Philadelphia Hospitality Market Report
2023 Investment Forecast
Convention Center Lineup Harvests Business Travel;
Air Cargo Expansions Pique Investor Interest
Slate of scheduled events exceeds 2019 total. Business travel to Philadelphia is positioned to improve during the near term, as the metro is set to host 20 major conventions this year — each of which are estimated to generate more than 2,000 occupied hotel rooms on peak nights. Headlining this list are the Natural Products Expo and the annual meeting for the American Association for Public Opinion Research. Other events are returning from pandemic hiatuses or disruptions, such as the NCAA Men’s Lacrosse Championships and the Philadelphia Flower Show. The growth of the local life sciences sector may also generate business travel this year, as expanding firms bring prospective candidates and current employees from outside the market into Philadelphia for interviews and training. Together, these demand drivers will allow for continued occupancy improvement this year, with the lodging industry expected to amass a collective annual revenue of $1.8 billion, surpassing the 2019 total. Steady occupancy gains and encouraging revenue growth may warrant an increase in development proposals, as the metro has added limited stock since 2020.