Title: Feasibility Study for an ExpandedNew Convention Center in Jacksonville
1Feasibility Study for an Expanded/New Convention
Center in Jacksonville
DRAFT COPY For Discussion Purposes
2Table of Contents
Local Market Conditions.4 Histori
cal Facility Operations.....8 Indust
ry Trends..16 Competitive
Comparable Markets Facilities..22 Market
Surveys..47 Market
Conclusions..65 Appendix
.
3Study Components
PHASE ONE
PHASE TWO
- Local Interviews
- Local Market Conditions
- Existing Local Facilities
- Industry Trends
- Comparable and Competitive Markets Facilities
- Market Surveys
- Market Conclusions
- Building Program and Event Levels
- Site Selection
- Finance
- Facility Expenses
- Community Economic Impact
- Report and Presentation
4Local Market Conditions
5Local Jacksonville Hotel Inventory
Source Facility Management, 2007
6Local Market Issues and Conclusions
- Strengths
- Presence of international airport
- Driving access to several markets
- Local population and corporate base
- Potential cost benefits
- Beaches, resorts, golf and other visitor
amenities - Weaknesses
- Lack of brand identity and awareness
- Inventory of downtown hotels, restaurants and
retail - Downtown entertainment and nightlife
- Proximity to Competitive Markets with many
facility alternatives - Few traditional, full-service, conventionquality
hotel properties - Lack of industry reputation as a
conference/convention destination - Nearby Presence of Competitive Conference and
Convention Venues
7Jacksonville Visitor Amenity Map
8Historical Facility Operations
9Total Number of Events Hosted at POCC (Fiscal
Year 2004 2006)
151
146
131
Note Figures include all events held at the
POCC. Source Facility Management, 2007
10POCC Space Occupancy (Fiscal Year 2006)
Note Figures include all events utilizing POCC
exhibit or ballroom space. Source Facility
Management, 2007
11POCC Space Occupancy by Month (Fiscal Year 2006)
Note Figures include all events utilizing POCC
exhibit or ballroom space. Source Facility
Management, 2007
12Summary of Lost Business by Year by Event Type
Source Jacksonville and the Beaches Convention
and Visitors Bureau, 2007
13Summary of Lost Room Nights by Year by Event Type
Source Jacksonville and the Beaches Convention
and Visitors Bureau, 2007
14Summary of Lost Business Peak Room Nights
Average 270 Median 125
Source Jacksonville and the Beaches CVB, 2007
15Summary of Lost Business Total Attendance
Average 620 Median 225
Source Jacksonville and the Beaches CVB, 2007
16Industry Trends
17Summary of Convention Center Event Types
18The Recovery of the Biggest
Percent
Source Tradeshow Week, 2007 U.S. Department of
Commerce, Bureau of Economic Analysis, 2007
19Continued Optimism By Planners
Expected Change in Space Requirements Over Next 5
Years
Source CSL International National/Regional
Convention Planner Surveys, 2000 2006.
20Continuing Space Development
Growth Index 1989100 Base Year
Source Tradeshow Week, Tradeshow Week Major
Exhibit Hall Directory, 2006.
21Re-converging Supply Demand?
CEIR Demand Index vs. Tradeshow Week Exhibit
Supply
Growth Index 2000100 Base Year
Source CEIR Index Report, 2007 Tradeshow Week
Major Exhibit Hall Directory, 2006.
22Competitive Comparable Markets Facilities
23Competitive Facilities
24Comparison of Prime Exhibit Space Competitive
Facilities
Average 124,700 Median 107,800
Note Boca Raton, FL, Omni Orlando, FL and
Hyatt Regency Jacksonville do not offer exhibit
space. Source facility floorplans, management,
and industry publications, 2007
25Comparison of Meeting Space Competitive
Facilities
Average 28,700 Median 28,100
Source facility floorplans, management, and
industry publications, 2007
26Comparison of Ballroom Space Competitive
Facilities
Contiguous Average 27,700 Contiguous Median
25,000 Total Average 34,000 Total Median
26,500
Source facility floorplans, management, and
industry publications, 2007
27Comparison of Total Sellable Space Competitive
Facilities
Average 170,800 Median 143,300
Source facility floorplans, management, and
industry publications, 2007
28Comparison of Total Number of Breakout Meeting
Rooms Competitive Facilities
Average 25 Median 22
Source facility floorplans, management, and
industry publications, 2007
29Comparison of CVB Budget Competitive Facilities
Average 7,110,000 Median 4,803,000
Note Orlando, FL CVB Budget (40,789,000) was
excluded. Source Convention and Visitors
Bureaus 2007
30Comparison of CBSA Population Competitive
Markets
Average 1.07 Median 0.99
Source Claritas Inc., 2007
31Comparison of Total Hotel Rooms Within the Metro
Area Competitive Markets
Average 13,600 Median 13,600
Note Atlanta, GA (92,000 rooms) and Orlando, FL
(113,000 rooms) were excluded from this
comparison. Source Convention and Visitors
Bureaus, 2007
32Comparison of Rooms at HQ Hotel Competitive
Markets
Average 600 Median 540
Note Fort Lauderdale, Miami Beach, Tallahassee
and the Prime Osborn Center do not have
headquarters hotels. The World Center
Marriott in Orlando (2,000 rooms) was excluded
from this comparison. Source Convention and
Visitors Bureaus 2007
33Comparison of Hotel Room Tax Rate Competitive
Markets
Average 12.8 Median 12.8
Source Convention and Visitors Bureaus 2007
34Ratio of CBSA Population to Sellable Space and
Population to Metro Hotel Rooms Competitive
Markets
Ratio of Population to Sellable Space
Average 12.1 Median 8.5
Ratio of Population to Hotel Inventory
Average 117.6 Median 65.6
Source Claritas, 2007, facility floorplans,
management and industry publications, 2007 and
Convention and Visitors Bureaus, 2007.
35Ratio of Hotel Rooms to Sellable Space
Competitive Markets
Average 0.16 Median 0.08
Note Omni-Orlando (1.96 hotel rooms per square
foot of sellable space) was excluded from this
comparison. Source Convention and Visitors
Bureaus, 2007 and facility floorplans,
management and industry publications, 2007.
36Comparison of Average Per Diem Competitive
Markets
341
330
330
301
300
299
293
291
289
284
Average 300 Median 296
272
269
Source Business Travel News, 2007 Corporate
Travel Index, February, 2007
37Comparison of Employees at Companies Within the
CBSA with 100 or More Employees Competitive
Markets
Average 9,600 Median 5,800
Source Claritas, 2007
38Comparable Facilities
39Comparison of Sellable Space Comparable
Facilities
Average 233,300 Median 149,600
Source facility floorplans, management, and
industry publications, 2007
40Comparison of CVB Budget Comparable Facilities
Average 5,573,800 Median 5,550,000
Source Convention and Visitors Bureaus 2007
41Comparison of CBSA Population Comparable Markets
Average 1.33 Median 1.35
Source Claritas Inc., 2007
42Comparison of Total Hotel Rooms Within ½ Mile of
the Convention Center Comparable Markets
HYATT
Average 2,800 Median 2,600
Note Jacksonville figures include the Hyatt
Regency Jacksonville Riverfront, although it is
just beyond ½ mile from the POCC. Source
Convention and Visitors Bureaus, 2007
43Comparison of Rooms at HQ Hotel Comparable
Markets
Average 690 Median 700
Note Jacksonville and Salt Lake City do not have
headquarters hotels. (1) Milwaukee has two
headquarters hotels the Hilton Milwaukee City
Center with 730 rooms and the Hyatt Regency
Milwaukee with 484 rooms. (2) Rochester has two
headquarters hotels the Clarion Riverside with
472 rooms and the Hyatt Regency Rochester with
336 rooms. (3) Nashville is currently planning
a 400 room headquarters hotel. Source
Convention and Visitors Bureaus 2007
44Comparison of Hotel Room Tax Rate Comparable
Markets
Average 13.8 Median 13.8
(1) Virginia Beach charges an additional 1.00
per night tax. Source Convention and Visitors
Bureaus 2007
45Comparison of Average Per Diem Comparable Markets
385
355
316
315
311
296
293
293
Average 315 Median 303
293
291
Source Business Travel News, 2007 Corporate
Travel Index, February, 2007
46Comparison of Employees at Companies Within the
CBSA with 100 or More Employees Comparable
Markets
Average 7,200 Median 7,100
Source Claritas Inc., 2007
47Market Surveys
48Participating State and Regional Organizations
49Likelihood of Rotating Events to Jacksonville
State and Regional Event Planners
Positive response - 78 Negative response - 22
Source CSL Interviews, 2007
50Summary of Exhibit Space Demand State and
Regional Events
Average 16,300 Median 6,000
POCC
Note Data represented includes all organizations
with a potential interest in the Prime Osborn
Convention Center. Source CSL Interviews, 2007
51Summary of Delegate Attendance State and
Regional Events
Average 430 Median 300
Note Data represented includes all organizations
with a potential interest in the Prime Osborn
Convention Center. Source CSL Interviews, 2007
52Seasonal Preference by Month - State and
Regional Event Planners
Spring - 18 Summer - 44 Fall 30 Winter 8
Note Data represented includes all organizations
with a potential interest in the Prime Osborn
Convention Center. Source CSL Interviews, 2007
53Summary of Peak Night Hotel Room Blocks State
and Regional Events
Hyatt
Average 225 Median 125
Note Data represented includes all organizations
with a potential interest in the Prime Osborn
Convention Center. Source CSL Interviews, 2007
54Summary of Expected Hotel Room Rate State and
Regional Events
Average 130 Median 125
Note Data represented includes all organizations
with a potential interest in the Prime Osborn
Convention Center. Figures represent average
dollars per night. Source CSL Interviews, 2007
55Participating National Conventions and Tradeshows
56Likelihood of Rotating Events to Jacksonville
National Conventions and Tradeshows
Positive response - 37 Negative response - 63
Note Data represented includes all organizations
interviewed. Source CSL Interviews, 2007
57Comparison of Response Rate from Similar Market
Surveys National Convention and Tradeshows
Source CSL Interviews, 2001 2007
58Seasonal Preference - National Conventions and
Tradeshows
Spring - 33 Summer - 35 Fall 18 Winter 14
Note Data represented includes all organizations
with a potential interest in the Prime Osborn
Convention Center. Source CSL Interviews, 2007
59Summary of Delegate Attendance National
Conventions and Tradeshows
Average 2,600 Median 2,150
Note Data represented includes all organizations
with a potential interest in the Prime Osborn
Convention Center. Source CSL Interviews, 2007
60Summary of Peak Night Hotel Room Blocks
National Conventions and Tradeshows
Average 1,200 Median 900
Jacksonville Metro Area
Hyatt
Note Data represented includes all organizations
with a potential interest in the Prime Osborn
Convention Center. Source CSL Interviews, 2007
61Number of Hotels Willing to Use National
Conventions and Tradeshows
Note Data represented includes all organizations
with a potential interest in the Prime Osborn
Convention Center. Source CSL Interviews, 2007
62Summary of Exhibit Space Demand National
Conventions and Tradeshows
Average 62,200 Median 40,000
POCC
Note Data represented includes all organizations
with a potential interest in the Prime Osborn
Convention Center. Source CSL Interviews, 2007
63Summary of Meeting Space Demand National
Conventions and Tradeshows
Average 32,400 Median 26,100
Hyatt
POCC
Note Data represented includes all organizations
with a potential interest in the Prime Osborn
Convention Center. Source CSL Interviews, 2007
64Summary of Ballroom Space Demand National
Conventions and Tradeshows
Average 12,100 Median 7,500
Hyatt
POCC
Note Data represented includes all organizations
with a potential interest in the Prime Osborn
Convention Center. Source CSL Interviews, 2007
65Market Conclusions
66Summary of Study Findings Relevant Site
Characteristics
- Many competitive destinations offer a diverse
package of center, hotel and entertainment within
close proximity. - The lack of hotel and entertainment amenities
proximate to the Prime Osborn Center represents a
major deficiency when competing for non-local
business. - Development of retail/entertainment in
Jacksonville appears to be trending away from the
Center vicinity. - A major benefit of a Florida destination
(immediate beach access), is not available in
Jacksonville.
67Jacksonville Visitor Amenity Map
68Tampa Visitor Amenity Map
69Savannah Visitor Amenity Map
70Summary of Study FindingsHistorical P.F.O.
Center Operations
- Occupancy levels for the P.F.O. Center are
relatively low. - Convention activity at the Center is limited.
- The Center focuses more on locally-oriented
events. - Seasonality patterns indicate a first quarter
peak, with very low demand in the summer months. - Significant business is recorded as lost, likely
due to a combination of factors including lack of
attached hotel.
71Summary of Study Findings Competitive
Destinations
- Competitive destinations continue to improve
their convention package, including added center
space, hotel inventory and entertainment
amenities. - 17 competitive centers were reviewed. The
average exhibit space offered at these centers
averaged 125,000 s.f. The PFO ranked 15th among
these centers. - PFO meeting space ranked at the midpoint of the
competitive set, while the Hyatt meeting ranked
second. - The overall hotel room inventory in the downtown
area ranks near the bottom of the competitive
set, however the Hyatt ranks as one of the
largest headquarters properties. - Population and corporate base rank near the
midpoint of competitive destinations. - Jacksonville CVB budget ranks towards the lower
end of competitive set.
72Summary of Study Findings -Jacksonville Demand
Characteristics
- State/Regional Demand
- Strong interest in Jacksonville from
state/regional planners. Demand follows a summer
peak pattern. - Prime Osborn can accommodate exhibit needs for
nearly all demand from this segment. - Hyatt can accommodate sleeping room needs for
nearly all demand from this segment. - 90 percent of planners require an attached
headquarters hotel. - National Demand
- General interest in the Jacksonville destination
rates in the low to mid range. Demand follows a
spring/fall peak pattern. - However, much of this interest can be considered
soft as the Jacksonville destination is
relatively unknown among national meeting
planners. - The Prime Osborn can accommodate the exhibit
space demands for approximately 67 percent of the
national event market, and 65 percent of the
meeting space needs. - The large majority of demand from this segment
requires an attached or adjacent headquarters
hotel, with most events using several properties
to fill a hotel room block. - The Hyatt can accommodate the meeting space needs
of over 90 percent of the national event market,
but does not offer dedicated exhibit space.
73Summary of Study Findings -Development Issues
- Apparent lack of current demand for significant
convention center investment. - Development of hotel and entertainment assets in
Jacksonville point towards alternate sites for
future Center investment. - Careful site planning and program configuration
would be needed on alternate site near Hyatt. - Prime Osborn should continue as an important
community event asset. Potential exists to
expand the public use of the facility.
74Appendix
75CSL Interview Summary