2021 Sets the Stage for Multi-year Tourism Recovery After a Devastating Year for Hotels

PHILADELPHIA – Today, the City of Philadelphia, in conjunction with VISIT PHILADELPHIA®, the Philadelphia Convention and Visitors Bureau and the Greater Philadelphia Hotel Association, announced a devastating 2020 for Center City Philadelphia hotels amidst the global COVID-19 pandemic. The decrease in occupancy (down 59.5% year over year to 30.9%), average daily rate (down 22.7% year over year to $156.27) and room revenue (down 74.9% year over year to $176.9 million) come after a decade of prosperity and growth for hotels from 2009 through 2019.

“Our travel and tourism industry was hit hard by COVID-19, but its recovery is poised to begin in earnest in 2021. In fact, Tourism Economics estimates that Philadelphia will sell 660,000 more room nights in 2021 than we did in 2020,” said City of Philadelphia Mayor Jim Kenney. “Those additional room nights, while still lagging behind 2019 levels, will be a positive step forward in bringing back tourism jobs and tax revenue that are critically important to our city’s vitality. It’s also exciting that four new hotels are opening here this year. That’s a sign of the private investment sector’s optimism in the future of Philadelphia’s hospitality industry, and it’s an optimism that I share.”

2020 Center City Hotel Results:

  • Room Demand: 1.1 million room nights sold, down 67.5%. The market mix for those rooms breaks down as:
    •  36.2%: Business
    • 41.0%: Individual Leisure
    • 6.8%: Group
    • 6.1%: Contract
  • Occupancy: 30.9%, down 59.5% from prior year.
  • Average Daily Rate (ADR): $156.27, down 22.7% from prior year.
  • Revenue Per Available Room (RevPAR): $48.27, down 68.7% from prior year.
  • Room Revenue: $176.9 million, down 74.9% from prior year.

“It’s no question that our hotel industry suffered greatly in 2020, but we’re working to build back our business in 2021 and beyond,” said Bob Cosgrove, president, Greater Philadelphia Hotel Association. “While travel demand is expected to increase this year, returning to 2019 levels will take time. The recovery will begin with domestic leisure travelers — especially as vaccinations increase — and continue with business and group travel once in-person gatherings are permitted and travel budgets are restored. We’re grateful to Mayor Kenney for the City’s commitment to our industry and its recovery.”

According to AIRDNA, in 2020, Center City Philadelphia saw a significant drop in demand for short-term lodging options such as Airbnb as well, with 189,500 room nights consumed by guests renting a private room or an entire home, down 43% year over year.

Data Sources: STR, Tourism Economics and AIRDNA; all data points are based on the most current information available and may change slightly as new data becomes available.

About VISIT PHILADELPHIA:
VISIT PHILADELPHIA is our name and our mission. As the region’s official tourism marketing agency, we build Greater Philadelphia’s image, drive visitation and boost the economy.

On Greater Philadelphia’s official visitor website and blog, visitphilly.com and uwishunu.com, visitors can explore things to do, upcoming events, themed itineraries and hotel packages. Compelling photography and videos, interactive maps and detailed visitor information make the sites effective trip-planning tools. Along with Visit Philly social media channels, the online platforms communicate directly with consumers. Travelers can also call and stop into the Independence Visitor Center for additional information and tickets.

About the PHLCVB:
The Philadelphia Convention and Visitors Bureau (PHLCVB) creates positive economic impact across the Philadelphia region, driving job growth, and promoting the health and vibrancy of our hospitality industry by marketing the destination and the Pennsylvania Convention Center globally. Our work engages our local community, as well as culturally and ethnically diverse regional, national and international convention and sporting event and tourism customers, as well as overseas leisure visitors.

About GPHA:
The Greater Philadelphia Hotel Association (GPHA) is a trade association representing more than 90 hotels throughout the Philadelphia 5-county area. In addition to our hotel members, we also have over 150 Allied Members, a diverse group of companies and related industry partners who do business with hotels. Our hotel members employ over 14,000 residents and have over 30,000 guestrooms.

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