Philadelphia Hotel Market Posts Record Daily Rate and Revenue in 2019
The report notes that city’s average daily rate rose 5.8% year-over-year to $202.41 and revenue rose 4.3% year-over-year to $707 million.
PHILADELPHIA—The Philadelphia hotel market ended the decade with strong results in 2019, including record-setting numbers for the average daily room rate and revenue, according to a report released on Tuesday by VISIT PHILADELPHIA, the Philadelphia Convention and Visitors Bureau and the Greater Philadelphia Hotel Association.
The report notes that city’s average daily rate rose 5.8% year-over-year to $202.41 and revenue rose 4.3% year-over-year to $707 million.
In spite of the fact that four new hotels opened in the city in 2019 that added 491 rooms to the city’s supply, overall occupancy remained solid at 76.3%, as did demand with 3.49 million room nights consumed.
“I’m proud that even with new properties entering the Philadelphia market, our hotels continue to set records,” says Philadelphia Mayor Jim Kenney. “Our growing tourism and hospitality industry works collaboratively to ensure that people choose Philadelphia for meetings, business trips, and vacations every season of the year. This constant stream of visitor activity generates tax dollars and supports family-sustaining jobs for our residents. That’s hugely beneficial to our city and region.”
Some of the other key data points from the report include:
• Saturday night remained the busiest night of the week, with average occupancy at 88.1%, while Tuesday was the busiest weeknight, with 79.4% occupancy.
• The market posted record revenue per available room at $154.
• Growing 1.2% year over year, RevPAR is up from $152 in 2018.
• 4.58 million room nights in supply, 3.49 million room nights sold
• 2019 demand surpassed the overall five-year average by 4.5%, showing that the market is strong and thriving.
• Of the 3.49 million rooms consumed, demand was split largely evenly among the three segments of travel: business (33%), group (32%) and leisure (31%). Contract business (primarily flight crews and long-term stays) accounted for 4% of the mix.
• According to AIRDNA, in 2019, Center City Philadelphia saw a significant increase in demand for limited-lodging options such as Airbnb, with 343,700 room nights consumed by guests renting a private room or an entire home, up 38.9% year over year.