Hyatt at the Oregon Convention Center | 180'-6" | 14 floors | Complete

[MightyAlweg]

I think the other thing to keep in mind here is that the Oregon Convention Center is on the small side, and any magnet hotel is going to need a big fat subsidy from the locals.

There are many conventions that would never be able to consider landing in Portland because the OCC facilities are so small compared to some other West Coast options. And yes, the big fish in the convention pool have the entire country to consider, and unless there's some compelling reason to be in Portland for a particular year, if they are looking at a West Coast venue they will also be looking at San Diego, San Francisco, Los Angeles, Anaheim, etc.

Take, for example, the Anaheim Convention Center here in Orange County. It's HUGE! It has an attached sports/concert arena in the massive complex. It sits directly across the street from Disneyland and California Adventure. It is surrounded by two major entertainment malls, Downtown Disney and GardenWalk, with dozens of fancy restaurants and shopping to soak up lunch and dinner crowds. It even has both a Ruth's Chris and a Morton's Steakhouse within a block of the place to host those fancy expense account dinners that are de riguer during any big convention. There are literally thousands of hotel rooms at every price point within a five block radius, sharing hotel stock with the Disneyland Resort area.

And yet the local city government is going to have to heavily subsidize another anchor hotel to join the property in the next three years during the latest expansion project that will make the center even bigger. No matter what the venue or the locale, government always seems to have to step in and subsidize these types of projects. http://www.ocregister.com/ocregister...le_2038264.php (Some renderings of the proposed hotel designs in the More Photos tab in that link.)

As a point of reference, a size comparison:

Anaheim Convention Center
Exhibit Space: 815,000 Square Feet (850,000 Square Feet in 2011)
Meeting Space: 130,000 Square Feet (300,000 Square Feet in 2011)
Concert Arena: 9,100 Seats

Oregon Convention Center
Exhibit Space: 255,000 Square Feet
Meeting Space: 50,000 Square Feet

The point being, even convention centers three times the size of the OCC struggle to land a decent 3 star anchor hotel.

[alexjon]

San Antonio's CC has 1.3 Million Sq. Ft. and has a Grand Hyatt and over 9,600 rooms (I think it's at 10,000 with the new hotels) in the area

[MightyAlweg]

Originally Posted by alexjon

San Antonio's CC has 1.3 Million Sq. Ft. and has a Grand Hyatt and over 9,600 rooms (I think it's at 10,000 with the new hotels) in the area

And while it's smaller than the Anaheim Convention Center, I would definitely put San Antonio in the same category of city as Portland, in regards to metro area population and national recognition. Anaheim is in a convention demographic a notch above most cities, but nowhere near the behemoths of the industry with the giant convention centers in Las Vegas and Orlando. But the comparison between San Antonio and Portland is more perfectly matched. Or at least serves to illustrate the point that the OCC is working with a sizeable handicap when it comes to getting the bigger and more lucrative clients.

Orange County, California Population - 3.1 Million

Anaheim Convention Center
Exhibit Space: 815,000 Square Feet (850,000 Square Feet in 2011)
Meeting Space: 130,000 Square Feet (300,000 Square Feet in 2011)
Concert Arena: 9,100 Seats

San Antonio, Texas Metro Area Population - 1.9 Million

San Antonio Henry Gonzalez Convention Center
Exhibit Space: 440,000 Square Feet
Meeting Space: 100,000 Square Feet
Cockerell Theater: 2,500 Seats

Portland, Oregon Metro Area Population - 2.3 Million

Oregon Convention Center
Exhibit Space: 255,000 Square Feet
Meeting Space: 55,000 Square Feet

Which brings up the question... How do you expand the Oregon Convention Center if it's hemmed in on the west and south by freeways, on the north by Light Rail, and on the east by a major thoroughfare and a "headquarters hotel"?

[pdxman]

Why does San Antonio have such a large convention center? Whats the draw? Advantages?

[MightyAlweg]

Originally Posted by pdxman

Why does San Antonio have such a large convention center? Whats the draw? Advantages?

I think it might have more to do with conventions being bigger business in Sun Belt cities of all sizes. Portland actually has a larger, and newer, convention center than Seattle. Here's a few more quick comparisons illustrating the apparent phenomenon of convention centers getting larger as you go further south;

Seattle, Washington Metro Population - 3.9 Million

Washington State Convention & Trade Center
Exhibit Space: 205,000 Square Feet
Meeting Space: 57,000 Square Feet

San Francisco, California Metro Population - 7.2 Million

The Moscone Center
Exhibit Space: 440,000 Square Feet
Meeting Space: 155,000 Square Feet

San Diego, California Metro Population - 2.9 Million

San Diego Convention Center
Exhibit Space: 615,000 Square Feet
Meeting Space: 205,000 Square Feet

[alexjon]

Originally Posted by pdxman

Why does San Antonio have such a large convention center? Whats the draw? Advantages?

Like Anaheim, it's primarily a tourist town, regardless of what people from my hometown would like to portray it as.

20 Million+ visitors a year, cheap accommodations, location, etc. Number one pedestrian-only environment in the country. It's fun

[MightyAlweg]

So, just thinking out loud here on a topic I know relatively little about...

Maybe the comparatively small size of the Oregon Convention Center is appropriate for the national convention market that Portland competes in? It's very clear from my 10 minutes of Googling that the farther south you go, the bigger the centers get, regardless of how big the host city is. Perhaps the mega-conventions would never consider setting up camp for the week in a northern city because the attendees would object to not being in Fun N' Sun Vacationland? Perhaps there is really no need to worry about expanding the OCC over the freeways, or annexing property on the opposite side of MLK Blvd.?

The Sun Belt factor appears to be the key motivator here, as the size of the actual city and it's reputation for being cosmopolitan and hip has little to do with the ability to host large conventions.

Look at Vancouver BC and their convention center. It's smaller than Portland and Seattle, and it was even a purposeful gift to the city after the facility was originally built as the Canada Pavilion for the 1986 World's Fair. (Similar to San Antonio's facility that grew out of a pavilion at the 1968 World's Fair) It's getting a big expansion right now, in preparation to host the media center for the 2010 Winter Olympics, but it's still very small compared to Portland and Seattle.

Vancouver, British Columbia Metro Area Population - 2.5 Million

Vancouver Convention & Exhibition Centre
Exhibit Space: 91,000 Square Feet
Meeting Space: 30,000 Square Feet

Which leads us back to a question about the headquarters hotel.... Considering the size of the OCC and the apparent market it competes in, a truly large headquarters hotel probably isn't warranted. That's likely why private industry on its own hasn't rushed in and built anything there in the last 18 years since the OCC opened. I do think a headquarters hotel is neccesary, as the hotel stock in the Lloyd District is not very glamorous or noteworthy, and it gets less desirable with each passing year. But a towering monster with 1,000 rooms doesn't seem to be warranted.

Still, a really posh Westin could be nice. Or my particular favorite, a Conrad. Anyone ever stay in a Conrad, the top tier of the Hilton brand? I was lucky enough to stay in the Conrad Tokyo, and it was like visiting heaven for 5 days. Indianapolis has a Conrad, so there's a precedent set for mid-size American cities to get one. And Portland is several notches up the hip meter from Indianapolis, trust me.

Someday though, Portland needs a 5 star hotel like a Mandarin Oriental or a Four Seasons or a Conrad. Those are way above the range of the average "nice" convention center hotels. But it would be great for Portland one day. The older, frumpy locals would probably jump out of their crusty old birkenstocks in horror when they saw the lobby of a Portland Mandarin Oriental or Portland Conrad, but I think eventually that change will arrive in the Rose City. The Nines is the first little toe dipped in the pool for that market, but there's even swankier and posher hotel brands out there that have no real representation in the Pacific Northwest currently.

[MightyAlweg]

Speaking of conventions, a good friend of mine from here in OC just texted me that she has just landed in Portland this afternoon.

She and her husband are there for several days while he attends a restauranteur convention. Her husband is the executive chef for the fancy restaurants at Disneyland, and he goes to this particular convention every year with the executive chefs for the Disneyland Hotel restaurants. This is the first year it's been held in Portland, and they are both excited to explore the city for the first time.

They are staying at the Heathman, and I assume the convention sessions are being held at the OCC? She will explore the Pearl and the gardens and such while he attends the sessions this week. I'll report back and tell you their impressions when they get home.

[PacificNW]

Portland Business Journal
Tuesday, July 1, 2008 - 2:56 PM PDT
Convention center hotel price tag: $247.5M
Portland Business Journal


It will cost $247.448 million to design, construct and open the Westin Portland at the Convention Center, the first firm figures attached to the so-called "headquarters hotel" in the nearly 20 years since it was first proposed.

Tuesday, the Metro Council got its first look at the estimated cost to design, construct and open a four-star, 597-room hotel at the Oregon Convention Center. The figure is based on designs submitted to the city and does not contemplate the cost to borrow the money needed to actually build the facility.

A final figure is due in early August and will set off a 60-day round of public meetings, leading to a final decision on the hotel by early October.

Most involved with the hotel effort expected costs to climb above previous estimates, which had ranged up to $244 million. At $247 million, they were not disappointed.

The budget is affected by the rising cost of construction materials, estimated at 30 percent since Portland first selected the development team of Garfield Traub Ashforth LLC nearly two years ago. Too, the facility would occupy two blocks that offer construction challenges, including a 20-foot drop from one side to the other.

Metro Councilor Rod Park, a long-time champion who says the Oregon Convention Center remains incomplete without a dedicated hotel, plans to recommend the Metro Council press ahead.

"These are the first real numbers on a real project," he said Tuesday.

Park reiterated that Metro needs financial partners to undertake such a large project. The project will almost certainly be backed by publicly sponsored bonds, which would be repaid from hotel operating revenues. The council isn't willing to issue the bonds alone, he said.

The Metro Council is expected to vote on the plan by October.

A pro forma, or estimate of the future financial operation of the hotel, does not contemplate servicing the debt. According to figures provided by hotel operator Starwood Hotels & Resorts Worldwide Inc., the hotel will turn a $6.1 million "profit" the year it opens, 2012. That figure is based on room rates of $150 per night and an average occupancy of 58 percent.

The Oregon Convention Center opened in 1990 and always included plans for a hotel to serve convention-goers.

With no private developers willing to take on the expense of building a convention-ready hotel, the Portland Development Commission stepped in, acquired the property and selected the Garfield Traub Ashforth team to develop it. The team also includes Zimmer Gunsul Frasca Architects LLP, Turner Construction Co. and RTKL International LTD. Metro has engaged Seattle Northwest Securities as its financial adviser.

In 2006, the PDC handed off leadership for the effort to Metro, the agency that operates publicly owned facilities in the Portland area, including the convention center. Metro commissioned the $600,000 cost study.

At 600 rooms, the proposed hotel meets the bare minimum standards for a Westin-flagged facility and the needs of the convention center.


http://www.bizjournals.com/portland/...ml?jst=b_ln_hl

[pdxman]

Those don't seem like outrageous figures to me, I say build it and build it now! Maybe even tack on another 200 rooms.

[PacificNW]

Yup, I agree...it is only going to get more expensive as time passes. "Puts people to work!"

[PacificNW]

[pdxman]

^^^Thanks for the rendering! Hard to tell from that angle whether its a winner or loser with regards to design. Hopefully the architecture side of the project won't take a back seat.

[Okstate]

What is a "Westin-flagged facility"? Does that simply mean a convention capable Westin?

[pdxtraveler]

Originally Posted by Okstate

What is a "Westin-flagged facility"? Does that simply mean a convention capable Westin?

'flagged' just means named or branded Westin. It isn't owned by Westin but they manage it. It is great to have one of these brands as Westin-Starwood has a whole coral of conventions that they move between their contracted convention centers and hotels, a business guarantee.

[Delaney]

There is another rendering on the Mercury Blog:

http://blogtown.portlandmercury.com/...935&oid=831365

[alexjon]

600 rooms at 1.25 occupancy -- what's the convention capacity then? Doesn't seem all that great.

[tworivers]

Hope Sam can pull this one of its nosedive. The Lloyd needs this project. Of course, I don't want taxpayers to get hosed, either.

Downturn could doom Portland's Convention Center hotel
by Ryan Frank, The Oregonian
Sunday December 07, 2008, 9:00 PM

Portland's on-again, off-again plan to build a convention center hotel is near death, Metro Councilor Rod Park said Sunday.

A recommendation from officials at Metro, the regional government, suggests halting the $200 million-plus project over worries about the financial crisis and bond markets.

The Metro Council is scheduled to decide Dec. 18 whether to spend more money on plans for the 600-room, taxpayer-supported hotel.

"The odds of us continuing are pretty slim," Park said.

The hotel project still could be resurrected. Portland Mayor-elect Sam Adams will meet Monday with government leaders, tourism officials and the developer, Ashforth Pacific, to try to salvage the project.

"The hotel is not dead, but it's definitely challenged by the recession," Adams said Sunday.

Adams could pull the project management back to City Hall once he takes over as mayor in January. The project moved from the Portland Development Commission, the city's urban renewal agency, to Metro after Mayor Tom Potter said he wasn't interested in providing the taxpayer support needed.

"All options are on the table," Adams said. "If the project is feasible and if it takes the city or PDC to get it done, then that option is on the table."

Willamette Week first reported the hotel's latest struggles on its Web site Saturday.

Tourism boosters and politicians have pushed for the hotel since the late 1980s. They contend the hotel would attract new and bigger conventions to the Oregon Convention Center and spur spending for the economy. Opponents, including other hoteliers, argue that a tax-supported hotel would flood the market and drive down room rates.

The hotel has suffered from tepid political support and a big budget.

The latest proposal calls for Portland to sell bonds to pay for the hotel construction. Metro would own the hotel and pay back the debt with hotel revenues, Park said. The revenues, though, wouldn't be enough to cover the debt payments and provide the cushion required by bondholders.

Metro has tried to plug that gap with other public resources. In today's market, though, the bonds would sell at interest rates too high to make the hotel pencil out. Those bond market troubles persuaded Metro staff to stop even though the bonds wouldn't be sold for another 12 to 18 months.

The Metro Council will decide Dec. 18 whether to spend about $5 million more to continue the project. The Portland Development Commission would contribute $1.5 million of that cost.

Park, one of the Metro Council's biggest hotel supporters, said he'd vote to halt the project if that's what the staff recommends.

"None of us want a project that doesn't pencil out," Park said.

-- Ryan Frank; ryanfrank@news.oregonian.com

[bvpcvm]

it looks like that office tower at 100 ne multnomah is dead as well. the permitting process hasn't budged since last april. looks like this area will remain dead for a while.

[pdxtraveler]

What continues to bother me about getting the hotel built is the hotel industry. If memory serves they keep saying building the convention center hotel will put too much supply in the market. In that case STOP BUILDING OTHER HOTELS! Not that I am not happy for more, but if it hurts the chances of the MUCH needed convention hotel then it isn't good. I mean we just go the Nines, the Courtyard on Oak is almost done, now there is a new design review for a combined Summerfield Suites/Hyatt Place at Riverplace.