When will it end? Will we have a Marriott or a Hilton as the new
convention center anchor hotel? How will we pay for it? Can
Omaha attract enough conventions to keep a large hotel occupied?
The battle continues with enough generals giving their input to
start a civil war.
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Artist's
rendering of the proposed Omaha Convention Center Hilton
Hotel |
The fact remains that a decision needs to made fairly soon or
Omaha will miss out on booking any large conventions when the
new center is completed in August 2003. Members of the Greater
Omaha Convention and Visitors Bureau, along with Metropolitan
Entertainment and Convention Authority recently attended what is
dubbed as the Super Bowl of Conventions in Philadelphia to make
their pitch for Omaha.
Convention promoters and meeting planners from around the world
gathered there for the annual convention of the American Society
of Association Executives. More than 100 organization executives
stopped at the Omaha booth during the convention but the
indecision of the anchor hotel handicaps efforts to attract
conventions to the new center.
The competition of attracting large conferences is
fierce. By 2005, communities nationwide are planning 22 new
convention centers and more than 70 expansions. Most large
conventions are planned years in advance and securing the anchor
hotel is essential to Omaha being a competitor. Although many of
these new centers are also faced with the same problem of not
having an anchor hotel, some do offer alternatives such as
light-rail cars that can be ridden free throughout their
downtown areas to other hotels.
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Artist's
rendering of the proposed Omaha Convention Center Marriott
Hotel |
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An independent hotel consulting firm, HVS International of
Chicago, completed a recent study of the two candidates Omaha
has chosen for their hotel. They predict the proposed 28-story
Marriott will require a subsidy of $21.1 million, while the
7-story Hilton would require no subsidy. Marriott developers
dispute the HVS financial projections.
The Marriott team predicts that an average of 73
percent of its 528 rooms would be occupied nightly by its third
year in operation. HVS projected only 70 percent occupancy rate
in the same year. The study also predicted 73 percent of the
smaller 400-room Hilton hotel would be occupied by the third
year. Based on these figures, the Marriott would actually rent
78 more rooms nightly than the Hilton. The HVS study concludes
that the additional income from room rentals is not nearly
enough to offset Marriott's higher cost, $94.5 million, compared
with the $59.3 million Hilton.
Estimated cost per room for the Hilton is $149,000
compared to Marriott's cost per room of $179,000. Does this make
a difference to potential convention goers? Possibly. According
to a survey done by J.D. Power and Associates in 2000, Marriott
was rated second amongst upscale hotels in terms of customer
satisfaction. Hilton came in below average. Over the past
decade, Marriott has emerged as a leader in large convention
hotels.
As far as the anchor hotel in Omaha goes, the
question remains: Would guests prefer a room that offers a view
of the Missouri River, downtown Omaha and the surrounding
counties or would they prefer a more 'street oriented' design
that captures the feel of the city's historic buildings?
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