United States -  Philadelphia

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 rebound in occupancy over the last couple years, the Philadelphia market has been somewhat sluggish, with occupancy remaining well below the pre-pandemic performance in 2022, due primarily to the sluggish rebound of both international travel and group bookings. Thus, while ADR reached a new high in 2022, RevPAR levels remained moderately below the pre-pandemic peak. Nonetheless, occupancy and ADR continued to strengthen in 2023, with RevPAR increasing notably, owing to an uptick in both transient and group travel. The outlook for 2024 is favorable, with further occupancy growth expected to be supported by the diverse base of employers, convention center activity, and strengthening 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.

Change In Value For Market:

Significant Value Increase: Greater than +10%
Moderate Value Increase: Between +3% and +10%
Stable Values: Between -3% and +3%
Moderate Value Decline: Between -3% and -10%
Significant Value Decline: More than -10%

For more information, please contact:

Scott Killheffer
Senior Vice President
Valuation, Market & Feasibility Consulting
[email protected]
  • +1 302 897-9393 (w)
Jerod Byrd, MAI
Managing Director
Valuation, Market & Feasibility Consulting
[email protected]
  • +1 901 481-3058 (w)