Chicago hotels aren't fully booked for DNC, but industry still foresees success
CHICAGO (CBS) -- Chicago hotels are gearing up for the Democratic National Convention, and owners and managers said while the event is huge for Chicago, it's not the biggest week for their industry.
A total of 50,000 people will head into Chicago for the DNC—with a roughly $150 million economic impact expected based on past conventions, according to the city's tourism office.
The InterContinental Chicago Magnificent Mile, an iconic Chicago hotel at 505 N. Michigan Ave., is almost fully booked. The historic hotel tower with its gold onion dome is also dressed up for the DNC—bedecked in red, white, and blue.
General manager Nabil Moubayed noted that the InterContinental Chicago is one of the only hotels that carries a Michigan Avenue address. And for the occasion of the DNC, there are big plans all week.
"We're going to stay open late. We're going to have a lot of parties going on. We're just going to celebrate an incredible week," he said. "We have a really iconic pool on the property—it's a junior Olympic-sized pool—and we're doing something called 'float while they vote.'"
But the InterContinental is actually an outlier in terms of being fully booked. In fact, fewer rooms have been booked than DNC organizers first expected.
"There was a big disparity between the number of attendees they were going to host and the number of rooms they had blocked," said Bob Habeeb, chief executive officer of Maverick Hotels & Restaurants.
Michael Jacobson, president of the Illinois Hotel and Lodging Association, said the week of the DNC was never forecast to be a rip-roaring crowd-puller.
"It's not going to be our biggest week of the year. We never expected it to be. It's not going to be a sellout," Jacobson said. "What this means for Chicago in terms of the long-term impact even outweighs the shorter economic benefits of just next week."
But Chicago hotel owners, managers, and representatives have their eyes on groups besides the DNC visitors staying and hosting events at their facilities. Also of interest are the 15,000 national and international media members expected to descend on Chicago—and the opportunity for a long-term impact on the hospitality industry's bottom line once Chicago is on a global stage.
"This is a huge opportunity for the city to shine—to put its best foot forward—and for all of us to be proud of where we live, and to showcase that," said Nabil Moubayed, general manager of the InterContinental Chicago.
The opportunity to showcase the city is a subject of excitement for many in the hospitality industry.
"Future bookings—people who watch the convention unfold and say, 'Oh wow, Chicago is a great convention city. Let's look at going there next year," said Bob Habeeb, chief executive officer of Maverick Hotels & Restaurants. "and I think there's a strong possibility that will be the case, and there will be bookings beyond, you know, the four walls of the convention."
Jacobson also emphasized that if the DNC is a business success for the hospitality industry, it's good news for everyone—and poor business for hotels and restaurants would be detrimental to Chicago as a whole.
"It's important for everybody to be cheering for the success of these events. Because if it weren't for the hotel tax revenue, the restaurant tax, retail tax that are generated by travelers? Every Chicago household would pay $1,600 more in real estate tax just to make up for that lost revenue," he said. "So even if you're not in the hotel industry, you should care about the success of events like the DNC."
The DNC will be held in Chicago from Monday through Thursday next week.
