Chicago’s August 2026 lodging update put 2026 CBD daily room supply at 46,857 (−44 vs 2025) and projected only +726 rooms into 2027 once Bally’s is counted (Choose Chicago capacity PDF). JLL, citing CoStar/STR, said June 2026 CBD RevPAR hit an all-time $285 and Q2 CBD RevPAR led the top 25 U.S. CBDs at +15.2% YoY (Hotel Management / JLL).
- The only major CBD hotel under construction is casino-anchored. Bally’s Chicago’s roughly 500-key casino hotel tower in River West topped off in 2026, with permanent casino targeted for early/spring 2027 and the broader resort in Q2 2027 on a ~$1.7–$1.8B development (Bally’s / Markets of Tomorrow coverage; JLL via Hotel Management). Analysis: JLL frames it as competing in a distinct casino-resort segment rather than as pure transient CBD supply.
- Fall conventions still drive weekly RevPAR spikes — and raise strike exposure. CoStar named Chicago for large weekly gains around PACK EXPO (week ended Oct. 24, 2026: ADR $235.51 / RevPAR $189.26) and earlier APTA/ACEP weeks (Hotel News Resource / CoStar). Choose Chicago’s planner calendar stacks major fall citywides (including RSNA late November); Analysis: unresolved labor actions during peak convention months are the clearest near-term earnings risk for downtown full-service assets.
- Booking-channel shift is national, but Chicago independents should watch direct AI paths. Cloudbeds said participating hotels can show live rates in Meta’s Muse with bookings recorded in the hotel PMS as direct bookings, U.S. rollout planned Q1 2027 (Cloudbeds). Meta has not disclosed a travel take-rate; distribution-cost outlooks remain Analysis (Meta Q3 2026 transcript).
Sources: WTTW strike expand; CBS Chicago; Hotel Dive; City of Chicago CTID; WTTW TID / 19%; Choose Chicago capacity Aug 2026; Hotel Management / JLL; HNR / CoStar week Oct 24; Cloudbeds Muse; Meta Q3 2026 transcript.
Chicago hotel market FAQ
How is the Chicago hotel market doing in 2026?
Downtown is running hot on events and a tight supply base. Choose Chicago, using STR data, put 2025 downtown (CBD) occupancy at 69.2%, ADR at $243.10 and RevPAR at $168.15. In June 2026, CBD RevPAR set an all-time monthly record of $285, according to JLL citing CoStar. In the week ending Oct. 24, 2026, CoStar put Chicago ADR at $235.51 (up 26.4%) and RevPAR at $189.26 (up 39.7%) during PACK EXPO International.
What is the average daily rate for Chicago hotels?
For full-year 2025, Choose Chicago (STR) reports a downtown ADR of $243.10. The latest public weekly CoStar figure for Chicago is a $235.51 ADR for the week ending Oct. 24, 2026. A full 2026 year-to-date downtown ADR is not publicly available in free releases.
What were the biggest Chicago hotel sales of 2025 and 2026?
By disclosed price: Virgin Hotels Chicago at $77.4 million (July 2025), the Westin Michigan Avenue at $72.0 million (December 2025), the seven-hotel Midway portfolio at $68.0 million (October 2026), the Westin O’Hare at $50.0 million (March 2026) and the Blackstone at $43.2 million (May 2026). Most traded well below their prior purchase prices.
How many hotel rooms are under construction in downtown Chicago?
Choose Chicago and JLL point to one major downtown hotel under construction: the 500-key Bally’s Chicago casino hotel, aimed at 2027. Downtown daily room supply for 2026 is 46,857 rooms, 44 fewer than in 2025 (Choose Chicago, August 2026).
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