Yet Another Short-sighted View on Headquarter Hotel, Convention Center Builds

July 7, 2014

Rachel Wimberly

Rachel Wimberly is Executive Vice President of Business Development at Tarsus Group, US. Follow her on Twitter @TSNN_Rachel.

In the past (almost) nine years of covering the trade show industry for first Tradeshow Week magazine and now Trade Show News Network, I have lost count the number of times I have read short-sighted, ill-informed and one-sided articles, op-eds, etc., about a city’s choice to build or expand a subsidized convention center or an adjacent hotel.

Most recently, I read an op-ed written by Steven Pearlstein for The Washington Post that lambasted the opening of a new headquarter hotel – Marriott Marquis – next to the Walter E. Washington (D.C.) Convention Center.

His op-ed hit all of the usual arguments I have heard over the years, such as the $850 million D.C. convention center that was supposed to bring in 750,000 annual room nights has not lived up to those expectations.

Also, Pearlstein goes to the old standby source for slamming any new builds or expansions – Heywood Sanders - a professor at the University of Texas at San Antonio, who in his book “Convention Center Follies” talks about the waste of money building centers when there is so much unsold space already available.

Pearlstein also says what he refers to as the Convention Industrial Complex “convinced political leaders that the reason bookings had failed to meet expectations was that they didn’t have a big “headquarters hotel” to offer convention planners, who value such hotels because they reduce the cost and complexity of running such large events.”

In a point of concession, though, he did add that Jim Goodman, vice president of the American Dental Association that has two meetings booked in D.C., said that without the Marriott Marquis, “he would have to find rooms in dozens of distant suburban hotels to accommodate the 10,500 peak-night hotel rooms he needs to bring dentists to town.”

I hope that anyone in the trade show industry that has sense is about to rip their hair out reading this right now.

Is Pearlstein’s op-ed totally wrong? No, not completely. There IS a lot of convention center space across the U.S. that is currently unused.

The problem with Pearlstein’s op-ed, though, and most others on this subject I have read, is he doesn’t ONCE mention the economic impact of bringing an event into town.

He uses only hotel room nights as the metric and doesn’t factor in that attendees actually eat, drink, ride in taxis and see the sights, besides all of  the businesses and employees being supported by those same attendees being at their meeting, such as AV, food and beverage and security, to name a very few.

What Pearlstein doesn’t say is that, according to a PricewaterhouseCoopers study, the TOTAL meetings industry in 2012 had an economic impact of $770 billion and supported 5.3 million jobs nationwide. Yes, that was billion with a ‘B’.

He also doesn’t say what kind of total economic impact the 40,000 attendees from the American Dental Association will have next year when they come to town.

You know, those 40,000 people that would NOT be booked in D.C. without that new headquarter hotel next to the city’s convention center. 

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Overview: The award-winning Orange County Convention Center (OCCC) goes the extra mile to make every day extraordinary by offering customer service excellence and industry-leading partnerships. From their dedicated in-house Rigging team to their robust Exhibitor Services, The Center of Hospitality brings your imagination to life by helping you host unforgettable meetings and events. With more than 2 million square feet of exhibit space, world-class services and a dream destination, we are committed to making even the most ambitious conventions a reality. In October 2023, the Orange County Board of County Commissioners voted to approve allocating Tourist Development Tax funding for the $560 million Phase 5A completion of the OCCC. The Convention Way Grand Concourse project will include enhancements to the North-South Building, featuring an additional 60,000 square feet of meeting space, an 80,000- square-foot ballroom and new entry to the North-South Building along Convention Way. “We are thrilled to begin work on completing our North-South Building which will allow us to meet the growing needs of our clients,” said OCCC Executive Director Mark Tester. “As an economic driver for the community, this project will provide the Center with connectivity and meeting space to host more events and continue to infuse the local economy with new money and expanding business opportunities.” Amenities: The Center of Hospitality goes above and beyond by offering world-class customer service and industry-leading partnerships. From the largest convention center Wi-Fi network to custom LAN/WAN design, the Center takes pride in enhancing exhibitor and customer experience.  The OCCC is the exclusive provider of electricity (24-hour power at no additional cost), aerial rigging and lighting, water, natural gas and propane, compressed air, and cable TV services. Convenience The Center is at the epicenter of the destination, with an abundance of hotels, restaurants, and attractions within walking distance. Pedestrian bridges connect both buildings to more than 5,200 rooms and is within a 15-minute drive from the Orlando International Airport. The convenience of the location goes hand-in-hand with top notch service to help meet an event’s every need. Gold Key Members The OCCC’s Gold Key Members represent the best of the best when it comes to exceptional service and exclusive benefits for clients, exhibitors and guests. The Center’s Gold Key memberships with Universal Orlando Resort, SeaWorld Orlando and Walt Disney World greatly enhance meeting planner and attendee experiences offering world-renowned venues, immersive experiences and creative resources for their events. OCCC Events: This fiscal year, the OCCC is projected to host 168 events, 1.7 million attendees, and $2.9 billion in economic impact.  The Center’s top five events during their 2022-2023 fiscal year included:  AAU Jr. National Volleyball Championships 2023 200,000 Attendees $257 Million in Economic Impact MEGACON 2023 160,000 Attendees $205 Million in Economic Impact Open Championship Series 2023 69,500 Attendees $89 Million in Economic Impact Sunshine Classic 2023 42,000 Attendees $54 Million in Economic Impact Premiere Orlando 2023 42,000 Attendees $108 Million in Economic Impact