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Article: Hotel room rates move up; But pace of increase cools, raising fears of slowdown in 2008.(News)
- Article from:
- Crain's Chicago Business
- Article date:
- December 24, 2007
- Author:
CopyrightCOPYRIGHT 2007 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: THOMAS A. CORFMAN
Driven by the booming downtown market, average daily hotel room rates throughout the Chicago area are climbing, but at a slower pace than in the two previous years.
Average room rates are projected to rise about 5.5%, to about $129 a night, for 2007, compared to 2006, according to a forecast by Property Valuation Advisors Inc., a hotel consulting and appraisal firm. The forecast is based on statistics compiled by Smith Travel Research.
But room charges, which are now at their highest level in at least a decade, rose nearly 11.6% in 2006, and 6.8% in 2005.
Thus, while Chicago hotel owners are enjoying one of ...