ICYMI: “Phila. Hotels get Last-Minute DNC Bump; Short-Term Rentals ‘Skyrocketing’”
PHILADELPHIA – In case you missed it, the Philadelphia Business Journal published a story about the increased business the City’s hospitality industry experienced during the Democratic National Convention. The full text of the article can be viewed below.
Phila. hotels get last-minute DNC bump; short-term rentals ‘skyrocketing’
Philadelphia Business Journal // Kenneth Hilario
Philadelphia hotels are getting a last-minute bump this week as the Democratic National Convention kicks off, while vacation property rentals are “skyrocketing.”
“I’m seeing a lot of pick up,” said Ed Grose, executive director of the Greater Philadelphia Hotel Association.
Hotel occupancy on Monday, July 25, was at 96 percent, while occupancies from Tuesday through Thursday are at about 99 percent, Grose said.
The Philadelphia Convention & Visitors Bureau said as of July 21 that Center City hotels had occupancy levels above 95 percent from Monday through Thursday. Numbers change daily so final numbers may be different. Actual hotel performance data will be published on Wednesday, Aug. 3.
“We’ve really picked up well,” Grose said. “There are a lot of last-minute [bookings.] I would guess it’s people changing their plans and maybe some moving around.”
Occupancy was a little lighter last Friday and Saturday, Grose said during a conversation last week, because people weren’t coming in early. However, he expected business to pick up come Sunday and Monday.
And it did.
“Our hotels are going to have a great week,” Grose added. “[Average daily rate is] a little bit down from what was projected, but they are full. Overall, this is great for Philadelphia.”
Lower rates were a result of the cancellations — both in hotel rooms and food and beverage, said Grose, who said he won’t know what final ADR figures would be until after the DNC.
An online search for available rooms in Philadelphia from July 25-28 shows there is demand, however, as some Center City hotel properties have high nightly rates, including the Ritz-Carlton, Philadelphia, which starts at $1,209 per night, and AKA Rittenhouse Square, which starts at $772.50 a night as of press time.
“All these prices are based on supply and demand,” Grose said. “The demand is there and people are booking. Otherwise, you’d see these rates dropping.”
Others are selling at a much lower rate, including Chestnut Hill Hotel, whose rates start at $169 a night.
Short-term, vacation rentals are “skyrocketing” for Philadelphia, too, according to search engine Tripping.com, which compares properties from multiple rental sites, including HomeAway, VRBO, TripAdvisor, Booking.com, among others.
The average price for a vacation rental near the DNC has gone up 142 percent since last week, from $258 a night to $625 a night, according to Tripping.com, which said fewer people attended last week’s Republican National Convention in Cleveland where Donald Trump became the official GOP presidential nominee.
“We saw a similar trend with the pope’s visit last year and the Super Bowl in February,” Jen O’Neal, founder and CEO of Tripping.com, said. “Owners are becoming increasingly savvy about offering their properties at competitive prices in advance of major events. Of course, asking for more per night doesn’t mean you’re guaranteed to get a booking.”
Fewer people attended the Republican National Convention. At its peak, there was a 79 percent total available inventory in Cleveland, down from 83 percent from two weeks ago, “while Philadelphia is over half booked,” according to Tripping.com.
The average price for a vacation rental near the GOP convention only went up 14 percent, from $290 a night to $332 a night at its peak last week, according to Tripping.com, showing little demand in Cleveland.
Airbnb did not provide any information on its booked or available properties this week, but there are more than 6,300 active listings in Philadelphia, according to data analytics service Airdna.
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