February 18, 2011 – Mayor Michael A. Nutter announced that, despite the economic recession, hotels in Philadelphia sold more rooms than ever before in 2010. In its end-of year report, Smith Travel Research, a firm that monitors and analyzes hotel trends, reported that approximately four million room nights were sold in Philadelphia in 2010, as compared to approximately 3.74 million hotel room nights that were sold in 2009.
Currently, there are about 15,000 rooms available every day in Philadelphia. These sales results demonstrate the resiliency of the tourism and hospitality industry and the value of a trip to Philadelphia, according to the Greater Philadelphia Tourism Marketing Corporation (GPTMC), the Greater Philadelphia Hotel Association (GPHA) and the Philadelphia Convention & Visitors Bureau (PCVB).
“Record-breaking hotel sales figures in 2010 reflect the City’s forward momentum in rebounding from tough economic times,” said Mayor Michael A. Nutter. “Philadelphia’s hospitality and tourism industry, which supports 56,000 jobs, is a significant driver of our local economy and we look forward to even more encouraging sales figures in the upcoming years.”
Ed Grose, Executive Director of the Greater Hotel Association of Philadelphia said, “The increase in occupancy over 2009 is even more significant as demand and supply in Philadelphia continue to grow.”
“With visitation expected to rise in all demand segments, and the convention center expansion opening in just a few weeks, we should see more hotels interested in joining the Philadelphia landscape. The next few years will be a very exciting time in the Philadelphia hotel industry,” Grose said.
PKF Consulting reported that convention and group travelers occupied 35% of booked hotel rooms, individual business travelers- 31% of booked hotel rooms; and individual leisure travelers- 30% of booked hotel rooms.
Smith Travel Research reported that:
● in 2010, hotel occupancy in Philadelphia reached 72%, up from 68% in 2009
● revenue per available room was $96 in 2010, up from $95 in 2009
● the average daily rate was $134, down from $139 in 2009
● Saturday night boasted the highest occupancy of the week at 79%
● Tuesday and Wednesday generated the highest average daily rate at $141
The leisure segment has been steadily on the rise, with leisure room nights tripling since GPTMC placed its first ad in 1997 and began its year-round presence in high-yield markets. These efforts have been complemented by an increase in international travel to Philadelphia since 2002 with the launch of new flights and the PCVB’s international marketing campaign. Corporate travel is making a healthy rebound and hotels are doing better than ever at booking their own meeting spaces, boosting the business travel segment.
Visitors continue to come and there are plenty of reasons to be optimistic that they will keep filling our hotels in 2011 and beyond. First up, this March 9, the newly expanded Pennsylvania Convention Center will open on-time and on-budget beginning with the Philadelphia International Flower Show taking place simultaneously with the National Association of Student Personnel Administrators (NASPA) convention (3,000 attendees; 8,920 room nights). Following right behind NASPA is the Association of periOperative Registered Nurses (A.O.R.N.) — the first convention to use the entire expanded convention center from March 18-24 (14,000 attendees; 27,026 room nights). Combined, these conventions will generate more than $40 million in economic impact in March.
Visitors will also come for new attractions, such as the National Museum of American Jewish History, Liberty 360, The President’s House and soon-to-be-relocated Barnes Foundation (opening in 2012), along with blockbuster exhibitions and festivals like the Philadelphia International Festival of the Arts (April 7 – May 1). Adding to these, Independence National Historical Park and our destination-defining annual events, including the Philadelphia International Flower Show, the Philadelphia Marathon, Wawa Welcome America, Global Fusion Festival, just to name a few, are significant draws.
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The Greater Philadelphia Hotel Association serves the interests of over 80 hotels throughout the region. Our members employ over 14,000 people and have over 30,000 rooms. www.philadelphiahotelassoc.org.
The Greater Philadelphia Tourism Marketing Corporation (GPTMC) makes Philadelphia and The Countryside® a premier destination through marketing and image building that increases business and promotes the region’s vitality. www.visitphilly.com or www.uwishunu.com.
The Pennsylvania Convention Center Authority manages the largest investment in the Commonwealth of Pennsylvania. Expansion opens in March 2011 with 62% more space than before (one million square feet). The 14th-largest convention center in the United States has a focus on the best customer service and state-of-the-art technology in the industry. www.paconvention.com.
The Philadelphia Convention & Visitors Bureau (PCVB), a private non-profit membership corporation, focuses on the convention, tradeshow, meetings, group tour and international tourism markets. The PCVB is the official Tourism Promotion Agency for the City of Philadelphia and the primary sales and marketing agency for the Pennsylvania Convention Center. www.PhiladelphiaUSA.travel.
Smith Travel Research tracks supply and demand data for the hotel industry and provides valuable market share analysis for all major international hotel chains and brands. To learn more, visit www.strglobal.com
Colliers PKF Consulting USA is a national firm of management consultants, industry specialists, and appraisers who provide a full range of services to the hospitality, real estate, and tourism industries. Each month, PKF produces the Philadelphia Area Hospitality Industry Snapshot report, jointly sponsored by GPHA, GPTMC and PCVB. To learn more, visit http://www.pkfc.com/en/
