20170213 CSL - MBCC Hotel Presentation1
Note: Figures may not add up to 100 percent due to due to possibility of multiple answers per respondent.
Source: CSL Public Arts Survey, 2016.
ANALYSIS OF THE POTENTIAL NEED FOR A
MIAMI BEACH CONVENTION CENTER
HEADQUARTER HOTEL
February 13, 2017
2
The Research Process
•Survey research
with past,
current and lost
customers
•Assess impact of
current MBCC
project, and
potential hotel
project
•Generate data as
to potential
hotel sizing and
programming
Hotel Need, Sizing &
Program
•Define potential
needs and impacts
•Define sizing,
location and
configuration
options
•Define event
impacts with and
without hotel
•Recent ADR and
occupancy data
•New projects
expected to come
on line
•Impact of major
projects
(downtown
Miami)
•Benchmarking
data as to center
space and
amenities
•Benchmark hotel
inventory –HQ,
nearby and
market -wide
•Survey research with
potential customer
base
•Focus on high-impact
association and
corporate events
•Assess impact of
MBCC project
•Separate assessment
of hotel needs
•Assess current
booking status –
impact of MBCC and
potential hotel
project
•Work with
Committee,
GMCVB, City and
Key Stakeholders
•Establish goals
and timeframe.
Kick-Off Potential Customer
Research
Competitive
Markets
Local Market
Conditions
Current Customer
Research
3
Key Study Issues
•New bookings since convention center renovation began –
high impact versus local/regional.
•High-impact booking potential with MBCC renovation, and
with renovation plus new hotel.
•Define events that would not book the MBCC without
headquarter hotel.
•Conduct independent verification based on direct event
planner survey research.
•Assess cost and event impact metrics for hotel
development scenarios.
4
Key Study Issues
•How does MBCC compare in terms of event space –how are
competitive centers developing?
•Do competitive markets have local transportation options?
•Were competitive market headquarter hotels subsidized?
•Impact of hotel pricing levels.
•Discuss room block agreement issues.
5 -12%
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Pe
r
c
e
n
t
G
r
o
w
t
h
US GDP Net Square Feet Exhibitors Attendees
Note: Data for 2016 through 2018 is based on forecasts.
Source: Center for Exhibition Industry Research (CEIR), 2016
Convention Industry Trends
Annual Changes to Convention & Tradeshow Demand and United States GDP
6
Convention Industry Trends
Annual Changes to Convention & Tradeshow Demand and S&P 500 Earnings per Share
-70%
-60%
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
70%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Pe
r
c
e
n
t
G
r
o
w
t
h
S&P 500 EPS Net Square Feet Exhibitors Attendees
Note: Convention and tradeshow data for 2016 through 2018 is based on forecasts.
Sources: Center for Exhibition Industry Research (CEIR), Standard & Poors, Goldman Sachs, 2016
7
Hospitality Industry Trends
Annual Daily Rate (ADR) and Occupancy Percentage
Source: 2017 STR, Inc.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
$-
$50
$100
$150
$200
$250
$300
2013 2014 2015 2016
Oc
c
%
AD
R
ADR Occ %
8
2016 % Change
Rank City Jan - Dec. 2016 Jan - Dec. 2015 16 vs 15
1 New York $259.14 $265.67 -2.5%
2 San Fransisco $230.85 $222.37 3.8%
3 Oahu Island $227.50 $219.63 3.6%
4 Boston $192.53 $188.21 2.3%
5 Miami $189.77 $195.45 -2.9%
6 Los Angeles $171.80 $158.40 8.5%
7 San Diego $154.87 $150.71 2.8%
8 Seattle $153.65 $148.60 3.4%
9 Washington $153.58 $149.60 2.7%
10 Anaheim $150.86 $144.05 4.7%
11 New Orleans $148.43 $148.41 0.0%
12 Chicago $144.45 $142.50 1.4%
13 Nashville $134.35 $126.78 6.0%
14 Philadelphia $132.18 $127.73 3.5%
15 Denver $127.39 $120.78 5.5%
US $123.97 $120.30 3.1%
16 Phoenix $123.01 $120.82 1.8%
17 Tampa $121.64 $115.24 5.6%
18 Minneapolis $118.30 $112.17 5.5%
19 Orlando $116.00 $112.05 3.5%
21 Houston $104.65 $108.58 -3.6%
20 Atlanta $103.54 $97.84 5.8%
22 Dallas $103.47 $99.07 4.4%
23 St Louis $101.00 $99.06 2.0%
24 Norfolk $99.30 $96.33 3.1%
25 Detroit $97.43 $94.18 3.5%
TOP 25 HOTEL MARKETS
ROOM RATE
Source: Smith Travel Research
2016 % Change
Rank City Jan - Dec. 2016 Jan - Dec. 2015 16 vs 15
1 New York 85.9%85.3%0.7%
2 San Fransisco 84.3%84.4%-0.1%
3 Oahu Island 84.2%85.1%-1.1%
4 Los Angeles 81.3%79.5%2.3%
5 Anaheim 78.3%78.6%-0.4%
6 San Diego 77.1%76.3%1.0%
7 Miami 75.9%78.0%-2.7%
8 Seattle 75.8%76.2%-0.5%
9 Orlando 75.5%76.7%-1.6%
10 Nashville 74.8%73.4%1.9%
11 Boston 74.2%76.4%-2.9%
12 Denver 73.7%75.6%-2.5%
13 Washington 72.1%70.6%2.1%
14 Tampa 71.6%71.3%0.4%
15 Dallas 71.4%70.5%1.3%
16 Atlanta 69.9%69.8%0.1%
17 Philadelphia 69.3%68.2%1.6%
18 Chicago 69.1%70.0%-1.3%
19 New Orleans 68.8%69.6%-1.1%
20 Minneapolis 68.1%68.4%-0.4%
21 Phoenix 67.2%65.7%2.3%
22 St Louis 66.0%65.4%0.9%
23 Detroit 65.7%65.5%0.3%
US 65.5%65.4%0.2%
24 Houston 62.3%68.5%-9.1%
25 Norfolk 59.9%57.0%5.1%
Rooms Available (+4.2%)
Rooms Sold (+1.4%)
TOP 25 HOTEL MARKETS
OCCUPANCY
Source: Smith Travel Research
Hospitality Industry Trends
9
Competitive & Comparable Markets & Facilities
•71 percent are either
underway with or are
planning a facility
expansion project.
•36 percent are currently
developing or are
planning for additional
headquarter hotel
inventory.
Facility City, State
Anaheim Convention Center (2)Anaheim, CA
Georgia World Congress Center (1,5)Atlanta, GA
Boston Convention & Exhibition Center (1,5)Boston, MA
McCormick Place (4)Chicago, IL
Dallas Convention Center (1)Dallas, TX
George R. Brown Convention Center (4)Houston, TX
Las Vegas Convention Center (2)Las Vegas, NV
Los Angeles Convention Center (1)Los Angeles, CA
New Orleans Morial Convention Center (1,5)New Orleans, LA
Orange County Convention Center (1)Orlando, FL
Henry B. Gonzalez Convention Center San Antonio, TX
San Diego Convention Center (1)San Diego, CA
Moscone Center (2)San Francisco, CA
Walter E. Washington Convention Center Washington, DC
(1) Planning or considering the addition of event space at the Center
(2) Includes space that is either planned or currently under construction.
(4) Ongoing or recent headquarter hotel development
(5) Planning or considering headquarter hotel development
(3) Includes space that was recently added.
10
Competitive & Comparable Facilities
Exhibit Space
502,800
502,800
513,900
516,000
557,600
615,700
680,100
703,000
726,600
862,000
913,600
966,300
1,366,000
2,055,100
2,540,600
2,588,500
0 500,000 1,000,000 1,500,000 2,000,000 2,500,000
Miami Beach, FL (post-expansion)
Miami Beach, FL (pre-expansion)
San Antonio, TX (3)
Boston, MA (1)
Los Angeles, CA (1)
San Diego, CA (1)
San Francisco, CA (2)
Washington, DC
Dallas, TX (1)
Houston, TX
Anaheim, CA (2)
New Orleans, LA (1)
Atlanta, GA (1)
Orlando, FL (1)
Las Vegas, NV (2)
Chicago, IL
Average = 1,114,600
Median = 794,300
(1) Planning or considering the addition of event space at the Center
(2) Includes space that is either planned or currently under construction.
(3) Includes space that was recently added.
Note: Average and Median figures do not include MBCC.
Source: CSL International; facility floorplans, 2017
11
Competitive & Comparable Facilities
Meeting Space
(1) Planning or considering the addition of event space at the Center
(2) Includes space that is either planned or currently under construction.
(3) Includes space that was recently added.
Note: Average and Median figures do not include MBCC.
Source: CSL International; facility floorplans, 2017
62,600
80,400
100,100
109,100
118,700
120,400
136,400
144,600
148,000
150,800
151,900
226,400
232,400
242,600
372,800
419,900
0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000
San Francisco, CA (2)
Miami Beach, FL (pre-expansion)
Dallas, TX (1)
Houston, TX
San Diego, CA (1)
Miami Beach, FL (post-expansion)
Anaheim, CA (2)
San Antonio, TX (3)
Washington, DC
Boston, MA (1)
Los Angeles, CA (1)
Atlanta, GA (1)
New Orleans, LA (1)
Las Vegas, NV (2)
Chicago, IL
Orlando, FL (1)
Average = 186,900
Median = 149,400
12
Competitive & Comparable Facilities
Ballroom Space
(1) Planning or considering the addition of event space at the Center
(2) Includes space that is either planned or currently under construction.
(3) Includes space that was recently added.
Note: The Los Angeles Convention Center does not offer traditional ballroom space. Average and Median figures do not include MBCC.
Source: CSL International; facility floorplans, 2017
31,600
40,000
41,700
52,000
58,700
62,200
65,100
80,000
81,700
88,100
96,700
100,000
100,200
148,700
203,500
0 50,000 100,000 150,000 200,000
Houston, TX
Boston, MA (1)
Miami Beach, FL (pre-expansion)
Washington, DC
Atlanta, GA (1)
Orlando, FL (1)
Dallas, TX (1)
Miami Beach, FL (post-expansion)
San Diego, CA (1)
Anaheim, CA (2)
New Orleans, LA (1)
Las Vegas, NV (2)
San Antonio, TX (3)
San Francisco, CA (2)
Chicago, IL
Average = 86,800
Median = 81,700
13
High Impact MBCC Event Examples
American Dental Association Mortgage Bankers Association
American College of Emergency Physicians American Association of Orthodontists
American Society of Aesthetic Plastic Surgery Americas Health Insurance Plans
American Academy of Cancer Research International Trademark Association
American Speech Language-Hearing Association Institute of Internal Auditors
Emergency Nurses Association American Head & Neck Society
International Bar Association American Congress of Obstetricians & Gynecologists
Congress of Nuerological Surgeons American Academy of Periodontology
Burger King American Academy of Dermatology
Association of Unmanned Vechicle Systems International American Academy of Otolaryngology
14
Next Steps
•Extensive outreach to past, lost and potential high -impact customers.
•Analysis of 2015 and 2016 MBCC event performance.
•Assess current Greater Miami area development initiatives, and potential
impact on MBCC/Hotel.
•Added destination/facility benchmarking.
•Develop various hotel scenarios –size, configuration, location.
•Development of event and room night estimates.
•Assess room block agreement and financing data for comparable projects.