October 5, 2022

Major US Market Hotels Unlikely To Get Convention Boost in Late 2021

Hotel markets in cities such as San Francisco, New York and Chicago deal with the best obstacle due to vaccine requireds and restrictions on participation, in addition to hold-ups in the return of inbound international travel.

Hoteliers with residential or commercial properties in major U.S. convention markets are not experiencing the usual fall-season pickup in need from guests, and are unlikely to match pre-pandemic performance amid ongoing travel constraints and vaccine requireds.

Register for our weekly newsletter and stay up to date

San Franciscos Moscone Center finished a four-year, $551 million growth project in 2019, while New Yorks Javits Convention Center this spring finished a $1.5 billion project that added 1.2 million square feet to the Manhattan center.

Financial investment, as an outcome of that need, in expansion and capital enhancement projects at convention centers will now take longer to yield returns.

” We actually have 5 conventions from now through completion of the year, and were not going to choose up a lot more,” stated Nicole Rogers, chief sales officer at the San Francisco Travel Association, last month. She approximated that the citys Moscone Center hosts more than 30 events during the second half of a typical year. “Were one of the few cities with a vaccine mandate for gatherings over 1,000 individuals, so thats definitely restricting the quantity of people.”

Still, fall convention numbers may be off by in between 50% and 75% at conventional U.S. meetings locations, as lots of companies and associations have chosen to delay annual events until 2022.

Not all convention locations will feel the exact same pain.

Warmer-weather cities where state COVID restrictions are relatively lenient, such as Orlando, will likely fare reasonably better this fall as organizers will have the option of conducting conferences in outdoor facilities.

The combination of travel limitations, vaccine mandates and caution on the parts of both private organizations and associations continues to put a crimp on convention costs in Orlando, Chicago, New York and San Francisco. In General, North American conventions generated $381 billion in direct spending in 2017, according to a 2021 research study by the Events Industry Council and Oxford Economics.

Read rest of the short article at CoStar

Leave a Reply

Your email address will not be published. Required fields are marked *