Does Utah Need One More Convention Center?

Hotel company proposes 100,000 sq. ft. center south of Salt Lake City

By Michael Hart -- Tradeshow Week, 7/24/2006

With just over 2.5 million people, Utah is ranked 34th of the 50 U.S. states in terms of population. It has two Tradeshow Week 200 shows, the Outdoor Retailer Summer and Winter Markets, and two convention centers with more than 50,000 square feet of exhibit space, Salt Lake City's Salt Palace Convention Center and Sandy's South Towne Exposition Center.

So, you might ask yourself: How many more convention centers does Utah need?

Well, at least one more, according to John Q. Hammons.

Hammons, 87, is the owner of John Q. Hammons Hotels & Resorts, which already owns 64 hotels and either owns or manages 10 convention or conference centers with at least 70,000 sq. ft. of meeting or exhibit space.

Earlier this month, he announced plans for a 100,000 sq. ft. convention center and 300-suite Embassy Suites Hotel in Pleasant Grove, Utah, 36 miles south of Salt Lake City and 24 miles south of Sandy.

Scott Tarwater, Hammons Hotels development director, said the decision to build just south of the Salt Lake City metropolitan area in a region called the Utah Valley makes perfect sense if you look at the strategy the company has been implementing since Hammons bought his first 10 Holiday Inn franchises in 1959.

"You can't out-Orlando Orlando," Tarwater said, "but the rest of the world needs a nice place to meet and greet too."

Tarwater pointed to the fact that the nearby cities of Orem and Provo have 70,000 students at Brigham Young University and Utah Valley State College.

"Plus, it's an emerging high-tech corridor. That whole (Utah) Valley is just exploding," he said. "Now, all those companies and universities have to drive to Salt Lake to hold a meeting, or they just don't have a meeting."

Far from the national spotlight, Hammons offers hotels (with brands like Hilton, Marriott and Sheraton — all of which his company manages) and meeting space in cities like Middleton, Wis., Joplin, Mo., and Beaumont, Texas.

It just opened the 90,000 sq. ft. Frisco (Texas) Conference Center. In September, it will open a 35,000 sq. ft. convention center next to the Embassy Suites Hotel it already owns in Huntsville, Ala.; and in November, 60,000 sq. ft. of meeting space in Concord, N.C.

On July 15, U.S. Sen. Hillary Clinton of New York spoke at the opening of the new 90,000 sq. ft. John Q. Hammons Convention Center in Rogers, Ark. It happens to be nine miles from Bentonville, Ark., headquarters of Wal-Mart, providing the most convenient exhibit space available for anyone who's interested in mounting a small tradeshow in the shadow of the largest retailer in the world.

Figured out their plan yet?

"The Huntsvilles of the world provide a very, very large, dynamic piece of the market," Tarwater said.

Although Hammons executives may know the "Huntsvilles of the world," they might not know the competitive atmosphere in Utah as well as some others.

Dan Hayes, sales and marketing director for the Salt Palace and South Towne, said, "There's not that large a regional meeting market in the intermountain region."

Plus, Hayes said, he didn't expect serious competition from Hammons on what he called South Towne's "true reason for being, public shows."

"And, as far as competing with Salt Palace's national business and room nights, I don't see that either," he said.

Tarwater, however, said he would consider the two Salt Lake City area convention centers "in our competitive set."

Next month's Outdoor Retailer Summer will open in a newly expanded Salt Palace. Even then, VNU officials expect to need more space eventually.

"There's nice growth in this market," said Peter Devin, outdoor/fly fishing group show director for VNU Expositions. "We're already in a space deficiency again."

Devin said he would probably speak with the Hammons group once the summer show is over.

Tarwater said the same, but added, "I'll keep that real close to my vest."

Hayes said, "If they want to compete, we'll compete right back."

Hammons Hotels had been publicly traded since 1969, but last year Hammons took the company private once again.