An increasing number of hotels across Chicago — including the boutique variety — are offering day-rate rooms, pegging them as a co-working spinoff complete with bed and bathroom.
The strategy — employed by about two dozen properties — comes at a time when new hotel development in Chicago has squeezed profits, as have Airbnb and other short-term rental companies, according to Crain’s. Fulton Market alone is projected to be home to about 1,500 hotel rooms in the next few years, raising questions about how much supply the market can absorb.
The Hoxton in Fulton Market offers half-price rooms from 10 a.m. to 4 p.m., and properties like Sofitel Chicago Magnificent Mile and Hyatt Centric Chicago hotel in Streeterville offer similar deals, Crain’s reported. Dayuse.com, a reservation platform, booked about 8,000 rooms in Chicago last year, four times more than 2018’s total, according to the report.
And following a strong 2018, revenue per available room at downtown hotels dipped to $150.82 in 2019, according to Crain’s, citing STR data.
Despite the increased competition, hotel development continues. The Chicago Planning Commission last week advanced North Park Ventures’ 476-key hotel project at 800 West Lake Street in Fulton Market.
[Crain’s] — Brianna Kelly