Hotel Online
News for the Hospitality Executive


advertisement
 
 

A Smart Choice for Hotel Investment: The City of Philadelphia Supports
Hotel Development and Renovation Projects through Public Financing,
Tax Credits, and Many Other Programs



PHILADELPHIA…April 26, 2010…As the days tick away to the opening of an expanded Pennsylvania Convention Center just 10 months away, the excitement is building in the City of Philadelphia. To prepare for this historic event, the City is working with various partners to promote Philadelphia as a smart choice for hotel development and investment.

As a sign of this economic development partnership, the City of Philadelphia, the Philadelphia Convention & Visitors Bureau (PCVB) and the Philadelphia Industrial Development Corporation (PIDC), with input from PKF Consulting and the Greater Philadelphia Hotel Association, have teamed up to produce Philadelphia: Smart City. Smart Choice for Hotel Investment., a resource to highlight the opportunities for prospective hotel developments within Philadelphia. It includes a comprehensive market review (Convention Center expansion, transportation and access, new development, lodging by market and historical performance, and demand by segment), public financing programs and other City support for development projects, and a hotel map.

“In these challenging times, Philadelphia continues to show it's the smart choice for business,” said Mayor Michael A. Nutter. “With the Convention Center expansion set to open in less than a year, the City and its partners are working to market Philadelphia as a destination, especially to hotel developers. Our message is invest now and reap the coming rewards as the region's economy takes off." 

At the forefront of economic development are additional hotel rooms needed in Philadelphia. It is expected that an additional 1,500-2,000 hotel rooms will be essential by 2013 to meet the needs of an expanded Convention Center, which will grow by 62 percent and have the ability to host two conventions simultaneously or one large tradeshow. 

Philadelphia has already added more than 500 hotel rooms to its inventory in anticipation of the expanded Convention Center. In October 2009, two new hotels joined the Philadelphia hospitality landscape. Kimpton’s 230-room Hotel Palomar Philadelphia opened at 17th and Sansom streets and the 92-room Four Points by Sheraton, right across from the expanding Convention Center. Next to join -- Le Méridien Philadelphia, a 201-room hotel, expected to open this May at 1421 Arch Street, is just steps away from the expanding Convention Center.

"Philadelphia's strong convention market, the expansion of the Pennsylvania Convention Center, along with the city's central location on the East Coast, make it a very attractive destination for hotels, including our own boutique Kimpton brand," said Peggy Trott, general manager, Hotel Palomar Philadelphia.  "We pride ourselves on anticipating and exceeding our guests' expectations.  With a hotel within walking distance of the Convention Center, a city so rich in history and culture, and a community so committed to our meetings and conventions guests, it is easy to do that in Philadelphia."

One significant way the City and PIDC support hotel development and renovation projects in Philadelphia is through 12 public financing, tax credit, and other programs. They include: 

  • The Welcome Fund, which can provide financing in increments of $500,000 for every 10 new direct and indirect jobs created by a project.
  • Greenworks Loan Fund, where the City of Philadelphia, PIDC, and The Reinvestment Fund are offering low-cost financing to support energy efficiency retrofits and new construction projects in Philadelphia.
  • City of Philadelphia Job Creation Tax Credit (JCTC), where the City provides a tax credit of up to $3,000 per employee for new, full-time jobs created in 2010 and 2011.
  • Developer Services, where the City will bring together all major operating departments and utilities involved in the permitting and approval process to review and facilitate development projects.
“Philadelphia is one of the leading centers of commerce in the nation with a great business address,” said Jack Ferguson, executive vice president/incoming president, PCVB. “The hospitality arena, with expansion as the centerpiece, shows Philadelphia is a smart investment.” 

For a copy of Philadelphia: Smart City. Smart Choice for Hotel Investment, contact the PIDC at 215/496-8151 or the PCVB, 215/636-3300.

PHILADELPHIA CONVENTION & VISITORS BUREAU (PCVB), www.PhiladelphiaUSA.travel, a private non-profit membership corporation, is the official Tourism Promotion Agency for the City of Philadelphia, and the primary sales and marketing agency for the Pennsylvania Convention Center. The PCVB competes with its counterparts worldwide for convention and tourism business. The organization has departments dedicated to the multicultural, sports, and life sciences markets. 

PHILADELPHIA INDUSTRIAL DEVELOPMENT CORPORATION (PIDC), www.pidc-pa.org, is a private, not-for-profit Pennsylvania corporation, founded in 1958 by the City of Philadelphia and the Greater Philadelphia Chamber of Commerce to promote economic development throughout the city. PIDC's central strategy is to leverage financing and real estate resources to retain and to grow employment in Philadelphia.  PIDC also coordinates tax incentive and work force development programs offered by the City and the Commonwealth. Clients range from the traditional base of commercial and industrial businesses to the developers of large, public purpose facilities to non-profits, in all neighborhoods of Philadelphia.

.
Contact: 

Liz Sullivan(PCVB)
215/636-3412; lizs@pcvb.org

.
.
 
Also See: Life Liberty And You the City of Philadelphia’s New Signature Brand; City Expects to End 2009 with a 68% Hotel Occupancy / November 2009
.

To search Hotel Online data base of News and Trends Go to Hotel.OnlineSearch
Home | Welcome| Hospitality News | Classifieds| One-on-One |
Viewpoint Forum | Industry Resources | Press Releases
Please contact Hotel.Onlinewith your comments and suggestions.