2017 BCCA ANNUAL REPORT

Transcription

1 2017 BCCA ANNUAL REPORT

2 2017 Annual Report Greetings, The Bellevue Convention Center Authority (BCCA) marked another record setting year in Our three components: Meydenbauer Center, Meydenbauer Center Theatre and Visit Bellevue Washington continue to flourish and reflect the vitality of the City of Bellevue itself. We credit our success in 2017, and throughout the Center s 25-year history, to our tremendous partnerships -- both public and private. Our strong relationships with the local business community and City of Bellevue give us the ability to recognize the moment and seize opportunity. Whether through meeting the sophisticated needs of our client base or providing substantial return on public investments, BCCA continues to fulfill its roles as economic engine, business catalyst, and community gathering place. A Catalyst for Bellevue s Innovation Bellevue is a modern, clean and safe destination for business travelers, convention attendees, and leisure travelers. The city s booming economy has created a highly dynamic environment. BCCA is positioned to be responsive to Bellevue s ever-growing opportunities. In 2017, Visit Bellevue Washington partnered with the City s Office of Economic Development on a two-year study that produced an inventive roadmap to enhance our marketing strategies for Bellevue as a destination cityof-choice for both business and recreation. Where the Region Does Business and More For the past 25 years, Meydenbauer Center has been a place for Bellevue and leaders throughout the Puget Sound to get business done. As the number of successful companies located in the region has increased, so too has the importance of a space where innovators can meet. Throughout the year, Meydenbauer Center hosts a variety of corporate events in the technology, medical and service sectors among others. The Center has also long been a go-to destination for fundraising events and non-profit organizations. With the growth in weekday business travel, hotel room rates mid-week continue to be robust. Consequently, Visit Bellevue s convention sales team is expanding its efforts to fill hotel rooms on weekends when rates are often highly appealing. Bellevue is finding a niche with weekend-friendly groups such as cheerleading and dance competitions, body building exhibitions, and other recreational enthusiasts.

3 Embracing our Diversity Meydenbauer Center Theatre provides our community with a place to gather and explore the arts. As our region has grown and attracted a workforce from around the world, our arts community has responded to those changing demographics. In 2017, Bellevue became a majority minority city and the growth in ethnic cultural events in the Theatre reflect this change. It is a wonderful mosaic that showcases the full creativity of our community. Joining our traditional ballet, symphony and arts education programming are numerous cultural events that reflect Bellevue s global status. Examples include Bollywood style dance, Chinese opera, jazz & blues, Filipino film, Latino concerts, the Japan Fair community festival and many, many more activities. We proudly offer something for every interest. And because the participants at our corporate and community events reflect the global community, Meydenbauer Center s culinary team is offering a new variety of menu choices many of which are ethnically inspired, incorporating traditional elements with a Northwest flair. Meydenbauer and the Grand Connection As we look to 2018 and beyond, we maintain our focus on a client and visitor experience that is second to none. We seek to deepen our partnership with the City of Bellevue and will continue to promote local economic vitality. And we commit with great enthusiasm to the city s vision for the Grand Connection and a Civic Center District that is a jewel of Washington State. Regards, Stacy Graven, Chief Executive Officer Rick Carlson, BCCA Board Chair

4 BCCA Overview The Bellevue Convention Center Authority (BCCA) is an economic development organization that drives economic impact by attracting to Bellevue, conventions and visitors that contribute to the civic and cultural life of the city. The BCCA is a financially self-sustaining entity that uses a combination of Bellevue s Transient Occupancy Tax (hotel/motel taxes collected on Bellevue hotel room night stays) and its own operating revenues to fully fund the operations of its three divisions, maintain its facilities and retire debt on the building. The BCCA s three divisions include Meydenbauer Center (convention center), Meydenbauer Center Theatre (performing arts center) and Visit Bellevue Washington (destination marketing organization - DMO). Conventions Corporate Meetings and Events Community Events and Fundraisers Venue for Arts Education and Cultural Performances Home of Annual Jazz and Blues Festival Destination Marketing Organization Convention Sales Leisure Marketing Transient Occupancy Tax (TOT) collections were up 5% in Two new hotels opened during the summer and that, along with strong demand for Bellevue hotels, has generated significant growth in TOT over the past few years. The $11.7 million of TOT collected in 2017 from Bellevue hotel stays was used to fund the BCCA as shown below. More than three quarters (77%) of the TOT was used to make debt service payments on the bonds and another 16% funded capital and reserves. The balance of TOT funded the DMO and performing arts theatre. No TOT was used to support convention center operations. TRANSIENT OCCUPANCY TAX COLLECTION TRANSIENT OCCUPANCY TAX ALLOCATION Figures in Millions $8.2 $8.7 $10.0 $11.2 $11.7 1% 16% 6% Total TOT $11.7 M 77% Meydenbauer Center Debt Payments $9,098,267 Capital and Reserves $1,870,116 Visit Bellevue DMO $679,385 Theatre Operations $64,

5 Where Bellevue Does Business and More Meydenbauer Center set another sales revenue record of $9.6 million in 2017 and generated net income of $742,656. Growth in events and attendance drove the strong revenue results. OPERATING REVENUES The convention center produced 32 more events and welcomed 12,549 more in attendance than 2016, primarily in the meetings and banquet categories. The additional events and attendance contributed to the $351,695 increase in revenue over 2016 by generating rent, food and beverage, parking, and event services revenue. December in particular, generated higher revenues than 2016 by approximately $230,000 from increased holiday party business. $9.6 million The higher expenses for the year can be attributed to costs related to increased business activity, one-time planning projects and rising labor and benefits costs. in operating revenues CONVENTION CENTER REVENUES AND EXPENDITURES 2015* $7,447,024 $9,259,251 $9,610,946 $7,449,426 $8,248,612 $8,868,290 $ (2,401) $1,010,639 $742,656 *Facility closed for renovation June 1 to September 1, 2015

6 Revenues and Bookings The Center has always focused first on booking conventions into the facility. This market segment has significantly helped drive the most business impact as they are typically multi-day events and attract attendees from outside of the city who stay in hotels, dine, shop and explore. REVENUES & BOOKINGS BY EVENT TYPE Total Events: 297 Total Revenue: $9.6M Conventions continue to be the most important event type for Meydenbauer Center and Bellevue because they generate significant economic impact across the city. While the 20 conventions held at Meydenbauer in 2017 represent just 7% of total events at the Center, they represent 26% of revenues ($2.53M). The 170 meetings in 2017 represent 57% of all events and 35% ($3.34M) of revenues. Banquets/receptions and other types of events (tradeshows, consumer shows, events) constitute the balance of the Center s business. MARKET SEGMENTS As Bellevue s corporate sector has grown, Meydenbauer Center has provided a home for those organizations to meet, train, sell, innovate and thrive. Over half (53%) of all events at Meydenbauer Center are corporate. One quarter (25%) of the events at the Center are hosted by community organizations, nonprofits and other groups that bring our community together. Associations, event promoters and multilevel marketing organizations comprise the balance of bookings. GEOGRAPHIC DISTRIBUTION OF EVENT ATTENDEES Nearly 1 in 3 events (29%) held at Meydenbauer Center attract attendees from Bellevue and the Eastside. Over half (55%) are organizations hosting attendees from Seattle and throughout the Puget Sound region and 16% draw from elsewhere in Washington State and nationally. 14% 25% 8% 53% Corporate 157 events (53%) Community 76 events (25%) Association 42 events (14%) Other 22 events (8%) 16% 55% 29% Bellevue/Eastside 86 events (29%) Seattle/Puget Sound 163 events (55%) State/National 48 events (16%)

7 Serving as an Economic Engine and Community Heart ECONOMIC IMPACT One of the primary purposes of a convention center is to generate economic impact that benefits local businesses, residents and the city. Economic impact is generated when event attendees stay in local hotels, shop at Bellevue retail stores, and dine at area restaurants. This in turn generates sales tax dollars for the City of Bellevue, King County and the state. In addition to adding to the overall economic vitality of our city and the region, the enhanced business climate creates a vibrant and compelling shopping, dining and entertainment scene for residents and works to attract new businesses to the city. Generating more than $58 million in direct dollar economic impact in 2017 and over $250 million over the past five years, Meydenbauer Center continues to serve as an economic driver for the city of Bellevue. $58 million Meydenbauer Center economic impact COMMUNITY EVENTS We are proud of Meydenbauer Center s role in welcoming the community. From fundraising events, to arts performances, and youth competitions, Meydenbauer Center serves as a central gathering place for the community to celebrate and appreciate. Having a space for large fundraising groups to host their events is important to the success of many of the Eastside s non-profit organizations. Over the past five years more than $40 million has been raised by events held at Meydenbauer Center to support education, food and housing services, family support, animal welfare and more. $10 million raised for local causes In 2017 alone, the 43 fundraisers held at Meydenbauer Center were attended by more than 22,000 donors and guests and raised over $10 million.

8 Meydenbauer Center Theatre provides a venue for a variety of performing arts including cultural and youth-based performances. In 2017, the Theatre generated $441,257 in revenues. With operating efficiencies, the Theatre required just $64,889 of TOT subsidy. 141 events 37,000 over attendees The Theatre welcomed 141 performances and over 37,000 attendees in The Theatre is also in demand by corporate events that require extra room for breakout spaces or find the theatre ampitheatre a good fit for their program. The types of performances in the Theatre have shifted over recent years reflecting changes in the community. Arts education performances represent 38% of performances and include music and dance recitals as well as productions geared specifically to children and families. THEATRE REVENUES AND EXPENDITURES 2015* $360,645 $483,315 $ (104,356) *Facility closed for renovation June 1 to September 1, 2015 $481,236 $522,976 $ (122,670) $441,257 $506,147 $ (64,889) Bellevue s growing cultural diversity is reflected in the 29% of theatre performances by emerging and established cultural arts organizations like American Asian Performing Arts Theatre, Bollybeats, Hwa Sheng Chinese Opera and the Russian American Entertainment Group. Dance, film and musical performances comprised the balance of theatre events. THEATRE PERFORMANCES BY TYPE THEATRE PERFORMANCES AND ATTENDANCE 4% 38% 11% 18% Total Performances % Arts Education 26 performances Cultural 41 performances Dance 54 performances Film 5 performances Music 15 performances * 141 PERFORMANCES 150 PERFORMANCES 144 PERFORMANCES 37,629 attendees 42,636 attendees 40,349 attendees 30,000 34,000 38,000 42,000 46,000 *Facility closed for renovation June 1 to September 1, 2015

9 Connecting Bellevue Businesses With Convention Attendees, Corporate and Leisure Visitors Visit Bellevue Washington has served as Bellevue s official Destination Marketing Organization (DMO) since It has two primary areas of focus: convention sales and leisure marketing. CONVENTION SALES Visit Bellevue s convention sales effort generates group meetings that use Bellevue hotel guest rooms and meeting space at Meydenbauer Center, hotels or other venues. The sales team targets events that require meeting space and guest rooms on weekends during Bellevue s key need periods of fall and winter. In 2017, Visit Bellevue s convention sales team booked 49,750 hotel room nights for 2017 and future years. The team continues to have success booking weekend hobby and competition based conventions which help create weekend hotel demand as well as introducing visitors to our city s many amenities. LEISURE MARKETING Visit Bellevue s marketing efforts focus on telling the Bellevue story through media relations efforts, a robust website that garners nearly 200,000 visitors per year and a range of social media efforts. The organization leverages its partnerships with our Affiliate Members to develop the destination and encourage visitors to stay in Bellevue and explore the region. Visit Bellevue and the City of Bellevue s Office of Economic Development jointly funded a two phase Destination Development Plan that was completed in The report recommends strategies and an implementation plan to enhance and sharpen the community s focus to attract business and leisure travelers and conventions to support Bellevue s economic growth. The DMO s $789, budget was funded by DMO generated program support revenues of $110,502 including $55,000 from the City of Bellevue and $55,002 of additional revenues from affiliate fees and online advertising. Transient Occupancy Taxes (TOT) funded the remaining $679,385 of Visit Bellevue s operations. VISIT BELLEVUE WASHINGTON REVENUES AND EXPENDITURES $100,657 $95,740 $110,502 $703,223 $738,112 $789,887 $ (623,332) $ (602,566) $ (679,385)

10 Tourism Matters for Bellevue Visitor Impact Communities across the country and around the world recognize the value of visitors in generating economic impact. Visitors to Bellevue help create and sustain jobs, bring out-of-town expenditures and generate tax revenues that benefit all of us. Additionally, there is strong evidence that increasing visitors in a market in turn leads to increases in the overall desirability of the destination as a place to meet, live, work, and locate businesses. Visit Bellevue Washington Visitor Impact Study* BELLEVUE HOTEL OCCUPANCY AND RATES BELLEVUE S HOTEL MARKET 74% 70% Weekday Weekend $199 Weekday Rate $146 Weekend Rate Bellevue s overall hotel occupancy of 73% was down 2.7% from Occupancy rates were impacted by the mid-summer 2017 opening of two new hotels that added nearly 500 rooms to downtown Bellevue. The city s total room count is now more than 5,200. Despite the new inventory hotels were able to maintain their room rates. In fact, average daily rate (ADR) increased by 3.3% to $ over Occupancy (2017 Average Occupancy 73%) Rate (2017 Average ADR $185) The accompanying shows that Bellevue s strong corporate weekday demand continues to drive higher weekday occupancies and room rates. *Source: Visit Bellevue Washington Visitor Impact Study prepared March Data includes 2017 hotel occupancy rates from Smith Travel Research, population and employment figures from the City of Bellevue, hotel statistics provided by Bellevue hotels, and Dean Runyan s 2016 per person spending estimates.

11 A Future of Endless Possibility As BCCA celebrates 25 years of innovation and service, we reflect with pride on the many accomplishments of our community partners and the deep commitment of our employees. The ongoing give-andtake has propelled us forward, never settling for just good enough. In this way, Meydenbauer Center fully embodies the spirit of our neighborhood, our city and our region. As much pride as we feel about our past, we look forward with even greater excitement to the next decade. The City of Bellevue has laid out an ambitious vision for a Civic Center District that will support a blossoming downtown. This District is part of a larger Grand Connection which will seamlessly link downtown Bellevue and Meydenbauer Center to Lake Washington, parks, pedestrian pathways, and a robust public transportation corridor. This once-in-a-generation opportunity means even greater business and recreational experiences for Meydenbauer Center clients and guests. BCCA is fully committed to our partners at the City of Bellevue and in the local business community to see this vision to completion. The possibilities at Meydenbauer Center are limited only by our collective imaginations. We look forward to working on a wide array of strategies and capital investments that ensure Bellevue s place at the center of a strong economy and vibrant Eastside community. Bellevue Convention Center Authority Board of Directors Rick Carlson, Chairman Daniel Watson, Vice Chairman Laurie Tish, Treasurer Roger Anderson, Director John Christison, Director Ron Hofilena, Director Ann Kawasaki Romero, Director Robert C. Wallace, Director Emeritus Mayor John Chelminiak, Council Liaison to the BCCA Board Meydenbauer Center Staff Stacy Graven, Chief Executive Officer Tim Carr, Chief Operating Officer Patrick McCluskey, Chief Financial Officer A detailed set of audited financial statements for 2017 are available upon request. Contact finance@meydenbauer.com Phone:

12 Meydenbauer Center NE 6th Street Bellevue, WA meydenbauer.com Merrill Images