L.A. Unveils Plan for Hotels
Entertainment complex will include 1,200 rooms near convention center
By Vanessa VanderZanden -- Tradeshow Week, 7/26/2004
Los Angeles— The country's second-largest city has taken a step toward resolving a big negative for attracting tradeshows: a dearth of convenient hotel rooms.
The Anschutz Entertainment Group, a subsidiary of Staples Center owner Anschutz Corp., unveiled development plans for a hotel complex and entertainment center adjacent to Staples and the Los Angeles Convention Center at a July 14 press conference.
A 900-room convention center headquarters hotel, a second 300-room luxury hotel and a 100-unit condominium complex, all in a single 55-floor tower, have city officials and developers optimistic about the possibility of attracting the kinds of large-scale meetings they feel the city should be capable of drawing.
Los Angeles Mayor James Hahn said that, while he's excited about the entertainment center, "Everything is second in my heart to having that hotel."
The $300-million headquarters hotel will be privately developed and owned by Wolff Urban Management and Apollo Real Estate Advisors. AEG, Wolff and Apollo have signed a letter of intent to go forward with the project, but are planning on receiving substantial financial assistance from the city. The group is still negotiating with L.A. officials on, among other things:
- a rebate on bed taxes for as long as 20 years,
- a waiver of processing and permit fees,
- a loan for the development and operation of 100,000 square feet of meeting and ballroom space, and
- development of a district-parking plan that could include the use of existing and new parking garages and lots.
"It's hard to tell what the total bookings impact will be, but it should be positive," said Michael Hughes, associate publisher and director of research services for Tradeshow Week. He pointed out that hotel-room price and quality have recently surpassed issues such as availability of dates and exhibit space capacity as key site-selection drivers. Hughes said event planners are looking for venues with plenty of hotel rooms nearby with a wide range of price points.
The entertainment portion of the new plan will be sponsored by wireless phone-maker Nokia. A mid-sized theater, a 2,400-seat live music club and a 40,000 sq. ft. open-air gathering place with shops, restaurants and giant LED screens is slated to serve as a hub for convention center visitors and sports fans attending Staples Center events.
While no groundbreaking date has been set, Mark Liberman, president and CEO of LA Inc., doubted it would take much time to complete negotiations and devise a construction schedule.
When completed, the entire complex will cover more than 27 acres on six city blocks. City officials project that it will create 19,000 jobs, deliver a $2-billion economic impact and bring the city $15 million in new annual tax revenue. The project is expected to draw 13.5 million visitors annually to downtown Los Angeles.
"The convention center has languished far too long," said City Councilwoman Jan Perry. "We can finally make this an ultimate destination."
