Where to Stay in Chicago (2026): The Best Areas, 12 Hotels and the 17.4% Hotel Tax

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Chicago’s hotel bill is built from six separate taxes, and Illinois’s own revenue department puts the total at 17.4% of the room rate. Since 1 May 2026, large hotels in the downtown district can add a further 1.5% charge. On a $300 room, that is $52.20 in tax, or $56.70 with the charge, a night.

This guide covers five areas, from the Loop to Lincoln Park, 12 hotels, the airport trains and the tax. The hotels are researched picks, chosen for location, what each property publishes and consistent guest feedback, and each was checked as operating in October 2026. No hotel pays to appear here.

The short answer

Not sure which area? Rank these areas for your trip: pick what matters and see the reasons.

Chicago’s hotel tax

Six taxes apply to a hotel room in the city, set by the state, the city, the county and two public authorities. A seventh charge, new in 2026, applies only to large hotels in the downtown district.

The Illinois Department of Revenue collects the first four. Because the state, municipal and sports facilities taxes each count the other two in their base, it states that Chicago hotels are advised to collect a total of 17.4%: 11.9% for the department’s four taxes, 4.5% for the city and 1% for the county. Add the nominal rates and you get 17%; the interaction of the three taxes accounts for the difference. The department’s letter is general information, not binding guidance.

The 1.5% charge is separate. It applies to hotels of 100 rooms or more in 16 ZIP codes in and around downtown, from 60601 to 60661. The hotel may choose whether to pass it on, and if it does, it must disclose it in advance and show it separately as a “CTID Transaction Charge”. The city will not charge its 4.5% tax on the charge, but the charge itself may be subject to other taxes.

On a $300 room, 17.4% is $52.20, so the room costs $352.20 a night. Where the 1.5% charge is passed on, it adds $4.50, for $356.70. That is our arithmetic, and it excludes any tax on the charge itself.

Getting in from the airports, and around

• From O’Hare, the CTA Blue Line runs from the station below Terminals 1, 2 and 3 to downtown, 24 hours a day. The CTA gives the normal journey as 40 to 45 minutes. From Terminal 5, take the free Airport Transit System to Terminal 2 first.
• The O’Hare fare is $5, deducted on entry at O’Hare, against $2.50 for a train ride from any other station. A CTA single-trip ticket bought at O’Hare is also $5; a 1-Day pass is $5, and the CTA says an unlimited pass avoids the O’Hare premium.
• From Midway, the Orange Line runs to the Loop in 20 to 25 minutes for the standard $2.50 fare. The overnight alternative is the N62 Archer bus.
• In town, a bus ride is $2.25. You can pay with a contactless card, a phone wallet or a Ventra card, and you can make up to two transfers within two hours without paying again.
• In the Loop, the State/Lake elevated station is closed for reconstruction into 2029. The CTA suggests Clark/Lake or Washington/Wabash instead.

The Loop: museums, parks and every train

The Loop is the downtown core, named for the ring of elevated track around it. Millennium Park and Grant Park sit on its eastern edge, and several CTA ‘L’ lines stop in or beside it, so it is the easiest base without a car.

Where to stay in the Loop

How the hotel links work: a hotel’s name goes to its own website. “Check rates” opens it on Booking.com through our partner Stay22, which pays us a commission if you book, at no extra cost to you.

• Palmer House, a Hilton Hotel, comfortable. At 17 East Monroe Street, with 1,641 guest rooms, the Lockwood restaurant and, in its own words, over 150 years of history as “America’s Longest Operating Hotel in North America”. Choose it for a historic hotel in the middle of the Loop. Watch out: it is very large, and the hotel publishes no room sizes. Check rates on Booking.com →
• LondonHouse Chicago, comfortable. At 85 East Wacker Drive, with 452 rooms and suites, the three-level LH Rooftop and the Bridges Lobby Bar on the second floor over the river. Choose it for the river and the rooftop views. Watch out: free standard Wi-Fi is for Hilton Honors members who book direct, and the site gives no price for valet parking. Check rates on Booking.com →
• HI Chicago, budget. A hostel at 24 East Ida B. Wells Drive with shared dorms of four to ten beds and private rooms, some with en-suite bathrooms, a café, a guest kitchen and a game room. The hostel lists Grant Park at 0.3 miles and the Bean at 0.7 miles. Choose it for the lowest price near the museums. Watch out: dorms are shared rooms, check-in is from 4 pm and pets are not allowed. Check rates on Booking.com →

River North: the river and the restaurants

River North lies across the river from the Loop. It has galleries, restaurants and a string of hotels along Wabash Avenue, and the Riverwalk runs along its southern edge.

Where to stay in River North

• The Langham, Chicago, splurge. At 330 North Wabash Avenue, in the last office building designed by Mies van der Rohe, with an indoor pool, the Chuan Spa and Travelle, a restaurant with views over the river. Choose it for the architecture and the spa. Watch out: price; the hotel’s site lists no room count or sizes, so ask before booking. Check rates on Booking.com →
• Freehand Chicago, good value. At 19 East Ohio Street, in a 1927 building, with rooms designed by Roman and Williams and the Broken Shaker bar. Standard rooms run from a 155 sq ft Queen to 210 to 225 sq ft Private Quads with four twin beds. Choose it for a design hotel with small, private rooms. Watch out: the resort fee is $15 for private rooms and $40 for quads, and parking is $64 a night. Check rates on Booking.com →
• Ohio House Motel, budget. A vintage downtown motel at 600 North LaSalle Drive, in business since 1960, with free Wi-Fi in every room and a 24-hour front desk. Rooms are a Deluxe King, a Double and a King Suite. Choose it for a plain, central room at a low price. Watch out: the hotel publishes no room sizes or parking details, and check-in is from 4 pm. Check rates on Booking.com →

The Magnificent Mile and Streeterville: shopping and the lake

Michigan Avenue north of the river is the Magnificent Mile, Chicago’s main shopping street, and Streeterville spreads east of it toward Lake Michigan. The Water Tower stands on the avenue, and the Drake, at the northern end, has direct access to Oak Street Beach.

Where to stay on the Magnificent Mile

• The Drake Hotel, comfortable. At 140 East Walton Place, open since 1920, with 535 guest rooms and 74 suites, direct access to Oak Street Beach, afternoon tea in the Palm Court and the Coq d’Or bar. Choose it for the lake and a historic address. Watch out: the hotel lists room types but no sizes; it says guests do not pay Urban Destination Fees. Check rates on Booking.com →
• The Peninsula Chicago, splurge. At 108 East Superior Street, with rooms framing Michigan Avenue, the Water Tower and the lake, an indoor pool on the 19th floor behind 20-foot windows, a spa and the Shanghai Terrace restaurant. Choose it for the pool and the views. Watch out: price; ask whether the downtown 1.5% charge is added to your rate. Check rates on Booking.com →
• The Whitehall Hotel, good value. At 105 East Delaware Place, steps from Michigan Avenue, in a hotel dating to 1928, with the Kirei restaurant and the Whitehall Lounge. Rooms have a mini-refrigerator and an in-room safe. Choose it for a suite-style hotel a block from the shops. Watch out: self-parking is $58 a day, which the hotel says is subject to change. Check rates on Booking.com →

The West Loop and Fulton Market: rooftops and restaurants

West of the river, the old market district around Fulton Market has become a food and nightlife area. The Morgan station on the Green and Pink lines serves it, and it is a livelier base after dark than the office-led Loop.

Where to stay in the West Loop

• The Hoxton, Chicago, comfortable. At 200 North Green Street, at the corner of Lake and Green Streets, with 182 rooms from “Snug” to “Roomy”, the Cira restaurant, the rooftop Cabra by chef Stephanie Izard and a rooftop pool. The hotel puts the Morgan station on the Green and Pink lines a three-minute walk away. Choose it for a lively base in Fulton Market. Watch out: the Snug rooms are the smallest, valet parking is $75 overnight, and the hotel’s FAQ lists the city’s 1.5% charge. Check rates on Booking.com →

Lincoln Park and the Gold Coast: green space and quieter streets

North of downtown, Lincoln Park runs along the lakefront with its zoo, which is free to enter, and the streets around it are residential. The Gold Coast, between the Mile and the park, is similar, with townhouses and a short walk to the shops.

Where to stay in Lincoln Park

• The Neighborhood Hotel Lincoln Park, comfortable. At 2616 North Clark Street, in a landmark late-1800s building, with 14 suites that have full kitchens and washers and dryers. The hotel puts Lincoln Park Zoo under a 15-minute walk away and the lakefront about 15 minutes east. Choose it for a kitchen and space on a longer stay. Watch out: there is no lift and no on-site parking, and your card is charged 14 days before arrival. Check rates on Booking.com →
• Claridge House Chicago, comfortable. At 1244 North Dearborn Parkway, in the Gold Coast, with 165 rooms, Cal’s at Claridge and Sushi by Bou Gold Coast, and pets allowed. Check-in is at 3 pm. Choose it for a quiet, residential street close to the Mile. Watch out: the hotel charges a destination fee, and the pages we read did not state the amount; it covers internet and a $10 daily food and beverage credit. Check rates on Booking.com →

How to book Chicago

• Count the tax. Add 17.4% to every room rate, and 1.5% more at a large downtown hotel that passes on the charge: a $300 room costs between $352.20 and $356.70.
• Ask about fees. Freehand charges a resort fee and Claridge House a destination fee; the Drake says it charges neither. Compare the total, not the headline rate.
• Check the room size. Freehand’s Queen rooms are 155 sq ft. If you need space, book the next category up, or choose the suites at The Neighborhood Hotel.
• Compare totals. Hotel booking sites compared goes through where to book, and hotel taxes around the world shows how Chicago’s bill compares.

All 12 at a glance

Before you go

• Before you fly, sort out mobile data (the best eSIM for the USA) and cover (the best travel insurance).

Frequently asked questions

Sources & further reading

• City of Chicago Department of Finance: Hotel Accommodations Tax, Vacation Rental Surcharge and Tourism Improvement District
• City of Chicago Department of Finance: Tourism Improvement District 1.5% transaction charge, informational points (PDF)
• Illinois Department of Revenue: Excise tax rates and fees
• Illinois Department of Revenue: Pub-106, Hotel Operators’ Occupation Tax
• Illinois Department of Revenue: Illinois Sports Facilities Hotel Tax
• Illinois Department of Revenue: general information letter ST 23-0028-GIL on Chicago hotel taxes (PDF)
• Cook County Department of Revenue: Hotel Accommodations Tax Regulation 2016-1 (PDF)
• Cook County Department of Revenue: Hotel Accommodations Tax, Schedule A (PDF)
• Chicago Transit Authority: fare information
• Chicago Transit Authority: trains to O’Hare and Midway
• Official websites of each hotel named above, checked in October 2026

Prices, fares and hotel terms change. Every detail here was checked in October 2026; confirm rates, room types and cancellation terms with the hotel before booking. These are researched picks, not reviews. This article contains affiliate links: hotel rates on Booking.com and other booking sites through Stay22, and tours, transfers and eSIMs through our partners; if you book through them we may earn a commission at no extra cost to you. No hotel pays to be included.

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