Cleveland’s tourism sector is experiencing a strong revival following a challenging post-pandemic period. Recent data indicates that hotel prices in the city’s downtown core saw a significant uptick, with overnight stays averaging around $200 per night last year. While that may seem steep for some travelers, industry experts view it as a positive sign for the local economy, signaling a growing willingness among visitors to pay premium rates.
The rise in hotel prices can be attributed to a combination of factors, including inflation and the fundamental forces of supply and demand. With an influx of major events on the city’s calendar and increased demand for accommodations, prices naturally climbed. “We feel that Cleveland has a good upward trajectory in terms of occupancy and rates,” said Eric Conrad, General Manager of the newly opened Fidelity Hotel.
Fidelity Hotel Opens in Historic Downtown Building
Conrad is leading the launch of the Fidelity Hotel, located at East 6th Street and Vincent Avenue. “We believe hospitality deserves to be back in this area, and we’re very excited to bring this to locals and visitors alike,” he said.
The boutique hotel, featuring 97 rooms, has been in development since before the pandemic. Housed in the 104-year-old Baker Building, the property underwent a full-scale renovation, transforming it into a high-end destination. The hotel boasts a bar, restaurant, event space, and a design aesthetic that blends vintage charm with a local flair, incorporating work from Cleveland artists. “Overall, kind of a luxury feel of our property. We wanted to match that with the service of the property as well,” Conrad added.
Hotel Occupancy and Economic Impact
Emily Lauer, Vice President of Public Relations for Destination Cleveland, noted that the city’s hotel occupancy rate has climbed to over 63%, marking a 2% increase from 2023. “2024 was probably the year that we saw the most stability in the market,” Lauer said. She emphasized that Cleveland remains a cost-effective destination compared to major metropolitan areas.
“When you compare that to New York, LA, Chicago, Houston – the really large markets across the country – Cleveland is still an affordable destination,” she explained. Looking ahead, Lauer expects the market to maintain its momentum, with potential for gradual growth in 2025.
Major events continue to be a driving force behind hotel pricing and demand. “Trends show year after year, when there are big events in Cleveland, that helps drive demand for our hotels downtown and/or out into the suburbs. Because if a hotel is booked around an event downtown with an official room block, it drives not only the prices of other downtown hotels but also fills up suburban accommodations,” Lauer said.
2024 Events Fueling Demand
As Cleveland prepares for a packed event schedule – including NCAA Men’s Basketball March Madness, St. Patrick’s Day celebrations, conferences, concerts, and strong seasons from the Cavaliers and Guardians – hoteliers anticipate continued growth. “We think Cleveland has the ability to provide a level of service and hospitality that’s gonna be unmatched, certainly in the Midwest region,” Conrad said.
Currently, room rates at the Fidelity Hotel average around $150 per night, with suburban hotels offering lower prices. However, experts advise travelers to anticipate fluctuations based on major event schedules, with higher demand leading to increased rates.
Addressing Staffing Needs in Hospitality
To support the growing hospitality industry, another hiring fair is scheduled for early March, following last year’s event at the Huntington Convention Center. According to data from the American Hotel and Lodging Association, hotels nationwide are expected to add 14,000 jobs this year. Fidelity Hotel is among the establishments actively recruiting new staff while welcoming an influx of visitors.