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Illinois Hotels Losing Business To Surrounding States

As the COVID-19 pandemic and state-imposed restrictions continue to cripple the Illinois hotel industry, things in nearby states are improving.

Governor J.B. Pritzker has imposed gathering limits across the state, thus eliminating events and conferences which are essential to the hotel business.

The National Confectioners Association’s Sweet & Snacks Expo is the latest convention to relocate to Indianapolis because Illinois won’t allow large events until a vaccine has distributed, or no new cases arise over a sustained period of time.

Josh Smoker, a spokesman for the Sheraton at Keystone Crossing in Indianapolis, said business has rebounded nicely.

“As far as occupancy, we are probably run at about 80% for the month,” said Smoker. “We have sold out every weekend for the last six months.”

Smoker said his facility accommodates a lot of families in town for sports tournaments like basketball. Pritzker has declared basketball a high-risk sport, so no games or tournaments are allowed in Illinois.

In a recent survey of American Hotel and Lodging Association members, 71% of hotel owners said they won't make it another 6 months without further federal assistance, and 77% of hotels report they will be forced to lay off more workers.

STR, a hotel industry data firm, said average national occupancy was 43% for the week ending Nov. 13, down more than 32% from 2019 and off from 48% during the third quarter, when hotel bookings had begun to rebound.

“In Illinois, winter is coming both literally and figuratively,” said Michael Jacobson, president and CEO of the Illinois Hotel & Lodging Association during a recent press conference. “We need Congress to act and act now.”