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<br />S TR ATEGIC ADVISOR y GROUP LLC
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<br />Hotel Public-Private Partnerships
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<br />Performance of Your Convention Center
<br />is Highly Dependent on Your Hotels
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<br />By left'SIW, Jerry McCJendoD IUd Tony Pe\enIIIIII
<br />
<br />It seelTl5 as thougb evr:ry city todly is
<br />pursuing I cODveDtioD holel project to
<br />be located Dear ilS cODveDtiOD eenter.
<br />But wby are public-sector entities
<br />willing 10 invest sometimes- subsLBntial
<br />amounts of publie resources to get Iheae
<br />generally privlte-seclor projects ofT the
<br />pouucl? Tbe pcn:qltion is tblt !bese
<br />holel projects will enhanee the city IS a
<br />conventioD deslinatioD 1Del, more
<br />specifially, enhance Ihe pedonnauce of
<br />Ihc ~ODveDtioD ~enler. To the paiD..
<br />lhue headquaner botels are pereeived
<br />to be I ~ILBlyst to inc7eue cODveDtiOD
<br />letivity ami, Ibere(ore, the eCODomic
<br />beDefns brought 10 the conununity,
<br />The StJalelic AdvisOJ)' Group LLC
<br />re~enlly cODducled au aullysis 10
<br />address this very issue. Sixty of the
<br />IUlest cODveDtioD ceDter districts in the
<br />U,S, were surveyed regardiDll lheiJ
<br />nelrby hOlel supply and room nighl6
<br />I!eneraled by Ibe eenter. Plnieipalinl!
<br />cenlers nnl!ed from I million squarr
<br />fOOl cenlers in Las Vegls, Orlando aDd
<br />New Orlelns to 200,000 squire (001
<br />cenlen in Boslon, Tampa and
<br />Birmingham. IDd In sizes in betwceD,
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<br />Do Hotels Make A Difference?
<br />The sNdy examined 1be impact of
<br />bolds OD cODveDtioD CCDler
<br />pc:rfonnance in wee wa)'l: I) botel
<br />room blocks wi1hiD wllkina diuaDce; 2)
<br />the number of lnacbed aDd adjaceDt
<br />botel rooms; and 3) climate.
<br />Wby are Ibese crileria imponant?
<br />The fIJsl issue a meeting plaMer musl
<br />address wbeD selecting a convention
<br />destination is whelber there are enough
<br />hOle) rooms in the destinatioD city.
<br />Mosl major cities will pass this lest (or
<br />III but a handful of the world'l largest
<br />events, Once Iblt larger picture issue is
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<br />addressed, Ibc pllODer will (OCUI OD
<br />blod:able botels DCU Ibe ceDICl IUd the
<br />beadquarter botel.
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<br />Room Block Within Walking
<br />Distance .
<br />Re(er to the gnpb entitled "Block
<br />wlm Walkin& DiItaoc:c." The bOri2.0DtaI
<br />axis presents die number of room blocks
<br />wilhiD walkiD& distance. The verticil
<br />lxiI preICD1I overnigbJ. guCllts ,pel'
<br />ellhibit squan: foot.
<br />The clear ConclulioD based OD tbe
<br />survey il1hat the more botel rooms Ibat
<br />caD be: blodced withiD wllkina dislance,
<br />the more ItteDdea that ClD be amacted
<br />to tbe CODVC1ItioD ceaten.
<br />To put IbiI IJB1Ih in perspective, a
<br />500,000 Iquan: foot exhibil ban with
<br />500 bloekablc JOOIDIi would geDCRte,
<br />OD Ivenae. .4B overnillbl gUeI1I, or
<br />240,000. CoDVCJKly, the same exhibit
<br />hili with 2,000 10 3,000 bloekable
<br />rooms would generale, on avenge,
<br />555,000 ovemipl guests. TbiI iI .
<br />polentill difi'erence of 315.000
<br />overnigbl guests elch year, The
<br />eeoDomic impact in lenna of new
<br />spending in the community, jobs and
<br />Dew llUJ reveDua would be significID1.
<br />Bell' m miDd lhat this flnl aDalysis
<br />WIS or room blocb. Typically,. hotel
<br />II best might block, or reserve, 70 to
<br />75% of its rooms for city-wide
<br />conventiODl. Therefore, it requirel
<br />more 10181 TOODU to meet the block..
<br />Nole Iblt efficiencies appeu 10 occur
<br />II Ibe 2,000 to 3,000 room block ranse.
<br />ProvidiDg more \hID Ibis level is
<br />difficull to achieve beeluse there are
<br />only I limiled number of hOlels that cln
<br />physically be buill wilbin walkiDg
<br />dislance.
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