Philly hotels post record occupancy in 2010

February 19, 2011|By Suzette Parmley, Inquirer Staff Writer

Thanks to two new hotels, expanding tourist attractions, and rebounding business travel, Philadelphia filled nearly four million hotel beds last year, the most ever - a number Mayor Nutter called proof that "we're a hot town."

At a City Hall news conference Friday to tout the statistics, Nutter said visitors spent on average $22 million a day, or about $8 billion a year, while they were here.

Despite the continuing economic struggles that have hobbled the U.S. travel and hospitality industries, Philadelphia's 87 hotels outperformed the country in occupancy last year, according to Smith Travel Research, which tracks the industry - 71.6 percent compared with 57.6 percent, the 2010 national average.

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In addition, hoteliers here were able to charge more for a room, with an average daily rate of $134, compared with the national average of $98 per room, Smith Travel Research said.

"From a hotel-demand standpoint, Philadelphia's 2010 results did set a record and certainly reflected the strong beginnings of a recovery from the recent recession," said Peter Tyson, vice president of Colliers PKF Consulting USA.

Yet the economic downturn "resulted in Philadelphia's 2010 average room rates dropping to levels experienced back in 2005 and 2006," Tyson said.

As a result, overall room revenue last year did not set a record, falling about $64 million short of the record $599 million reported in 2008, according to Smith Travel Research. Hotel-room receipts totaled $535 million last year.

Jim Gratton, president of the Greater Philadelphia Hotel Association, said the yearly figures indicated that the city's hotels - which, with the addition of Palomar and Le Meridien, now offer about 15,000 total rooms and employ more than 10,000 people - were rebounding on room rates.

As occupancy, or demand, increases, hoteliers are better able to set rates and boost revenue, said Gratton, general manager of the Courtyard by Marriott near City Hall.

Four million booked rooms and an occupancy rate of almost 72 percent represented an increase from 3.74 million and a 60 percent occupancy rate in 2009, he said.

"We are very encouraged by these numbers because they represent a turnaround for our industry," Gratton said at Friday's event with the mayor. "Plus, with the expansion of the Convention Center, we expect an even brighter future."

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