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Old Posted Feb 26, 2016, 10:26 PM
We vs us We vs us is offline
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Join Date: Sep 2015
Location: Austin, TX
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Quote:
Originally Posted by wwmiv View Post
I'd want to see the most recent numbers after JW and the Fairmont are completed before we even consider expanding again.
Sanders doesn't actually link to the 1990's projections that he's railing against in the source article, so it's hard to pinpoint a worthwhile counterargument. We don't event know what part of the 90's it was, so Johnson the consultant could've been projecting anywhere from 15-25 years out. That's a loooong time, and the things that have happened to the hospitality sector in the intervening years -- 9/11, the Great Recession, etc -- were transformative.

The thing that gets me is that Sanders' article pitches the whole thing as if the Convention Center expansion is a great tragedy, and that it's somehow this massive distressed asset in the middle of the city, sucking taxpayer resources down with it into a black hole of empty promises.

This is completely untrue, though. It's packed to the gills. Regardless of the number of shows per year (which is a meaningless metric in the end), it's occupied productively almost 70% of the time, which is considered at full capacity for convention centers. It's been a major demand driver, enough so that the convention package can support three convention hotels (800 rooms and up) plus a ton of middle sized options. Rates and occupancies are way up, and for the first time last year we beat San Antonio in city occupancy for a full month. That's nuts for a city this size.

I don't think we shouldn't look at the numbers again, but it's true, Sanders' metrics are exceptionally limited, and at best don't tell the full story. At worst they're intentionally misleading.
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