Philadelphia Hospitality Market Report

Business and group demand stabilize hotel bookings. Philadelphia’s hospitality landscape faces a mixed yet resilient outlook for 2025. Occupancy in the CBD is forecast to rise by over 100 basis points, bolstered by recovering corporate and event travel. The metro will host eight matches for the FIFA Club World Cup at Lincoln Financial Field this summer. Expected to draw over four million visitors nationwide, this event should boost local hotel demand. Several major carriers — including American Airlines, Aeroméxico and Frontier — will also add or resume service from Philadelphia in 2025, expanding the metro’s capacity for inbound travel. The airport submarket, however, may face softening demand due to financial constraints on lower-income households. Fortunately, supply pressure is minimal in 2025, with the number of rooms added across the metro marking a 10-year low. Concurrently, convention-related bookings are set to remain strong, fueled by the market’s sizable roster of biotech and life science firms. Last year, Philadelphia ranked second nationally for medical office leasing — a trend that could increase health-related conventions.