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Updated Planning Analysis for an Expanded/Improved Boston Convention & Exhibition Center. November 30, 2010. Table of Contents. Industry Characteristics and Trends Boston as a Convention Destination Current Industry Development Review of the BCEC Vision

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Updated Planning Analysis for an Expanded/Improved Boston Convention & Exhibition Center

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Updated planning analysis for an expanded

Updated Planning Analysis

for an Expanded/Improved

Boston Convention & Exhibition Center

November 30, 2010


Updated planning analysis for an expanded

Table of Contents

  • Industry Characteristics and Trends

  • Boston as a Convention Destination

  • Current Industry Development

  • Review of the BCEC Vision

  • The Broad View of Convention Centers & Economic Impacts


Updated planning analysis for an expanded

Industry Characteristics and Trends


Annual changes to traditional convention tradeshow demand and s p 500 eps

Annual Changes to Traditional Convention & Tradeshow Demand and S&P 500 EPS

Source: Tradeshow Week, 2010; Standard & Poor's, 2010


Updated planning analysis for an expanded

Comparison of Overall Exhibition Industry Performance (2000 – 2009)

Note: 2000 is the base year and is assigned a value of 100.

Source: Center for Exhibition Industry Research (CEIR), 2010


Updated planning analysis for an expanded

Comparison of Exhibition Industry Performance by Market Segment (2000 – 2009)

Note: 2000 is the base year and is assigned a value of 100.

Source: Center for Exhibition Industry Research (CEIR), 2010


Comparison of meeting attendance 2008 2010

Comparison of Meeting Attendance(2008 – 2010)

Source: MeetingsNet, 2009


Comparison of exhibitor sponsor attendance 2008 2010

Comparison of Exhibitor/Sponsor Attendance (2008 – 2010)

Source: MeetingsNet, 2009


Recent indications of a recovery

Recent Indications of a Recovery

  • The exhibition industry contracted by 12.5 percent in 2009 (in terms of space sold, revenue, number of exhibiting companies and attendance).

  • For the first time in nine consecutive quarters, all four indexes were up (between five and seven percent) in the 3rd Quarter of 2010.

  • The third quarter is historically the weakest of the four quarters and has seen the greatest declines in recent years.

Source: Center for Exhibition Industry Research (CEIR), 2010


Performance trends in similar markets

Performance Trends in Similar Markets

  • Philadelphia, PA - Event and attendance levels are down 10 to 15 percent year over year since 2007, starting to see signs of improvement.

  • Houston, TX - Attendance and occupancy are beginning to trend up after a minor decline (five to eight percent) in past several years.

  • Atlantic City, NJ - Events are generally flat year over year, but space use, room nights, attendance, occupancy and rental revenue are down 15 to17 percent year over year.

  • Kansas City, MO - Occupancy is on a downward trend – off 10 to 15 percent from previous years. There are no signs of an upward tick--hoping to stay flat.

  • San Diego, CA - Occupancy and attendance are down approximately 10 percent since 2007; however, trends are reversing with larger events and added corporate business.

    • San Antonio - After a very strong 2008, event and attendance levels decreased by 10-15 percent in 2009. Nice rebound in 2010. Future bookings for 2011 and 2012 follow a consistent pattern of growth.


Updated planning analysis for an expanded

Boston as a Convention Destination


Ranking of competitive and comparable markets all respondents national conventions and tradeshows

Ranking of Competitive and Comparable Markets(All Respondents) – National Conventions and Tradeshows

Average = 3.02

Median = 3.10

Low

High

Note: Data represented includes all organizations interviewed

Source: CSL Interviews, 2008


Updated planning analysis for an expanded

Ranking of Competitive and Comparable Markets(Positive Respondents) – National Conventions and Tradeshows

Average = 3.25

Median = 3.33

Low

High

Note: Data represented includes all organizations with a potential interest in the Boston Convention and Exhibition Center.

Source: CSL Interviews, 2008


Benefits of boston as a potential host market for events

Benefits of Boston as a Potential Host Market for Events

  • History

  • Quality, well-kept event facilities

  • Retail and nightlife

  • Transportation

  • Great accommodations

  • Great experience

  • Excellent service

  • Proximity to major East Coast markets

  • Corporate Base

  • Concentration of Medical Centers

  • Museums/symphonies/cultural attractions

  • Variety of restaurants (including fine dining)

  • Sightseeing/popular attractions


Reasons for lack of future interest in bcec national conventions and tradeshows

Reasons for Lack of Future Interest in BCEC –National Conventions and Tradeshows

Note: Data represented includes all organizations interviewed.

Source: CSL Interviews, 2008


Updated planning analysis for an expanded

Current Industry Development


Timeline of added convention center space and visitor industry amenities

Timeline of Added Convention Center Space and Visitor Industry Amenities

  • Pennsylvania Convention Ctr.

  • 239,000 sq. ft. of exhibition space

  • 123,000 sq. ft. of meeting space

  • 55,000 sq. ft. of ballroom space

  • Orange County Convention Ctr.

  • 1,400-room Hilton headquarter hotel

  • Music City Center (Nashville)

  • New 500,000+ sq.ft. Center and 800 room hotel

  • Javits Convention Center

  • Adding 50,000 sq. ft. of meeting/ballroom space

  • Renovation of existing space

  • Dallas Convention Center

  • 1,000-room headquarter hotel

  • Anaheim Convention Center

  • Adding 100,000-sq. ft. outdoor plaza

January

2009

January

2010

January

2011

January

2012

January

2013

January

2014

January

2015

  • Cobo Convention Center

  • Modest expansion/facility remodeling

  • Phoenix Convention Center

  • 437,000 sq. ft. of exhibit space

  • 90,000 sq. ft. of meeting space

  • 45,000 sq. ft. of ballroom space

  • Indiana Convention Center

  • 254,000 sq. ft. of exhibition space

  • 63,000 sq. ft. of meeting space

  • Washington Convention Center

  • 1,175-room headquarter hotel

  • Moscone Convention Center

  • $70 million in facility improvements

Other Planned Projects

  • Miami Beach Convention Center

  • New ballroom/enhancements

  • New headquarter hotel

  • San Diego Convention Center

  • 350,000 sq. ft. of sellable space

  • 500 room hotel

  • New Orleans Convention Center

  • Reconfiguration of exhibit hall space/other improvements

  • Gonzalez Convention Center

  • Exhibit space expansion/facility improvements

  • Kansas City Convention Center

  • 1,000-room headquarter hotel


Philadelphia expanded cc and new headquarter hotel

Philadelphia – Expanded CC and New Headquarter Hotel

  • Center opened in 1993.

  • The $786 million project will add more than 400,000 sellable square feet (a nearly 60 percent increase). Completion is expected in March 2011.

  • The expansion will allow two conventions to be held simultaneously and is estimated to result in more than 280,000 additional room nights and more than $140 million in economic impact annually.

  • The expanded Center represents a primary competitor to the BCEC.

  • The corporate demographics (medical, pharmaceutical) are also similar to Boston.


Washington dc new cc and planned headquarter hotel

Washington DC – New CC and Planned Headquarter Hotel

  • New Center opened in 2003 with nearly 900,000 sellable square feet.

  • Approximately 30,000 square feet of meeting space was added in 2009.

  • Lack of headquarter hotel inventory was cited as a primary shortcoming of the convention package.

  • Funding for a new $537 million, 1,167-room Marriott Marquis headquarter hotel was approved in 2009 and bonds have been sold.

  • Ground breaking took place in November 2010 and the hotel is slated to open in spring 2014.

(A) – Marriott Marquis (1,200 rooms)

1 – Grand Hyatt Washington (888)

2 – Renaissance Washington, DC (807)


Miami beach expansion reconfiguration and hq hotel

Miami Beach – Expansion, Reconfiguration and HQ Hotel

  • Existing Center outdated, no ballroom, no adjacent hotel.

  • City has largely exited the convention business.

  • Development in surrounding areas includes Lincoln Road, Gehry designed theater, waterfront, memorials and parks.

  • Center is located in a sensitive development area, massive tradeshows not suited for Center.

  • Demand exists for extensive “repositioning” and enhancement of Center.

  • Architects have created an “inside/outside” approach to the project – linking surrounding amenities – creating WALKABLE environment.

  • Headquarter hotel to be located on SE portion of the site.


Nashville new cc and hq hotel development

Nashville – New CC and HQ Hotel Development

  • Existing Center undersized, out of date.

  • Research indicated significant unmet market demand.

  • Project offers ability to significantly increase convention business.

  • Nashville offers a compelling visitor industry brand.

  • The new CC site offers linkages to the Country Music HOF, Broadway and the Arena.

  • The CC represents a key component of a convention, sports & entertainment district.

  • Key assets are offered in a walkable environment.

  • Project includes a 800 room Omni headquarter hotel.


San diego center expansion and hotel development

San Diego – Center Expansion and Hotel Development

  • San Diego has been a top performer in west coast convention industry.

  • Space demand has exceeded availability, Center runs high occupancy.

  • Center has seen only modest drop off in business during the recession.

  • Expansion represents a “full build-out” of the site.

  • The project adds to the extensive adjacent hotel inventory (500 rooms).

  • Project adds a 3rd ballroom (80,000 square feet) and added meeting space.

  • Convention Center supports the extensive and successful restaurant/entertainment district.


San antonio cc repositioning and expansion

San Antonio – CC Repositioning and Expansion

  • The Center is poorly laid out, little integration between old and new.

  • The destination amenities (Riverwalk, etc.) create a desirable visitor destination.

  • Significant renovation of original space needed.

  • Expansion is part of a comprehensive Destination Development Plan

    • Demand exists for a “one hall” expansion.

    • Consideration being given to significant replacement of original space.

    • Budget issues will impact final project decisions.


Phoenix new cc and headquarter hotel development

Phoenix – New CC and Headquarter Hotel Development

  • Existing downtown Center was outdated and undersized.

  • $800 million expansion completed in 2009. The project nearly tripled the size of the Center.

  • The Center is served by Metro Rail.

  • Facility is part of a downtown entertainment complex that consists of the US Airways Center, Chase Field, Symphony Hall, Science Center, etc.

  • The West Ballroom is a 45,200-square foot multi-purpose space that offers retractable, telescopic riser seating for approximately 1,200.

  • The 21,000-square foot Executive Conference Center is a venue within a venue built to IACC standards.


Some of the why s of convention center development

Some of the “Why’s” of Convention Center Development

  • Event planners demonstrate a continuing need for sleeping rooms – Headquarter Hotel.

  • Key component of walkable convention, sports, entertainment districts.

  • Support for ancillary development (restaurants, retail, etc.) also benefits local residents.

  • Reconfiguration of existing space is often the central theme.

  • Building on a successful visitor industry brand – using a Center to create broader destination exposure to the traveling public.

  • Expansion can protect and expand market share in a desirable industry.

  • Employment, tax and other quantifiable impacts.

“I can not overstate the importance to San Diego of remaining competitive in the convention business,” Sanders said. “In the midst of an economic downturn, we cannot afford to neglect an asset that reliably produces revenues that support essential city services.”

- Jerry Sanders –

Mayor of San Diego


Updated planning analysis for an expanded

Review of the

BCEC Vision


Bcec development parameters

BCEC Development Parameters

  • Sufficient headquarter hotel inventory is a clear shortcoming of the overall BCEC package.

  • Ballroom capacity is low relative to competition.

  • Exhibit and meeting space development could result in occupancy levels within the 50 to 70 percent target range.

  • Auditorium space would add value, but may not provide sufficient return given significant costs.

  • Specialty space targeted to medical and other fields may represent a low-cost opportunity for competitive advantages.


Updated planning analysis for an expanded

The Broad View of Convention Centers & Economic Impacts


Broad view of convention center economic impacts

Broad View of Convention Center & Economic Impacts

  • Traditionally measured tax revenue and economic impacts.

  • Catalyst for ancillary development in adjacent and nearby areas – and these developments create greater tax base.

  • Events held at Center provide exposure for the market to business leaders and key decision makers.

  • Local industry can benefit from hosting of marquee industry events.

  • Successfully competing in the convention industry can boost an important sector of the local economy.


Updated planning analysis for an expanded

Updated Planning Analysis

for an Expanded/Improved

Boston Convention & Exhibition Center

November 30, 2010


Comparison of hotel rooms within mile of the convention center competitive and comparable markets

Comparison of Hotel Rooms Within ½ Mile of the Convention Center – Competitive and Comparable Markets

Average = 7,570

Median = 7,600

(1) Includes approximately 750 rooms under construction and expected to open in winter 2010-2011.

(2) Includes the 240-room Residence Inn by Marriott Gaslamp Quarter expected to open November 2009.

(3) Includes the approved new 1,167-room Marriott Marquis expected to open 2013.

(4) Estimated number of hotel rooms within ½ mile of the Hynes Convention Center.

(5) Estimated number of hotel rooms within ½ mile of the Boston Convention and Exhibition Center.

(6) Includes an estimated 1,001 rooms currently under construction. Pending funding approval, an additional 702 rooms not included in the total above are planned to be constructed within one-half mile of the LACC.

Source: Convention and Visitors Bureaus, industry publications, 2009


Updated planning analysis for an expanded

– 0 hotels with more than 1,000 rooms.

– 1 hotel with 500 to 999 rooms.

– 2 hotels with 100 to 499 rooms.

Hotel Rooms Within ½ Mile of theBoston Convention and Exhibition Center

½ Mile Radius

1 – Westin Boston Waterfront (793 rooms)

2 – Marriott Renaissance (471)

3 – Seaport Hotel(426)

3

Boston Convention and

Exhibition Center

2

1


Updated planning analysis for an expanded

– 1 hotel with more than 1,000 rooms.

– 2 hotels with 500 to 999 rooms.

– 17 hotels with 100 to 499 rooms.

Hotel Rooms Within ½ Mile of the Washington (DC) Convention Center

½ Mile Radius

(A) – Marriott Marquis Hotel (1,167 rooms)

(expected to open 2013)

1 – Grand Hyatt Washington (888)

2 – Renaissance Washington, DC (807)

3 – Marriott at Metro Center (456)

4 – Westin Washington, DC City Center (406)

5 – Embassy Suites Washington, DC (384)

6 – The Madison Hotel (353)

7 – Washington Plaza Hotel (340)

8 – Hamilton Crowne Plaza (318)

9 – Hilton Garden Inn DC (300)

10 – Four Points Downtown by Sheraton (265)

11 – Harrington Hotel (242)

12 – Hampton Inn Washington, DC (228)

13 – Residence Inn by Marriott (202)

14 – Red Roof Inn Downtown DC (195)

15 – Donovan House (193)

16 – Courtyard by Marriott (188)

17 – Hotel Monaco (183)

18 – Hotel Helix (178)

19 – Comfort Inn Convention Center (100)

18

Washington (DC)

Convention Center

7

19

6

4

(A)

13

15

10

8

2

12

5

9

1

14

3

16

17

11


Updated planning analysis for an expanded

– 1 hotel with more than 1,000 rooms.

– 3 hotels with 500 to 999 rooms.

– 18 hotels with 100 to 499 rooms.

Hotel Rooms Within ½ Mile of thePennsylvania (Philadelphia) Convention Center

½ Mile Radius

1 – Philadelphia Marriott (1,408 rooms)

2 – Sheraton City Center (758)

3 – Loews Philadelphia Hotel (581)

4 – Courtyard by Marriott (500)

5 – Crowne Plaza Center City (445)

6 – Doubletree Hotel Philadelphia (434)

7 – Four Seasons Hotel (364)

8 – Sofitel Philadelphia (306)

9 – The Ritz-Carlton Philadelphia (299)

10 – The Westin Philadelphia (290)

11 – Embassy Suites Center City (288)

12 – Hilton Garden Inn City Center (279)

13 – Club Quarters Philadelphia (275)

14 – Residence Inn by Marriott (269)

15 – Hampton Inn Philadelphia (250)

16 – W Hotel (Opening 2009) (250)

17 – Hotel Palomar (230)

18 – Le Meridien Philadelphia (201)

19 – Park Hyatt Philadelphia (172)

20 – Holiday Inn Express Midtown (168)

21 – Latham Hotel (139)

22 – Hotel Windsor (106)

Convention Center

Expansion

15

Pennsylvania

Convention Center

2

11

7

22

18

16

12

4

1

14

3

5

10

13

8

9

17

21

20

19

6


Updated planning analysis for an expanded

– 3 hotels with more than 1,000 rooms.

– 1 hotels with 500 to 999 rooms.

– 13 hotels with 100 to 499 rooms.

Hotel Rooms Within ½ Mile of theSan Diego Convention Center

13

14

10

5

½ Mile Radius

15

17

1 – Manchester Grand Hyatt (1,625 rooms)

2 – San Diego Marriott Convention Center (1,362)

3 – Hilton San Diego Bayfront (1,190)

4 – Omni San Diego Hotel (511)

5 – Westin Gaslamp Quarter (450)

6 – Hard Rock Hotel (420)

7 – Embassy Suites San Diego Bay (337)

8 – San Diego Marriott Gaslamp (306)

9 – Hilton San Diego Gaslamp (282)

10 – The US Grant (270)

11 – Residence Inn by Marriott Gaslamp

(opening November 2009) (240)

12 – Hilton Solamar (235)

13 – The Westgate Hotel (223)

14 – The Sofia Hotel (211)

15 – Ivy Hotel (159)

16 – Horton Grand Hotel (132)

17 – Comfort Inn Gaslamp (103)

7

16

1

12

11

2

9

8

6

4

San Diego

Convention Center

3


Updated planning analysis for an expanded

– 2 hotels with more than 1,000 rooms.

– 2 hotels with 500 to 999 rooms.

– 21 hotels with 150 to 499 rooms.

Hotel Rooms Within ½ Mile of theGonzalez Convention Center (San Antonio)

7

8

½ Mile Radius

11

19

20

1 – Grand Hyatt San Antonio (1,003 rooms)

2 – Marriott Rivercenter (1,001)3 – Hyatt Regency (632)

4 – Marriott Riverwalk (512)

5 – Hilton Palacio del Rio (483)

6 – Westin Riverwalk (473)

7 – Crowne Plaza Riverwalk (410)

8 – Wyndham St. Anthony (352)

9 – La Quinta Inn & Suites Conv. Ctr. (350)

10 – Omni La Mansion del Rio (338)

11 – Sheraton Gunter Hotel (322)

12 – The Historic Menger Hotel (316)

13 – Holiday Inn Riverwalk (313)

14 – Drury Plaza Hotel San Antonio Riverwalk (306)

15 – Hotel Contessa (265)

16 – Marriott Plaza San Antonio (251)

17 – Residence Inn by Marriott Alamo (220)

18 – Red Roof Inn Downtown (215)

19 – Hotel Valencia Riverwalk (213)

20 – Emily Morgan (177)

21 – Hampton Inn Downtown (169)

22 – Drury Inn & Suites Riverwalk (150)

23 – Crockett Hotel (138)

24 – Staybridge Suites Sunset Station (138)

25 – Four Points by Sheraton (116)

17

10

3

21

23

18

22

13

12

14

9

2

15

6

4

1

5

24

25

Henry B. Gonzalez

Convention Center

16


Updated planning analysis for an expanded

– 6 hotels with more than 1,000 rooms.

– 1 hotel with 500 to 999 rooms.

– 10 hotels with 100 to 499 rooms.

Hotel Rooms Within ½ Mile of theOrange County Convention Center (Orlando, FL)

13

½ Mile Radius

12

6

8

1 – Peabody Orlando (1,641 rooms)

(includes approx. 750 rooms under

construction and expected to open

in winter 2010-2011)

2 – Westgate Lakes Resort & Spa (1,596)

3 – Hilton Orlando Convention Center (1,417)

4 – Rosen Centre Hotel (1,334)

5 – DoubleTree Resort Orlando (1,094)

6 – Quality Inn Plaza (1,020)

7 – Rosen Plaza (800)

8 – Westin Imagine Orlando (315)

9 – Clarion Inn and Suites (221)

10 – Days Inn Convention Center (219)

11 – Comfort Suites (214)

12 – Hampton Inn Convention Center (170)

13 – Springhill Suites Convention Center (167)

14 – Hawthorn Suites Orlando Conv. Ctr. (135)

15 – Red Roof Inn (134)

16 – Extended Stay America (119)

17 – Extended Stay Deluxe Orlando (113)

11

7

1

2

3

4

Orange County

Convention Center

15

9

10

16

14

17

5


Comparison of ballroom space competitive and comparable facilities

Comparison of Ballroom Space – Competitive and Comparable Facilities

Contiguous Average = 49,100

Contiguous Median = 41,000

Total Average = 76,500

Total Median = 66,900

(1) Includes space currently under construction.

Note: The Los Angeles Convention Center, the Miami Beach Convention Center and the Las Vegas Convention Center do not currently

offer ballroom space. Ballroom space at the adjacent Hilton Hotel is often used by events at the Las Vegas Convention Center.

Source: facility floorplans, management, and industry publications, 2008


Trends in travel cost control efforts

Trends in Travel Cost Control Efforts

Source: Runzheimer’s Travel Management Network, 2010


Interviews with past current bcec users

Interviews with Past/Current BCEC Users

  • Comments on Auditorium Space

  • Large fixed seating venues would definitely be a nice addition as they provide a great environment for pre/post-day events.

  • We have used fixed-seating venues in the past, including Minneapolis, and will in the near future. This would be an attractive new feature for the BCEC.

  • Many of us have to use large halls for sessions, and sound is an issue.

  • …sound qualities are an impediment to successful general sessions when using a complete hall (A, B, C)

  • Fixed seating theaters are great if they are flexible. Denver’s theater is beautiful and flexible.

  • We would love to see some type of auditorium with 5,000 + seats.

  • This would be a good addition, however only if it has flexibility to be broken into sections.

American College of Rheumatology

National Business Travel Association

Microsoft Corporation

National Fire Protection Association

Yankee Dental

Heart Rhythm Society

SAP Global Marketing


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