Springfield hotels are coming off of a record-setting year, according to Scott Dahl, director of Springfield Convention & Visitors Bureau. He said 2023 hotel revenue was higher than any other year in the past two decades, due to a combination of occupancy performance and higher average daily rates.
While the first quarter of 2024 hasn't broken any records, tourism in Springfield typically ramps up in the spring and summer. Darin Dame, past chair and member of the board of directors for the Illinois Hotel & Lodging Association and general manager of SpringHill Suites by Marriott, said Springfield hotels saw a downturn in occupancy numbers in April but an increase in the average daily rate, which resulted in total revenue being down 4%.
Dame believes that people are watching their budgets and staying in hotels fewer nights than they might have previously. Business is wrapping up in two days instead of three, and family reunions are requiring just one night in a hotel instead of two, Dame said.
The good news is that leisure tourism is pushing the rebound, according to Dahl. "We are seeing a record level of domestic tourism that is elevated by international tourists returning to visit the U.S," he said. "They use Chicago as a gateway, arriving there first and then filtering down to Springfield."
In spite of the slight downturn in occupancy numbers in April, Dahl said Springfield saw international business from 25 different countries that month. He noted that visa wait times have decreased, making it easier to travel abroad.
Interest in historic Route 66 and Abraham Lincoln sites are largely what drives international visitors to Springfield. Dahl predicts this trend will continue to increase as the centennial anniversary of Route 66 approaches in 2026. Shea's Gas Station Museum on Peoria Road has recently reopened, which he thinks will draw a great deal of interest, as well as the many other sites along Route 66 in the Springfield area. In 2023, the Route 66 Experience opened inside Gate 2 of the Illinois State Fairgrounds. The self-guided educational exhibit is open year-round and highlights businesses in 92 communities along Route 66 in Illinois.
Also, History Comes Alive and the reading of the Gettysburg Address returns to Springfield this summer along with a trolley that will take riders on a 30-minute tour of the downtown historic sites.
"We are anticipating 2024 to be a record occupancy year," Dahl said. "Since 2016, we've had a goal of getting city hotels to 60% occupancy. Generally, the city runs at 55% occupancy, and with several national conventions meeting in Springfield and an uptick in leisure travel, I believe we have the opportunity to reach the 60% threshold.
"We typically sell 800,000 room nights annually, and have a goal to sell 1 million room nights annually by 2027. We want Springfield to not just be a stopover, but a stay over."
This optimistic outlook is bolstered by the economic investment the state has put into invigorating multiple historic sites, improvements to the Illinois State Fairground and the Capitol complex upgrades. In addition, the much-anticipated Scheels Sports Park at Legacy Pointe is slated to be finished in 2025.
"Our bread-and-butter is still conventions and meetings during the week, which are not back to pre-pandemic numbers," said Dame. However, he said there is still a need for more hotel rooms to support the sports park once it opens.
Dame is part of a local hotel ownership group, Legacy Hospitality, that broke ground this month on a new hotel at Legacy Pointe. Fairfield Inn & Suites by Marriott will be located just south of and adjacent to the existing SpringHill Suites by Marriott. Dame said construction activity will be ramping up as weather permits.
"The reason we are expanding is based on the conception of the sports park and what we envision it to be," Dame said. "We hope Legacy Pointe is completely developed by 2027 or 2028 and that it will be a strong draw for visitors that will also benefit downtown and west-side retail outlets as well."
Dame said he anticipates tourism traffic ramping up over the next couple years. "It will be busy, but a very fun 2026."
