New Convention/Conference Hotels Are On An Upswing
David Eisen, managing editor of Luxury Travel
Advisor recently wrote about the boost that convention and conference
center hotels are getting by local governments. As the meetings and events
business gradually comes back, developers are looking to build hotels to quench
the demand.
Two
separate projects are now underway, due in part to tax breaks granted that will
help ease the burden of development.
A $197-million hotel project is planned for the Oregon
Convention Center area, with financing that includes $70
million in tax dollars. Word is the
hotel will be a Hyatt.
Metro council members said the hotel is needed to lure conventions, KOIN reported. The goal with those conventions, they said, is to bring more revenue and jobs into the city and to boost the area’s "tourism economy."
Financing plans for the hotel call for $60 million in construction bonds. On Monday Oregon state lawmakers approved $10 million dollars for the project—paid for by state lottery funds. A hotel tax then would be used to pay off the $60 million on construction bonds.
Meanwhile, another conference center hotel looks to be taking shape in Aurora, Colo., The Denver Post reports. The Aurora City Council this week approved $25 million in tax breaks for a new 245-room hotel, a conference center and parking structure across from the Anschutz Medical Campus. When opened, it will be flagged by Hyatt.
Corporex Colorado will build the hotel and 30,000-square-foot conference center, as well a stand-alone parking garage with upwards of 500 spaces.
Nothing New
Metro council members said the hotel is needed to lure conventions, KOIN reported. The goal with those conventions, they said, is to bring more revenue and jobs into the city and to boost the area’s "tourism economy."
Financing plans for the hotel call for $60 million in construction bonds. On Monday Oregon state lawmakers approved $10 million dollars for the project—paid for by state lottery funds. A hotel tax then would be used to pay off the $60 million on construction bonds.
Meanwhile, another conference center hotel looks to be taking shape in Aurora, Colo., The Denver Post reports. The Aurora City Council this week approved $25 million in tax breaks for a new 245-room hotel, a conference center and parking structure across from the Anschutz Medical Campus. When opened, it will be flagged by Hyatt.
Corporex Colorado will build the hotel and 30,000-square-foot conference center, as well a stand-alone parking garage with upwards of 500 spaces.
Nothing New
The rise in building convention/conference hotels is on an upswing. In May, Boston's Convention & Exhibition Center in Southie’s Seaport District was tapped to receive a new 1,500-room hotel, "headquarters hotel" for the convention center. James Rooney of the Massachusetts Convention Center Authority told the Boston Herald that the hotel is also central to future plans involving the expansion of the center by up to 60 percent.
The Boston Globe reported that the city's hotels are already pushed to their capacity limit, especially the Seaport District where the convention center is located. Further, Great Boston's hotel occupancy levels in March rose to their highest marks since 2005 due to an increased number of gatherings at the Hynes Convention Center, according to the latest PKF Consulting survey.
Last month, reports were
that Jackson, Miss., would be getting a boost to its convention business,
with plans to build a $60-million hotel in Jackson's downtown area, linked to
the city's convention center.
Outgoing Jackson Mayor Harvey Johnson Jr. also announced that the proposal for the property will ask for no more than $9 million in loans, to be financed jointly by the Jackson Redevelopment Authority and city taxpayers. A rejected proposal from December 2011 originally asked for $90 million for a similar development.
The Clarion Ledger reported that the Florida-based Callen Group approached Jackson with an unsolicited bid to build a 12-story, 305-room hotel across the street from the Jackson Convention Complex.
Though Mayor Johnson did not name a brand for the property, the Jackson Free Press reported that the developers are working with Hyatt, and the property will come complete with meeting areas, a full-service restaurant and parking. Additionally, the $9 million provided by the city for the hotel's construction can only be used to cover budget shortfalls for the first five years of operation. After that period, Hyatt has agreed to pay back any money it has borrowed, in full.
Outgoing Jackson Mayor Harvey Johnson Jr. also announced that the proposal for the property will ask for no more than $9 million in loans, to be financed jointly by the Jackson Redevelopment Authority and city taxpayers. A rejected proposal from December 2011 originally asked for $90 million for a similar development.
The Clarion Ledger reported that the Florida-based Callen Group approached Jackson with an unsolicited bid to build a 12-story, 305-room hotel across the street from the Jackson Convention Complex.
Though Mayor Johnson did not name a brand for the property, the Jackson Free Press reported that the developers are working with Hyatt, and the property will come complete with meeting areas, a full-service restaurant and parking. Additionally, the $9 million provided by the city for the hotel's construction can only be used to cover budget shortfalls for the first five years of operation. After that period, Hyatt has agreed to pay back any money it has borrowed, in full.
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