Chicago Hotel Industry Sees Boost in 2025 Amid Domestic and Leisure Travel

The city's tourism agency says Chicago bucked the national trend of declining hotel demand.

Published on Feb. 10, 2026

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Despite economic and political headwinds facing the global travel industry, Chicago's hotel room demand rose 2.3% in 2025 compared to the previous year, according to the tourism agency Choose Chicago. The city's leisure hotel room demand reached a record 8.2 million room nights in 2025, even as hotel room demand declined nationally by 0.5%. Tourism and events are a critical economic engine for Chicago, supporting over 130,000 jobs and generating more than $20 billion in annual economic impact.

Why it matters

Chicago's strong hotel performance in 2025 highlights the city's resilience in the tourism industry, which is a major economic driver. While the U.S. tourism industry faces broader headwinds, Chicago was able to attract more domestic and leisure travelers, bucking the national trend. This underscores the city's appeal as a destination and the effectiveness of Choose Chicago's marketing efforts.

The details

Choose Chicago CEO Kristen Reynolds said the city had a 'tough year' for tourism overall, but leisure travel broke records, driven by key summer events like a concert by K-pop group Blackpink that generated more revenue than Beyonce. Chicago also saw its busiest New Year's Eve for hotels on record, thanks to the city's first-ever live broadcast of Dick Clark's New Year's Rockin' Eve. The agency also exceeded its targets for booking future conventions, securing 65 conventions for future years.

  • In 2025, Chicago's hotel room demand rose 2.3% compared to the previous year.
  • In 2025, Chicago's leisure hotel room demand reached a record 8.2 million room nights.
  • In mid-2025, Choose Chicago's goal was for tourism not to decline, but leisure travel in the city ended up breaking records.

The players

Choose Chicago

The tourism agency for the city of Chicago, which said the city bucked the national trend of declining hotel demand.

Kristen Reynolds

The CEO of Choose Chicago.

Brandon Johnson

The mayor of Chicago, who said Choose Chicago helps tell the story of the city and its 77 diverse neighborhoods.

JB Pritzker

The governor of Illinois, who referred to President Donald Trump's ongoing comments that Chicago is dangerous and crime-ridden, saying visitors to Chicago 'instantly see through the fog of that false narrative.'

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What they’re saying

“You hear a lot of talk from the White House about Chicago, but visitors to Chicago 'instantly see through the fog of that false narrative.'”

— JB Pritzker, Governor of Illinois (suntimes.com)

“Diversity is 'why we're under attack.'”

— Brandon Johnson, Mayor of Chicago (suntimes.com)

“A proposed 1.5 percentage point increase in the city's 17.5% hotel tax was an 'assessment' — and not technically a tax — that would help drive tourism in Chicago. 'It would be a game changer.'”

— Kristen Reynolds, CEO of Choose Chicago (suntimes.com)

What’s next

In 2026, Choose Chicago plans to grow international and emerging tourism markets and prepare for upcoming conventions and events, such as the 100th anniversary of Route 66 and the United States' 250th anniversary. It is also amplifying neighborhood and cultural storytelling, including with its 'All for the Love of Chicago' podcast that launched in January.

The takeaway

Chicago's strong hotel performance in 2025, driven by domestic and leisure travel, highlights the city's resilience and appeal as a tourism destination. Despite broader headwinds facing the U.S. tourism industry, Chicago was able to buck the national trend, underscoring the effectiveness of Choose Chicago's marketing efforts and the city's diverse offerings.