Faced with the prospect of bellhops with no luggage to lug and maids with no beds to make, Penn and city officials have devised a remedy aimed at filling the city's empty hotel rooms. The number of hotel rooms in Philadelphia has mushroomed by 62 percent in just over two years -- largely the result of preparation for the 2000 Republican National Convention -- and now area business leaders are being encouraged to hold their organizations' meetings in Philadelphia rather than more exotic locales. At the University, this effort is called "Destination Penn," a program intended to tap 4,000 faculty and staff members -- and their professional associations and conference meetings -- to fill the University's hotel and conference space. "It allows us to tie both the campus facilities and the hotels together, almost as our own little convention bureau," said Larry Moneta, Penn's vice president for campus services. "Lots of campuses have modest summer conference operations; we're trying to take it a step further by offering a year-round destination." Penn owns three hotels -- the Inn at Penn, the Sheraton University City and the Penn Tower Hotel. Buildings earmarked for meeting events include Houston Hall, Logan Hall and Irvine Auditorium. In addition, dormitories will be rented out as a less expensive lodging option. Currently, about 100 different conferences and events are held on campus throughout the year, according to Jeff Barta, director of sales and marketing for Penn Conference Services. Targeting faculty and staff through a letter that will be sent later this month, Penn hopes to add up to 60 new meetings a year. "Our highest priority is certainly supporting our own faculty, staff, and students and the conferencing needs that they have," Moneta said. "Beyond that, we'll look to supporting the local Philly market." Proceeds generated from renting hotel and meeting space will be directed towards renovating the college houses, Moneta said, adding that the $30,000 marketing initiative will run "until we get tired of it and start another one." Destination Penn is part of a larger campaign -- entitled "Bring Home One in 2001" -- launched last fall by the Philadelphia Convention and Visitors Bureau. "Our message is that Philadelphia hosted the Republican National Convention, and now we have all of this new hotel product," said Sue Schwenderman, director of communications for the Philadelphia Convention and Visitors Bureau, which is leading the effort. "We want people in the region to recognize that we have all of the things that would make their meetings a success as well," she added. If all of the area's employers succeeded in adding one additional meeting to the city's lineup, an extra $10 to $15 million could be pumped into the region's hospitality industry. This would be good news to Philadelphia's hotels, the majority of which are struggling toward profitability. "We're expecting some great things," said Ken Kapikian, general manager of the Sheraton University City. "The seasons that [Penn has] the most availability to book groups in conferences is in the summer and winter, and that's the time when the hotels in Philadelphia and University City need business." Most hotels begin to lose money when their occupancy rate falls below 60 percent, according to Mickey Rowley, executive director of the Greater Philadelphia Hotel Association. In 2000, the occupancy rate of Center City hotels was just over 62 percent, compared to 73 percent in 1997. The slipping occupancy rates are the result of nearly 4,000 new rooms, most of which were built to handle the demand of the convention center. "In a very short period of time, we built more hotel rooms [than any city] except for Orlando and Las Vegas," according to Visitors Bureau President Tom Muldoon. "It takes a while whether you build classrooms or you build hospital beds -- you just can't swallow that all at one time." In addition to the two marketing campaigns, the city's hotels are attempting to fill their beds by targeting markets outside of their traditional scope -- including bus tours and airline flight crews. "You see some jockeying around for business that -- in good years -- Center City hotels don't go after," Rowley said. A $464 million addition to the convention center is also being eyed to bring in more hospitality business and stay competitive with other expanding convention centers, such as the one in Washington, D.C. But the convention center -- which opened in 1993 -- has been plagued by labor unrest that has frightened away many customers. However, a new contract that went into effect in January between the convention center and its union workforce hopes to mend that fray and induce city and state officials to fund a larger convention center. "The only way that we can really fill all those hotel rooms at an occupancy level that makes everybody money is to make [the convention center] bigger," Muldoon said. "We can't get the money until we do a better job in the building."
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