No Room at the Inn

On Sept. 24, Dallas White Rock Marathon 2006 Fitness Expo show manager Patrick Buchen received news no event organizer wants to hear: With less than 2½ months to spare, his venue was canceling on him.

Marathon Race Director Marcus Grunewald called Buchen with the news that the show's home for the last few years, the Dallas Hyatt Regency, had a scheduling conflict with another event and would not be able to accommodate the expo, set to open Dec. 8.

The Dallas Convention Center down the street did find room for the consumer event, but the unanticipated move, according to Buchen, will probably eat up whatever profit margin he, and the event intended for charity, expected — and even cost exhibitors and attendees more.

Because negotiations (which did not include Buchen) between the marathon committee and the Hyatt were still underway at press time, Buchen could not say exactly how much the expo might suffer, but he estimated the move's cost at close to $24,000. That's about what he hoped to make for Texas Scottish Rite Hospital for Children, the designated charity that collected $21,000 from last year's event.

He said he was also concerned about the higher cost of parking for attendees — $8 at the convention center compared to $3 at the Hyatt. Then there's the cost of changing all of the location information on the show's Web site and printed materials.

And there's more.

His pre-existing agreements with exhibitors give them an 80-percent refund if they back out, but if they cancel because of any additional costs due to the move to the DCC, Buchen said, "we will have to give them 100 percent."

The Dallas marathon expo is not the first consumer show to be canceled by its venue because of scheduling conflicts with another potential tenant.

As Beth Ann Blackwood, a member of the marathon's board of trustees, noted, "There's a provision that they (the Hyatt) can opt out of the contract if they so desire."

Hyatt General Manager Steve Vissotsky said, "We had two good clients of ours that had space issues. They (the marathon expo) wanted the exhibit hall and it's not completely available all the days. We are working towards a solution or an alternative to what they had here."

Vissotsky would not tell Tradeshow Week who the other client is.

Mike Fisher, executive director of the Natl. Assn. of Consumer Shows, said his organization believes that "if a facility and a show manager contract for space, it should be adhered to. If challenges arise, both parties should make sure they are working toward what will ultimately be fair to both parties."

Blackwood said, "I understand this was a result of an inadvertent double-booking," but Vissotsky said it was the result of "clients' changing needs."

"It was unfortunate it occurred," he said, "and we're trying to move forward and maintain a good relationship with our client (the marathon committee)."

Neither the marathon committee nor Hyatt was willing to comment on specific ongoing negotiations, including any financial settlement. But Vissotsky said one of the first calls he made when the scheduling conflict arose was to the DCC, six blocks from the hotel.

Frank Poe, director of convention and event services for the DCC, said, "Hyatt called and said they had gotten into space challenges and they needed to relocate the expo out of the hotel."

Fortunately for the expo, the DCC had available space, and Poe said he was working with all involved parties toward a smooth transition to his facility.

Blackwood and Buchen said they had what is a standard agreement with Hyatt: the promise of a certain number of booked rooms in exchange for exhibit space and room for a pasta dinner for close to 1,000 (which will remain at the Hyatt).

"We expected to meet the number of rooms no problem," Blackwood said.

Buchen is president and CEO of Adjuvant Expos and manages five shows.

"I'm a big boy, and I've been in this industry for close to 20 years," he said. "I know there is an opt-out clause in every contract, but I've never heard it done two months before a show."

Buchen estimated the 2005 show drew close to 15,000 attendees and 90 exhibitors.

"It's not a huge show, but financially we did well because we didn't have the facility and carpet cost," he added. Because of the lower costs, he said, there was also more to give for the children's hospital.