Room rate hits $467 at Peninsula Chicago
(Crain's) — The average room rate at Peninsula Chicago rose 7% in 2007 amid a booming hotel market, while the hotel's occupancy rate remained flat at 72%, according to a recent report by the hotel's owner.
The average rate at the 339-room hotel increased to $467 last year, up from $436 in 2006, Hong Kong & Shanghai Hotels Ltd. said in a recent annual report. Revenue per available room (RevPAR) — a key measure that factors in both occupancy and rate — rose 8% to $338, the Hong Kong-based company said.
Strong demand from business and leisure travelers has boosted profits at downtown hotels in recent years, though business is likely to slow amid the economic slump. RevPAR for all downtown hotels rose 5.2% in 2007, according to Smith Travel Research, a Tennessee-based research firm.
The Peninsula is one of three five-star hotels in Chicago, an elite group that also includes the Ritz Carlton and Four Seasons. The Peninsula Chicago, 108 E. Superior St., was appraised at $163 million, or $480,000 a room, as of Dec. 31, according to the report.
Hong Kong & Shanghai Hotels reports its hotels' results in Hong Kong dollars. The figures for the Peninsula are based on the exchange rate between United States and Hong Kong currencies as of Dec. 31.
