Serving the Loop and Near North neighborhoods of downtown Chicago
Sax owner happy with year-end results

Photo by Steven Dahlman February 22, 2013 – While Chicago in particular may be nothing to write home about, it was still a good year for the real estate investment trust that owns Hotel Sax and Westin Michigan Avenue. LaSalle Hotel Properties says it took in $867.1 million last year, a 21 percent increase from 2011.

Three indicators of a hotel’s financial health – occupancy, average daily rate, and room revenue per available room – were the company’s “highest ever” in the fourth quarter of 2012, according to a news release. Occupancy was up 0.3 percent to 74.1 percent. Average daily rate was up 3.4 percent to $209.06. Room revenue per available room was up 3.8 percent to $154.88.

Based in Bethesda, Maryland, LaSalle owns 40 hotels in 13 markets, including Chicago’s 353-room Hotel Sax and 752-room Westin Michigan Avenue. The Westin was one of six LaSalle properties singled out for a “significant” increase in revenue, crediting increased occupancy and “the improving economy.”

Still, Chicago, which had “a softer performance” for the year, according to the company’s chief financial officer, was barely mentioned during a one hour 12 minute conference call with investors on Wednesday. According to Bruce Riggins, a 4.6 percent increase in average daily rate at LaSalle’s Chicago hotels was partially offset by a three percent decline in occupancy. Revenue per available room was up 1.5 percent.

The numbers appear to slightly trail Chicago hotels in general. The average daily rate for all of the city’s hotels was up 5.6 percent last year to $187.27 and revenue per available room was up ten percent to $140.76.

On January 23, Chicago Mayor Rahm Emanuel announced that hotel occupancy in Chicago last year was 75.2 percent, with Chicago hotels collectively earning more than $100 million for the first time ever. Hotel occupancy, average daily rate, and revenue per available room were all up in Chicago for a third year in a row.

Chicago currently hosts 43.6 million visitors annually.

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