Rendering of Kimpton’s Hotel Palomar

Continued vitality in Philadelphia's convention, tourism, business, and airport markets has allowed Center City Philadelphia hotels to achieve average annual occupancy rates above 70% since 2004.  The average daily rate (ADR) reached $173.68 in 2008, representing an increase of 23% since 2000.  This solid occupancy and ADR growth, coupled with ongoing expansion of the Pennsylvania Convention Center, is projected to generate development of 2,000 to 2,500 new hotel rooms over the next several years. 

Despite the national economic downturn which has brought most construction projects to halt across the country, Philadelphia has recently seen one new hotel open and there are two additional hotels currently under development for a total of 524 new rooms coming onto the market by the end of 2009. 

The Four Points by Sheraton Philadelphia City Center Hotel, of the Starwood Hotels and Resorts family of brands, opened in December 2008.  This 92-room hotel is conveniently located at 1201 Race Street, directly across from the Pennsylvania Convention Center. 

Philadelphia’s first Le Meridien hotel, an upscale full-service brand from Starwood Hotels and Resorts, will be housed in a former YMCA building located less than one block away from the new Broad Street entrance of the Pennsylvania Convention Center.  The 10-story, 202-room Le Meridien, which will also feature a restaurant/bar and function space, is currently scheduled to open on August 6, 2009.

Kimpton Hotels & Restaurants Group is converting a beautiful historic office building located at the intersection of Philadelphia’s business and shopping districts into a 230 room Hotel Palomar.  Kimpton’s Hotel Palomar, an upscale boutique brand with a unique design sensibility, has locations in San Francisco, Los Angeles, Dallas, Washington, DC and Atlanta, which will open April 29.  Philadelphia’s Hotel Palomar, which will incorporate a signature restaurant on its ground floor, will be opening in November 2009.

Kimpton Hotels is a valued client to the Philadelphia Industrial Development Corporation.  PIDC assisted Kimpton Hotels with financing for their hotel project at 17th and Sansom Streets.

The Philadelphia Industrial Development Corporation (PIDC), is a private, not-for-profit corporation created in 1958 by the Greater Philadelphia Chamber of Commerce and the Commerce Department of the City of Philadelphia to promote economic development and job creation throughout the City.  PIDC provides financing programs and real estate products to business and developer client groups in all neighborhoods of Philadelphia.

For further information on PIDC contact Peter S. Longstreth, President, Philadelphia Industrial Development Corporation, 2600 Centre Square West, 1500 Market St., Philadelphia, PA 19102-2126, phone (215) 496-8181.