Get documents about "ALBANY CONVENTION CENTER AND CONVENTION HOTEL Market and Economic Impact
Document Sample
ALBANY CONVENTION CENTER AND CONVENTION HOTEL Market Analysis
Market and Economic Impact Study
Albany Hotel Supply center events is displayed in the following graph.
Number Meeting Included in these estimates is the proposed 400 room
of Rooms Space (SF) headquarter hotel with an assumed room block of
Downtown
300 rooms (every month and every day of the week).
Crowne Plaza Albany 384 24,000
Ramada Inn Downtown 135 3,940
Estimated Hotel Room Block
Subtotal 519
2,000 Weekend
Metro (excl downtown) 1,750 Room Block
(white and black
Albany Quality Inn 215 5,000 1,500 bars combined)
Best Western Sovereign 195 6,450
1,250
Other Hotels* 867
Subtotal 1,277 1,000
750
Airport/Wolf Road Weekday
500
Albany Marriott 359 23,530 Room Block
The Desmond 324 26,700 250
Albany Inn Turf Wolf Rd 309 25,000 0
Best Western - Airport 153 5,500 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Other Hotels* 2,086
Subtotal 3,231
The room block estimate suggests that Albany could
Albany North/West/South
package a room block of 1,100 to 1,800 rooms,
Other Hotels* 1,107 depending on time of year and day of week. (The
above estimate focuses on the major hotels and does
Grand Total 6,134 not take into account potential blocks at smaller
hotels.)
* Includes properties with less than 5,000 SF of meeting space.
The survey of meeting planners (discussed later)
Albany offers approximately 6,100 hotel rooms, with indicated that, on average, half of the delegates block
about half in the Airport/Wolf Road area. The primary rooms. Based on that average combined with the
downtown hotel is the 384 room Crowne Plaza room block estimates, Albany could reasonably
Albany that offers 24,000 square feet of meeting expect to pursue conventions with total attendance in
space. (This property is currently undergoing a fairly the 2,000 to 3,500 range. Of course, the needs of
extensive renovation.) every group are different. The survey indicated that
some groups block very few rooms while other
The supply of hotel rooms is important, but the groups block rooms for nearly 100% of their
criterion refers to available rooms. Not all of these delegates. Overall, the room block analysis reveals
hotels are likely to participate in room blocks for that Albany possesses hotel infrastructure sufficient
citywide convention center events. Typically, to pursue significant business.
meeting planners will fill rooms close to the
convention center and/or at the higher quality hotels.
As such, the Airport/Wolf Road hotels will be pivotal
in fulfilling room blocks.
Based on a survey and interviews with area hotels,
the estimated room block for citywide convention
S T R AT E G I C AD VI S O R Y G R O UP L L C
25
ALBANY CONVENTION CENTER AND CONVENTION HOTEL Market Analysis
Market and Economic Impact Study
Affordability of Destination clustered in the $100 to $109 range. The following
graph presents the results of the survey of 44
In terms of destination affordability, meeting planners association groups. (It should be noted that the
will likely consider Albany on par relative to its meeting planners surveyed may have an interest in
neighboring cities, states and other competition. Air lower room rates for their meetings and therefore
travel costs and hotel room rates are the two major may have responded in a biased fashion.)
expenses associated for a convention delegate.
Hotel Room Rate - Conv Ctr/HQ Hotel Users
With respect to air travel costs, Albany rates very 12
well. On a cents per mile flown basis, the cost of 10 44 Groups
airfare to and from Albany is very inexpensive. Only
Number of Groups
8
Las Vegas offers lower fares.
6
Air Travel Costs 4
Cents per Average
City Mile Flown Fare 2
Rochester $0.292 $140 0
Dallas $0.248 $207
89
99
09
19
29
39
49
Atlanta $0.230 $181
0
$8
o$
o$
$1
$1
$1
$1
$1
an
to
to
to
to
to
0t
0t
Syracuse $0.222 $158
th
$8
$9
00
10
20
30
40
ss
$1
$1
$1
$1
$1
Chicago $0.205 $183
Le
Boston $0.200 $220
Philadelphia $0.199 $217 In Albany, the market leaders are the Wolf Road
New York City $0.197 $222 hotels with average room rates generally ranging
Buffalo $0.158 $120 from $120 to $130. Downtown full-service average
Providence $0.138 $147 daily rates are generally under $100. These price
Atlantic City $0.129 $114
points are consistent with the expectations of users.
Albany $0.122 $139
Intuitively, any new product in the market should be
Source: U.S. Department of Transportation.
priced at a point where users find value. A new
downtown convention center should enhance the
Since Southwest Airlines recently began service at value proposition of downtown hotels that is reflected
the Albany International Airport, airfares have in the room rate.
dropped substantially. This is a positive development
from the convention center standpoint. Safety of Destination
Another key component for meeting planners and Safety of the destination was ranked the third most
delegates is the hotel room rate. As discussed in the important criterion by meeting planners. Albany
Introduction section of the report, on average could be considered a relatively safe destination,
nationally, association meetings paid $118 per night ranking about average in relation to its peer cities in
for their smaller meetings and $129 for their New York. Homefair.com provides relocation
conventions in 1999. Corporate delegates paid $132. information including a crime index, the Relocation
Crime Lab Index. The Relocation Crime Lab Index
The survey of meeting planners (discussed later) gives the city's crime rate relative to the national
indicated that potential users are willing to pay hotel average of all the numerous cities in the database.
room rates in the $80 to $130 range, with most The information is compiled from various
S T R AT E G I C AD VI S O R Y G R O UP L L C
26
ALBANY CONVENTION CENTER AND CONVENTION HOTEL Market Analysis
Market and Economic Impact Study
government, regional and local sources. The index is with the convention center such that some of these
based on a weighted average of the relative transportation costs are paid by the host city. If the
frequency of crimes per capita of five types: city refuses, the event may go elsewhere. This
homicide, robbery, rape, aggravated assault and “subsidy” can take many forms, but shuttle costs are
motor vehicle theft. often a key negotiating point.
A value of 100 means that the city is exactly average. Currently the Crowne Plaza is the only hotel that can
A value of 200 means that the city has twice the be considered to be within walking distance of the
crime rate as the average city. A value of 50 means existing Empire State Plaza Convention Center. The
that the city has half the crime rate of the average other major hotels would require some form of
city. The following table presents data from selected delegate transportation. For illustration, the table
cities: below presents the distances (in miles) from the
Empire State Plaza Convention Center to the major
Relocation hotels. Of course, these distances would change
Crime Lab given a new center at a new site.
Index
St. Louis, MO 409 Miles to
Philadelphia, PA 279 Number Empire State
Charlotte, NC 228 of Rooms Plaza Conv Ctr
Poughkeepsie, NY 204 Proposed HQ Hotel 400 TBD
Buffalo, NY 197 Crowne Plaza Albany 384 .4
Tallahassee, FL 176 Ramada Inn Downtown 135 .8
Boston, MA 175 Albany Quality Inn 215 4
Providence, RI 167 Best Western Sovereign Hotel 195 4
Rochester, NY 163 Holiday Inn Express Turf 120 5
Albany, NY 161 Holiday Inn Turf on Wolf Rd 309 6
Syracuse, NY 136 Albany Marriott 359 10
Long Island, NY 33 Best Western-Albany Airport Inn 153 10
Saratoga Springs, NY 21 The Desmond 324 11
Overall, Albany has a higher crime index rating (161) This distance issue underscores the need for the
than the national average of 100, but the national proposed headquarter hotel – there are not enough
average includes many suburban and rural areas. In rooms in downtown to be attractive to larger groups.
comparison with similar cities, Albany’s crime index With the addition of the proposed hotel, the
rating is favorable. In conclusion, crime is not convention center and its downtown hotel compliment
considered to be a competitive disadvantage. would be at a level that would make Albany
competitive within its peer competitive set. Without it,
Ease to Transport Attendees many meeting planners might consider Albany’s
downtown hotel supply to be lacking. Remembering
Once at the convention center, the ease of that available hotel rooms was the number one
transporting delegates between the center and their destination selection criterion, many meeting
hotels is a very important attribute. A meeting planners may not even place Albany on their list of
planner must pay for shuttle services if hotels are not potential sites without the new headquarter hotel.
within walking distance. In reality, the meeting
planner may negotiate the costs of shuttle services
S T R AT E G I C AD VI S O R Y G R O UP L L C
27
ALBANY CONVENTION CENTER AND CONVENTION HOTEL Market Analysis
Market and Economic Impact Study
Even with new downtown hotel rooms, the Air access through Albany International Airport is
convention center will need to plan to provide easy, certainly adequate to serve the needs of the
convenient and dedicated shuttle access from the recommended convention center. Albany
convention center to the hotels participating in the International offers nearly 250,000 square feet of
convention room block (many on Wolf Road). modern terminal space. The following table of
Unfortunately, utilizing public transportation typically enplanements illustrates that air capacity is
does not accommodate the needs of the meetings consistent with peer competitors.
industry, making dedicated convention routes
mandatory. These routes are necessary only during Enplanements
event days for citywide events. National
Airport Name Enplanements Ranking
Distance Traveled by Attendees Buffalo Niagara Int'l 1,827,500 65
Greater Rochester Int'l 1,227,200 81
Albany’s primary market will be state business. Albany Int'l 1,140,500 83
However, the center will host a variety of regional and Syracuse Hancock Int'l 1,088,500 85
national groups as well. Albany is conveniently
Source: Federal Aviation Administration.
located within the state at the intersection of two
interstate highways. I-90 runs east-west through the Each day there are approximately 140 arriving (and
state, connecting Syracuse, Rochester and Buffalo, departing) aircraft into Albany International Airport,
as well as points east. I-87 runs north-south for representing approximately 8,000 seats per day. At
convenient access to New York City and points north. the 2000 average load factor of 72%, the number of
From a regional perspective, Albany is within driving unfilled seats each day is approximately 2,200 seats.
range of the major northeastern U.S. cities, as well as This represents more than adequate capacity for the
major Canadian markets. needs of the new center.
Regional Map
S T R AT E G I C AD VI S O R Y G R O UP L L C
28
ALBANY CONVENTION CENTER AND CONVENTION HOTEL Market Analysis
Market and Economic Impact Study
SUMMARY OF COMMUNITY ATTRIBUTES
Albany has many positive attributes to support a new
convention center. However, certain fundamental
deficiencies must be addressed. The following points
summarize the key conclusions in this section:
Albany’s status as the state capital of New York
is a strongly positive attribute.
Albany’s population base is large enough to
support of major convention center.
Albany’s Average Household Effective Buying
Income, a measure of disposable income, is
slightly lower than the national average but
slightly higher than peer cities in the state.
Albany has a strong employment base led by a
growing services sector and anchored by the
government sector. Unemployment is very low.
Local economic development efforts appear to be
organized and coordinated and to have
momentum. Downtown is expected to improve.
Albany lacks a competitive convention center.
The Empire State Plaza Convention Center does
not meet the needs and desires of most high-
impact groups. Further, a new facility is
recommended, versus trying to reposition the
Empire State Plaza.
While Albany has the hotel supply and room
block capacity to support a new center, much of it
is located in the Wolf Road area. For the center
to fulfill its potential, a new headquarter hotel
should accompany the center. A location
attached or adjacent would be desirable.
Overall, Albany is an affordable destination.
Albany has an excellent location within the state
and region. Both ground and air access are
considered good.
S T R AT E G I C AD VI S O R Y G R O UP L L C
29
ALBANY CONVENTION CENTER AND CONVENTION HOTEL Market Analysis
Market and Economic Impact Study
COMPETITIVE ENVIRONMENT LOCAL TRADE AND CONSUMER SHOW
EXPOSITION FACILITIES
A convention center in Albany will compete with other
state and regional convention centers and hotels with There are a number of facilities in the region,
significant meeting space. The relevant categories to generally in major cities that can support multiple
analyze for the purposes of this analysis include: venues, which focus on local consumer shows and
local tradeshows. The facilities are characterized by
“Big Box” Convention Centers large, lower-quality exhibit halls with little meeting
Local Trade and Consumer Show Exposition space, few hotels or entertainment amenities nearby
Facilities and located in areas that are more suitable to the
needs of local residents who require convenient
Primary Competitors parking versus the out-of-town visitor who desires
Regional Convention Center Competitors visitor amenities. These facilities include:
Convention Centers Within the State
Facility City Exhibit SF
Major Hotels Eastern States Exposition West Springfield 317,000
Bayside Expo & Conference Ctr Boston 240,000
The following summarizes the environment in each
Fort Washington Expo Ctr Fort Washington 233,000
competitive segment.
The Show Piers on the Hudson New York City 163,550
“BIG BOX” CONVENTION CENTERS New Jersey Conv & Exposition Ctr Edison 125,000
The UnConvention Ctr New York City 125,000
There are a number of large facilities in the region South Jersey Expo Ctr Pennsauken 89,000
that compete on a national level for large national Connecticut Expo Ctr Hartford 88,000
conventions and tradeshows. These major facilities Hartford Civic Ctr Hartford 68,855
include:
Garden State Conv & Exhibit Ctr Somerset 62,000
Meadowlands Exposition Ctr Secaucus 61,000
Facility City Exhibit SF
Worcester's Centrum Centre Worcester 55,100
Boston Conv & Exhibition Ctr Boston 600,000
Atlantic City Conv Ctr Atlantic City 500,000 Although there may be one or two events each year
Pennsylvania Conv Ctr Philadelphia 440,000 that might consider Albany versus one of these more
David L. Lawrence Conv Ctr Pittsburgh 330,000 local facilities, these centers and are not considered
John B. Hynes Vet Mem Conv Ctr Boston 193,000 competitive to the Albany project.
These centers are not considered competitive
facilities to the proposed Albany center. Only
Boston’s Hynes Center would possibly host events as
small as 60,000 square feet of exhibit space and it
generally focuses on top national events. In addition,
state events, Albany’s primary market focus, would
seldom meet outside the state.
S T R AT E G I C AD VI S O R Y G R O UP L L C
30
ALBANY CONVENTION CENTER AND CONVENTION HOTEL Market Analysis
Market and Economic Impact Study
PRIMARY COMPETITORS – REGIONAL
CONVENTION CENTER COMPETITORS
Within the region, there are a few facilities that will
compete with Albany’s convention center, including:
Facility City Exhibit SF
Connecticut Conv Ctr Hartford 140,000
Rhode Island Conv Ctr Providence 100,000
The Wildwoods Conv Ctr Wildwood 75,000
These convention centers are classified as primary
competitors because they are similar in size, have
first class meeting space, and will target state,
regional and national tradeshows and conventions.
Where Albany and these centers might compete is
the regional and small national groups that would
consider both cities. However, this business Rhode Island Convention Center – Outside View
represents only a small portion of the business
Albany will pursue.
One center in particular may be worthy of note as a
model/example. The Rhode Island Convention
Center in downtown Providence is a beautiful
convention center and hotel package and should be
considered as a best in class product in the region at
this size range.
Rhode Island Convention Center – Rotunda
S T R AT E G I C AD VI S O R Y G R O UP L L C
31
ALBANY CONVENTION CENTER AND CONVENTION HOTEL Market Analysis
Market and Economic Impact Study
Rhode Island Convention Center –
Exhibit Floor
The convention center offers 100,000 square feet of
exhibit space, a 20,000 square foot ballroom and
14,200 square feet of breakout meeting space. A
363 room Westin Hotel is directly connected via
Rhode Island Convention Center – bridge to the convention center, providing additional
Exhibit Level Floor Plan meeting and function rooms.
Rhode Island Convention Center –
Meeting Space Level Floor Plan
S T R AT E G I C AD VI S O R Y G R O UP L L C
32
ALBANY CONVENTION CENTER AND CONVENTION HOTEL Market Analysis
Market and Economic Impact Study
PRIMARY COMPETITORS – CONVENTION This analysis reveals that there are two general
CENTERS WITHIN THE STATE categories of convention destinations:
Analysis of the various convention centers around the New York City
state of New York reveals a relatively clear and Peer City Convention Centers
straightforward competitive profile. The table at the
bottom of this page summarizes the Metropolitan (Note that the seven smallest MSAs do not offer
Statistical Areas (MSAs) in New York and their facilities that are considered to be competitive with
primary convention centers. the proposed Albany convention center. Most of
these cities do have some meeting space, but mostly
in the form of an arena or full- or limited-service
hotels.)
Primary Convention Center Square Feet
MSA Total
Population Facility Exhibit Ballroom Breakout Rentable
New York 8,743,700 Jacob Javits Conv Ctr 814,400 30,000 28,000 872,400
Nassau-Suffolk 2,698,800 Nassau Vet Mem Coliseum 60,000 0 5,000 65,000
Buffalo-Niagara Falls (Buffalo) 1,140,200 Buffalo Convention Center 62,700 12,400 25,800 100,900
Buffalo proposed 1,140,200 Buffalo Convention Center 125,000 30,000 30,500 185,500
Buffalo-Niagara Falls (Niagara Falls) 1,140,200 Niagara Falls Conv & Civic Ctr 83,500 13,000 9,400 105,900
Rochester 1,078,800 Rochester Riverside Conv Ctr 49,300 10,000 12,300 71,600
Albany-Schenectady-Troy (Albany) 870,500 Empire State Plaza Conv Ctr 0 17,500 12,800 30,300
Albany-Schenectady-Troy (Saratoga Springs) 870,500 Saratoga Springs City Ctr 0 20,000 0 20,000
Syracuse 731,800 Conv Ctr at Oncenter 65,300 14,900 6,900 87,100
Newburgh 378,900 No applicable facilities
Utica-Rome 293,000 No applicable facilities
Dutchess County 271,100 No applicable facilities
Binghamton 247,700 No applicable facilities
Jamestown 135,500 No applicable facilities
Glen Falls 122,300 No applicable facilities
Elmira 91,900 No applicable facilities
Notes:
Sorted in descenting order by MSA population.
Exhibit space associated with arenas, major hotels or casinos has been excluded.
Sources:
Sales & Marketing Management 2000 Survey of Buying Power and Media Markets.
Amusement Business AudArena Stadium 2001 International Guide.
Tradeshow Week's 2000 Major Exhibit Hall Directory.
Individual facilities.
S T R AT E G I C AD VI S O R Y G R O UP L L C
33
ALBANY CONVENTION CENTER AND CONVENTION HOTEL Market Analysis
Market and Economic Impact Study
New York City Peer City Convention Centers
At the top tier, New York City and the Jacob Javits Between New York City at the top end and smaller
Convention Center target major national conventions. communities at the bottom end are a group of
The Javits Center offers over 800,000 square feet of medium-sized cities with medium-sized convention
exhibit space, competing with such top-tier cities as centers. Generally these destinations/centers
Chicago, Las Vegas, Orlando, Los Angeles, Atlanta compete for state and regional groups, as well as
Dallas, etc. A facility of this nature is feasible in a city some national groups. They also play an important
like New York City because of the population, role in the overall quality of life for local residents,
destination attributes (hotel supply, restaurants, offering a venue for local meetings and events that
attractions, air access, etc.) and its corporate base. local residents find enjoyable.
Large national conventions and tradeshows that
consider the Javits Center will generally not be The following graph puts into perspective the exhibit
considering Albany. and meeting space of the five cities that fall into this
category. (Saratoga Springs in not included.) Note
Groups that are small enough to fit into Albany’s that that Buffalo’s planned expansion has been
convention center and hotel package will generally included and would represent the largest facility in
not be considering the Javits Center. Rather, they the competitive set.
will be looking at major hotels in downtown in the
heart of the city. As discussed later in this report, Primary Convention Center Square Feet
200,000
hotel prices in New York City are much higher than
175,000 Breakout
those in Albany and therefore tend to eliminate most 30,500
Ballroom
groups, except for those who are willing to pay the 150,000
30,000
Exhibit
high prices. These groups are usually more national
Square Feet
125,000
9,400
in scope and require the top-tier destination that New 100,000
13,000 6,900
25,800
York City is. These groups are not Albany’s target 75,000 12,400
14,900
125,000 12,300
market. 50,000
10,000
83,500
62,700 65,300
25,000 49,300 12,800
17,500
0 0
Buffalo Niagara Buffalo Syracuse Rochester Albany
Proposed Falls Existing
The single most important criterion a meeting planner
examines when selecting a destination is whether a
facility exists that has the appropriate quantity, quality
and configuration of space to meet their needs. This
graphic exposes the lack of exhibit space in Albany
compared to its competitive cities. Further, as
discussed previously, the quality and configuration of
space at the Empire State Plaza Convention Center
does not measure up to today’s state-of-the-art
facilities that meeting planners expect.
S T R AT E G I C AD VI S O R Y G R O UP L L C
34
ALBANY CONVENTION CENTER AND CONVENTION HOTEL Market Analysis
Market and Economic Impact Study
The facility in Niagara Falls is designed to be a more in the competitive set except Syracuse have at least
multi-purpose facility. Most cities, including the one attached hotel. (Syracuse has the 600 room
competitive set under discussion, have several Hotel Syracuse two blocks away and attached via
purpose-built facilities to serve a variety of community tunnel. Further, the development of a new
needs. These can include a convention center, an convention headquarter hotel attached to the center
arena, a fairgrounds, etc. The Niagara Falls is currently under negotiation.) An attached or
Convention & Civic Center is designed to be just that: adjacent headquarter hotel is considered a critical
a convention center and a civic center. It hosts criterion in order for the Albany convention center to
conventions and expositions, as well as spectator fulfill its potential.
events such as concerts that are typically held in
theaters or arenas. As such, it is the least Similarly, downtown Albany lags its competitors in all
comparable facility. respects in terms of hotel supply near the center.
The addition of one full-service convention hotel
Given that, the three most comparable facilities are attached to a new convention center would put
Buffalo, Syracuse and Rochester. These range in Albany “in the game” and make Albany a relevant
size from approximately 65,000 to 50,000 – a fairly competitor.
tight range. As presented, Buffalo is planning to
move up a notch to 125,000 square feet of exhibit The remainder of this section of the report examines
space and offer a larger ballroom. It is the city’s plan these relevant state competitors in closer detail.
to more effectively address the national market.
Based on the (hopefully informed) decisions made by
other cities regarding the size of their convention
centers, it would appear that 50,000 to 65,000 square
feet would make sense for Albany.
Hotel supply, particularly in close proximity to the
convention center, is also a critical factor in attracting
quality conventions. To provide a further overview of
this competitive set, the following table presents a
comparison of hotel supply:
Hotel Rooms
Class A Atteched/ Walking
Exhibit SF Adjacent Distance Downtown Citywide
Niagara Falls 83,500 397 2,000 3,700 4,000
Syracuse 65,300 0 456 1,216 6,400
Buffalo 62,700 395 881 1,660 6,400
Rochester 49,300 803 1,165 1,450 6,500
Albany 0 0 384 519 6,100
Source: Individual facilities and convention bureaus.
As the table illustrates, Albany has no hotel rooms
attached to the Empire State Plaza. All other centers
S T R AT E G I C AD VI S O R Y G R O UP L L C
35
ALBANY CONVENTION CENTER AND CONVENTION HOTEL Market Analysis
Market and Economic Impact Study
Buffalo Convention Center are considered only fair. The facility’s location and
aesthetic appeal are less than inviting.
Located in downtown, the Buffalo Convention Center
offers 62,700 square feet of exhibit space, a 12,400 Buffalo completed a feasibility study in 1997 that
square foot ballroom and 25,800 square feet of recommended a larger facility. The new facility would
breakout meeting space. offer 125,000 square feet of exhibit space, a 30,000
square foot ballroom and 30,500 square feet of
breakout meeting space. This program would
basically double the facility’s capacity and could
greatly enhance the aesthetic appeal. Totally new
sites are under consideration for the new facility.
Buffalo Convention Center—Meeting Space Level
There are 1,660 hotel rooms in downtown Buffalo
and 880 within walking distance of the Buffalo
Convention Center, including the Hyatt Regency
Buffalo, Radisson Suite Hotel, and the Adam’s Mark
Buffalo. The 395 room Hyatt is connected to the
convention center by an enclosed walkway. New Buffalo Convention Center – Rendering
From a performance perspective, the Buffalo With a new convention center, Buffalo could certainly
Convention Center is considered to be below enhance its competitiveness as a destination - a new
average. As the following utilization schedule facility would solve the physical building issue. With
illustrates, the center hosts a good number of events, the larger size, Buffalo will be putting more emphasis
but the average convention and tradeshow on national events. Without question, it would be a
attendance is lower than might typically be expected better competitor versus Albany. However, even
for center and city of this caliber. Note that public given a new Buffalo convention center, a new Albany
shows represent the lion’s share of attendance. convention center and hotel is expected to perform
well.
Buffalo Conv Ctr Utilization
Number Attendance
of Events Total Average
Conventions 18 19,900 1,100
Tradeshows 14 12,800 900
Public Shows 22 313,500 14,300
Other 267 92,700 350
321 438,900
This less-than-desired performance is attributable to
both the building and the destination, both of which
S T R AT E G I C AD VI S O R Y G R O UP L L C
36
ALBANY CONVENTION CENTER AND CONVENTION HOTEL Market Analysis
Market and Economic Impact Study
Niagara Falls Convention & Civic Center
Just minutes from downtown Buffalo, Niagara Falls is
a tourist destination with national and international
appeal. The center is located two blocks from the
American Falls and is in the hub of entertainment,
hotels, and retail stores. Its location on the Canadian
border is a strong marketing tool.
Niagara Falls Convention & Civic Center –
Floor Plan
Niagara Falls Convention & Civic Center – Management indicates that the center hosts over 200
Outside View events each year, including its share of state
conventions and a few national conventions.
Opened in the 1970’s, the center serves more as an However, the national groups are “Special Markets”
all-purpose civic center than a true convention center. events versus high-end conventions. (Special
The complex contains a flexible 83,520 square foot Markets is a category of events many refer to as
Main Arena which is actually a flat-floor exhibition “SMERF” events. SMERF is an acronym for Social,
space that can be converted to a 10,000 seat arena Military, Educational, Religious and Fraternal. One
configuration. It also has a 13,500 square foot Grand distinguishing attribute of this category is that
Ballroom, meeting rooms and 500 seat theatre. The delegates typically prefer second and third-tier
center is connected via a tunnel to the Holiday Inn destinations that offer lower priced hotels.) The
Select (a property that used to be a full-service hotel). remainder of the center’s business is local consumer
This is considered to be the center’s primary shows, dances and banquets, as well as concerts,
headquarter hotel. This is one of the primary boxing and other spectator events.
weaknesses of the center – fairly low-rated hotels to
support the center.
S T R AT E G I C AD VI S O R Y G R O UP L L C
37
ALBANY CONVENTION CENTER AND CONVENTION HOTEL Market Analysis
Market and Economic Impact Study
Rochester Riverside Convention Center
Located in downtown Rochester overlooking the
Genesee River, the Rochester Riverside Convention
Center is just a short walk across the river from the
Blue Cross War Memorial Arena.
Niagara Falls Convention & Civic Center –
Inside View, Arena Configuration
Management indicates that the center requires an Rochester Riverside Conv Ctr – Outside View
operating deficit of approximately $1.2 million per
year. Given leeway to find creative, business-minded
solutions, this facility could operate at a lesser deficit.
There is possibly a significant change on the horizon
for this facility. Negotiations are underway with a
private developer to convert the center into a casino.
It is unclear at this time as to where these talks might
lead.
In summary, some events will want to go to Niagara
Falls for the tourist appeal and that will always be a
fact in the New York market. Most of the events at
the facility are more locally-oriented. Overall, should
this facility remain in operation, it would impact the
proposed Albany facility only minimally for a few state
events.
Rochester Riverside Conv Ctr – Inside View
S T R AT E G I C AD VI S O R Y G R O UP L L C
38
ALBANY CONVENTION CENTER AND CONVENTION HOTEL Market Analysis
Market and Economic Impact Study
Built in 1984, the center offers 49,300 square feet of Management indicated that there are no expansion
exhibit space, a 10,000 square foot ballroom and plans currently in place. One of the issues with the
12,300 square feet of breakout meeting space. site is that it is somewhat landlocked. The next
expansion will be limited to approximately 25,000
square feet of exhibit space. From there it would be
forced to grow vertically – a difficult way to expand.
Aside from the excellent building and “convention
complex” that Rochester offers, its best asset is
downtown itself. Downtown Rochester has a lively
atmosphere that is so important to the success of the
center. Continuing to improve this “feeling” in
downtown Albany should be a high priority.
Saratoga Springs City Center
Located in downtown, the Saratoga Springs City
Rochester Riverside Conv Ctr – Exhibit Level Center is the smallest of the competitive set. In
reality, this facility would likely compete more with
hotels than a new Albany convention center. The
City Center is small and serves primarily a local
purpose. The center offers a single 20,000 square
foot multi-purpose room (configuration of a ballroom
but with hard floors) that is divisible into several
smaller sections. As such, it does not offer major
conventions or tradeshows the size or configuration
of space they require and is not considered a major
competitor – certainly not for large shows - to a major
new center in Albany.
Rochester Riverside Conv Ctr – Meeting Level
Although the smallest center of its peers, Rochester
has designed a nice package for conventioneers.
First, the facility is nice. The center is also directly
connected to structured parking and to the 337 room
Hyatt and 466 room Sheraton Four Points. A 362
room Crowne Plaza is one block away and is
currently connected by a covered walkway, but will
soon be attached by a climate controlled walkway.
Saratoga Springs City Ctr – Outside View
Shopping and entertainment areas are close by as
well.
S T R AT E G I C AD VI S O R Y G R O UP L L C
39
ALBANY CONVENTION CENTER AND CONVENTION HOTEL Market Analysis
Market and Economic Impact Study
Convention Center at Oncenter (Syracuse)
The Convention Center at Oncenter is one of three
venues comprising the Oncenter Complex in
downtown Syracuse. The other two are the 8,000
seat War Memorial at Oncenter and the 2,100, 460
and 160 seat John H. Mulroy Civic Center Theaters
at Oncenter. For perspective, below are pictures of
all three facilities. They are located across the street
from one another on consecutive city blocks.
Saratoga Springs City Ctr – Floor Plan
However, there are several aspects of this facility that
should be considered as good case study material.
First, the center is integrated with a 240 room full-
service hotel. This makes the entire complex
attractive to smaller groups. Second, the facility is
architecturally and aesthetically pleasing – it is a nice
place to be. Third, the surrounding city is fun,
exciting and pedestrian friendly. These factors make
for a winning combination. Convention Center at Oncenter –
Outside View
Expansion of the center has been studied, but
management indicates that any expansion would be
small in comparison to the proposed Albany project.
War Memorial at Oncenter –
Outside View
S T R AT E G I C AD VI S O R Y G R O UP L L C
40
ALBANY CONVENTION CENTER AND CONVENTION HOTEL Market Analysis
Market and Economic Impact Study
foot ballroom and 6,900 square feet of meeting
space. This would all be considered “class A” space.
Attached to the convention center is an enclosed
parking garage that holds 1,000 cars.
Mulroy Civic Center Theaters at Oncenter –
Outside View
Built in 1992, the facility reflects much of what defines
the state-of-the-art for small convention centers. The
building is attractive and offers dedicated exhibit
space, a ballroom and smaller breakout meeting Convention Center at Oncenter –
rooms. Finishes in the meeting space and lobbies Main Level Floor Plan
resemble hotel finishes. The center connects via
overhead and underground tunnels to the other
Oncenter facilities, a 1,000 space parking garage and
to the Hotel Syracuse.
Convention Center at Oncenter –
Convention Center at Oncenter –
Lower Level Floor Plan
Lobby
Just across the street is the 50-year old War
The rentable space at the convention center includes
Memorial arena. It offers an additional 91,000 square
a 65,300 square foot exhibit hall, a 14,900 square
feet of exhibition space on the arena floor and below
S T R AT E G I C AD VI S O R Y G R O UP L L C
41
ALBANY CONVENTION CENTER AND CONVENTION HOTEL Market Analysis
Market and Economic Impact Study
the arena. The space under the arena has low To resolve this competitive concern, the county has
ceilings and many pillars and would be considered purchased adjacent land and is in the midst of
class B space. Again, all of this exhibit space is negotiating a hotel public-private partnership that will
connected via tunnels. result is a new convention headquarter hotel attached
to the convention center. Although the timing is not
Relevant to this convention center analysis, in 2000 known, it appears that the community has the will to
the Oncenter Complex hosted 26 conventions with see that this deal gets done.
exhibits and tradeshows with 69,000 delegates and
12 major conferences (without exhibits) with 32,700 On the positive side, all three facilities are managed
delegates. It also played host to 31 consumer shows by a single entity (the Oncenter Management Group)
with 128,000 in attendance. This does not include on behalf of Onondaga County. Management
the complex’s spectator and theatrical events and indicates that common management of all three
local meetings. venues provides convenience for meeting planners
(one contact person), efficient use of space and
In assessing the facility/destination, the center has a economies of scale in operations. Management also
couple of key drawbacks. First, the center’s location has decision-making power. This is a critical point.
within the city – on the edge of downtown – is not Management commented that many centers are
particularly inviting. Delegates like to be in an managed by overly bureaucratic systems (usually a
exciting and pedestrian-friendly part of town. This city of county government) that allow little flexibility.
simply is not the case in Syracuse, and this leaves an Convention centers are businesses, similar to hotels,
opportunity for Albany to create something more and need to be run as such. Based on the site visit
exciting. (See the Rochester and Saratoga Springs and interviews in Syracuse, the management
discussions for good examples.) structure of the Oncenter appears to be very effective
and is considered a competitive advantage.
The second is the hotel situation in Syracuse. The
456 room Hotel Syracuse, a historic landmark, is the Because it is managed under one entity, separate
nearest hotel to the Oncenter (connected via financial operating statements were not available.
underground walkway). While it shows its age in However, management did indicate that the entire
many places, the hotel is a historic treasure. With complex requires approximately $1.6 million in
25,000 square feet of meeting space, the hotel often operating subsidies each year, which includes a
serves as the headquarter hotel for convention center dedicated capital reserve fund of $250,000 per year
events. It is reported that service levels at the (for the entire complex) for replacements and
property are low and it does not fill the headquarter improvements.
role well.
In summary, the Convention Center at Oncenter is
To compound the problem, the few other nearby currently a competitive facility and will be a direct
hotels do not represent an appealing block of rooms competitor to Albany. Syracuse is located in the
because of quality or configuration issues. center of the state, which can be attractive for groups
Additionally, similar to Albany the next major cluster with attendees from all over New York. (This would
of hotels is outside of downtown approximately 15 be an irrelevant issue for regional or national events.)
minutes away. Quality hotel rooms near the Overall the city is a marketable destination, but it
Oncenter continue to be the largest complaint of offers no particularly appealing destination attribute.
meeting planners and attendees. The Oncenter is a newer facility consistent with
today’s best small facilities. It is well-managed and
S T R AT E G I C AD VI S O R Y G R O UP L L C
42
ALBANY CONVENTION CENTER AND CONVENTION HOTEL Market Analysis
Market and Economic Impact Study
operated, providing a good convention experience. The configuration of the ballroom is just as important.
However, Syracuse’s major shortcoming is in its hotel The ballrooms in Albany and Buffalo do not
support. Groups may be discouraged to include subdivide, thus limiting flexibility on the one room that
Syracuse in their rotation if they lack confidence in should be most flexible. The ballrooms in Syracuse
the hotels. If the hotel deal is struck, Syracuse would and Rochester subdivide into two. This is better, but
be able to market more effectively without the stigma Albany’s new ballroom should be even more flexible.
of poor hotels to contend with. In the end, Albany
(given a competitive product) should be able to
compete effectively against Syracuse.
Competitor Convention Center Meeting Space
Analysis
Meeting planners desire flexibility in a convention
center (or any other meeting facility) and facility
design can achieve, or not achieve, maximum
flexibility. Refer to the analysis of meeting rooms
(ballrooms are excluded) at the bottom of this page.
Note the Rochester and Buffalo each have a large
room when undivided that converts into a variety of
smaller rooms when divided. The ratio at the bottom
of the table reflects this flexibility. This means that a
meeting planner can have a large room, many small
rooms or any combination in between. Contrast
these facilities with Albany’s existing center that
offers few choices. Such flexibility is considered a
competitive advantage. A new Albany convention
center should be designed to maximize this
competitive advantage.
Number of Meeting Rooms-Fully Divided Number of Meeting Rooms- Undivided
Square Feet Albany Rochester Buffalo Syracuse Albany Rochester Buffalo Syracuse
0-500 10 4
501-1,000 8 8 6 2 4 2
1,001-1,500 2 4
1,501-2,000 5 5 2
2,001-3,000 3 1 2
3,001-4,000
4,001-5,000 1 2
5,001-10,000 1 1
Total Rooms 6 20 20 10 4 4 5 4
Ratio of Divided to Undivided 1.5 5.0 4.0 2.5
S T R AT E G I C AD VI S O R Y G R O UP L L C
43
ALBANY CONVENTION CENTER AND CONVENTION HOTEL Market Analysis
Market and Economic Impact Study
PRIMARY COMPETITORS – MAJOR HOTELS Large New York City Convention Hotels
Many groups prefer to host their entire event in large As a major international city, New York City has a
full-service hotels that have significant meeting variety of large convention hotels, including:
space. In fact, the vast majority of meetings occur in
Example New York City Convention Hotels
hotels because the meetings are relatively small. As Meeting Number Rate
meetings get larger, they look for larger hotels or Hotel Sq. Ft. of Rooms Range
convention centers. By hosting a meeting in a hotel Marriot Marquis 100,000 2,000 $249-$500
only, meeting planners do not have to organize Sheraton NY Hotel & Towers 50,000 1,750 $200-$250
NY Hilton and Towers 50,000 2,050 $200-$250
transportation and typically have only one contact
Grand Hyatt NY 35,000 1,350 $250-$450
person. Further, delegates are somewhat captive. NY Marriott World Trade Ctr 26,000 820 $275-$350
There are several hotels in New York that have large Certainly, many groups can and do meet at these
enough ballroom and other supporting meeting space hotels. Generally speaking, however, groups that
to host a good size meeting. The proposed Albany might meet in Albany and groups that might meet in
project will compete with these hotels for some New York City at these hotels are two different tiers
meetings. However, most of the meetings the of groups. A group that is looking to meet in a
convention center will target will be too large for premier international destination, with hotel
these hotels to accommodate. It is worth noting that requirements of 1,000+ rooms, with rates sometimes
a small convention center with an attached hotel well in excess of $200 per night for a group rate will
would provide an acceptable alternative to many only rarely even consider Albany. The converse is
meeting planners that prefer a hotel only scenario. true as well. Although there may be some state
groups that will rotate around the state and include
Competitive hotels can be segregated into two
New York City in the rotation, those instances would
classes: 1) large New York City convention hotels; 2)
be rare. In summary, it is not anticipated that a new
Albany and peer city convention hotels with over
convention center in Albany will compete directly on a
10,000 square feet of meeting space. Each category
regular basis with large New York City convention
is discussed below.
hotels.
S T R AT E G I C AD VI S O R Y G R O UP L L C
44
ALBANY CONVENTION CENTER AND CONVENTION HOTEL Market Analysis
Market and Economic Impact Study
Albany and Peer City Convention Hotels The mission of the new Albany center would be to
bring a whole new level of business to Albany: larger
Small and medium-sized state groups that represent groups that could not or would not meet in Albany
the bulk of business that might meet in Albany will previously. Again, competition at some level is
likely consider meeting in a single hotel. As the inevitable with major convention hotels, both in
following table illustrates, every peer New York city Albany and around the region. It is important to keep
has hotels large enough for small groups, but none in mind that the convention centers and hotels in
are large enough to compete for large, citywide other cities pull business away from Albany. The
groups that will meet in convention centers. new center could pull that business back to the
benefit of local hotels.
Peer City Convention Hotels
Exhibit Meeting Number
Sq. Ft. Sq. Ft. of Rooms
Albany
The Desmond 0 26,700 324
Crowne Plaza 0 24,000 384
Marriott 0 23,500 359
Buffalo
Adam's Mark 17,500 33,400 486
Hyatt Regency 0 18,000 395
Rochester
Hyatt Regency 0 13,500 335
Saratoga
Sheraton 0 13,000 240
Syracuse
Hotel Syracuse 0 24,700 456
University Tower 0 12,300 287
Includes hotels with greater than 10,000 SF of space.
The proposed Albany convention center would first
pursue groups that are larger than could meet in any
one of these hotels. In Albany, these groups would
fill rooms at the hotels listed above. The fact remains
that many small and medium-sized groups would
solicit bids from both the new center and Albany’s
established hotels.
From a regional perspective, groups that would not
meet in Albany are likely to take a serious look with a
new center with 100,000 square feet of first class
space and convenient hotel accommodations,
particularly given Albany’s strategic location and
status as the state capital.
S T R AT E G I C AD VI S O R Y G R O UP L L C
45
ALBANY CONVENTION CENTER AND CONVENTION HOTEL Market Analysis
Market and Economic Impact Study
COMPETITIVE ENVIRONMENT CONCLUSIONS converted into a casino. Either way, Albany
would likely book its fair share of groups.
Albany is well-positioned to develop a successful Syracuse has a nice center and is pursuing a
convention center. Reflecting on Albany’s positive public-private partnership for a new attached
community attributes, such as its status as the state convention hotel. Even if this plan comes to
capital and its strategic location, a new convention fruition, Albany, in a head-to-head comparison,
center and hotel are the ingredients that are missing should be able to win business based on its own
to compete with peer cities, both in the state and strong points.
regionally. The following points summarize the
competitive environment: Of the six competitive centers (including Niagara
Falls and Saratoga Springs), Rochester should
Albany will not compete with the “big box” be considered the best in class for packaging the
convention centers in the large metropolitan entire complex. As the state capital with its
cities, such as New York City, Boston, strategic location (and new facilities), Albany
Philadelphia, etc. should win at least its fair share of business.
While there are a number of medium and large The proposed new Albany convention center
facilities in the region, most focus on local would only rarely compete with large New York
consumer show business. City hotels.
Albany could compete directly with new centers Although its first mission will be to book events
in the region, such as Providence, Hartford and larger than could fit in any one hotel, the new
Wildwood. With a new center and hotel package, center would inevitably compete at some level
Albany would likely capture its fair share of with local hotels and hotels around the state and
events. Competing effectively in this niche region. But just as convention centers in other
represents the primary opportunity to bring new cities pull business out of Albany (and out of local
convention business into the state. hotels), so should the Albany center pull
business back (and into local hotels).
Within the state, a new Albany convention center
and hotel would have a definite impact on state Overall, the environment is ripe for a new
competitors. Managements at these peer convention center and hotel in Albany.
facilities indicated as such.
Of the four peer cities (Buffalo, Rochester,
Albany and Syracuse), only Albany does not
have a center with 50,000 to 65,000 square feet
of exhibit space. Albany is very similar to these
cities in many ways and their experience should
not be ignored.
While Buffalo may expand, it should not have a
material impact on Albany’s ability to attract
quality groups.
Niagara Falls Convention & Civic Center serves
primarily as a local facility, hosting spectator
events as well as exhibit events. It may be
S T R AT E G I C AD VI S O R Y G R O UP L L C
46
ALBANY CONVENTION CENTER AND CONVENTION HOTEL Market Analysis
Market and Economic Impact Study
MEETING PLANNER SURVEYS Of the total 102 respondents, 92 were considered
potential users of the convention center, answering
No other form of analysis is as instructive regarding “Definitely Yes”, “Probably Yes” or “Might.” Again,
the interest level and needs of potential users than these results are extremely positive.
the personal interview. To obtain the appropriate
feedback from the selected target markets, 102 As part of the targeting process, three types of users
meeting planners were interviewed to understand were identified for the survey:
their event profile, facility requirements, hotel
requirements and level of interest in utilizing a 1. Convention Center and Headquarter Hotel
convention center in Albany. Some planners Users (“Conv Ctr/HQ Hotel Users”) - This set
discussed multiple major events and smaller of survey respondents included event types such
meetings that occur throughout the year. The list of as conventions, tradeshows, and conferences
meeting planners was compiled from a variety of that utilize a convention center and headquarter
sources, including: hotel. Generally, these are the most desirable
types of groups the convention center will host
Albany County Convention and Visitor’s Bureau, because many of their delegates and exhibitors
Inc. are from out of town and their spending
represents new economic impact to the
Empire State Society of Association Executives community. Attendees at major conventions
Empire State Plaza Convention Center often stay longer, spend more and are often
accompanied by guests.
Capital District Business Review, “Book of Lists”
2. Hotel Only Users - These respondents were
Interest Level
similar to convention center users in that they
Overall, the results of the survey were extremely consist of conventions, tradeshows, and
positive. The table below presents all 102 groups conferences, but they typically prefer to meet in a
surveyed and their response to the question, “If a hotel only. Generally, these groups are smaller
convention center and hotel package ideal for your in size both in terms of attendance and exhibit
group was built, how likely would you be to host you space needs.
meeting in downtown Albany?”
3. Consumer Shows - Consumer shows are an
important aspect of any major convention center.
Interest Level
They require large exhibit spaces, fill in slow
All Groups weekend periods and provide needed revenues
Number to the facility. These shows target the local
of Groups Percent resident market and are open to the public. As
Definitely Would 66 65% such, they add to the quality of life in the
Probably Would 15 14% community. Consumer shows do not generate a
Might 11 11% substantial amount of hotel room nights, nor do
Probably Would Not 2 2% they represent new economic impact to the
Definitely Would Not 8 8% community (since local residents have only a
Total 102 100% limited pool of entertainment dollars to spend).
S T R AT E G I C AD VI S O R Y G R O UP L L C
47
ALBANY CONVENTION CENTER AND CONVENTION HOTEL Market Analysis
Market and Economic Impact Study
The following table provides a breakdown of the Conv Ctr/HQ Hotel Users Attendance
number of groups surveyed for each category of The Electric Show 15,000
user. Government Technology Conference 7,500
Civil Service Emplyers Assn NYS 6,000
NYS Middle School Assn 3,500
Type of User
Sysco 3,000
Number American Legion of NYS 3,000
of Groups Percent Veterans of Foreign Wars/NYS 3,000
Conv Ctr/HQ Hotel User 50 49% NYS United Teachers 2,500
NYS School Board Assn 2,200
Hotel Only User 40 39%
NYS Assn - Educ of Young Children 2,200
Consumer Show 12 12% Int'l Narcotic Enforcement Officers 2,000
Total 102 100% NYS Emergency Medical Services 2,000
NY Library Assn 2,000
The results of the surveys from each type of user are NYS Dept of Health 2,000
discussed in the sections below. Youth for Christ 2,000
NYS Turfgrass Assn 1,800
NYS Assn of Convenience Stores 1,200
CONVENTION CENTER & HEADQUARTER HOTEL NYS Congress of Parents & Teachers 1,200
USERS Clowns of America Int'l 1,000
NYS School Food Service Assn 1,000
As touched upon earlier, these groups are the most Price Chopper Suppermarkets 1,000
desirable meetings. Delegates and exhibitors come NY Public Employees Federation 1,000
from outside the Albany area and spend money for Healthcare Assn of NYS, Inc. 800
hotel rooms, food, entertainment, and business Am Assn of Airport Execs-Snow Show 800
AARP 700
services. Based on Meeting and Conventions
NYS Credit Union League, Inc. 700
Magazine’s 2000 Meetings Market Study, 34% of NYS Financial Aid Administrators 700
attendees at major conventions bring a guest. If The Cooking Tradeshow 600
Albany can effective penetrate this segment of the NY Assn of Training & Empl Profs 600
market, it is likely the center will be considered a Farm Family Insurance 500
success from a utilization standpoint. NYS Dept of Econ Development 500
NYS Conference of Mayors 500
The Survey Respondents NYS Dispute Resolution Assn 500
Farmers Market Federation of NYS 450
The table on the right side of the page presents the NYS Retired Teachers Assn 450
list of survey respondents in this category and their ESSAE 400
NYS Physical Theray Assn 400
attendance.
Info Systems Audit & Control Assn 300
Am Assn of Airport Execs-Annual 300
NY Assn Conservation Districts 300
AIA New York State 300
Empire State Missionary Baptist 200
NYS Council of Pharmcists 200
NY Manufactured Housing Assn 120
S T R AT E G I C AD VI S O R Y G R O UP L L C
48
ALBANY CONVENTION CENTER AND CONVENTION HOTEL Market Analysis
Market and Economic Impact Study
Interest Level comparison illustrates the strength of the Albany
survey.
Interest Level
Conv Ctr/HQ Hotel Users From this point forward in this section, the analysis
Number will focus on the 44 groups that were considered
of Events Percent positive responses.
Definitely Would 33 66%
Probably Would 7 14% Geographic Scope
Might 4 8%
Geographic Scope
Probably Would Not 0 0%
Conv Ctr/HQ Hotel Users
Definitely Would Not 6 12%
Number
Total 50 100%
of Groups Percent
State 35 80%
Regional 5 11%
Interest Level – Conv Ctr/HQ Hotel Users
Nat'l/Int'l 4 9%
70%
44 100%
60% 50 Groups
Percent of Groups
50%
Part of the reason the response rates were so high is
40% due to the fact that the surveys were weighted in
66%
30% favor of groups with a statewide draw (versus a
20% national draw). As the state capital and with its
10%
14%
strategic location within the state and region, Albany
0% 12%
0%
8% will be very effective in attracting state and regional
groups. Several national and international groups will
t
gh
uld
uld
t
t
choose Albany as a convention destination each year
No
Mi
No
Wo
Wo
uld
uld
ly
ly
Wo
Wo
ite
ab
as well.
fin
ob
ly
ly
ite
De
ab
Pr
fin
ob
De
Pr
Attendance
The interest level from convention center users that
also require a headquarter hotel was extremely Attendance
strong. 80% of the survey respondents were strongly Conv Ctr/HQ Hotel Users
positive and another 8% said they might use the Number
center. There can be no clearer indication that the Attendance of Events Percent
center would be highly utilized by desirable groups. 0 to 99 0 0%
100 to 249 3 7%
As a point of reference, Buffalo conducted a 250 to 499 8 18%
feasibility study in 1997 to expand the convention 500 to 999 11 25%
1,000 to 1,999 7 16%
center. The consultant interviewed 25 convention
2,000 to 2,999 8 18%
and tradeshow meeting planners, versus 50
3,000 to 3,999 4 9%
conducted in this study. The results in Buffalo 4,000 and up 3 7%
indicated that only 12% were “highly” interested in Total 44 100%
bringing their group to Buffalo, 56% were “somewhat
“interested, and 32% were “not” interested. This
S T R AT E G I C AD VI S O R Y G R O UP L L C
49
ALBANY CONVENTION CENTER AND CONVENTION HOTEL Market Analysis
Market and Economic Impact Study
Attendance - Conv Ctr/HQ Hotel Users Event and Move In/Out Length (Days)
6,000
5,500 Prime Target
Groups
Event and Move-In/Out Length – Conv Ctr/HQ Hotel Users
5,000
4,500
8
Number of Attendees
4,000 7 Move In/Out Days
3,500
6 Event Days
3,000
Number of Days
2,500 5
2,000
1,500 4
1,000 44 Groups 3
500
0 2
Note: Two groups with attendance of 7,500 and 15,000, respectively, have been excluded from this graph.
1 44 Groups
0
Although the survey demonstrated interest from
small, medium and large groups, the convention
center will target groups with attendance from 3,000 The surveyed conventions and tradeshows generally
to 250 delegates (77% percent of the convention last three to days, with some lasting up to six days.
center and headquarter hotel users had attendance Move in and move out days are typically two days,
between 250 and 3,000). Many of these and even one at each end.
larger groups would require room blocks at multiple
hotels. Note that seven groups that expressed strong Percent of Delegates Who Stay Overnight
interest in meeting in Albany had attendance over
3,000. Overall, attendance of the groups that Percent Who Stay Overnight - Conv Ctr/HQ Hotel Users
responded positively was consistent with Albany’s 100%
hotel infrastructure (hotel supply). 90%
80%
Percent Who Stay Overnight
70%
60%
50%
40%
30%
20%
44 Groups
10%
0%
Not all delegates stay overnight at all conventions.
However, the survey data presents compelling
evidence of overnight stays.
S T R AT E G I C AD VI S O R Y G R O UP L L C
50
ALBANY CONVENTION CENTER AND CONVENTION HOTEL Market Analysis
Market and Economic Impact Study
Peak Night Hotel Room Block When They Meet – Day of Week
Peak Night Room Block Day of Week - Conv Ctr/HQ Hotel Users
Conv Ctr/HQ Hotel Users 20%
Peak Night Number
Room Block of Groups Percent 15%
Percent of Meetings
0 to 249 9 20%
250 to 499 19 43% 10%
500 to 999 9 20%
1,000 to 1,999 5 12% 5%
2,000 and above 2 5%
44 100% 0%
Mon Tue Wed Thu Fri Sat Sun
Peak Night Room Block - Conv Ctr/HQ Hotel Users
2,000
Convention and tradeshow users host events
1,750
throughout the week, with slightly heavier usage mid-
Number of Hotel Rooms Blocked
1,500 week.
1,250
1,000 When They Meet – Month
750 Month Held - Conv Ctr/HQ Hotel Users
500 35%
250 44 Groups 30%
25%
Percent of Meetings
0
20%
15%
Peak night room blocks might be smaller in Albany 10%
than in a more remote destination, such as Syracuse,
5%
Rochester or Buffalo, because as the state capital a
larger proportion of delegates may be from the 0%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Albany area. For regional or national groups, peak
night room blocks will be higher than those presented
above (that represent mostly state groups). The month analysis was somewhat surprising. It is
typical in these surveys for March through June to be
Remember that the room block represents only a heavy months, as well as September and October.
portion of the overnight stays that will occur as a January is also a typically heavy month. However,
result of the event. Many delegates do not reserve the spike of events held in October – approximately
rooms through the block, but rather do it themselves one-third of the survey – was atypical. Based on the
for a variety of reasons. The average total room numerous other surveys performed by the consulting
night pick-up was two-and-one-half times the room team, this result is believed to be a chance
block. For example, a room block of 500 yielded, on occurrence. There is no question that fall is a heavy
average, a total room night pick-up over the course of convention time, but this result overemphasizes the
the event of 1,250 room nights. number of events in September and October in
relation to other times of the year.
S T R AT E G I C AD VI S O R Y G R O UP L L C
51
ALBANY CONVENTION CENTER AND CONVENTION HOTEL Market Analysis
Market and Economic Impact Study
Exhibit Space Needs future expansion could increase the size of the
building as demand warrants.
Exhibit Square Feet
Conv Ctr/HQ Hotel Users Ballroom Needs
Exhibit Number
Square Feet of Groups Percent Ballroom Square Feet
0-9,999 5 11% Conv Ctr/HQ Hotel Users
10,000-19,999 8 18% Number
Square Feet of Events Percent
20,000-39,999 17 39%
0 to 4,999 25 57%
40,000-59,999 5 11%
5,000 to 9,999 11 25%
60,000-79,999 5 12% 10,000 to 14,999 3 7%
80,000 and above 4 9% 15,000 to 19,999 2 5%
Total 44 100% 20,000 to 24,999 1 2%
25,000 to 29,999 0 0%
30,000 to 34,999 1 2%
Exhibit Space Requirement - Conv Ctr/HQ Hotel Users 35,000 and above 1 2%
80,000
Prime Target Total 44 100%
70,000 Groups
60,000
50,000 Ballroom Square Feet - Conv Ctr/HQ Hotel Users
Square Feet
35,000
40,000
30,000 30,000
10,000 SF equates to
20,000 25,000 700 to 750 banquet guests
44 Groups
Square Feet
10,000 20,000
0
15,000
Note: Excludes one group with an exhibit space requirement of 150,000 square feet.
10,000
Excluding one group that required 150,000 square 5,000 44 Groups
feet of exhibit space, the exhibit space requirement 0
ranged from zero to 80,000 square feet. The majority
of groups required from 20,000 to 60,000 square feet.
Another 30% of the groups were just on either side of The ballroom is the most flexible space in the center
this range, with eight groups (18%) requiring 10,000 and will likely be highly utilized by conventions,
to 20,000 square feet and five groups (12%) requiring corporate events and local functions. It is typically
60,000 to 80,000 square feet. used for banquets, general sessions, light exhibits
and, when subdivided, as breakout meeting space.
Although some shows would fill the entire exhibit hall,
the ideal facility would be able to accommodate the It is recommended that the ballroom be built to the
exhibit needs of an event while allowing space for the size envisioned as the master plan. (In this case, the
move in/out of other events or concurrent events. recommendation is for a two-phase approach, so the
Without “building the church for Easter Sunday,” ballroom should be built to the size envisioned after it
60,000 square feet would appear to be an is expanded at some point the future.) As discussed
appropriate size to host the majority of events. A in more detail later in the Facility Recommendation
S T R AT E G I C AD VI S O R Y G R O UP L L C
52
Related docs
