The greater Philadelphia hotel market is driven by visitation to the city's historic sites, events at the Pennsylvania Convention Center, local corporations and government institutions, medical centers, and local universities. Highlights in the last decade included the Papal visit in 2015, the Democratic National Convention in 2016, and the Philadelphia Eagles winning the Super Bowl in 2018. Philadelphia tends to perform at a high-60.0% occupancy level during times of economic strength, with occupancy having exceeded 70.0% leading up to the pandemic. Despite a nationwide occupancy rebound over the last several years, the Philadelphia market has been somewhat sluggish. Occupancy remained well below pre-pandemic performance through 2023, due primarily to the slow recovery of both international travel and group bookings. Thus, while ADR reached a new high point in 2023, owing to an uptick in both transient and group travel, RevPAR levels remained marginally below the pre-pandemic peak. However, in 2024, occupancy increased slightly and ADR remained generally stable; as a result, RevPAR strengthened by nearly 4.0% and surpassed the pre-pandemic peak. The outlook for 2025 is favorable, with further occupancy growth expected to be supported by the diverse base of employers, stronger convention activity, and greater international tourism.
* Although the HVI cannot tell you what a particular hotel is worth, it does provide excellent “big picture” data, indicating which market areas are experiencing positive trends, and thus may present good investment opportunities. The HVI for the U.S. is a measure of the strength of the lodging industry as a whole and, specifically, the hospitality investment market. The HVI for the various identified markets can provide a basis to evaluate and compare different geographic regions. For more insight on the limitations and applicability of the HVI, please read the message on the HVI home page by clicking on the graphic at the top of this page.
The widespread impact of the coronavirus (COVID-19) has had an unprecedented impact on hotels and hotel values worldwide.
Consequently, the latest HVI analysis may no longer reflect the most current measure of lodging industry strength or the
hospitality investment market.
In each of our offices across the globe, we are working tirelessly to analyze the impact of recent events and provide timely
insights to help you navigate these uncharted waters. Because it is unclear how long the pandemic will last or how long related
restrictions will be in place, we are updating our analyses on a weekly basis using the most current data.
Additionally, examination of value trends in prior cycles can provide useful information. Historical patterns, together with
an understanding of the market’s current expectations for the eventual recovery of the industry and its performance, can provide
insights on the likely trajectory of decline and recovery for hotel values.
For the Latest Information and Analysis on the Impact of COVID-19Click Here
If you’d like to speak to someone personally to review details of our most current analysis, please don’t hesitate to contact
us directly.
ADR, Demand, Occupancy, RevPAR, and Supply Projections:
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|
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| ADR Change
|
|
|
| Market Demand Change
|
|
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| Hotel Occupancy Increase/Decrease
|
|
|
| RevPAR Change
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0.0%
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0.0%
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| Market Supply Growth
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Change In Value For Market:
Legend
| Significant Value Increase:
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Greater than +10%
|
| Moderate Value Increase:
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Between +3% and +10%
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| Stable Values:
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Between -3% and +3%
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| Moderate Value Decline:
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Between -3% and -10%
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| Significant Value Decline:
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More than -10%
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Philadelphia RevPAR Change
Philadelphia RevPAR
| Year |
RevPAR |
| 2008 |
$80.06
|
| 2009 |
$67.75
|
| 2010 |
$69.14
|
| 2011 |
$75.71
|
| 2012 |
$79.66
|
| 2013 |
$78.99
|
| 2014 |
$82.69
|
| 2015 |
$87.26
|
| 2016 |
$91.62
|
| 2017 |
$89.10
|
| 2018 |
$91.34
|
| 2019 |
$94.09
|
| 2020 |
$96.92
|
| 2021 |
$
|
| 2022 |
$
|
| 2023 |
$
|
| 2024 |
$
|
| 2025 (f) |
$
|
| 2026 (f) |
$
|
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