Hotel regions to watch in the Midwest

The Midwestern hospitality markets of Kansas City, Chicago and Detroit show clear potential to outperform their current 12-month revenue per available room (RevPAR) forecasts through December 2026. Market participants point to strengthening demand fundamentals and a calendar of high-profile events as key sources of upside beyond baseline projections.

Across all three cities, major international conventions, marquee sporting events and large-scale corporate activity are expected to drive compression, elevate average daily rates (ADR) and support stronger-than-anticipated RevPAR growth.

Chicago

Chicago’s RevPAR outlook is supported by stabilizing occupancy, rising ADR and the city’s entrenched role as a major convention and corporate travel destination. Entering 2025, asset managers and hotel sales professionals expressed cautious optimism, which translated into a 3.4% RevPAR increase during the year.

While current forecasts call for a more moderate 1% RevPAR increase through December 2026, sentiment remains constructive. Chicago is currently hosting its sixth Architecture Biennial, which runs through February 2026. Since its launch in 2015, the event—the largest design exhibition in North America—has drawn more than 2.2 million visitors.

Further upside may emerge in November 2026, when Chicago hosts the International Conference for High Performance Computing, Networking, Storage, and Analysis (SC26). The prior conference, SC25, attracted approximately 17,000 attendees in St. Louis. Events of this scale typically require large room blocks and tighten availability across primary and secondary submarkets, creating conditions for RevPAR growth that exceeds current forecasts.