City staff report: restaurants stable but face rising costs; hotels show steady occupancy in 2025

Economic development staff presented the 2025 retention-visit report, focusing on restaurants and hotels. The report estimated about 125 restaurants in Saint Charles, with top performers contributing more than $175,000 in sales tax and smaller establishments contributing roughly $25,000 annually. Staff said most restaurants reported stable or slightly positive results but flagged rising costs—especially labor—and workforce reliability as major concerns.

The report also covered hotels: staff said there are 11 hotels totaling about 1,900 rooms, with an overall 2025 occupancy rate of 63.1% (up from 60% in 2023) and an average daily room rate around $168. Staff noted weddings and corporate events as primary drivers of hotel demand and cited reinvestment by many hotels as a positive sign. Council discussed exploring liquor‑license saturation and outreach ideas such as mixing Q Center shuttle drop‑off locations to better distribute visitor traffic.

Staff recommended continued retention visits and highlighted downtown events and public investment—such as the plaza—as important drivers of restaurant sales. Council did not take formal action on policy changes but discussed potential future agenda items.