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. 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 increase over the last several years, the Philadelphia market has been somewhat sluggish. Occupancy remained well below pre-pandemic performance through 2024, due primarily to the slow recovery of both international travel and group bookings. However, given the new ADR peaks in recent years, RevPAR finally exceeded pre-pandemic levels in 2024, albeit by a small margin. The year-to-date performance through May 2025 reflects a moderate increase in both occupancy and ADR, as supported by the diverse base of employers, stronger convention activity, and greater international tourism. We note that it is uncertain how the new federal policies may affect demand for the remainder of 2025. Nevertheless, the major events scheduled for 2026, including the FIFA World Cup games, the MLB All-Star Game, and activities related to the U.S. Semiquincentennial, should positively influence the market's performance metrics.
* 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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| ADR Change
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| Market Demand Change
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| Hotel Occupancy Increase/Decrease
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| RevPAR Change
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0.0%
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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%
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| 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
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| 2012 |
$79.66
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| 2013 |
$78.99
|
| 2014 |
$82.69
|
| 2015 |
$87.26
|
| 2016 |
$91.62
|
| 2017 |
$89.10
|
| 2018 |
$91.34
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| 2019 |
$94.09
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| 2020 |
$96.92
|
| 2021 |
$
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| 2022 |
$
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| 2023 |
$
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| 2024 |
$
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| 2025 (f) |
$
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| 2026 (f) |
$
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| 2027 (f) |
$
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