Meeting News - March 24, 2008 - (Page 14)

Convention Centers Report: Convention Center Market ‘Mature’; Venue Success Requires Competitive Advantages New study paints a picture of saturated supply with inevitable winners and losers Chicago—After several years of continued venue construction but lagging space rentals, the convention center market has reached a stage of maturity characterized by aggressive competition, according to a study released last month by HVS International. “Cities can no longer just build convention center space and expect to get their fair share of demand,” said Hans Detlefsen, director of the conventions practice of HVS, in Chicago.“There is not enough business to go around.” According to HVS, while both CC supply and demand are growing slowly, the amount of space actually rented has been at very low levels for about four years. Just 16.5 percent of all exhibition space available in the U.S. and Canada was rented in 2007, virtually unchanged since 2004 and the lowest since 1986. While the picture painted by HVS looks discouraging, the consultancy still is comparably positive versus the near-catastrophic picture offered in proposition. That is particularly so 2005 by Heywood Sanders, professor for large centers that serve as drivers of urban studies at the University of of economic activity in their large Texas, San Antonio, who argued metro areas, filling hotels and that the proliferation of new and restaurants with business tourists. expanded convenDetlefsen sees tion centers didn’t winners continuing make economic to emerge among sense. so-called third- and Detlefsen argues fourth-tier cities that that the situation is work to be profitable complex. “The businesses. He cited industry isn’t ready the Tinley Park Conto go away,” he said, vention Center, “but the winners south of Chicago, will be those that among the players keep their centers up that successfully to date and offer target price-sensitive other competitive smaller expos, con—Hans Detlefsen, director, conventions practice, HVS advantages such as sumer trade shows, tourist attractions or religious assemblies, an increase in [the number of hotels and sports events. in their markets].” For a more in-depth view of the Further, Detlefsen said a convenHVS study of the convention center tion center “doesn’t have to make market, on the Internet, go to money” in order to be a winning www.meetingnews.com/HVS32408. Edited by Elizabeth West elizabeth.west@nielsen.com Javits Gets Small Reprieve New York—The Jacob K. Javits Convention Center may not be getting the kind of expansion that trade show organizers want anytime soon, but New York State now says it won’t go ahead with its plan to sell the parcels of land adjacent to the venue. Such a sale, argued New York City Mayor Michael Bloomberg, would forever preclude an expansion of the convention center. In the latest proposal, the Javits Center would be renovated with only 100,000 sf of meeting and expo space added to the current 790,000 sf, considerably less than the halfmillion-sf addition proposed earlier. “Thebewinners will those that keep their centers up to date and offer other competitive advantages. Kansas City’s Having a Ball Kansas City—The expansion of the Kansas City Convention Center Ballroom is scheduled to debut next month as one of the largest convention center ballrooms in the U.S. The $150-million expansion will produce a 46,484-sf space by opening up the adjoining prefunction space. Meeting silver-level LEED standards, the ballroom is adjacent to an outdoor plaza and connects to the convention center. ” Phoenix Tops Out $600M Expansion Phoenix—The Phoenix Convention Center’s new expansion project enjoyed a topping-out ceremony of its second phase last month and is on target for a December opening. Upon completion, the North Building will join the West Building, which opened in 2006. It will triple the size of the center to 900,000 sf of rentable event space. The four-level North Building is actually three times the size of the West Building, offering a 45,000-sf, street-level ballroom; a food court Hyatt and Fairmont are considering hotel upgrades thanks to new development at the Phoenix Convention Center. 14 MeetingNews March 24, 2008 with five themed eateries; and 56 meeting rooms. “This is a project that will directly benefit Phoenix by bringing people to our hotels, restaurants, and shops,” said Mayor Phil Gordon. The center is already having a collateral effect. The owner of the nearby 696-room Hyatt Regency Phoenix, which put the property on the block, now says it will retain it. Strategic Hotels & Resorts, which also owns the Fairmont Scottsdale Princess, said the expanding center already is boosting demand at the Hyatt hotel, and it may update rooms and public spaces in response. r www.meetingnews.com http://www.meetingnews.com/HVS32408 http://www.meetingnews.com

Table of Contents Feed for the Digital Edition of Meeting News - March 24, 2008

Meeting News - March 24, 2008 Contents What’s Up @ MeetingNews.com Chef Talk: Rosen Shingle Creek’s David Ramirez Convention Centers MN Webcast Report Successful Meetings University Advertisers Index Live from the Forum

Meeting News - March 24, 2008

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.