The Chicago City Council approved Ordinance 2026-0022544, raising the combined city, county, and state tax on hotel rooms in Chicago from 17.5% to 19% for properties with 100 or more rooms that opt into the program. The additional revenue will fund the newly created Tourism Improvement District (TID), which supports Choose Chicago, the city’s official destination marketing organization.

The council said the tax increase will help cover marketing campaigns and bid fees for major conventions and events, including the Democratic National Convention, for which Chicago is preparing a $1 million bid. The city previously hosted the convention in August 2024, and the Democratic National Committee has shortlisted Chicago along with Atlanta, Boston, Denver, and Philadelphia for the next event.

Brandon Johnson praised the decision, stating, "Chicago is a premier city for tourism, business travelers, conventions, and large-scale events. My administration will continue our collaboration with Choose Chicago to build up Chicago’s tourism and hospitality industry while leveraging economic growth and development to continue building safe and affordable communities across our city."

Kristen Reynolds, president and CEO of Choose Chicago, called the move a “transformative moment” that provides the city with enhanced resources to expand marketing efforts, attract conventions, and boost the local economy. Guy Chipparoni, chair of the Choose Chicago board, added, "It sends a message to our competing cities that when it comes to attracting visitors, Chicago means business."

Officials say the increase is aimed at long-term growth, positioning Chicago as a competitive destination for conventions, tourism, and major events while supporting economic development across the city.