Philadelphia Hospitality Market Report

Pedestrians return to the city’s tourist-friendly neighborhoods. The removal of nearly all of the city’s COVID-19 restrictions has buoyed business in Center City, supporting the return of Philadelphia’s liveliest district. As of mid-June, pedestrian volume and in-store foot traffic are 84 and 96 percent of the contemporary 2019 levels, respectively, with a portion of these gains credited to tourism. The return of economic activity to the urban core should accelerate hospitality recovery here. Entering June, the CBD was the lone submarket posting a trailing 12-month occupancy rate under 50 percent. Daily rates in this locale have advanced more rapidly, and will surpass pre-pandemic highs before the end of the third quarter.