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20170320 MBCC hotel analysis slidesNote: 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 March 20, 2017 The Research Process •Survey research with past, current and lost customers •Assess benefits 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 benefits •Define sizing, location and configuration options •Define event effects with and without hotel •Recent ADR and occupancy data •New projects expected to come on line •Effect 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- benefit association and corporate events •Assess benefits of MBCC project •Separate assessment of hotel needs •Assess current booking status – benefit 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 CONFIDENTIAL DRAFT 3 How Do We Compare? CONFIDENTIAL DRAFT 4 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. •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. Ma r k e t D e m a n d A n a l y s i s - In i t i a l P r o j e c t R e s e a r c h Competitive & Comparable Markets & Facilities CONFIDENTIAL DRAFT 5 Ma r k e t D e m a n d A n a l y s i s - In i t i a l P r o j e c t R e s e a r c h Competitive & Comparable Facilities - Comparison of Total Sellable Space 624,900 703,200 706,800 709,500 758,700 816,100 891,400 891,800 903,000 1,002,700 1,138,100 1,295,400 1,651,100 2,537,200 2,883,200 3,164,800 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 Miami Beach, FL (pre-expansion) Miami Beach, FL (post-expansion) Boston, MA (1) Los Angeles, CA (1) San Antonio, TX (3) San Diego, CA (1) San Francisco, CA (2) Dallas, TX (1) Washington, DC Houston, TX Anaheim, CA (2) New Orleans, LA (1) Atlanta, GA (1) Orlando, FL (1) Las Vegas, NV (2) Chicago, IL Average = 1,382,100 Median = 952,900 (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 CONFIDENTIAL DRAFT 6 Ma r k e t D e m a n d A n a l y s i s - In i t i a l P r o j e c t R e s e a r c h Competitive & Comparable Markets -Comparison of Hotel Inventory within ½ mile of Convention Center 2,882 3,161 4,627 4,920 5,238 6,279 7,881 8,321 8,398 8,863 9,303 10,676 10,729 17,132 20,556 0 5,000 10,000 15,000 20,000 Boston, MA (2) Chicago, IL (1) Dallas, TX Miami Beach, FL Los Angeles, CA Houston, TX (1) San Diego, CA Washington DC New Orleans, LA (2) San Antonio, TX Atlanta, GA (2) Anaheim, CA Orlando, FL San Francisco, CA Las Vegas, NV (1) Ongoing or recent headquarter hotel development (2) Planning or considering headquarter hotel development Note: Average and median figures do not include MBCC. Source: Convention & Visitors Bureaus; CSL International, 2017 Hotel Rooms Average = 8,860 Median = 8,360 CONFIDENTIAL DRAFT 7 Co m p a r a b l e F a c i l i t i e s 0 793 1,016 1,070 1,098 1,099 1,175 2,203 2,405 2,458 2,466 2,516 2,552 2,604 2,950 5,788 0 1,000 2,000 3,000 4,000 5,000 6,000 Miami Beach, FL Boston, MA (1) Dallas, TX Atlanta, GA (1) Los Angeles, CA Denver, CO Washington, DC Houston, TX New Orleans, LA (1) San Francisco, CA Chicago, IL (2) San Antonio, TX San Diego, CA Anaheim, CA Las Vegas, NV Orlando, FL Hotel 1 Hotel 2 Hotel 3 Hotel 4 (1)Planning or considering headquarter hotel development. (2)Includes added hotel rooms under development. Note: Average and median figures do not include MBCC. Source: CVB’s and industry publications, 2017 Comparable Convention Centers Adjacent/Attached/Nearby HQ Hotel Rooms Average HQ Hotel Rooms = 2,150 Median HQ Hotel Rooms = 2,400 CONFIDENTIAL DRAFT 8 Hotel Inventory Within One-Half Mile of the Center – Miami Beach Convention Center 1 ½ Mile Radius –0 hotels with more than 1,000 rooms. –2 hotels with 500 to 999 rooms. –20 hotels with 100 to 499 rooms. 1 –Loews Miami Beach Hotel (790 rooms) 2 –Royal Palm Resort (552) 3 –Ritz-Carlton South Beach (375) 4 –Gansevoort South Hotel (334) 5 –W South Beach (312) 6 –The Shore Club (309) 7 –Doubletree Surfcomber Hotel (282) 8 –Riande Continental Hotel (251) 9 –Howard Johnson Plaza (225) 10 –Shelborne Beach Resort (200) 11 –Delano Hotel (194) 12 –Catalina Hotel (192) 13 –Days Inn –South Beach (172) 14 –The National Hotel (151) 15 –The Setai Resort (131) 16 –Clay Hotel (120 17 –Marseilles Hotel (119) 18 –Haddon Hall Hotel (116) 19 –South Seas Hotel (111) 20 –The Raleigh Hotel (104) 21 –Albion Hotel (100) 22 –Dorchester Hotel (100) Miami Beach Convention Center 2 3 7 8 4 5 6 9 11 13 1012 14 16 15 17 18 1920 21 22 Co m p a r a b l e F a c i l i t i e s Hotel Inventory Within One-Half Mile of the Center – Comparable Markets Orange County Convention Center –6 hotels with more than 1,000 rooms. –1 hotel with 500 to 999 rooms. –10 hotels with 100 to 499 rooms. 1 –Hyatt Regency Orlando Convention Center(1,641 rooms) 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 –Rosen Inn & Pointe Orlando (1,020) 7 –Rosen Plaza (810) 8 –Westin Orlando Universal Blvd (315) 9 –Clarion Inn and Suites (223) 10 –Days Inn Convention Center (220) 11 –Quality Suites Universal South (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 (112) ½ Mile Radius 7 Orange County Convention Center 12 4 5 11 8 9 10 12 13 14 15 1716 3 6 Georgia World Congress Center ½ Mile Radius –4 hotels with more than 1,000 rooms. –0 hotels with 500 to 999 rooms. –18 hotels with 100 to 499 rooms. 1 –Marriott Marquis Atlanta (1,663 rooms) 2 –Hyatt Regency Atlanta (1,260) 3 –Omni Hotel at CNN Center (1,070) 4 –Westin Peachtree Plaza (1,068) 5 –Ritz Carlton Atlanta (444) 6 –Embassy Suites Centennial Olympic Park (321) 7 –Atlanta Marriott Downtown (312) 8 –Holiday Inn Downtown (260 ) 9 –Aloft Atlanta Downtown (254) –Formerly Days Inn 10 –Hilton Garden Inn Downtown (242) 11 –W Atlanta Downtown (237) 12 –Residence Inn by Marriott (160) 13 –Holiday Inn Express (130) –Formerly Super 8 Hotel 14 –Homewood Suites (129) 15 –Home2 Suites By Hilton (128) –Opens Fall 2015 16 –The Ellis Hotel (127) 17 –Hampton Inn –Downtown (119) 18 –Inn at the Peachtrees Hotel (110) 19 –The Glenn Hotel (110) 20 –Hampton Inn –Georgia Tech (106) 21 –Twelve Hotel and Residences (102) –Planned, room count unannounced 9 12 3 5 6 78 10 11 13 12 1416 18 19 20 21 4 Georgia World Congress Center 14 15 17 Hotel Inventory Within One-Half Mile of the Center – Comparable Markets –4 hotels with more than 1,000 rooms. –5 hotels with 500 to 999 rooms. –43 hotels with 100 to 499 rooms. 4 3 8 11 ½ Mile Radius 1 –Hilton Union Square (1,908 rooms) 2 –Marriott Marquis (1,499) 3 –Westin St. Francis (1,196) 4 –Parc 55 Hotel (1,010) 5 –Grand Hyatt (685) 6 –Westin Market Street (676) 7 –Palace Hotel (552) 8 –InterContinental (550) 9 –Hotel Nikko (532) 10 –Sir Francis Drake Hotel (416) 11 –Downtown Courtyard by Marriott (405) 12 –W San Francisco (404) 13 –Marriott Union Square (400) 14 –Handlery Union Square Hotel (377) 15 –Clift Hotel (363) 16 –Omni San Francsico (362) 17 –JW Marriott Hotel (337) 18 –The Ritz-Carlton (336) 19 –Four Seasons Hotel (277) 20 –The St. Regis Hotel (260) 21 –Serrano Hotel (236) 22 –Hotel Monaco (201) –30 Hotels offering 100-199 rooms 1415 17 16 5 18 19 7 61 Moscone Center 9 12 13 202122 10 2 San Diego Convention Center Moscone Center Hotel Inventory Within One-Half Mile of the Center – Comparable Markets Hotel Inventory Within One-Half Mile of the Center – Comparable Markets Boston Convention and Exhibition Center 1 2 3 ½ Mile Radius –0 hotels with more than 1,000 rooms. –1 hotel with 500 to 999 rooms. –5 hotels with 100 to 499 rooms. 1 –Westin Boston Waterfront (793 rooms) 2 –Marriott Renaissance (471) 3 –Seaport Hotel (426) 4 –Aloft Hotel (330) –Planned 5 –Element Hotel (180) –Planned 6 –Residence Inn Seaport (120) 6 4 5 Boston Convention & Expo Center Los Angeles Convention Center Hotel Inventory Within One-Half Mile of the Center – Comparable Markets CONFIDENTIAL DRAFT 12 Ma r k e t D e m a n d A n a l y s i s - In i t i a l P r o j e c t R e s e a r c h 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% United States 65.5%65.4%0.2% 24 Houston 62.3%68.5%-9.1% 25 Norfolk 59.9%57.0%5.1% Source: Smith Travel Research TOP 25 HOTEL MARKETS OCCUPANCY 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% United States $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% Source: Smith Travel Research TOP 25 HOTEL MARKETS ROOM RATE Hotel Market Pricing Comparison CONFIDENTIAL DRAFT 13 High Impact Events Held in Comparable Markets Ma r k e t D e m a n d A n a l y s i s - MI N T & C B I S E v e n t D a t a San Diego Boston San Francisco Advanstar Communications International Literacy Association Massachusetts Biotechnology Council Adobe Systems Inc.PETCO Animal Supplies, Inc.Apple Inc. Zoological Association of America Academy of General Dentistry American Pet Products Association United Association of Journeymen & Pipefitting Industries American Society for Therapeutic Radiology and Oncology American Association of Fundraising Professionals Association for Healthcare Resource and Materials Management National Cable and Telecommunications Association American Society for Radiation Oncology Family, Career and Community Leaders of America INDA, Association of the Nonwoven Fabrics Industry Society for Healthcare Epidemiology of America American Risk and Insurance Association American Association for Cancer Research Vietnam Helicopter Pilots Association Cisco Systems Inc.Financial Planning Association Endocrine Fellows Foundation Council of Supply Chain Management Professionals VIRGO PUBLISHING INC,NEXT 2017 International Business Machines Corporation (IBM)Red Hat Software, Inc.American Pharmacists Association Academy of Pharmaceutical Research and Science IEEE - Custom Integrated Circuits Conference American Chemical Society National Association of Secondary School Principals Thrivent Financial for Lutherans American Counseling Association SAP Global Marketing Inc.American Dental Education Association International Cast Polymer Alliance Source: Mint & CBIS, 2017. CONFIDENTIAL DRAFT 14 Ma r k e t D e m a n d A n a l y s i s - MI N T & C B I S E v e n t D a t a High Impact Events Held in Comparable Markets San Diego Boston San Francisco Convention Center Space SF 899,815 717,000 812,519 Exhibit Space SF 615,701 516,000 500,000 Meeting SF 204,114 160,000 256,225 Ballroom SF 80,000 41,000 56,294 HQ Hotel Rooms 1,360 793 (1)1,499 Rooms within 1/2 Mile 7,881 2,882 17,132 (1) Note that Boston is planning on building a 1000+ room HQ hotel Source: CSL International, 2017. CONFIDENTIAL DRAFT 15 How Has the MBCC Performed? CONFIDENTIAL DRAFT 16 Ma r k e t D e m a n d A n a l y s i s - Hi s t o r i c a l M B C C O p e r a t i o n s Total Number of Utilization Days by Event Type 29 61 39 37 27 194 181 167 132 178 137 76 85 53 50 30 38 36 109 140 132 137 152 122 126 77 75 71 74 140 84 61 61 116 113 40 65 552 551 616 536 585 471 215 0 50 100 150 200 250 300 350 400 450 500 550 600 650 700 2010 2011 2012 2013 2014 2015 2016 Ut i l i z a t i o n D a y s Special/Other Meeting Low-Impact Convention/ Trade Show Medium-Impact Convention/ Trade Show High-Impact Convention/ Trade Show Consumer Show Banquet Note: “High-Impact” defined as convention/trade show with 4,000+ peak hotel room nights, “Medium” as 1,500-4,000, “Low” as under 1,500 Source: CSL International, facility management, 2017. CONFIDENTIAL DRAFT 17 Ma r k e t D e m a n d A n a l y s i s - Hi s t o r i c a l M B C C O p e r a t i o n s Total Attendance by Event Type 476,951 330,460 435,533 384,122 516,367 297,835 153,898 69,821 41,385 41,397 77,898 107,439 134,181 121,206 104,137 99,672 109,500 63,235 90,530 79,960 68,516 722,554 603,076 718,546 639,768 688,376 475,409 277,498 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 2010 2011 2012 2013 2014 2015 2016 At t e n d a n c e Special/Other Meeting Low-Impact Convention/ Trade Show Medium-Impact Convention/ Trade Show High-Impact Convention/ Trade Show Consumer Show Banquet Note: “High-Impact” defined as convention/trade show with 4,000+ peak hotel room nights, “Medium” as 1,500-4,000, “Low” as under 1,500 Source: CSL International, facility management, 2017. CONFIDENTIAL DRAFT 18 Ma r k e t D e m a n d A n a l y s i s - In i t i a l P r o j e c t R e s e a r c h MBCC Event Booking Review -High Impact MBCC Event Examples American Association of Orthodontists Americans Health Insurance Plans American Society for Radiation Oncology International Association of Chiefs of Police Veeam Software CA Technologies American Health Information Management Association American Academy of Dermatology American Society of Landscape Architects Source: GMCVB; CSL International, 2017 American College of Emergency Physicians Asian American Hotel Owners Association American Society of Aesthetic Plastic Surgery American Academy of Cancer Research American Speech-Language Hearing Association of Emergency Nurses Association International Bar Association Mortgage Bankers Association American Association of Orthodontists Institute of Internal Auditors LeadsBookings CONFIDENTIAL DRAFT 19 The Event Planner Weighs In CONFIDENTIAL DRAFT 20 Ma r k e t D e m a n d A n a l y s i s - MI N T & C B I S E v e n t D a t a Event Gross SF of Exhibit Space (MINT & CBIS data) Source: Mint & CBIS, 2017. 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000 550,000 600,000 650,000 700,000 750,000 800,000 850,000 900,000 1%4%6%9% 12 % 15 % 18 % 21 % 24 % 26 % 29 % 32 % 35 % 38 % 41 % 44 % 46 % 49 % 52 % 55 % 58 % 61 % 64 % 66 % 69 % 72 % 75 % 78 % 81 % 84 % 86 % 89 % 92 % 95 % 98 % E x h i b i t G r o s s S F CONFIDENTIAL DRAFT 21 Ma r k e t D e m a n d A n a l y s i s - Ev e n t P l a n n e r S u r v e y R e s e a r c h Survey Respondent Organization 4Life ConferenceDirect National Business Media American Academy of Otolaryngology–Head and Neck Surgery Education Market Association National Council for the Social Studies American Academy of Sleep Medicine Educational Testing Service National Flute Association American Association of Collegiate Registrars & Admissions Officers Experient Percussive Arts Society American Association of Retired Persons Florida Nursery, Growers and Landscape Association Printing Association of Florida/GOA American Express Meetings and Events Future of Education Technology Conference (FETC) & LRP Conferences, LLC/LRP Publications, Inc.RT Booklovers Convention American Nephrology Nurses Association Habitat for Humanity International Site Selection Solutions, Inc. American Quilter's Society HelmsBriscoe for Society for Neuro-Oncology Society of Critical Care Medicine American Society of Landscape Architects INDA, Association of the Nonwoven Fabrics Industry Subway Franchise World HQ America's Health Insurance Plans International Association for Energy Economics The Society of Thoracic Surgeons Athletic Business Media International Quilt Market & Festival USA Jump Rope Aviation Week Netwowrk Mancuso Show Management, Inc.USA Softball BCD Meetings & Events Meeting Expectations USA/Canada Lions Leadership Forum Case Management Society of America Million Dollar Round Table Varsity (Spirit Cheer) COMMON A Users Group Nation of Islam CONFIDENTIAL DRAFT 22 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000 550,000 600,000 Gr o s s S F E x h i b i t S p a c e Ma r k e t D e m a n d A n a l y s i s - Ev e n t P l a n n e r S u r v e y R e s e a r c h Source: CSL International, 2017. Event Gross SF of Exhibit Space (survey data) CONFIDENTIAL DRAFT 23 Ma r k e t D e m a n d A n a l y s i s - MI N T & C B I S E v e n t D a t a HQ Hotel & City Wide Peak Demand Comparison (MINT & CBIS data) Source: Mint & CBIS, 2017. 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 P e a k R o o m s R e s e r v e d HQ P e a k R o o m s HQ Peak Rooms Peak Rooms Reserved CONFIDENTIAL DRAFT 24 Ma r k e t D e m a n d A n a l y s i s - Ev e n t P l a n n e r S u r v e y R e s e a r c h Source: CSL International, 2017. 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 3%6%9% 11 % 14 % 17 % 20 % 23 % 26 % 29 % 31 % 34 % 37 % 40 % 43 % 46 % 49 % 51 % 54 % 57 % 60 % 63 % 66 % 69 % 71 % 74 % 77 % 80 % 83 % 86 % 89 % 91 % 94 % 97 % 10 0 % Pe a k H o t e l R o o m s City Wide Peak Demand Comparison (survey data) CONFIDENTIAL DRAFT 25 Ma r k e t D e m a n d A n a l y s i s - MI N T & C B I S E v e n t D a t a HQ Peak Rooms Commitability (MINT & CBIS data) Source: Mint & CBIS, 2017. 100 200 300 400 500 600 700 800 900 1,000 1,100 1,200 1,300 1,400 1,500 1,600 1,700 1,800 1,900 2,000 0%3%6%8% 11 % 13 % 16 % 19 % 21 % 24 % 26 % 29 % 32 % 34 % 37 % 40 % 42 % 45 % 47 % 50 % 53 % 55 % 58 % 60 % 63 % 66 % 68 % 71 % 74 % 76 % 79 % 81 % 84 % 87 % 89 % 92 % 94 % 97 % 10 0 % HQ P e a k R o o m s HQ Peak Rooms 20% CONFIDENTIAL DRAFT 26 Ma r k e t D e m a n d A n a l y s i s - MI N T & C B I S E v e n t D a t a HQ Peak Rooms Commitability (MINT & CBIS data) Source: Mint & CBIS, 2017. 100 200 300 400 500 600 700 800 900 1,000 1,100 1,200 1,300 1,400 1,500 1,600 1,700 1,800 1,900 2,000 0%3%6%8% 11 % 13 % 16 % 19 % 21 % 24 % 26 % 29 % 32 % 34 % 37 % 40 % 42 % 45 % 47 % 50 % 53 % 55 % 58 % 60 % 63 % 66 % 68 % 71 % 74 % 76 % 79 % 81 % 84 % 87 % 89 % 92 % 94 % 97 % 10 0 % HQ P e a k R o o m s HQ Peak Rooms 20% 36% CONFIDENTIAL DRAFT 27 Ma r k e t D e m a n d A n a l y s i s - MI N T & C B I S E v e n t D a t a HQ Peak Rooms Commitability (MINT & CBIS data) Source: Mint & CBIS, 2017. 100 200 300 400 500 600 700 800 900 1,000 1,100 1,200 1,300 1,400 1,500 1,600 1,700 1,800 1,900 2,000 0%3%6%8% 11 % 13 % 16 % 19 % 21 % 24 % 26 % 29 % 32 % 34 % 37 % 40 % 42 % 45 % 47 % 50 % 53 % 55 % 58 % 60 % 63 % 66 % 68 % 71 % 74 % 76 % 79 % 81 % 84 % 87 % 89 % 92 % 94 % 97 % 10 0 % HQ P e a k R o o m s HQ Peak Rooms 20% 36% 59% CONFIDENTIAL DRAFT 28 Ma r k e t D e m a n d A n a l y s i s - MI N T & C B I S E v e n t D a t a HQ Peak Rooms Commitability (MINT & CBIS data) Source: Mint & CBIS, 2017. 100 200 300 400 500 600 700 800 900 1,000 1,100 1,200 1,300 1,400 1,500 1,600 1,700 1,800 1,900 2,000 0%3%6%8% 11 % 13 % 16 % 19 % 21 % 24 % 26 % 29 % 32 % 34 % 37 % 40 % 42 % 45 % 47 % 50 % 53 % 55 % 58 % 60 % 63 % 66 % 68 % 71 % 74 % 76 % 79 % 81 % 84 % 87 % 89 % 92 % 94 % 97 % 10 0 % HQ P e a k R o o m s HQ Peak Rooms 20% 36% 59% 67% CONFIDENTIAL DRAFT 29 Ma r k e t D e m a n d A n a l y s i s - MI N T & C B I S E v e n t D a t a HQ Peak Rooms Commitability (MINT & CBIS data) Source: Mint & CBIS, 2017. 100 200 300 400 500 600 700 800 900 1,000 1,100 1,200 1,300 1,400 1,500 1,600 1,700 1,800 1,900 2,000 0%3%6%8% 11 % 13 % 16 % 19 % 21 % 24 % 26 % 29 % 32 % 34 % 37 % 40 % 42 % 45 % 47 % 50 % 53 % 55 % 58 % 60 % 63 % 66 % 68 % 71 % 74 % 76 % 79 % 81 % 84 % 87 % 89 % 92 % 94 % 97 % 10 0 % HQ P e a k R o o m s HQ Peak Rooms 20% 36% 59% 67% 80% CONFIDENTIAL DRAFT 30 Ma r k e t D e m a n d A n a l y s i s - Ev e n t P l a n n e r S u r v e y R e s e a r c h Source: CSL International, 2017. What are your preferences for hotel size in terms of room count? 47.22% 66.67% 83.32%86.08% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 600 800 1,000 1,200 Total Room Count 5 and 4 3 2 1 CONFIDENTIAL DRAFT 31 Ma r k e t D e m a n d A n a l y s i s - Ev e n t P l a n n e r S u r v e y R e s e a r c h Source: CSL International, 2017. Would two separate 400 room hotels (one at the beach and one attached to the center) meet the needs of your event? 16.67% 33.33% 30.56% 19.44% Definitely not Definitely yes Possibly Unlikely CONFIDENTIAL DRAFT 32 Ma r k e t D e m a n d A n a l y s i s - Ev e n t P l a n n e r S u r v e y R e s e a r c h Source: CSL International, 2017. If a new HQ hotel property were not developed, how would this impact the likelihood that you would rotate your event to the MBCC? 25.00% 33.33% 41.67% No impact Somewhat less likely to book Would definitely NOT book, regardless of other MBCC improvements CONFIDENTIAL DRAFT 33 Ma r k e t D e m a n d A n a l y s i s - Ev e n t P l a n n e r S u r v e y R e s e a r c h Source: CSL International, 2017. Assuming no HQ hotel is built, and Miami Beach hotels 3 blocks away are connected by a trolley system, how would this impact the likelihood that you would rotate your event to the MBCC? 30.56% 36.11% 33.33% No impact Somewhat less likely to book Would definitely NOT book, regardless of other MBCC improvements CONFIDENTIAL DRAFT 34 Ma r k e t D e m a n d A n a l y s i s - Ev e n t P l a n n e r S u r v e y R e s e a r c h Survey Respondent Organization – Events that would NOT book without HQ hotel highlighted 4Life ConferenceDirect National Business Media American Academy of Otolaryngology–Head and Neck Surgery Education Market Association National Council for the Social Studies American Academy of Sleep Medicine Educational Testing Service National Flute Association American Association of Collegiate Registrars & Admissions Officers Experient Percussive Arts Society American Association of Retired Persons Florida Nursery, Growers and Landscape Association Printing Association of Florida/GOA American Express Meetings and Events Future of Education Technology Conference (FETC) & LRP Conferences, LLC/LRP Publications RT Booklovers Convention American Nephrology Nurses Association Habitat for Humanity International Site Selection Solutions, Inc. American Quilter's Society HelmsBriscoe for Society for Neuro-Oncology Society of Critical Care Medicine American Society of Landscape Architects INDA, Association of the Nonwoven Fabrics Industry Subway Franchise World HQ America's Health Insurance Plans International Association for Energy Economics The Society of Thoracic Surgeons Athletic Business Media International Quilt Market & Festival USA Jump Rope Aviation Week Netwowrk Mancuso Show Management, Inc.USA Softball BCD Meetings & Events Meeting Expectations USA/Canada Lions Leadership Forum Case Management Society of America Million Dollar Round Table Varsity (Spirit Cheer) COMMON A Users Group Nation of Islam CONFIDENTIAL DRAFT 35 Ma r k e t D e m a n d A n a l y s i s - Ev e n t P l a n n e r S u r v e y R e s e a r c h Source: CSL International, 2017. What is the maximum daily group room rate that you are willing to pay to host your event on Miami Beach? $0 $50 $100 $150 $200 $250 $300 $350 $400 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 A D R Next Steps •Extensive outreach to past, lost and potential high-benefit customers. •Analysis of 2015 and 2016 MBCC event performance. •Assess current Greater Miami area development initiatives, and potential effects on MBCC/Hotel. •Added destination/facility benchmarking. •Develop various hotel scenarios –size, configuration, location. •Development of event and room night estimates. •Assess financing data for comparable projects. Key Study Findings •Competition continues to invest in center and hospitality assets. •An on-site headquarter hotel will be significantly and positively beneficial. •Off -site or bifurcated scenarios reduce MBCC demand. •Typical issues a city will have to address include public financial support and site challenges. •For Miami Beach, these may not be as relevant to room count discussions. Key Study Findings •Hotel pricing should not significantly impact demand, as long as the MBCC/Hotel package is competitive. •Room block agreement is critical to leveraging a new hotel. •Continue on-going efforts towards “destination” enhancement for residents and visitors. 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 March 20, 2017