Memphis Feasibility Analysis

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Memphis Feasibility Analysis

  1. 1. Memphis Cook Convention Center Feasibility Study Summary Presented by: Kevin Kane President/CEO Memphis Convention & Visitors Bureau
  2. 2. Memphis Feasibility AnalysisAnalysis Summary  Established convention business  High destination appeal for visitors  Limited hotel rooms connected to or near the convention center  Current site difficult to expand  Recommendation: a new 887,000- square foot state of the art convention center with 250,000- square feet of exhibit space  Adjacent 1,000-room hotel with 75,000-square feet of function space to provide adequate room blocks for events  Cost of status quo is high
  3. 3. Memphis Feasibility Analysis Convention Center Trend Analysis  Economy has not lessened importance of meeting face to face.  Many cities are developing meeting facilities, creating fierce competition across the country. Cities occasionally “buy” business.  Meeting planners expect destinations with amenities and a few large hotels to meet their lodging requirements. Dislike for multiple small hotels.  Easy access to dining, shopping and other non-meeting activities is critical. Walk-ability is key.
  4. 4. Memphis Feasibility AnalysisHotel Analysis  Memphis has a shortage of rooms available downtown to service the convention center to its potential  Downtown hotel market performing relatively well amid nationwide hotel slump Larger contiguous hotel room blocks would help a new convention center attract pieces of business it could not before Only two hotels with more than 400 rooms exist in downtown Memphis Memphis/Shelby County Total Inventory 21,000 Rooms Dominated by limited service hotels
  5. 5. Memphis Feasibility Analysis Survey of Meeting Planners  HSP and Tradeshow Week launched comprehensive survey to more than 1,500 meeting planners Results indicated planners are familiar with Memphis and most feel it has destination appeal for visitors Planners indicated that a lack of enough quality function space hinders a return in the near future Most are open to the possibility of hosting an event in Memphis should something be done with the current convention center
  6. 6. Memphis Feasibility Analysis Survey of Meeting Planners
  7. 7. Memphis Feasibility Analysis Survey of Meeting Planners
  8. 8. Memphis Feasibility AnalysisCompetitive Analysis Population Data Rank City MSA Population 2000 MSA Population 2008 Percent Change (2000-2008) Media Market Population 2008 City Population 2006 Projeccted 2020 Population Percent Change (2008-2020) 1 Dallas, TX 5,196,259 6,300,006 17.5% 6,814,645 1,232,940 5,169,599 -21.9% 2 Houston, TX 4,739,625 5,728,143 17.3% 5,984,842 2,144,491 5,753,782 0.4% 3 Atlanta, GA 4,281,896 5,376,285 20.4% 6,414,970 486,411 6,817,025 21.1% 4 Minneapolis, MN 2,981,508 3,229,878 7.7% 4,449,252 372,833 4,039,271 20.0% 5 St. Louis, MO 2,701,537 2,816,710 4.1% 2,375,829 347,181 2,947,151 4.4% 6 Tampa, FL 2,404,281 2,733,761 12.1% 4,297,007 332,888 2,989,907 8.6% 7 Denver, CO 2,193,882 2,506,626 12.5% 3,895,026 566,974 3,290,001 23.8% 8 Pittsburgh, PA 2,429,014 2,351,192 -3.3% 2,821,405 312,819 2,298,199 -2.3% 9 Cincinnati, OH 2,014,615 2,155,137 6.5% 2,316,462 332,252 2,086,629 -3.3% 10 Ft. Worth, TX 1,721,035 2,074,003 17.0% 6,814,645 653,320 2,365,140 12.3% 11 San Antonio, TX 1,719,270 2,031,445 15.4% 2,298,669 1,296,682 2,158,192 5.9% 12 Kansas City, MO 1,842,814 2,002,047 8.0% 3,194,954 447,306 2,244,712 10.8% 13 Columbus, OH 1,619,505 1,773,120 8.7% 2,316,601 733,203 2,006,753 11.6% 14 Indianapolis, IN 1,531,079 1,715,459 10.7% 2,743,584 785,597 2,280,118 24.8% 15 Charlotte, NC 1,340,283 1,701,799 21.2% 2,813,389 630,478 2,390,792 28.8% 16 Austin, TX 1,265,665 1,652,602 23.4% 1,710,099 709,893 2,108,492 21.6% 17 Nashville, TN 1,317,514 1,550,733 15.0% 2,493,371 552,120 1,653,185 6.2% 18 Milwaukee, WI 1,502,261 1,549,308 3.0% 2,256,618 573,358 1,685,962 8.1% 19 Memphis, TN 1,208,246 1,285,732 6.0% 1,793,767 670,902 1,367,543 6.0% 20 Louisville, KY 1,165,060 1,244,696 6.4% 1,647,341 554,496 1,250,164 0.4% 21 Oklahoma City, OK 1,097,834 1,206,142 9.0% 1,721,797 537,734 1,266,216 4.7% 22 New Orleans, LA 1,315,540 1,134,029 -16.0% 1,622,269 223,388 1,142,745 0.8% 23 Birmingham, AL 1,053,365 1,117,608 5.7% 1,835,608 229,424 1,069,127 -4.5% 24 Raleigh, NC 804,363 1,088,765 26.1% 2,726,419 356,321 2,029,965 46.4% 25 Omaha, NE 769,074 837,925 8.2% 1,052,460 419,545 962,060 12.9% 26 Grand Rapids, MI 743,038 776,833 4.4% 1,991,822 193,083 1,311,539 40.8% 27 Baton Rouge, LA 707,343 774,327 8.7% 867,176 229,553 679,812 -13.9% 28 Jackson, MS 498,254 537,285 7.3% 912,440 176,614 552,061 2.7% Average 1,863,006 2,116,128 10.1% 2,935,088 575,065 2,354,148 9.9% Source: US Census, HSP
  9. 9. Memphis Feasibility AnalysisCompetitive Analysis Exhibit Space Rank Facility City Exhibit Space (SF) Ballroom Space Grand Ballrom Junior Ballroom Other Ballroom Space Meeting Space Number of Meeting Room Breakouts 1 Georgia World Congress Convention Center Atlanta, GA 1,366,000 58,722 33,000 25,722 0 422,917 123 2 Ernest N. Morial Convention Center New Orleans, LA 1,069,237 60,014 36,448 23,566 0 103,824 9 3 Dallas Convention Center Dallas, TX 951,726 45,000 26,000 19,000 0 98,699 88 4 George R. Brown Convention Center Houston, TX 853,000 31,590 31,590 0 0 88,695 16 5 Colorado Convention Center Denver, CO 576,713 84,820 47,020 37,800 0 91,652 62 6 Minneapolis Convention Center Minneapolis, MN 475,200 27,522 18,070 9,452 0 95,461 19 7 Henry B. Gonzalez Convention Center San Antonio, TX 400,052 234,446 173,001 40,225 21,220 95,896 29 8 Kansas City Convention Center Kansas City, MO 388,800 40,155 21,600 0 18,555 86,922 42 9 Nashville Convention Center Nashville, TN 375,000 0 0 0 0 30,630 26 10 America's Center** St. Louis, MO 340,000 28,416 28,416 0 0 105,428 40 11 Greater Columbus Convention Center Columbus, OH 333,810 39,729 25,000 14,729 0 58,132 60 12 Indiana Convention Center** Indianapolis, IN 300,000 66,923 33,335 13,536 20,052 67,211 48 13 Charlotte Convention Center Charlotte, NC 280,000 19,600 19,600 0 0 44,320 33 14 Austin Convention Center Austin, TX 246,097 23,418 15,288 4,234 3,896 42,464 35 15 David L. Lawrence Convention Center Pittsburgh, PA 236,550 23,436 23,436 0 0 78,004 52 16 Fort Worth Convention Center** Ft. Worth, TX 227,266 27,904 27,904 0 0 46,951 23 17 Tampa Convention Center Tampa, FL 200,000 36,000 36,000 0 0 42,747 36 18 Duke Energy Convention Center Cincinnati, OH 195,320 57,496 40,248 17,248 0 39,147 33 19 Qwest Center Omaha, NE 193,760 41,876 30,996 10,880 0 22,050 11 20 Kentucky International Convention Center Louisville, KY 191,000 30,160 30,160 0 0 70,352 49 21 Midwest Airlines Center Milwaukee, WI 188,695 37,506 12,690 12,408 12,408 39,364 6 22 DeVos Place Convention Center Grand Rapids, MI 162,000 25,597 25,597 0 0 5,050 4 23 Memphis Cook Convention Center Memphis, TN 156,520 27,379 10,664 0 0 38,344 23 24 Raleigh Convention & Conference Center Complex Raleigh, NC 146,843 32,617 12,440 10,105 10,072 32,601 13 25 Birmingham-Jefferson Convention Complex Birmingham, AL 115,451 15,522 15,522 0 0 47,159 28 26 Cox Convention Center Oklahoma City, OK 99,852 25,000 25,000 0 0 53,354 25 27 River Center Baton Rouge Baton Rouge, LA 97,472 26,150 26,150 0 0 5,738 5 28 Jackson Convention Complex Jackson, MS 60,000 25,200 25,200 0 0 22,212 22 Average 365,227 42,579 30,371 8,532 3,079 70,547 34 **Exhibit space excludes arena floor Source: Mpoint, HSP
  10. 10. Memphis Feasibility AnalysisProximate Hotel Rooms Hotel Rooms Facility City Room Count of Hotels within Close Proximity Largest Hotel in Close Proximity Individual Hotel Room Count Rooms Per 1,000 Exhibit Space Indiana Convention Center Indianapolis, IN 4,806 JW Marriott 1,005 16 Colorado Convention Center Denver, CO 4,281 Sheraton Downtown 1,231 7 Henry B. Gonzalez Convention Center San Antonio, TX 4,103 Marriott River Center 1,001 10 Kentucky International Convention Center Louisville, KY 3,405 Galt House 1,300 18 Ernest N. Morial Convention Center New Orleans, LA 3,394 Marriott at the CC 1,392 3 Dallas Convention Center Dallas, TX 3,242 Hyatt Regency Downtown 1,122 3 Midwest Airlines Center Milwaukee, WI 2,644 Hilton City Center 729 14 Minneapolis Convention Center Minneapolis, MN 2,118 Hilton Minneapolis 821 4 Kansas City Convention Center Kansas City, MO 2,113 Marriott 983 5 Georgia World Congress Convention Center Atlanta, GA 2,073 Omni 1,070 2 Nashville Convention Center Nashville, TN 2,048 Renaissance 673 5 Charlotte Convention Center Charlotte, NC 2,011 Westin 700 7 America's Center St. Louis, MO 1,994 Renaissance Grand 918 6 Duke Energy Convention Center Cincinnati, OH 1,960 Millennium Hotel 872 10 George R. Brown Convention Center Houston, TX 1,920 Hilton American 1,203 2 Tampa Convention Center Tampa, FL 1,899 Marriott Waterside 719 9 Fort Worth Convention Center Ft. Worth, TX 1,820 Omni 614 8 Greater Columbus Convention Center Columbus, OH 1,416 Hyatt Regency 631 4 Birmingham-Jefferson Convention Complex Birmingham, AL 1,259 Sheraton 757 11 David L. Lawrence Convention Center Pittsburgh, PA 1,241 Westin 616 5 DeVos Place Convention Center Grand Rapids, MI 1,233 Amway Grand Plaza Hotel 682 8 Cox Convention Center Oklahoma City, OK 963 Sheraton 395 10 Memphis Cook Convention Center Memphis, TN 901 Marriott 600 6 Qwest Center Omaha, NE 809 Hilton 450 4 Raleigh Convention & Conference Center Complex Raleigh, NC 753 Marriott Downtown 400 5 River Center Baton Rouge Baton Rouge, LA 590 Sherton 300 6 Jackson Convention Complex Jackson, MS 222 Clarion 222 4 Source: HSP
  11. 11. Memphis Feasibility AnalysisCompetitive Analysis National Hotel Competitive Set Facility Name City, State Number of Rooms Index Total Space Index Exhibit Space Index Ballroom Space Index Gaylord Opryland Resort & Convention Center Nashville, TN 2,881 1.89 600,000 1.81 288,000 2.05 124,000 1.7478 Gaylord Palms Resort & Convention Center Kissimmee, Fl 1,406 0.92 578,500 1.74 178,500 1.27 78,863 1.1116 Sheraton Greensboro Hotel at Four Seasons Greensboro, NC 1,000 0.66 250,000 0.75 40,000 0.28 63,730 0.8983 Gaylord Texan Resort & Convention Center* Grapevine, TX 2,008 1.32 400,000 1.20 180,000 1.28 84,700 1.1938 Gaylord National Resort & Convention Center Washington, DC 1,500 0.98 220,000 0.66 180,000 1.28 103,747 1.4623 Hyatt Regency Jacksonville Riverfront Jacksonville, FL 945 0.62 220,000 0.66 110,000 0.78 29,690 0.4185 Hyatt Regency Dallas Dallas, TX 1,122 0.74 215,000 0.65 55,000 0.39 52,590 0.7412 Marriott Wardman Park Hotel Washington, DC 1,340 0.88 173,000 0.52 95,000 0.67 30,264 0.4266 Total 12,202 2,656,500 1,126,500 567,584 Average 1,525 332,063 140,813 70,948 Source: HSP
  12. 12. Memphis Feasibility AnalysisCompetitive Analysis Scenarios - Memphis Convention Center & Hotel Exhibit Space Quality CBD Hotel Rooms Proximate Quality Hotel Rooms Recommended Proximate Quality Rooms New Proximate Rooms Needed to Meet Recommended Minimum Current 160,000 2,655 1,025 1,920 895 Expansion on Existing Site 250,000 2,655 1,025 3,000 1,975 New Size, New Site 250,000 2,655 1,377 3,000 1,623
  13. 13. Memphis Feasibility AnalysisMeeting Facility Supply Total (SF) By Division (SF) Divisions Exhibit Space 156,520 4 Main Hall East Section 49,742 Main Hall Northwest Section 37,240 Main Hall Southwest Section 37,240 South Hall 32,298 Ballroom Space Ballroom 27,379 5 A 10,664 B 8,228 C 2,829 D 2,829 E 2,829 Meeting Space 46,287 46,287 26 230,186 230,186 35 Adjacent Hotel Rooms 600 Total Exhibit Space 156,520 Per Guest Room 261 Total Ballroom Space 27,379 46 Total Meeting Space 46,287 77 Other Space n/a n/a Total Function Space 230,186 384 Source: mpoint.com, HSP Memphis Cook Convention Center Function Space
  14. 14. Memphis Feasibility AnalysisMeeting Facility Demand 2008 Calendar Year 2009 Calendar Year Room Nights By Category Room Nights Economic Impact Assemblies 65 $ 362,436.00 Banquet 2,684 $ 1,213,087.00 Convention 93,095 $ 84,182,686.00 Consumer Show 506 $ 1,657,320.00 Meeting 7,970 $ 3,550,683.00 Other 3,600 $ 1,379,865.00 Trade Show 5,502 $ 6,889,545.00 Total 113,422 $ 99,235,622.00 Room Nights By Category Room Nights Economic Impact Assemblies 52 $ 127,548.00 Banquet 1,267 $ 601,235.00 Cannon Center 35 $ 10,465.00 Convention 70,804 $ 51,379,845.00 Consumer Show 1,257 $ 1,982,540.00 Meeting 14,530 $ 9,935,190.00 Other 399 $ 314,300.00 Trade Show 6,495 $ 8,375,008.00 Total 94,839 $ 72,726,131.00
  15. 15. Memphis Feasibility AnalysisRecommendations Summary of Recommendations Proposed Improvements Assumed Opening Date January 1, 2018 New Convention Center Function Space Size (SF) Exhibit Hall 250,000 Grand Ballrooom 44,000 Junior Ballroom I 25,000 Junior Ballroom II 10,000 Meeting rooms 70,000 Total 399,000 Back-of-House & Pre-function 488,000 Gross Building Size 887,000 Onsite Parking 1,800 Hotel Full-Service, Branded, HQ Meeting Hotel Guest Rooms 1,000 Function Space Size (SF) Grand Ballrooom 32,000 Junior Ballroom 14,000 Meeting rooms 29,000 Total 75,000 Parking 700 Source: HSP
  16. 16. Memphis Feasibility AnalysisProjections Memphis Convention Center Event Demand Summary Event Type Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Exhibit Events Conventions and Trade Shows 45 46 47 48 48 48 48 48 48 48 Consumer Shows 12 15 15 17 18 18 18 18 18 18 Sports/Entertainment Events 4 5 7 8 10 10 10 10 10 10 Sub-total Exhibit Hall 61 66 69 73 76 76 76 76 76 76 Non-Exhibit Corporate Events and Conferences 42 50 60 73 87 87 87 87 87 87 Banquets 64 70 77 85 94 94 94 94 94 94 Meetings Room Events 180 196 214 233 254 254 254 254 254 254 Sub-total Non-Exhibit 286 317 352 391 435 435 435 435 435 435 Total 347 383 421 464 510 510 510 510 510 510 Source: HSP Projected Attendance Event Type 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Conventions and Trade Shows 242,900 250,000 257,100 257,100 257,100 257,100 257,100 257,100 257,100 257,100 Consumer Shows 122,300 166,800 166,800 178,000 194,700 194,700 194,700 194,700 194,700 194,700 Sports/Entertainment Events 20,000 40,000 40,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 Corporate Events and Conferences 27,400 34,300 39,400 48,500 55,900 55,900 55,900 55,900 55,900 55,900 Banquets 44,700 51,000 55,200 59,400 66,900 66,900 66,900 66,900 66,900 66,900 Meetings Room Events 208,900 227,500 248,800 271,100 295,300 295,300 295,300 295,300 295,300 295,300 Total All Events 666,200 769,600 807,300 874,100 929,900 929,900 929,900 929,900 929,900 929,900 Source: HSP

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