LTC 087-2006 Convention Center Workshop CSL Presentation and Reports
lD MIAMI BEACH
OFFICE OF "THE CllY MANAGER
NO. LTC # 087-2006 LETTER TO COMMISSION
TO: Mayor David Denner and Members of the City Commission
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FROM: Jorge M. Gonzalez, City Manager ~"" .0M. G:> ..6tt.
DATE: April 3, 2006
SUBJECT: Convention Center Workshop- CSL presentation and Reports
The purpose of this Letter to Commission is to provide you with a copy of the CSL
presentation, which was part of the March 27, 2006 Convention Center Workshop.
Attached please find a copy of the CSL power point presentation as well as the 2001 and
2005 reports for your information and review.
If you have any questions, please feel free to contact me.
JMGlDM
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August 14,2005
Mr. William D. Talbert, III
President end CEO
Gn:ater Miami Convention & Visitors Bureau
70LBrickell Avenue, Suite 2700
Miami, Florida 33131
Cc: Ms. Ita Moriarty
Dear Mr. Talbert:
It is my understanding that discussion regarding the sizing for future geneml sessionlballroom
space development for the Miami Beach Conventipn Center is iaking place. As you know, CSL
continually tmcks changes to the industry in terms of facility development, ~et demand,
event planner preferences and related characteristics. This information may be useful to key
decision makers during these discussions, and I have therefore summarized a portion of our latest
research regarding the development of general sessionlballroom space within major convention
destinations around the country.
A significant change within the industry is clearly rooted in the increasing importance of general
sessionlballroom space. In recent years, these facilities have become highly desired space in
convention centers, due both to their flexibility in hosting many types of activities and the
changing nature of the event industry itself. The. ballroom of past years is today programmed
with general session lectures, product demonstrations, overflow exhibit space, performances and
other functions, many of which receive and/or broadcast digital content.
Recent research conducted by CSL indicates a significant shift in the mix of space offered in
"state-of-the-industry" convention centers ihroughout the country. Specifically. the space
offerings of 18 major U.S. convention centers that have undertaken recent expansion or are
planning expansion have been analyzed (these. centers, along with corresponding general
sessionlballroom space, are listed near the conclusion of this memo).
CotrRnItons. ~Lr &: "bun InlfmDllonaJ
1907 Ea, Waymta Boulnard, Suite 250. W42jltdIa. MN 5j3~1 .T.lqmon. 951.476.5900 .Pac.rimll. 951.476.0005
.
,
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Mr. WiJliam D. Talbert, III
Page 2 of 5
In the exhibit shown below, we present the average square footage of total and contiguous
general sessionlballroom space among the centers reviewed, focusing on space levels in 1996
versus currentlplanned space levels.
Average Square Footage of Total FacRity Average Square Footage of Largest
General SessionlBanroom Space General SessionlBanroom Space
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NOTE: 18nl11a'U,S.CI:II1\IWIlIancenlWSlMl.,,-undar\IIMnepll!1Stonlinc:tl11llO--anl!yzed. ~'lblbolh,..r5on1y
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As noted, the total general sessionlballroom square footage in the centers reviewed has increased
by approximately 37,800 square feet since 1996, from a total per facility amount of 43,000
square feet to 80,800 square feet. In effect, these centers have gone from single, modestly-sized
ballrooms to multiple general sessionlballroom spaces. Looking only at the largest contiguous
ballroOln space within the centers reviewed, we see an increase of nearly 19,000 square feet,
rising to approximately 51,500 square feet for the largest primary ballroom/general session hall
in the average facility.
It is also interesting to consider the increases in general sessionlballroom space relative to the
increases in exhibit space. We have calculated the percentage increase in exhibit space at the 18
centers reviewed, along with the corresponding increase in general sessionlballroom space. This
data is presented in the folloWIng exhibit.
Percentage lncrssse In Square footage SInce 1996
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1ndUcII.......hm..r.ctIlli.-lhlldlllnotpDIHMbClllllln..lllI~a 1115.
Saun:e:FI~'ISDl'JI"M. 1'.&2005
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.
Mr. William D. Talbert, III
Page 3 of5
As noted above, convention center expansions in recent years have resulted in a 69.4 percent
increase in exhibit space, with a corresponding 160.2 percent increase in general
sessionlballroom space. This is further indication of the relative importance of the varied
functions that are being held in general sessionlballroom areas.
In sizing a general sessionlba11room space, it is critical to recognize that multiple overlapping
groups, both local and non-local, will seek to book the center. Multiple overlapping events are
routine occurrences at most major centers. As a result, a general sessionlballroom space has to
be sized accordingly. For example, two events, each with relatively modest space needs may
combine to require 50,000 square feet. On occasion, general session space needs for larger
single events may requJre this much or more space.
In general, it is critical that space planning reflect the highly multi~use nature of the general
sessionlballroom space, and the high demand for this space from numerous event segments.
Industry data suggest that major centers around the country are reflectina this in their overall
program of space.
The set of facilities used for this analysis include those that have undergone recent expansion in
primary convention and tradeshow markets. These are listed below, along with the square
footage of contiguous and total general sessionlballroom space.
Largest Talal
Contiguous Gan. Session!
Gan. Session! Ballroom
Ballroom Space
City, Slate Facility (sq. ft.) (Sq, ft.)
Chicago, IL McCormick Place 60,000 160,000
New Orleans, LA Ernest N. Morial Convention Center 60,000 127,000
Phoenix, AZ Phoenix CMc Plaza 46,000 122,000
Las Vegas, NV Las Vagas Convention Canler. 100,000 100,000
San Francisco, CA Moscone Center 56,300 99,000
Philadelphia, PA Pennsylvania Convention Center. 60,000 93,000
San Antonio, TX Henry B. Gonzalez Convention Center 39,600 90,100
New York, NY Javlts Centar. 66,000 86,000
. Danver, CO Colorado Convention Canter 50,000 85,000
San Diego, CA San Diego Convention Cenler 41,000 81,700
Orlando, FL Orange County Convention Center 62,200 78,200
Kansas City, MO Bartle Hall 40,000 63,900
Atlanta, GA Gaorgla World Congress 33,000 58,700
Washington, D.C. Washington Convention Center 52,000 52,000
Dallas, TX Dallas Convention Center 27,000 46,100
Boston, MA Boston Convention and Expo Center 41,000 41,000
Anaheim, CA Anaheim Convention Centar 38,100 38,100
Houston, TX George R. Brown Convention Center 31,600 31,600
. Planned expansion projects.
....
,
Mr. William D. Talbert, III
Page 4 of5
It should be noted that the Javits Center in New York, the Pennsylvania Convention Center and
. the Las Vegas Convention Center reflect data for planned expansions. In addition, consideration
is being given to expanding the ballroom/general assembly space available in the Anaheim
Convention Center, which is also undersized relative ~ other new/expanded comparable
facilities. The Moscone Center in San Francisco recently completed an expansion which
includes three. levels of multi-use space. The third level at 56,300 square feet is most often used
for food functions, general sessions and meetings.
Convention center representatives in Dallas and Houston, two of the markets providing smaller
than industry average ballrooms, were contacted and further questioned as to the marketability
and the functionality of their ballroom offerings.
Specifically, the Dallas Convention Center provides two non-contiguous ballrooms of 27,000
and 19,100 square feet. Center management recognizes a growing demand for a larger
contiguous ballroom and plans are currently underway to mitigate these ballroom space
limitations, including: (1) a large unfinished space (developed under the most recent expansion,
but not fmished due to funding constraints) may be renovated in a planned expansion (slated for
a completion in 2008) to create an additional large ballroom within the Center; and (2) a planned
new Marriott headquarters hotel (that will be attached to the Center) will integrate more than
80,000 square feet of ballroom space, of which 50,000 square feet of contiguous space will be
offered in the largest ballroom. Additionally, the existing Hyatt headquarters hotel integrates
50,000 square feet of total ballroom space (30,000 and 20,000 square feet, respectively) and
plans are underway to connect the hotel to the Center via skybridge.
In Houston, the George ~. Brown Convention Center currently has one Grand Ballroom which
currently offers 31,600 square feet. Center management indicated it is becoming increasingly
problematic to service the general assembly and ballroom needs of some of their largest groups.
In many of these cases, groups will use a portion of the exhibit hall to fulfill their general
assembly needs, as well as the facility's 3,OOO-capacity fixed seat auditorium. Additionally, the
attached Hilton headquarters hotel offers two large ballrooms (40,000 and 26,000 square feet,
respectively), which are also used by some events. While no current plans are in place to expand
the Center's ballroom/general assembly offerings, management believes that their limitations
will likely have to be addressed at some point in the future.
Of interest regarding the Miami Beach convention product, consideration is being given to an
alternate use for the Jackie Gleason Theater (Le., Cirque du Soleil). Four to six times lIIII1ually,
the Theater is used for general session functions related to room-night generating conventions. If
the use of the Theater for these functions is limited, the ability to host such events would be
substantially limited. This would place added pressure to host large general sessionlballroom
functions in exhibit areas, which is a costly and less than desirable alternative. Future space
planning efforts should take this condition into consideration.
...***
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Mr. William D. Talbert, III
Page 5 of5
As development continues for the Miami Beach Convention Center, it should be noted that in the
original 2001 feasibility study conducted by CSL, recommendations included the development of
a 50,000 square foot general sessionlballroom space. This sizing was designed to accommodate
both single larger events, as well as multiple overlapping events. Subsequent to our original
2001 research, trends in the industry (both for association and corporate events) indicate that
general sessionlballroom space has become more, not .Iess, of a factor in event planner
consideration of a facility. In February of 2005, we conducted an updated assessment of
competitive facility development and industry trends, which further indicated that the general
session/ballroom space has increased in importance among meeting planners. Going forward
from this point, it will be important to maintain a relatively high level of general
session/ballroom space development to accommodate the potential market for Center, with a
50,000 square foot threshold as a minimum level of space development
We sincerely appreciate the opportunity to assist you with this project. If you have any further
questions or comments, please do not hesitate to call me at (952) 476-5900, ext., 205.
Sincerely,
't\.~
John T. Kaatz
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