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Denver feasibility study report : convention center

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Denver feasibility study report : convention center
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Strategic Advisory Group
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Colorado Convention Center (Denver, Colo.)
City planning

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Section 2 Colorado Convention Center
Overview
A recent study conducted by Watkins Research ranked Denver fourth among destinations in the
U.S. and Canada. The areas of the study included value, positive experience and activities of the
destination management organization. The study showed improvement in Denver in key
categories including convention center service and facilities. The Democratic National Convention
and the Major League Baseball All Star Game are examples of high profile events that have
elevated Denvers stature as a destination. Convention business has a wide range of benefits for
Denver beyond economic gains. Examples of these include being catalytic for potential long-term
investment, cultural and educational exchange, opportunities for residents to participate by
attending shows, concerts and private events, new business opportunities being showcased and
community pride that is associated with Denver hosting high profile events.
The overriding theme that was consistent in the discussions and surveys with the variety of
constituents was the high level of satisfaction with the overall meetings and convention experience
in Denver. Clients, suppliers, internal team members, and community partners shared this view.
The recommendations contained in this section of the report are reflective of an opportunity to
utilize the input received to improve an overall experience that currently receives high marks from
a wide spectrum of stakeholders. The success of the Denver Alliance, coupled with the continued
improvement in Denvers perception in the market place, creates an opportunity to implement
recommendations that will continue to move Denver forward as a leader in the convention market.
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Brief History of Expansion of the Colorado Convention Center
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The convention center in Denver started in the 1970s as a simple exhibit hall called Currigan
Hall. It was bounded by Champa Street, Stout Street, 14th Street, and 12th Street. In the late
1 980s, a master plan was developed to provide future expansions of the convention center. A
nine-block site, bounded by Speer Boulevard, 14th Street, Welton Street, and Champa Street
was defined.
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1
1990s
In 1990, the city added what is now the Colorado Convention Center adjacent to Currigan Hall.
As part of the master plan developed in 1 990, the center was planned to double in size by
expanding onto the Currigan Hall site.
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2000s
In 2004, the center realized this expansion which removed Currigan Hall and doubled the size of
the convention center to its current size. The current center is bounded by Champa Street, Welton
Street, 14th Street, and Speer Boulevard. In its 40 year history, the convention center has gone
through many transformations including constructing and tearing down Currigan Hall, building the
original Colorado Convention Center and then expanding it. In order to preserve at least one
additional future expansion for the center, the city had the vision to incorporate the structural
ability for the center to expand vertically over the 2004 addition. This was important to the city
and the convention center as it planned for the future growth on a land-locked urban site, saved
on the cost of purchasing new land, and provided a future expansion site which could take
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advantage of the spectacular Rocky Mountain views for which Denver is famous. The site area
available for this expansion was over 340,000 square feet.
An Inclusive Approach
In conjunction with VISIT DENVER and industry leadership input, an inclusive approach was
developed to determine opportunities to evolve the Colorado Convention Center (CCC). The
intent of the approach was to gain understanding and insight from the Denver hospitality and
tourism industry, community leaders, meeting planners, consumer show executives, convention
centers and CVBs in competing destinations, suppliers to the convention center, convention industry
thought leaders, and the internal teams of VISIT DENVER and the CCC. The names of the
participants are listed in Appendix A of this report.
Consumer
show
industry
Customer
Comp set
convention
centers/CVBs
Internal Team
Meetings with members of the internal teams of VISIT DENVER and the CCC were conducted and
included senior leadership, as well as the sales and services teams. These discussions
encompassed all aspects of building design and overall operational opportunities. SAG also met
with the partners in the Denver Alliance, which include SMG, Centerplate Catering, VISIT DENVER,
The Division of Theatres and Arenas for the City and County of Denver and the Hyatt Regency
Denver. These discussions included design and operational input, as well as the future
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opportunities to enhance the Denver downtown hotel package. Finally, SAG facilitated a
charette with members of the Denver Alliance, the Denver hotel community, and Fentress Architects
to review the research findings and discuss the implication and potential direction for the CCC.
Community Leaders
Meetings with members of the Denver Business Community, Economic Development Corporations,
and key organizational partners were conducted to gain insights on the Denver economy, future
development and the Denver brand.
Customer Advisory Board
Two sessions of focus groups with the Denver Customer Advisory Board (CAB) were conducted to
gain insight and validate the input gathered throughout the process. The final session with the
CAB was an interactive design discussion with SAG and Fentress Architects. The members of the
CAB reviewed the outcome of the qualitative and quantitative research and gave input to the
architecture team on key areas and trends.
Industry Thought Leaders
Feedback from the leaders of the following industry organizations was included in the overall
analysis:
Center for Exhibition Industry Research
Professional Convention Management Association
International Association of Exhibitions and Events
International Association of Venue Managers
These discussions centered on the future of the industry and recent research that had been
conducted. The trends that were surfaced in the focus group discussion were also reviewed with
these industry leaders.
Hotel Community
Meetings with leaders from the Denver hotel community were conducted to gain insight related to
market opportunities and understand the dynamics of the Denver downtown hotel package.
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Suppliers
Meetings and interviews were conducted with many of the key vendors who are active in the
CCC, including general service contractors and technology providers. The focus of these
discussions related to physical and operational trends in the convention center industry.
Companies that participated in the interviews included Shepard Exposition Services, Freeman
Decorating Company, Reed Expositions, Levy Restaurants, and Brede Allied Services.
Customer Focus Groups
Work sessions were conducted with over 1 00 customers in a combination of focus groups and one-
on-one meetings. The focus of these discussions was to understand specific thoughts on the current
design of the CCC, as well as operational input. A wide variety of both corporate and
association planners expressed their ideas on current strengths and areas for future improvement.
The discussions also focused on future trends of the meetings industry.
Customer Surveys
The target market was surveyed to understand how Denver could compete effectively over the
next 25 years. The online survey was designed to seek input on CCC design and configuration
opportunities, as well as validate key industry trends that emerged from other research. The
surveys were designed for three sizes of meeting/convention events and included:
1. Groups with 1,500 to 4,500 hotel rooms needed on their peak night, with exhibit space
needs that fit into the Colorado Convention Center.
2. Groups with less than 1,500 hotel rooms needed on their peak nights, with overall space
needs that fit into the Colorado Convention Center. These groups are also able to meet in
the larger hotels with large amount of convention and meeting space.
3. Groups with a need for more exhibit space than is currently available at the Colorado
Convention Center.
The list of meeting planners surveyed was provided by VISIT DENVER and included 965 targeted
meeting planners. The responses include a cross section of event types and sizes of events,
primarily from the groups with less than 1,500 peak room nights (small groups) and those
ranging from 1,500 to 4,500 peak room nights (large groups). The groups with a need for
more exhibit space than is offered at the CCC did not respond and are not included in the
analysis.
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Consumer Show Leadership
Event organizers for consumer shows that are held in the CCC were interviewed to gather
feedback on the CCC, and to gain insight on the value of a potential new expo hall at the
Western Stock Show site. Discussions included design input and overall insight on the future of the
consumer show market in Denver.
Competitive Convention Center and Destination Benchmarking
A review and comparison of Denvers convention infrastructure and the Colorado Convention
Centers performance was benchmarked to 1 5 competitive destinations. This included comparing
the leasable exhibit, ballroom and meeting square feet, divisibility of leasable space, downtown
hotel infrastructure and nearby convention hotel infrastructure, total event and citywide activity
level. Facilities included in the benchmarking analysis were as follows:
Benchmarked Destinations
Convention Center SF Full-Service Hotels
Total Within 3
Center Population Airlift Exhibit Leasable Blocks of CC Downtown
Chicago 9,522,400 41,608,200 2,598,500 3,164,000 800 27,509
Dallas 6,701,000 31,925,500 745,800 909,600 1,001 11,356
Houston 6,177,000 24,082,700 862,000 989,700 2,866 5,934
Philadelphia 6,018,800 14,589,300 714,000 941,900 3,247 8,945
Washington DC 5,860,300 20,278,500 703,000 904,400 3,263 22,034
Atlanta 5,457,800 45,798,900 1,366,000 1,672,400 1,391 11,781
Boston (BCEC) 4,640,800 14,293,700 516,000 704,400 793 15,737
San Francisco 4,455,600 21,284,200 538,700 860,300 3,862 21,190
Phoenix 4,329,500 19,560,900 612,500 894,400 2,462 5,897
Seattle 3,552,200 16,121,100 205,700 345,900 2,793 7,798
San Diego 3,177,100 8,686,600 615,700 816,100 5,930 12,563
Denver 2,645,201 25,799,800 579,000 753,100 4,047 7,058
San Antonio 2,234,000 4,036,600 438,500 630,100 4,670 7,408
Orlando 2,223,700 17,159,400 2,053,800 2,536,800 5,507 11,561
Indianapolis 1,929,000 3,586,400 566,600 738,800 4,428 5,015
New Orleans 1,227,100 4,293,600 1,026,300 1,290,700 3,477 15,436
Sources: FAA, Census Bureau, Facilities, CVBs.
Note: Chicago, Dallas, DC, Houston include two airports.
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The destinations were selected in conjunction with VISIT DENVER based on destinations that Denver
competes with on a routine basis. In addition to the benchmark analysis, interviews were
conducted with the general managers of the Charlotte, Orlando and Nashville convention centers
to gain additional insight for the analysis.
Current Utilization and Lost Business Analysis
The CCC calendar was analyzed to gain an understanding of the overall utilization of the
available space. Additional analysis was performed on events that considered Denver, but had
to be turned down due to CCC space not being available and/or hotel rooms not being
available. This analysis included assessing the additional CCC space and/or additional hotel
rooms required to be able to accommodate the lost business.
Convention Center Industry Trends
Moving forward in a strategic direction needs to take into account where key societal,
technological, business, and industry trends are headed. From the broadest worldview, dramatic
geopolitical and economic pressures are reshaping our planet. Today, political and economic
changes are allowing many countries to exert significant influence on global markets. U.S.
demographics are changing as the boomers age while the echo generation becomes earners, and
personal technology is changing the
way people interact at every level.
All this plays into the convention
industry that has experienced
tremendous growth in supply over
the past two decades, while
demand experienced the impact of
two major recessions.
Demographics
Demographics in the U.S. are
shifting. The baby boom
generation has dominated U.S.
U.S. Population by Age
Source: US Census Bureau
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wealth creation and business thinking for the past 20 years. However, major shifts are coming.
While the baby boomers grew up in a world where their primary influences were the other kids
on the block and the local newspaper, the ways of this older generation are giving way to new
generations who view the world and conduct their lives in new and rapidly evolving ways. These
new generations are growing up in a different political, economic, technological and social
environment. Today, many children learn without textbooks and comfortably employ a stunning
array of communications tools on a global basis. Destinations must be thinking about Gen X, Gen
Y (Millennials) and beyond. They do things differently.
Trends suggest that the economy will experience a huge shock factor as the numerous boomers
transition from their most productive years to retirement and the potential collapse of their
spending, as well as their influence on decision making at all levels.
Technology
Technology will continue to have a material
impact in our lives and in the convention
industry. Twenty-five years ago, personal
computers had barely been introduced, and
one might have had to insert a floppy disk to
make the new machine work. Today,
communications are instantaneous via text, e-
mail, cellular phones, video-teleconferencing, even virtual reality. Most workers have more
computing power in machines the size of a book than NASA had with machines that filled entire
rooms. Further, unfathomable amounts of information are available at the touch of a button and
the exponential rate of change of todays technology is difficult to comprehend even for todays
most forward thinkers. This also bodes well for the importance of meeting and conventions as a
platform to learn the latest technological advances.
With todays interconnected world, one persons reach can be global, and a global companys
goods can be tailored to be personal. Real-time holographic presence is already here. Additive
manufacturing (3D printing) is today allowing the making of three-dimensional solid objects of
virtually any shape from a digital model desktop manufacturing. Need a new golf club? Hit
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print. Google has rolled out computer glasses that will surely lead to greater use of virtual
reality. And technology is advancing at an exponential rate.
Convention Center Supply
From 1980 to 2007 (led by the boomer generation), travel and the convention/tradeshow
industry blossomed into an economic powerhouse. Cities have grown to covet the economic impact
large conventions and tradeshows deliver while imposing relatively little stress on the services
cities/states provide to their residents. In their zeal to win this lucrative business, cities have
participated in an exhibit space race and all major cities now have large convention centers.
From 1 985 to 201 2, the supply of exhibit space averaged 3.7% annual growth annually. Due to
the time it takes centers to be constructed, supply typically grows into recessionary periods. For
example, supply grew 6.0% annually from 1985 to 1995, well past the 1991 /1992 recession.
Supply was relatively stable through the 1990s economic expansion, but cities were busy
planning and funding projects that opened during and after the 2001 recession. Supply grew
4.6% on average from 1999 to 2005 and slowed to 1.8% annually from 2005 to 2012.
According to Trade Show Executive, there are 17 North American convention centers under
construction and nearly 30 more considering development. This equates to approximately
640,000 square feet in prime exhibit space and 280,000 square feet of meeting space to be
added. Recent announced or completed expansions include San Diego, San Francisco, and San
Antonio.
Supply and Demand of Exhibit Space
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Source: CEIR, Trodeshow Week; Red 7 Medio; U.S. Census Bureau
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Convention Center Demand
The meetings business is a mature industry and generally ebbs and flows with the broader
economy. Over time, the demand for convention center exhibit space, in terms of net square feet
rented, has grown at an average rate of 2.4% annually since 1 985, slightly less than GDPs
growth rate of 2.6% over the same period. During the economic expansion from 2003 through
2007, building revenues and net square feet rented grew approximately 10%; however, the
number of exhibitors and attendees remained relatively flat. In 2012, only the number of
attendees has returned to 2000 levels, while net square feet, exhibitors and rental revenues are
still below the 2000 benchmark. CEIR projects that all demand measures, other than number of
exhibitors, will exceed 2000 levels by 2015.
Overall Exhibition Industry Growth
The size of events is shrinking. Large events are subdividing into smaller events. For example,
there are a small number of events that require 1 million net square feet or more of exhibit
space, and these events have been decreasing over the past five years. Since 2008, these
mega tradeshows have dropped from eight to five annually. Similarly, those needing
500,000 to less than 1 million net square feet has also shown a decline from 30 events in 2008 to
24 events in 201 2. (Net square feet represents the space rented to the exhibitor. Gross square feet
adds isles and other non-rentable areas and is generally double the net square feet. So a 500,000
net square feet event requires 7 million gross square feet.)
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The convention industry is driven by the different economic sectors. CEIR reports convention
demand growth in terms of net square feet rented by sector. From the year 2000 to 2012, the
sectors that grew the most for convention industry included government, machinery and finished
business outputs, and sporting goods, travel and amusement. CEIR projections through 2015
indicate growth of the next few years will be fueled by finance, legal and real estate; building,
construction & home repair; transportation; communications & IT; and consumer goods & retail.
Growth Index by Sector
Growth
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013p 2014p 2015 p 2012-2015
Financial, Legal, & Real Estate 100.0 96.2 88.5 89.6 95.5 100.4 90.1 101.3 99.5 78.6 79.7 81.9 88.0 91.8 96.8 103.0 17%
Building, Construction & Home Repair 100.0 109.1 101.0 104.1 105.3 1 1 1.7 121.8 126.0 1 17.7 100.1 93.6 87.4 86.4 89.4 94.0 100.1 16%
Tra nsportation 100.0 100.4 97.5 93.5 97.8 100.2 99.7 99.3 96.5 83.7 81.7 85.6 91.4 94.0 96.9 101.3 11%
Communications & IT 100.0 97.9 83.6 82.2 85.7 89.3 92.5 98.3 99.2 88.0 82.4 88.3 92.0 94.8 97.1 101 A 10%
Consumer Goods & Retail Trade 100.0 97.6 89.5 88.5 91.9 94.2 91.4 91.1 84.6 73.9 77.3 80.1 82.1 84.0 87.4 90.3 10%
Discretionary/consumer Goods & Services 100.0 97.0 87.6 91.1 91.2 95.4 94.9 95.9 92.9 88.1 89.4 92.3 95.0 96.6 99.3 103.2 9%
Sporting Goods, Travel and Amusement 100.0 105.7 107.1 114.0 115.6 1 19.0 122.6 130.3 126.6 109.3 107.2 108.0 110.7 1 13.2 1 16.2 119.7 8%
Machinery and Finished Business Outputs 100.0 112.3 109.2 128.6 1 14.6 126.5 135.3 144.6 144.8 139.5 131.7 145.2 146.3 148.7 152.0 157.3 8%
Food 100.0 99.8 95.4 97.6 95.1 92.3 91.5 92.2 85.1 73.6 74.5 75.1 77.6 79.0 80.7 83.1 7%
Raw Materials and Science 100.0 97.2 99.0 96.8 101.0 98.8 105.0 109.4 109.7 103.8 101.7 106.0 106.4 106.6 108.5 112.0 5%
Medical and Health 100.0 101.8 105.4 105.4 112.7 116.5 118.5 1 18.9 1 16.4 107.3 105.9 106.2 106.3 106.7 108.4 111.4 5%
Business Services 100.0 94.2 83.3 80.7 81.5 83.6 82.1 83.9 81.9 74.7 71.0 72.8 73.0 72.5 72.5 73.2 0%
Education 100.0 97.3 97.3 95.6 104.3 96.9 85.6 90.9 86.2 80.5 82.9 82.8 79.5 77.6 77.4 78.6 -1%
Government 100.0 106.5 110.1 1 14.4 113.4 121.4 131.2 137.3 137.0 138.1 146.5 156.4 152.6 148.9 146.5 145.7 -5%
Overall 100.0 99.8 95.8 96.5 99.5 101.9 102.1 105.9 103.2 93.1 91.9 94.4 95.7 96.8 98.8 102.0 7%
Source: CEIR
The following are excerpts from the CEIR Index Report titled: An Analysis of the 2012 Exhibition
Industry and Future Outlook.
Financial, Legal & Real Estate
The economic crisis of 2007 to 2010 originated within the finance and real estate
industries, and these sectors sustained above average hits to employment. By 2012, a
sustained recovery was underway across the board. This recovery was led by improving
household and business balance sheets and a revival of housing markets. This strong
momentum should continue. Despite moderate employment growth, there are important
developments in regulation, technology and products occurring across the finance,
insurance and real estate industries. Therefore, conferences and exhibitions that offer
consumers and firms value in this changing environment can enjoy a thriving business.
Building, Construction & Home Repair
The building, construction, and home repair sectors exhibitions grew substantially from
2002 to 2007, but they collapsed along with construction activity as the recession spread
across the economy. Underlying fundamentals in the private sector are favorable for
faster growth. In particular, the balance sheets of nonfinancial firms, commercial banks
and the average household have improved dramatically since the depths of recession.
The end of deleveraging in the private sector bodes well for nonresidential investment in
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equipment, software and buildings. Improved household finances are combining with low
interest rates and substantial pent-up demand to boost housing. Continued low interest
rates, rising housing prices and home equity, and releases of pent-up demand should
spark a recovery in construction and home improvement through 201 5. Spending on both
residential and private nonresidential construction is projected to rise at robust rates,
which bodes well for the sectors output and employment.
Transportation
Output in the industries making up the transportation sector declined substantially during
the Great Recession. The growth of industry output accelerated, in 201 1 and 201 2. The
recovery of motor vehicles production and purchases, albeit from depressed levels, led
the resurgence. The sector is projected to maintain production growth by approximately
2.5% to 5.0% per year through 201 5. The transportation sector exhibition performance
is correlated with sector output and employment growth. As the economy gains
momentum, increased production and employment for the sector should improve the
business climate for sector exhibitions. From 2013 to 2015, transportation-related
exhibitions are expected to grow between 2.8% and 4.6% per year. Transportation
sector exhibitions are projected to outperform the overall exhibition industry.
Communications & Information Technology
Communications and information technology exhibitions grew from 2004 to 2008 but
collapsed in 2009 and 2010. These decreases were driven by declines in IT sector
employment during the Great Recession. Consumer sentiment is on an upward trend as
financial wealth and home equity recover from recession. Inflation and interest rates
remain low and the unemployment rate is slowly but steadily is falling. Business also is
more optimistic and there are signs that corporations are ready to put some of their
stockpiled cash to work. However, the reduction in government spending on employees,
contractors, manufactured goods and construction might adversely affect the climate for
some business services and information technology exhibitions. Moreover, political
gridlock concerning the federal budget still could undermine confidence.
The private economy should gain strength, but cuts to federal spending and higher taxes
will dampen growth in 2013. Overall GDP growth in 2013 is expected to register
approximately 1.7%, down from 2.2% in 2012. Growth over 2014 to 2015 likely will
accelerate, reaching almost 4.0% by 2015. Personal spending on electronics and
communications services is expected to grow more rapidly than overall consumption
spending. In particular, purchases of personal IT devices (computers, tablets, phones, etc.)
are expected to expand substantially between 2013 and 2015. Increases in IT sector
sales should bolster output, leading to better IT exhibition performance.
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Consumer Goods and Retail Trade
Consumer goods and retail trade exhibitions declined precipitously in 2008 and 2009
but have since rebounded with growth of 4.6%, 3.6% and 2.5% respectively in 2010,
2011 and 2012. Growth in 2012 was mainly driven by gains in NSF (3.2%) and
number of exhibiting companies (3.3%).
Overall GDP growth in 2013 is expected to register about 1.7%, down from 2.2%
percent in 2012. Employment will grow at about 1.0% and unemployment will fall only
slightly, from 8.1% in 201 2 to 7.7% in 201 3. Personal consumption expenditures, in real
terms, are projected to expand between 2.1% and 3.3% annually from 2013 to 2015.
In particular, durable goods appear to be poised for several more years of strong
growth.
Following declines in 2008 and 2009, retail sales expanded in each of the last three
years. Thanks in part to improving balance sheets and a stronger housing market;
consumers have begun to unleash pent-up demand for retail goods such as apparel, gifts,
home improvement and jewelry. Despite political gridlock, recovery in the consumer
sector is expected to continue through the forecast horizon.
Supply-Demand Relationship
Over time, supply growth that has averaged 3.7% annually has outpaced demand growth that
has averaged 2.4% annually. Exhibit hall occupancies are lower nationwide as a result. It is a
buyers market. Meeting planners now consider the convention center somewhat of a commodity
as the development boom has led to larger and nicer buildings. So building more exhibit space is
not necessarily the answer for every city to win more business. The meetings industry is in a slow
growth mode and competition is diluting opportunities to attract additional events. There has
been pressure on facility rental rates, food and beverage pricing, local transportation subsidies,
and even hotel pricing. Many cities have gone to the extent of offering free rent as an
inducement for events.
Hotel Development
According to Smith Travel Research, the number of hotel rooms under construction in July 2013
was 23% higher than the same time in 201 2. Further, the vast majority of development included
limited-service hotels and only a few full-service hotels. A recent US pipeline data report
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indicates that 90% of all current hotel development is in limited service properties. Limited-
service hotels are less expensive to develop and provide less financial burden than full-service
properties, which generally require public investment in order to make the project financially
feasible.
70
60
50
40
30
20
10
0
New Hotel Development
2008 2009 2010 2011 2012 2013p
Source: STR.
The last large convention headquarter hotel to be built, outside of Las Vegas or Orlando without
public participation, was the Chicago Sheraton that opened in the early 1990s. The popularity of
developing full-service hotels through public private partnerships has increased over the past
five years. Many destinations have either recently announced new development, completed new
hotels or are actively pursuing public private partnerships to facilitate full service hotel
development.
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Convention Hotel Financings
PRIVATE
FINANCING
With Public
Incentives
Pittsburgh 1991
1992


1999
| 2000
Tam pa

Jacksonville

Charlotte 2002
Richard:
St. Louis-
San Jose--------------2003
2004
Shreveport------------- 2005
Winston-Salem-----------1 2006
Raleigh---------'
San Antonio---------1 2008
La Vista---------'
Lancaster---------1 2009
Ft Worth----------
Orlando*----------
Orlando*------------- 2010
Manhattan KS-------------- 2011
Indianapolis------------- 2012
Nashville------------- 2013
Washington DC--------------- 2014
Austin-------------- 2015
Houston-------------- 2016
Kansas City---------1 2017
Portland----------
Salt Lake---------
Miami Beach*-------------- 2018
Providence
Chicago
Pittsburgh Airport
Sacramento
Overland Park
Trenton
Cambridge MD
Myrtle Beach
Austin
Houston
Omaha
Schaumburg
Denver
Phoenix
San Juan
Baltimore
Dallas
Columbus OH
Cleveland
* No public incentives.
PUBLIC
FINANCING
Destination Appeal
Destination appeal can be understood using the
6-8-10 rule. Meeting/event attendees spend
6 hours at the meeting/event so the convention
center must be competitive. Delegates spend 8
hours sleeping, so the hotel package must be
right. They spend 1 0 hours doing something
else. Those ten hours can make or break the success of an event (and a destination). Culture, the
environment, transportation infrastructure, entertainment, shopping, convenience, and price are just
of a few attributes to consider. Destination appeal is a critical sales component. Meeting
planners are successful when they draw large attendance, and they do that by selecting fun and
interesting destinations. Each destination possesses its own unique destination attributes outside
the doors of the facility.
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Destination Selection Criteria
Availability of Hotels and Facilities
Affordability of Destination
Safety and Security of Destination
Ease of Transporting Attendees to/from Location
Distance Traveled by Attendees
Transportation Costs
Clean and Unspoiled Environment of Destination
Climate
Mandated by Corporate Policy
Availability of Recreational Facilities
Sightseeing, Cultural, Other Attractions
Glamorous or Popular Image Location
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Source: Meetings & Conventions
Conclusion
As Denver moves forward with its convention center product, it will do so under changing broad
demographic and technological forces. The convention center industry is struggling to absorb
historical growth in supply while demand has experienced moderate overall growth impacted by
recessionary periods. In the end, destinations with a convention center that anticipates the
changing clients needs from both a physical and service perspective, coupled with the best hotel
room block and destination attributes will win.
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Current Program
The Colorado Convention Center offers 584,000 square feet of contiguous exhibit space on one
level, 63 meeting rooms providing 92,000 square feet of meeting space on one level, the 50,000
square foot Mile High Ballroom and the 35,000 square foot Four Seasons Ballroom. In addition,
the CCC offers the 5,000 seat Bellco Theatre.
EXHIBIT LEVEL stout street
BALLROOM LEVEL
14TH STREET (CITY VIEW)
SPEER BOULEVARD (MOUNTAIN VIEW)
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Utilization
Number of Events
According to VISIT DENVER and the CCC, the center hosted 234 events with more than 847,000
attendees in 2012. This included 52 conventions and tradeshows with 252,700 attendees, 29
consumer shows with 334,700 attendees and 153 other meetings and events with 259,600
attendees.
Denvers performance compares favorably in terms of the total number events among
benchmarked destinations, second only to San Antonio. In terms of conventions and tradeshows,
CCC ranked fourth overall, third when excluding industry powerhouse Orlando. Interestingly,
Denver hosted more conventions and tradeshows than many larger destinations with more
convention facilities, including Chicago, Atlanta, San Francisco, Boston, and Houston.
Number of Events
350
300
Other
Consumer Shows
Conventions/Tradeshows
Source: Facilities and CVBs.
Convention Center Citywide Events
Denver defines a citywide event as one requiring at least 1,200 room nights on peak, utilizing
multiple hotels and the CCC. In 2012, the CCC hosted 30 convention center related citywide
events. Most of these are classified as conventions and tradeshows by VISIT DENVER, with five
citywide events classified as meetings or sports. Denver ranks among the top in hosting larger
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room night driven conventions and tradeshows. When excluding larger destinations/facilities
Orlando and San Francisco, and Seattle that has a lower citywide definition threshold definition
of 1,000 rooms on peak, Denver is the top performer.
Number of Convention Center Citywide Events
120
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Each destination varies in its definition of a citywide event. Denver defines a citywide event
as one requiring at least 1,200 room nights on peak, using multiple hotels and the CCC.
Other destinations have similar measures that vary from 1,000 to 2,500 on peak.
The analysis of the Convention Center included reviewing the number and size of citywide events
in the CCC. The current 30 citywide events were reviewed by the date they occurred and by
which exhibit halls they utilized. Citywide events drive 33% of the CCCs occupancy, with an
additional 20% driven by smaller convention and tradeshows, consumer shows and other events.
The analysis reveals that there are open dates throughout the calendar year, less availability in
the warmer periods and more availability during colder times of the year. There appears to be
exhibit space available for additional citywide convention bookings.
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Operating Revenues and Expenses
SAG reviewed the financial information that was supplied by the benchmarked Convention
Centers. Based on this information, the Colorado Convention Center has one of the lowest
operating deficits of the benchmarked facilities. Of the comparable sized centers that were
studied, Denver has the third lowest reported deficit. This is an important foundation in gaining
support for enhancements or expansion to the CCC. The ability to demonstrate an efficient
operating model that is focused on increasing economic impact while maintaining the fiscal results
of the CCC will be an important overall goal in the proposed expansion and capital investment
recommendations.
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Exhibit Space
Benchmarks
The Colorado Convention Center (CCC) ranked 11th out of 16 benchmarked facilities in total
leasable square feet of exhibit space and 7th in contiguous leasable square feet. VISIT DENVER
stated the CCC loses convention business most often to the facilities benchmarked; however,
several of the facilities offer substantially more exhibit space than the CCC, including Chicago,
Orlando, Atlanta, New Orleans, and Houston. Also, the Washington State Convention Center in
Seattle is a smaller facility, offering just over 200,000 square feet of exhibit space. When
excluding these facilities from the analysis and focusing on the most comparable facilities in
terms of exhibit square feet offered, the CCC ranks near the middle out of 10 facilities. The
average square feet offered at these nine facilities is 605,000 compared to the CCCs 584,000.
3.0m
2.5m
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1.5m
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Source: Facilities.
The exhibit space at the CCC has the ability offered as one large contiguous hall or can be
subdivided into a maximum of six separate halls. The CCCs ability to offer a maximum of six
separate halls is similar to the benchmarked facilities.
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Target Market Survey
In addition to comparing the CCC to the benchmarks, the target market survey results revealed
that a majority of the respondents feel the existing exhibit hall configuration meets their needs.
Survey respondents were asked whether they strongly agree, somewhat agree, are neutral,
somewhat disagree or strongly disagree the CCC exhibit space works well for their needs.
Exhibit Space Assessment
100%
"The Colorado Convention Center exhibit space works well for our exhibitors.
Large Events 1,500 to 4,500 Peak Room Nights
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Small Events Less than 1,500 Peak Room Nights
Strongly Somewhat Neutral Somewhat Strongly
Agree Agree Disagree Disagree
More than 80% of the Large Event survey respondents stated they strongly agree or somewhat
agree the exhibit space works well. More than 65% of the Small Event survey respondents
indicated they strongly agree of somewhat agree the exhibit space works well. The only
negative comment cited by Small Event respondents related to the location of the exhibit halls
being located one floor above the ballroom and meeting space.
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Occupancy Analysis
Exhibit hall occupancy was calculated on a common basis for benchmarked facilities, utilizing
move-in/move-out days and event days during a calendar year. The CCC total exhibit hall
occupancy for 2012 was 53%*, similar to the 54% average of the benchmarked facilities.
Event day occupancy (excluding move in/out periods) was 25%, similar to the average at 24%
at the benchmarked facilities. Generally, expansion is considered for exhibit halls when
occupancy approaches 70%. It is not feasible to achieve higher occupancies due to holidays and
dark days between events that are too small to accommodate an event.
Exhibit Hall Occupancy
* Only reported total occupancy.
Source: Facilities and CVBs.
The calculation of exhibit hall occupancy takes into account all of the available days at the
convention center. The benchmarked data that SAG received was also calculated using all
available exhibit hall space. There are dates in a convention center that are generally
considered unsellable. These include major holidays where there are virtually no large
conventions that meet during these times. If the unsellable dates are removed from the
available days, the CCC occupancy would be at or near 70%.
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Denver Consumer/Public Shows
The primary focus of the CCC is to host conventions and other events that generate economic
impact by bringing out-of-town delegates to Denver. In addition, the CCC hosts a number of
consumer shows, shows that are generally attended by local Denver residents. The following is a
summary of the large consumer/public shows.
High-Profile Large Consumer/Public Shows
Event Dates Days Attendance Exhibit SF
The Denver International Sportsmen's Expo 1/2 1/9 8 37,000 288,000
The Colorado RV and Adventure Travel Show 1/8 - 1 /15 8 20,100 290,000
The Denver Boat Show 1/9 - 1 /15 7 8,600 1 96,000
The Colorado Garden and Home Show 2/6 - 2/21 16 53,500 391,000
The Denver Auto Show 3/17 - 3/27 11 68,300 383,000
The Fall Home Show 9/4 - 9/10 7 9,200 151,000
Beerfest 10/7- 10/14 8 52,900 288,000
The Colorado Ski and Snowboard Expo 10/31 -11/5 6 9,300 1 06,000
The Holiday Food and Gift Show 11/7- 11 /12 6 31,000 1 05,000
The CCC hosts nine large public shows during the year. These shows range in exhibit hall needs
from one hall to four halls. Over the course of a year, these shows consume over 77 exhibit hall
days. This includes dates needed to move in and move out as well as show days.
Six of the nine major consumer shows take place in the cold months of January, February, March,
and November. These colder months coincide with the months that are most challenging to book
conventions in Denver due to perception of bad/ unpredictable weather, which results in lower
overall occupancy for the hotels and thus lower Lodgers Tax and spending.
Moreover, three of the events occur in January at the same time as the Western Stock Show,
making it impossible to relocate these events to a facility at the Western Stock Show site. There
are only three consumer shows (Fall Home Show, Beerfest, and the Ski & Snowboard Expo) that
meet during ideal convention booking periods. While these events might be relocated to an
exhibit facility at the Western Stock Show site, this is not enough to warrant developing a new
facility solely for purposes of freeing up the CCC calendar. If there are other reasons to develop
an expo hall on the Western Stock Show site then there might be an opportunity to relocate CCC
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events that meet during prime convention months. Discussions with show planners indicated there
was not overwhelming support to relocate to the Stock Show site. This level of interest may
change when a formal plan can be viewed for the new Expo Hall at the Western Stock Show site.
Recommendation
As discussed in the Industry Trends section of the report, exhibit hall supply growth has outpaced
demand growth in terms of net square feet rented and this had led to a highly competitive
environment for exhibit space rental. The market for exhibit space is generally perceived as a
buyers market. In addition to this, the universe of events requiring is shrinking while available
exhibit space is still expanding. Two high profile examples of this are San Diego and San
Francisco. An analysis of the CCCs exhibit hall utilization indicates that there is no need to
master plan additional exhibit space. Overall occupancy is 53%, and occupancy driven by
citywide conventions is 33%. This provides ample opportunity to book additional higher impact
conventions into the exhibit space. Moreover, both the benchmarking target market survey results
and lost business report indicate additional exhibit space at the CCC is not required. Given this
and the broader over supply of exhibit space throughout the country, it is not recommended that
additional exhibit space be master planned.
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Ballroom & Meeting Space
Ballroom Benchmarks
The CCC currently offers a 50,000 square foot grand ballroom and a 35,000 square foot junior
ballroom. A comparison of the grand ballroom space offered at the benchmarked facilities
revealed the CCC offers a larger grand ballroom than most, ranking fifth out of 16. Only the
larger facilities in Chicago, Orlando, Philadelphia and Washington, DC offer larger grand
ballrooms. A comparison of the facilities most comparable in size to the CCC revealed the CCCs
grand ballroom is similar in size to the other facilities. When analyzed from an exhibit space to
ballroom ratio perspective, Denver is among the top of its competitors. The focus groups
indicated satisfaction with the size and divisibility of the grand ballroom at the CCC. However,
there was a suggestion was to create a more effective transition between the grand and junior
ballrooms.
From the junior ballroom perspective, while the CCC offers one competitively sized ballroom,
approximately half of the competitive facilities offer more than one junior ballroom.
All Facilities
Ballroom Square Feet
Most Comparable
* Junior Ballroom 3
Junior Ballroom 2
Junior Ballroom 1
Grand Ballroom

I I
I I I II II I
I I I II II I
I I I II II I
Ratio of Exhibit SF to Ballroom SF
Ratio
Most Comparable
San Antonio 0.20
Phoenix 0.15
Denver 0.14
San Diego 0.13
San Francisco 0.13
Philadelphia 0.13
Indianapolis 0.10
Dallas 0.09
Boston (BCEC) 0.08
Washington DC 0.07
Average 0.72
Other
Seattle 0.31
Chicago 0.07
Orlando 0.05
Atlanta 0.04
Houston 0.04
New Orleans 0.04
Source: Facilities.
Source: Facilities.
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Meeting Space Benchmarks
The CCC currently offers 91,900 square feet of leasable meeting space. A comparison of the
meeting square feet, excluding ballroom and fixed theater square feet, revealed the CCC ranks
near the lowest in leasable square feet. Only the Washington State Convention Center offers
less breakout meeting space and it only has 200,000 square feet of exhibit space. When
focusing on those most comparable facilities in terms of exhibit square feet, the CCC offers the
least amount of breakout meeting space. When analyzed from an exhibit space to meeting
space ratio perspective, Denver is among the lowest of its competitors. If Denvers exhibit
space to meeting space ratio were among the best in class at 1 to 0.3, the facility should offer a
total of approximately 175,000 square feet or an additional 83,000.
Focus groups also indicated they often must look for additional meeting spaces outside the CCC in
nearby hotels to accommodate their needs. Meeting Planners also indicated the need have
increased space for educational and continuing education purposes.
Breakout Meeting Square Feet
All Facilities
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350k
300k
250k
200k
150k
100k
50k
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Source: Facilities.
Note Excludes theater square feet.
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Divisibility Benchmarks
Flexibility of ballroom and meeting space is a high priority for event planners. The CCC offers
just over 174,000 square feet of ballroom/meeting square feet that can be divided into a
maximum of 63 separate rooms. When compared to the benchmarks, Denver is among the
lowest in terms of the number of divisible meeting rooms, which is consistent with Denver being
among the lowest in terms of square feet offered.
250
200
Ballroom and Meeting Room Divisibility
All Facilities
Minimum Rooms
250
Most Comparable
Minimum Rooms
Maximum Rooms
200
Maximum Rooms
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Target Market Survey
Meeting Space
The target market was surveyed to understand their impressions of the CCC meeting space.
Results indicated that the CCC meeting space generally meets the needs of the target market.
Moreover, those with higher ratios of exhibit space to meeting space (Boston-BCEC, San Francisco
and Phoenix), only San Francisco (53 events) books more citywide events than Denver (30).
Meeting Space Assessment
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"The Colorado Convention Center has sufficient meeting space for our needs.
89.4%
I Large Events 1,500 to 4,500 Peak Room Nights
I Small Events Less than 1,500 Peak Room Nights
63.6%
93.4% 1
_J_____
3t6%-
Strongly Somewhat Neutral Somewhat Strongly
Agree Agree Disagree Disagree
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Flexibility/Divisibility
The target market was also surveyed to understand if the flexibility and divisibility of the CCC
worked well for their needs. While the benchmark analysis revealed the CCC offers the fewest
divisible meeting rooms, the survey responses indicated the flexibility/divisibility of the CCC
works well for the target market needs.
Flexibility and Divisibility of Function Space
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85.8%
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l Small Events Less than 1,500 Peak Room Nights
82.2%
n
Strongly Somewhat Neutral Somewhat Strongly
Agree Agree Disagree Disagree
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Layout
Focus Group discussion and industry research indicated growing interest in having meeting room
environments that were focused on creating unique gathering spaces, and moving away from
traditional U-shape or classroom style meetings. Discussions in the focus group supported this as a
potential enhancement for the CCC.
The target market was surveyed to understand if planners believe meeting room layouts will
evolve to include such options as gathering spaces, utilizing non-traditional furniture and layouts.
Meeting Room Layout Assessment
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"Meeting room layouts will evolve to include options such as "gathering spaces,
_________utilizing non-traditional furniture such as sofas, arm chairs, etc..___
79.0%
1~
85.7% 1
_J_____
l Large Events -1,500 to 4,500 Peak Room Nights
I Small Events Less than 1,500 Peak Room Nights
48.4%
47.6%
Strongly Somewhat Neutral Somewhat Strongly
Agree Agree Disagree Disagree
The responses revealed that planners believe that meeting room layout will evolve and move
toward non-traditional meeting room set-ups. The discussions around this topic also included the
interest of the planners to keep as much neutrality and flexibility in the design of spaces so they
could create the type of identity and layouts that best fit their particular group. Meeting rooms
do not necessarily need to be redesigned; rather the set-up of the space for a particular event
needs to evolve.
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CCC Calendar Analysis
As mentioned above, the exhibit space is 53% occupied. A detailed day-by-day analysis of the
2012 calendar revealed that there are 50 4-day booking windows (excluding holidays) that
could accommodate an event requiring 100,000 exhibit square feet. There are 30 (of the 50) 4-
day booking windows that could accommodate a show requiring 200,000 exhibit square feet.
Further analysis of the calendar revealed that the exhibit booking opportunities are materially
reduced when considering an events need for ballroom and meeting space. The 50 4-day
booking windows for events requiring 100,000 of exhibit space is reduced to 15 when
considering the lack of available ballroom and meeting space. The 30 4-day booking windows
for events requiring 200,000 square feet of exhibit space is reduced to five when considering the
lack of available ballroom and meeting space. While there are a number of opportunities to
book the exhibit hall, it cannot be accomplished without additional ballroom and meeting
space. The analysis revealed that the best opportunity for Denver to book additional events are
for events requiring 100,000+/- square feet of exhibit space. Such events generally require a
ballroom of 35,000 to 40,000 square feet and 25,000 to 35,000 square feet of meeting space.
If an additional ballroom and meeting space are developed, it could enable the CCC to increase
its exhibit hall occupancy and ultimately the facilitys economic impact. If the space is developed
and is booked one-half the available days, an additional 60,000 room nights could be
generated by the CCC annually.
CCC Lost Business
An analysis of the CCCs lost business corroborates the need for additional ballroom and meeting
space. The 2012 lost business report summarizes 157 events that were turned down due to
unavailability of adequate space in the CCC, unavailability of requested dates due to existing
bookings, or insufficient hotel rooms to accommodate the room block. Focusing on the CCC space
issues revealed that the CCC could have accommodated 50 of the events listed on the lost
business report if an additional 35,000 to 40,000 square foot ballroom and 25,000 to 35,000
square feet of meeting space were available. This is not to indicate 50 events would have been
booked, rather it indicates that there were at least 50 additional proposals that could have been
submitted to meeting planners. SAG found approximately 50 groups that were considering
Denver, but were unable to be accommodated since they needed additional ballroom and
meeting space. SAG assumed that only 30% annually would be booked. SAG also validated
that each group would have had enough hotel rooms to accommodate the convention.
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The review of the 201 3 lost business report for the CCC also reinforces the need for the proposed
ballroom and meeting space. The summary of the lost business indicated that 236 events were
turned away due to lack of convention center space.
In addition to reviewing lost business, an assumption could be made that larger groups that are
currently selecting other cities, might chose Denver if Denver added this new flexible and
intriguing space. If the Denver team converted 1 0% more large center business with more than
2,000 rooms on peak, it would represent nearly $493 million in economic impact or $49.3 million
in direct spending, which would generate nearly $4 million in tax revenue. Therefore, citywide
business for Denver has the potential to grow as well.
The combination of available opportunities for smaller events and the consistent high level of lost
business of groups that could utilize currently available exhibit space with an increase in meeting
and ballroom space provide compelling support for expansion.
Specialty Space
The focus groups indicated that the CCC might be able to improve its marketability with the
addition of specialty space that takes advantage of Denvers unique topography. There is an
opportunity to expand upward to take advantage of the spectacular views of the Rocky
Mountains.
A few of the benchmarked convention centers offer unique leasable space as an added amenity
for convention delegates. The following are examples of some of the unique leasable spaces:
San Diego Convention Center The 90,000 square foot glass enclosed Sails Pavilion,
which offers panoramic views of downtown San Diego and San Diego Bay.
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264


Henry B. Gonzalez Convention Center in San Antonio The 1 5,800 square foot Grotto
spans the entire width of Bridge Hall of the Center and has numerous trees, foliage, and
a waterfall. This space can accommodate up to 3,000 people for a reception and opens
on to the River Walk.
McCormick Place Offers several outdoor terraces, including the West and East Garden
with 3,000 square feet, the West and East Terraces with 70,200 square feet, and the
Lakeside Fountain Terrace with 1 3,500 square feet.
Georgia World Congress Center The Georgia Aquarium, adjacent to the center, offers
a 60,000 square foot ballroom where one of the walls is a glass wall looking into the
whale exhibit.
The majority of the benchmarked facilities do not offer unique leasable spaces; however, these
features can offer an additional selling point when a facility is competing against other
destinations. The target market was surveyed to understand how they view unique specialty
spaces within a convention center.
'Specialty Space" Assessment
100%
"The creation of "specialty space designed to accentuate the features of a destination
will be important in enhancing the attendee overall experience.
Large Events 1,500 to 4,500 Peak Room Nights
Small Events Less than 1,500 Peak Room Nights
7.1%
1.6% 1.6% 2.4%
Strongly Somewhat Neutral Somewhat Strongly
Agree Agree Disagree Disagree
The survey responses indicate the larger groups that typically use convention center space more
often, believe specialty spaces will become more important in enhancing the overall
attendee experience, reflected in the 80% that responded they strongly agreed or somewhat
agreed. The smaller groups believe this type of space is not as important to enhancing attendee
overall experience, reflected in the 50% that responded they strongly agreed or somewhat
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265


agreed. The CCC may want to consider adding specialty space as part of its program in the
future. The results indicate that the addition of specialty space will enhance Denvers ability to
convert larger conventions. In the current competitive meetings and convention market, facilities
alone are not enough to be successful. Competitors in other cities are building ballrooms that
have an entire wall facing an aquarium, or ballrooms that open to outdoor decks offering ocean
views, or on to decks filled with trees, waterfalls, and gardens. It is imperative that Denver think
beyond square footage and envision a facility that captures the spirit of the city. Meeting
planners are demanding unique spaces that add networking opportunities to the convention, and
competitors in other cities are providing such spaces.
This type of space could also enhance the ability to facilitate networking by keeping attendees in
the Convention Center for events after the meeting day is completed. The focus groups also
supported the need to develop opportunities to experience the Denver Brand in the future.
Hyatt Meeting Space Expansion
The Hyatt Regency is proposing to develop a 56,000 square foot ballroom and 6,600 square
feet of meeting space. This ballroom could help solve the CCCs ballroom/meeting space
shortfall issue if it could be available for CCC events. The challenge is that the hotel needs this
new ballroom to book in-house group meetings and the CCC needs to keep a ballroom available
to accommodate the needs of smaller, shorter term booking convention center events. To succeed
at both the hotel and CCC, both projects will need to be developed.
SAG has reviewed the proposed expansion of ballroom and meeting space, and concurs with the
industry standard of 1 00 square feet of meeting space per guest room as an industry average.
The Hyatt is currently well below this standard. After review of the information provided, there
is a need for further exploration. The clear indication of the importance of proximity of a
headquarter hotel and supporting meeting space would suggest that the convenience and
proximity needs to be evaluated. The opportunity to construct a bridge could provide
advantages that should be further explored including the potential of a joint sales approach with
the Convention Center. A survey of planners to understand the importance of a bridge in
mitigating weather concerns would help understand whether a bridge could affect the conversion
of groups during challenging weather periods. SAG recommends conducting a study to review
these opportunities. This would include an analysis of the viability and impact of creating space
that is jointly operated by the Hyatt and CCC.
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266


Technology
Bandwidth
Convention centers across the
country are struggling to keep up
with the ever-increasing
technology demands. Bandwidth is
the single most challenging issue as
users demand flawless wireless
connection everywhere. The focus
group and discussions with industry
leaders confirmed the importance
of staying ahead of the
technology needs of the industry.
The target market clients were surveyed to understand bandwidth issues.
The CCCs target clients do not agree that the centers technology effectively supports the
needs of their attendees. Many attendees carry multiple devices and exhibitors are requiring
more and more bandwidth to effectively service and event.
This trend is not changing. CCCs target customers almost holistically agree that the need for
increased bandwidth at the center will continue to increase in the future.
It is recommended the CCC and
their technology partners create an
ongoing plan, and allocate the
appropriate budget, to create a
class-leading technology
infrastructure with sufficient
bandwidth to meet the needs of
the customer base.
Future Bandwidth Needs
100%
The need for increased bandwidth offered at convention centers will continue to increase.
96.7%
£ 20%
Large Events -1,500 to 4,500 Peak Room Nights
Small Events Less than 1,500 Peak Room Nights
3 3% 4.8% -j jq/
0.0% 0.0% 0.0% lAA>
Strongly Somewhat Neutral Somewhat Strongly
Agree Agree Disagree Disagree
Bandwidth Assessment
100%
The bandwidth/technology at the Colorado Convention Center effectively supports
the needs of our attendees.
Large Events 1,500 to 4,500 Peak Room Nights
Small Events Less than 1,500 Peak Room Nights
45.5%
0.0%
1.6%
0.0%
Strongly Somewhat Neutral Somewhat Strongly
Agree Agree Disagree Disagree
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267


Streamed Content
Citywide conventions, especially the association market, are continually looking for vehicles to
reach their members. One emerging trend is the online streaming of event content to members
unable to attend an event. One planner described this as a new hybrid approach to managing
educational content and providing content to a broader audience that is intended to both educate
and encourage attendance in future meetings.
Online Streaming of Event Content Assessment
100%
"More event content will be streamed online in the future.
Large Events -1,500 to 4,500 Peak Room Nights
Small Events Less than 1,500 Peak Room Nights
Strongly Somewhat Neutral Somewhat Strongly
Agree Agree Disagree Disagree
The survey of the target market indicated that more event content will be streamed online in
the future. It is recommended the CCC and their technology partners create an ongoing plan, and
allocate the appropriate budget, to create a class-leading technology infrastructure to
accommodate the online streaming needs of the customer base.
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268


Crowd Sourcing
Crowd sourcing in the convention industry is using technology to gather and disseminate
information about the attendees to maximize their event experience and the exhibitors ability to
connect with their customers. Crowd sourcing can enhance an event experience by enabling
attendees to locate each other, exhibitors to find target customers and target customers to find
exhibitors. It also can assist event and center management better plan and execute staffing and
other event planning needs.
Crowd Sourcing Need
"The need for crowd sourcing will increase to help support exhibitor success.
100% i---------------------------------------------------------------------------
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Large Events 1,500 to 4,500 Peak Room Nights
Small Events Less than 1,500 Peak Room Nights
Strongly Somewhat Neutral Somewhat Strongly
Agree Agree Disagree Disagree
The survey of the target market indicated a high degree of interest in crowd-sourcing
technology, especially for the larger groups. The industry interviews and discussions with the
current technology service provider reinforced the increased interest in providing this type of
technology. It is recommended the CCC and their technology partners create an ongoing plan,
and allocate the appropriate budget, to implement crowd-sourcing technology to
accommodate the needs of the customer base.
Denver is currently doing a good job of keeping up with the competition in offering new
technologies at the Colorado Convention Center. The current approach is to contract with a
national firm, making improvements and upgrades periodically during contract negotiations. This
allows Denver to be competitive with other cities; however, it also treats technology as more of a
StrategicAdvisoryGroup
269


commodity. SAG recommends an investment in the technology infrastructure to increase the built
in capacity of the CCC.
The recommended approach is to make more cutting edge upgrades to technology, which is done
with industry and expert analysis. This would allow Denver to be able to stand alone in the
center world, have a reputation for technology and innovation. In addition, customers are willing
to pay for new technologies but just are not able to afford establishing tentative infrastructure
city to city.
An example of the importance of importance of staying competitive and investing directly in
technology is the recent announcement by Chicagos McCormick Place of the completion of their
state-of-the-art Internet and Wi-Fi upgrades, which represents a significant change in their
business model for providing Internet services to attendees, exhibitors, and show management.
The new wireless infrastructure will support up to 45,000 concurrent users facility-wide.
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Meeting Experience
Creating an Experience
The industry research indicated that there was an increasing need to create an experience for
attendees to drive attendance. The focus groups and interviews revealed a consistent interest in
developing new opportunities for attendees to participate in new activities.
Annual Meetings Will Become an "Experience"
"The importance of an annual meeting being more of an "experience" will become
more important."
100% n-------------------------------------------------------------------------------
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80% f
62.9%
'0
93.5%
92.9% '
i
I---------'----
Large Events 1,500 to 4,500 Peak Room Nights
Small Events Less than 1,500 Peak Room Nights
1
Strongly Somewhat Neutral Somewhat Strongly
Agree Agree Disagree Disagree
Denver should continue to explore its unique facility and destination attributes to maximize its
penetration in the target market. From a facility perspective, this could be through the
development of the specialty space, thoughtful human interaction/networking areas, and by
providing a state-of-the-art technology environment. Outside the facility, Denver has a number of
destination attributes that will continue to play a major role in winning events.
Networking
Industry research has indicated that a prospective meeting attendee has more access to relevant
content on a year round basis due to on-line education and other vehicles. This has created a
challenge for meeting planners to enhance other aspects of the overall experience. The ability of
attendees to interact and learn from their peers is an increasingly important activity. One
planner relayed that over 60% of their attendees stated that the primary reason for attending
their conference was networking with colleagues. The focus groups and interviews with industry
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leaders indicated that there is a need to continue to improve the ability for attendees to network
during a conference. The planners expressed the important of proactive planning for how
attendees could interact during a conference. The interviews and focus groups noted that a
networking plan should be holistic, addressing all areas from offering more seating
opportunities to internet cafes, pre-function area lounges, food and beverage settings, and other
social functions.
Attendee Networking Assessment
100%
to
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o
8 60%
£ 40%
CU
u
a. 20%
0%
"Event attendees' interest in networking will increase."
r
86.9%
l
81.0%
1
Large Events -1,500 to 4,500 Peak Room Nights
Small Events Less than 1,500 Peak Room Nights
T
Strongly Somewhat Neutral Somewhat Strongly
Agree Agree Disagree Disagree
The quantitative survey validated the importance of attendee networking. Over 80% of the
planners surveyed indicated an increased need to improve the attendees ability to network with
others as a key factor in overall satisfaction.
Meeting planners supported the need for the Colorado Convention Center to create a design and
operational plan to support this trend in the meetings industry. The work session with the
Customer Advisory Board reinforced the importance of networking and the need for the CCC to
provide a networking plan that was designed to bring attendees together, and not just supply
furniture or areas for people for network. The plan would create options for the planner to
choose from. The opportunity is to provide a reason to come to a networking space due to a
food and beverage offering and/or an activity for attendees. A current possibility to improve
the networking opportunities at the CCC is the reconfiguration of the B lobby as well as the cafe
space in this area. The re-working this space would provide new networking locations in this area
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of the CCC. This would also create an opportunity to have more usable front doors for the CCC
as surrounding hotels are developed. This could have a positive impact on stacking multiple
groups and accommodate the hotel development on the Welton side of the building.
Selling Denver
The stakeholder discussions and focus group meetings discussed which Denver attributes resonate
with the target market. These discussions generated 17 words or phrases that were tested in the
target market survey.
Terms that Describe the Denver Brand
Beautiful
Clean
Rocky Mountains
Friendly
Safe
Green/Sustainable
Outdoors/Recreation
Affordable
Dining Scene
Favorable Climate
Flealthy
Young/Active
Urban
Culture
Western
Exciting
Sports
Other
"If you were to "sell" Denver to your leadership or attendees, what words
might you use to describe Denver?"
10 15 20 25 30 35 40 45 50 55 60 65 70
Number of Responses
The following are groupings of common words that were popular among planers when describing
Denver:
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Beautiful, Outdoors, Rocky Mountains, Green, Favorable Climate
Clean, Friendly, Safe, Affordable
Healthy, Young, Active
Dining, Urban, Culture
Those terms that resonate highest with the meeting planners should be integrated into the
messaging, as well as the design and branding of the convention center itself. For example, the
specialty space might be defined as providing a beautiful, friendly, and safe environment with
views of the Rocky Mountains. Another example would be to stress health in the food and
beverage offerings. Interestingly, the Western theme was not viewed by many as an important
characteristic of Denver. This is consistent with the results of the recent State Branding exercise.
In conjunction with the feedback regarding the need for creating space that is more reflective of
the Denver brand, SAG recommends utilizing this information as a foundational part of future
design decisions.
Recommendation
The following summarizes the recommendations related to the convention center in order of
priority.
1. Ballroom/Meeting Space It is recommended that the CCC master plan for the addition
of a 35,000 to 50,000 square foot ballroom and 25,000 to 35,000 square feet of
meeting space. As much of the new space as possible should be developed as specialty
space, providing a unique experience that takes advantage of Denvers natural
attributes, such as a view to the Rocky Mountains. This recommendation is driven by the
analysis of the event calendar, which demonstrated there are over 50 4-day periods a
year where the convention could host a 100,000 square foot exhibit event if it had
additional ballroom and meeting space. The lost business analysis also indicated the need
for meeting and ballroom space and the benchmarking revealed that the CCC has a low
exhibit space to ballroom/meeting space ratio among its competitors. This need, coupled
with a current positive perception of Denver and the CCC by the target market surveyed,
provides further support for this recommendation.
2. Meeting Experience It is recommended the existing and any proposed new facilities
consider the creation of unique meeting experiences and social networking in any
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planning effort. This recommendation is supported by discussions with meeting planners
and industry thought leaders, as well as the survey of the target market.
3. Technology It is recommended that the CCC create a plan and allocate the appropriate
budget to be a class-leading facility from a technology perspective. The main areas of
focus should include offering sufficient bandwidth to accommodate the needs of the
attendees and exhibitors, providing the infrastructure to accommodate event online video
streaming, and supporting leading edge crowdsourcing technology. Based on
discussions with the current technology service provider and Cisco Systems, it is understood
that there are new technological approaches to support the evolving needs of clients. This
includes conducting a thorough site survey and increasing the overall coverage by adding
access points in hard to reach (non line of sight) areas, reducing dead spots to enable
attendees to connect to Wi-Fi from any location within the facility. To enhance Wi-Fi
capacity and overall network performance, it is recommended utilizing the newest Smart
Antennas which automatically tune the Wi-Fi signals traveling up and down between a
visitors mobile device and the Wi-Fi network. This helps optimize speeds, regardless of
the model of smartphone, tablet or laptop. The wireless Access Points support streaming
content and provide crowd-sourcing opportunities for Denver clients. Specific
recommendations to accomplish this plan could include:
a. Increasing the number of access points to 1 per 2,500 square feet. Currently the
CCC has a ratio of 1 per 1 8,000 square feet.
b. Utilizing the latest standards and smart technology with access points that will
provide crowdsourcing capabilities.
c. Utilize the latest Wi-Fi standards for access point capacity to better optimize the
existing building infrastructure needs for bandwidth thus reducing the cost of
delivering a higher quality experience.
d. Increasing building outbound Internet transport back-haul to match the
improvement in the new wireless network to support premium services such as user
generated rich media (e.g. iPhone photos, short video uploads) sent from
conventioneers out to the Internet.
e. Installing a VideoScape server infrastructure for content management and
streaming.
The recommendations above are designed to elevate Denvers meeting and convention product,
and enhance its position as a leading destination. The meetings and convention industry is
evolving due to new dynamics and is highly competitive. Industries such as auto and technology
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dedicate significant ongoing research to stay in front of the needs of their customers. If
companies in these industries decided not to advance their products, they would lose market
share. The same logic can be applied to the negative impact that could occur if the CCC does not
continue to invest in design and operational advancements.
While it is difficult to quantify, there is a risk to not moving forward. Competing convention
centers and destinations are developing new and innovative approaches to increase their market
share. Denver has already demonstrated that it can elevate its position as a top tier destination.
The implementation of the recommendations can create a new path to advancing Denvers
competitive position in the future.
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Hotel Inventory and Configuration
Downtown Market
Overall Market
Denvers downtown full and limited-service hotel market has performed well over the last 1 5
years. The supply of rooms in 1999 was 5,600 and it has grown an average of 3.4% annually
through 2013. Today there are 8,900 full and limited service rooms in downtown. Supply and
demand have remained in equilibrium, with the average growth in demand of 3.4% tracking the
average growth in supply at 3.4%. On average, the downtown hotel market has added 235
rooms annually since 1999. Average daily rate has kept up with inflation, growing 2.4%
annually to $ 164 in 201 3.
Downtown Hotel Performance
3.5m
3.0m
2.5m
Full and Limited-Service Hotels ^ -
^Average Daily Rate
Supply
- Demand
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013p
72% 69% 65% 65% 64% 63% 65% 68% 68% 68% 64% 69% 71% 72% 72%
Source: Smith Travel Research.
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Full-Service
Downtowns full-service hotels have also performed well. Since 1987, the demand for full-service
rooms has grown an average of 3.7% annually, outpacing supply, which grew at 2.7%. The
supply of rooms was relatively flat from 1 987 through 1994. The economic expansion of the
late-1990s facilitated the addition of 1,100-rooms in downtown. Supply remained relatively flat
until the JW Marriott opened in 2004, followed by the Hyatt in 2005. The Ritz-Carlton opened
in 2008 and the Embassy Suites and the Four Seasons opened in 2010. In 2014, the new full-
service Renaissance hotel is expected to open as well. Downtown now offers 6,800 full-service
hotel rooms. On average, the downtown hotel market has added 125 full-service rooms
annually since 1 987 and 1 55 annually since 1 999.
Beginning in 1 999, supply and demand have grown in equilibrium at 2.8% annually through
201 3. Average daily rate for full-service hotels has kept up with inflation, growing at 2.7% over
the same time period. The average daily rate for full-service hotels has grown from $68 in 1987
to $ 1 25 in 2000 to an estimated $ 172 in 201 3.
Downtown Full Service Hotel Performance
3.0m
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2.0m
1.5m
^Average Daily Rate Supply Demand Four Ritz- Seasons Hyatt Car!ton \.
JW \ \ Sk Teatro Marriott ^ Embassy -
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70% 71% 64% 63%
Source: Smith Travel Research.
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Limited Service
Consistent with the overall trend in the U.S., the limited-service hotel market has outperformed the
full-service hotel market. Beginning in 1999, supply and demand grew in equilibrium at 5.9%
annually through 2013. The supply of rooms has grown from 900 in 1999 to 2,000 in 2013.
Recent supply growth has been driven by the Hampton Inn in 2005, followed by the Residence Inn
and another Hampton Inn in 2006, a Hilton Garden Inn in 2007, a Springhill Suites in 2012, and
a Homewood Suites and another Hampton Inn in 2013. On average, the downtown hotel market
has added 80 limited-service rooms annually since 1 999.
Average daily rate for limited-service hotels has outpaced inflation, growing at 3.7% since
1999. The average daily rate for full-service hotels has grown from $89 in 2000 to an
estimated $ 1 37 in 201 3.
Downtown Limited Service Hotel Performance
^Average Daily Rate Supply Demand Hj|ton Springhill Hampton Inn Hampton Inn Garden lnn SmteS \ C\ / '
Speer Residence \ 1 Springhill Suites V
Inn ^ Hampton Inn S
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
73% 69% 69% 71% 68% 68% 72% 70% 71% 71% 67% 73% 73% 73% 72%
Source: Smith Travel Research.
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Convention Room Package
A destinations convention room package is an important selection criterion for meeting planners.
Destinations with the most full-service rooms that are closest to the convention center are ideal for
meeting planners. Planners desire their delegates in close proximity to reduce transportation
costs and promote group interaction/networking.
Denver offers a convention package comprised of 9,300 full and limited-service hotel rooms in
downtown. This includes 2,000 hotel rooms within two blocks of the CCC. The largest convention
hotels include the 1,100-room Hyatt Regency adjacent to the CCC and the 1,231-room Sheraton
located 3 V2 blocks from the CCC.
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Benchmarks
Downtown Hotel Supply
According to Smith Travel Research (STR), Denver offers nearly 9,300 full and limited service
hotel rooms downtown. Denver competes, from a convention center perspective, with several
facilities that are located in larger metropolitan area that support more hotels rooms in their
downtown. When comparing Denvers downtown supply to the facilities that Denver competes
with, Denver ranks 13th out of the 16 benchmarked communities in terms of total downtown hotel
room supply.
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Downtown Hotel Room Package
40.000
35.000
30.000 -
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Within two miles of the convention center.
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281


Supply near the Convention Center
The number of full-service, convention quality hotel rooms attached or adjacent to the convention
center is also important to event planners. Denver currently offers 1,503 adjacent hotel rooms in
two hotels, the 1,100-room Hyatt and the 403-room Embassy Suites and ranks 9th in the number
of full-service rooms attached or adjacent to the convention center.
Hotel Room Package Near the Convention Center
7,000
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The attached/adjacent hotels are augmented by an additional 2,500 rooms in seven hotels
(including the Renaissance projected to open in January 2014). When comparing Denvers rooms
within three blocks of the center, it ranks 5th out of the 16 benchmarks, exceeded only by tourist
and larger destinations, including San Diego, Orlando, San Antonio and up and comer
Indianapolis.
Competing destinations such as Houston, Salt Lake City, Indianapolis, and others have evaluated
the best approach to improving their full service room block capacity. This has resulted in public
private partnerships including incentives for private developers to build new full service hotels in
close proximity to their convention centers.
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Target Market Survey
Supply near the Convention Center
The target market survey indicated the overall hotel package near the CCC is generally sufficient
to meet their events needs. Over 86% of the respondents in the Larger Group and over 90% of
the respondents in Smaller Group stated they strongly agree or somewhat agree that Denvers
hotel package near the CCC is sufficient for their needs.
Hotel Package Assessment
CU
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100%
80%
60%
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"The hotel package near the Center is sufficient for my event needs.
86.2%
1
90.7%
63.2%,64-8%
_L
l Large Events -1,500 to 4,500 Peak Room Nights
I Small Events Less than 1,500 Peak Room Nights
Strongly Somewhat Neutral Somewhat Strongly
Agree Agree Disagree Disagree
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Adjacent Headquarter Hotel
The size and location of convention headquarters hotels are becoming increasingly important in
planners decisions when selecting a destination. Cities across the U.S. understand this and have
been actively developing headquarter hotels over the past two decades. Denver proactively
invested in the 1,100-room Hyatt in 2005 and it made a positive impact on the citys ability to
book events. The survey of meeting planners confirmed that Denver made the right decision with
over 87% of the respondents agreeing that the Hyatt meets their headquarter hotel needs.
Denver Hyatt Hotel Location
100%
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"The Denver Hyatt is sufficient for the headquarters hotel needs of my event.
87.3%
1
87.1%
l
I Large Events -1,500 to 4,500 Peak Room Nights
I Small Events Less than 1,500 Peak Room Nights
58.6%
55.6%
Strongly Somewhat Neutral Somewhat Strongly
Agree Agree Disagree Disagree
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Remote Headquarter Hotel
Meeting planners generally require their headquarter hotel to be attached or adjacent to the
convention center. Survey respondents were asked if the distance of the Sheraton Denver (3.5
blocks) would be sufficient for their headquarters hotel if the Denver Hyatt were not available.
Although Denvers hotel package is well received by the target meeting planners surveyed, the
responses indicate the importance of headquarters hotel location. The focus groups reiterated
that planners had more destination options with adjacent or attached hotel room blocks and were
less willing to consider a headquarter hotel that was two to three blocks away. Even though the
Denver Sheraton is located only 3 V2 blocks from the CCC, the survey respondents satisfaction
with this location for their headquarter hotel was materially lower than an attached/adjacent
location. The meeting planner level of satisfaction with their headquarter hotel located 3 V2
blocks away was cut in half when compared to their satisfaction with an attached/adjacent
location. To maximize the convention center success, full-service hotel development should be
fostered as close to the CCC as possible.
Headquarter Hotel Location
100%
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CC
£ 40%
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^ 20%
Respondents agreeing that the headquarter hotel is sufficient to meet the needs of
their event
0%
87.3% 87.1%
Hyatt
Adjacent
Large Events -1,500 to 4,500
Peak Room Nights
Small Events Less than 1,500
Peak Room Nights
Hotel
3 'A Blocks
This concept was reinforced when meeting planners were asked whether or not they would book
an event at a convention center if the headquarter hotel was attached, adjacent or 2 to 3 blocks
from the center.
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Hotel Proximity Impact on Booking
"I would book my event at a convention center if the headquarters hotel is.
100%
to
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80%
Attached to the Center
Adjacent to the Center
2-3 blocks from the Center
All Events |
59.2%
Strongly Somewhat Neutral Somewhat Strongly
Agree Agree Disagree Disagree
Current Denver Hotel Inventory and available lots in proximity to CCC
The diagram above demonstrates the small amount of land and options for full
service hotel development. The research indicated the growing importance of full
service hotel rooms within a short distance of the Convention Center for Denvers
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286


competitive position. The development of full service hotels in close proximity must
be a focus of future planning efforts.
Minimum Room Block Requirements Future Hotel Development
Meeting Planners who supported groups with less than 1,500 rooms needed for their peak room
night indicated their minimum room block requirements for a headquarter hotel. Over 40% of the
respondents indicated a requirement of less than 700 rooms for their headquarter hotel room
block needs.
What is the minimum room block your event requires at the
headquarters hotel?
(Groups with less than 1,500 rooms on peak)
2,000
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43% of respondents
required a headquarter
hotel room block of
700 rooms or less
901+ = 35.3%
SAG also reviewed a recent study by the Watkins Research Group that included larger meeting
and conventions. The Watkins Research Group Meeting and Convention Planners Survey is a
biennial study of perceptions about 46 cities and convention bureaus and about important
industry topics as perceived by meeting planners. The 2012 report is based on surveys of 730
participants, representing 650 unique companies and/or associations. This is one of the most
prestigious and respected meeting planner studies in the nation. This study indicated that 54% of
the respondents needed 750 rooms or less on the peak room night for a hotel to be considered
their headquarter.
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The results of this research reinforce the importance of encouraging full service hotel development
in Downtown Denver within close proximity to the CCC.
Competitive Forces in Convention Center/Hotel Industries
Increased
National
Convention
Center supply -
pressure on CCC
pricing

rivate hote
ivestment focused on nited servi< is 1 :e i

r Hotels with Convention 1
Ce i cc nter space e )mpetitors f ire r i


r Srr laller group important frontier for 15' 1 J

The chart above illustrates the market dynamics that currently impact Denver as a meeting and
convention destination. The expansion of competitive convention centers have created significant
pressure on center pricing as well as increased the destination options for large groups. The
review of the largest tradeshows indicates no significant growth and more conventions centers
where they can meet. The development of new full-service hotels that are within one block of
competing convention centers has created an expectation for the location of a headquarter hotel.
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This makes the selling of Denver when the Hyatt is full more challenging. These are examples
where Denver has the opportunity to stay ahead of these market dynamics and develop new
physical enhancements in conjunction with new operating approaches. These investments and
improvements will continue to elevate Denvers position in the meetings industry.
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Recent Convention Center/Hotel Developments Competitive Destinations
The following are examples of new developments in competitive destinations. This reinforces the
need to continue to improve the overall Denver convention and meetings experience. The
expectation of having improved Convention Center space and connected or adjacent hotel rooms
is continuing to increase due to new developments
Destination Hotel/Convention Center Opening/Completion
Orlando, Florida 1,400 room Hilton (connected to Convention Center) 2009
Dallas, Texas 1,000 room Omni (connected to Convention Center) 201 1
San Antonio, Texas 1,003 room Grand Hyatt 2008
San Antonio, Texas Convention Center Renovation/ Expansion 2016
San Diego, California 1,1 90 room Hilton (adjacent to Convention Center) 2008
San Diego, California Convention Center Expansion 2016
San Diego, California 500 room Hotel (adjacent to Convention Center) TBD (approved)
Indianapolis, Indiana 980 room JW Marriott Hotel 201 1
Indianapolis, Indiana Convention Center Expansion 201 1
Austin, Texas 1,01 2 room JW Marriott Hotel 2015
Houston, Texas 1,000 room Hilton Hotel (connected to Center) 2003
Houston, Texas 1,000 room Marriott Hotel (adjacent to Center) 2016
San Francisco, California Convention Center Expansion 2018
Chicago, Illinois 1,200 room Hotel (connected to Center) TBD (approved)
Phoenix, Arizona Convention Center Expansion 2009
Phoenix Arizona 1,000 room Sheraton Hotel (adjacent to Convention Center) 2008
Philadelphia, Pennsylvania Convention Center Expansion 201 1
Anaheim, California Convention Center Expansion 2016
Chicago, Illinois Internet and Wi-Fi Upgrades 2014
Washington D.C. 1,175 room Marriott Marquis (connected to Center) 2014
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Large Convention Hotels
The growth of hotels with large amounts of exhibit, ballroom, and meeting space increases the
competition for groups that could also meet in the CCC.
The proposed Gaylord Hotel that the Marriott developers plan to build will be the state's largest
hotel and convention center and only 9 miles from the passenger terminal of Denver International
Airport. The subsidy for the proposed hotel is $81.4 million in state sales tax rebates and an
additional $300 million from the City of Aurora.
The 1,500 room Gaylord Rockies Hotel & Conference Center is projected to have exhibit and
meeting room space that will compete with Denver for conventioneers. The following chart
compares the meeting room space and hotel rooms.
Gaylord
Exhibit
Ballroom
Jr. Ballroom
Meeting Space
Total Leasable
Hotel Rooms
584,000]
50,000
35,000l|
1 80,000
49.000
32.000
92,000 45,000
761,00(?U^ 306 00Q~
9,000j|
1,500
An analysis of the fifty-seven 2012 CCC events that VISIT DENVER classifies as convention,
tradeshows or citywide events indicates that 26 of the 57 events could be accommodated by a
large convention hotel if the event desired to meet at a singular property instead of a downtown
Convention Center. While the number of events appears large, the events that are vulnerable
represent 19% of the room nights booked. In 2013, the number of events represented 16% of
the rooms nights booked.
A 2011 study by Greenwood Village-based Hospitality Real Estate Counselors Inc. for the
Denver Metro Convention & Visitors Bureau produced a similar percentage of room nights that
were vulnerable at 20%, and in addition to center business that would be vulnerable, analyzed
Sheraton and Hyatt Hotel business as well. The numbers may fluctuate annually, however two
years of analysis with two independent consultants demonstrate room night vulnerability in the
range of 20%.
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2012 and 2013 Vulnerability Comparison

2012

2013
Room Night Generating Events
97
82
Total Room Nights
Conventions/Tradeshows/Citywide
375,973j| 383,537
Other Room Night Generating Events
44,699
Total Room Nights
420,672
48,266
431,803
Vulnerable to Large Convention Hotel
Conventions/Tradeshows/Citywide
Other Room Night Generating Events
Total Room Nights
Percent of Total Room Nights
35,651
44,506||
34,91 1
35,204J|
80,157
19/j]|
70,1 15
Conventions/Tradeshows/Citywide Events % lost

9.1%
The smaller meeting planners surveyed (requiring up to 1,500 rooms on peak) as part of this
study indicated they were more interested in utilizing the CCC and downtown hotels than a
large convention hotel. Sixty-nine percent of the respondents indicated a preference for a
downtown package, with another 1 9% being neutral. Those surveyed generally desire an urban
downtown experience over a suburban resort.
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Downtown Convention Center vs. Suburban Resort
"If the CCC offered the overall experience and hotel package required for my event, I
would choose the downtown Denver package over a hotel/resort where my event
could be self-contained but located outside of downtown Denver."
100% -|--------------------------------------------------------------------------------
to
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80%
60%
40%
20%
0%
Small Events
69.0%
45.2%
Strongly Somewhat Neutral Somewhat Strongly
Agree Agree Disagree Disagree
One of the selling points a suburban resort will use when competing against a downtown product
relates to ease in the booking process. A suburban resort by definition is a one-stop-shop. One
salesperson and one event manager can take care of an events sleeping, meeting, and eating
needs. In a downtown environment, a meeting planner often deals with a CVB salesperson
upfront, negotiates with more than one hotel, negotiates with a convention center for space rental,
negotiates with a separate caterer, and must coordinate the event with multiple event managers
at the hotels, convention center, caterer and other vendors. The survey revealed that 54% of the
respondents believe that the single hotel experience is much better than a downtown
convention center multi-hotel experience. When asked the question with a list of service
options, planners specifically mentioned fewer contacts, fewer contracts, centralized billing, and
ease of planning, as reasons for favoring the single hotel experience like the large convention
hotels will offer.
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Meeting in Hotels vs. Convention Centers
"How has your experience with hotels been better?"
Hotel rooms and meeting space in one location
Dealing with fewer event contacts
Fewer contracts to negotiate
More intimate feel and ambiance
Centralized Billing
Ease of all aspects of planning
More networking opportunities
Other
0 5 10 15 20 25 30 35 40
Number of Responses
Destinations across the country are experimenting with the implementation of a one-stop-shop
program to better compete for smaller meetings. Such programs generally involve bringing
together key partners such as the convention center, its service contractors, and key hotels to
create a cohesive package One Denver. The sales teams are trained and empowered to sell
all the assets. Contracts are coordinated with a goal to have one contract go to the client (often
the rooms contracts must be separate but the terms for each hotel are identical). Finally, there is
one event coordinator from the clients perspective, with others assisting behind the scenes. To
minimize the impact of the Gaylord Rockies, it is recommended a One-Denver concept be
developed that will make it as easy to book in downtown as it will be to book at a suburban
resort.
The opportunity for Denver is to build off an operational structure that is known as the Denver
Alliance. The Denver Alliance is a partnership that was established in 2008 between SMG,
Centerplate Catering, VISIT DENVER, the City & County of Denver, the Division of Theatres and
Arenas, and the Hyatt Regency Denver at the Colorado Convention Center. The Alliance
collaborates on sales, marketing and operations of the Colorado Convention Center. The
feedback received from planners is an indicator of the success of the Denver Alliance. This
collaboration will be an important foundation for the implementation of the One-Denver
concept.
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Recommendation
The convention hotel package is the single most important destination selection criteria once an
event knows it can be accommodated in the convention center. The closer the hotel block is to the
convention center the better it will work for meeting planners. It is recommended that the city
foster hotel development as close to the CCC as possible. This can be accomplished through
the acquisition of desirable sites and by offering incentives for full service hotel projects near the
CCC.
It is also recommended that a One-Denver concept be developed that will make it as easy to
book a convention in downtown Denver as it will be to book at a suburban resort with large
exhibit and meeting space. This type of functionality and service approach is critical if downtown
Denver and the CCC is to maintain and grow its share of these types of meetings.
Denver is positioned well to be the first major destination offering a seamless approach to
servicing conventions including all destination and convention center services, as well as downtown
hotels. In 2008, a new advisory structure was implemented called the Denver Alliance. The
Alliance members include Visit Denver, SMG, City & County of Denver division of Theatres &
Arenas, Hyatt Regency Denver at Colorado Convention Center, and Centerplate Catering. The
purpose of the Alliance is to effectively maximize space and profits at the Colorado Convention
Center and visitor spending in the community. This functioning collaboration creates a solid
foundation for the implementation of a seamless approach to selling and servicing smaller
conventions. SAG believes that the Alliance is already industry leading and that others will be
reshaping their management based on Denvers system. SAG also believes that the Alliance
could go to the next step by perfecting a One Denver concept
One Denver will entail creating a CCC and hotel package that can be sold and executed as
one product to the meeting planner. This will enable downtown to effectively compete with the
Gaylord Rockies project and large convention hotels, as well as set Denver ahead of its
competitive convention destinations.
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Conceptual Approach to CCC Expansion Recommendations
SAGs architectural team at Fentress Architects has reviewed the proposed expansion and
examined the potential opportunities for achieving the recommendations of this report.
Preliminary investigation shows there are at minimum three possible options for these additions.
Other options will be investigated in different price ranges to finalize the direction for the
expansion.
The following is an overview of their findings.
Potential Program Space
Expansion options were explored for a potential program of the following new spaces:
Ballroom 50,000 net leasable square feet
Meeting Rooms 25,000 net leasable square feet
The new net leasable space would total 75,000 square feet. Generally, to get to a total area
required to support net leasable areas a factor of 2.0 to 2.3 is typical to get to a total gross
building area. For the 75,000 net leasable square feet roughly an additional 75,000 to
97,500 square feet would be required to support the net leasable space. The new support
space required would be defined as registration lobbies, pre-function, balconies, terraces, food
& beverage concessions, toilets, room entry vestibules, vertical circulation (fire stairs, escalators,
public elevators, freight and service elevators), back of house support for service corridors,
storage, wall storage closets, kitchen, food storage, pantries, ice and beverage stations,
recycling areas, employee break-rooms, lockers, structure, mechanical, electrical, plumbing,
audio visual, IT, and other miscellaneous spaces.
If the citys desire is to create a special outdoor space as a rooftop events plaza, which will take
advantage of the expansive views to the Rocky Mountains, then it would be prudent to use the
2.3 factor for support space. This factor would equate to a gross building area of
approximately 172,500 square feet. In discussions with the city, an outdoor event space which
could accommodate convention closeout parties was discussed. If the space could accommodate
up to 10,000 people, then events could remain at the center rather than being bused off-site.
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Potential Expansion Options
Given a net leasable area of 75,000 square feet and a gross building area of 172,500 square
feet, three potential expansion options have been discussed.
Option A: Rooftop North West Corner
Option A would place a new 50,000 square foot Ballroom and 25,000 square feet of new
Meeting Rooms on the North West corner of the roof of the 2004 addition. This location would
provide the best possible western views to the front range of the Rocky Mountains and a strong
visual connection to the urban core of the Downtown Denver skyline. Vertical circulation and
access to this new space would occur at the west D and F Lobbies.
Structural capacity was designed and built into the foundations and vertical support columns
during the 2004 expansion, to accommodate expansion at this location. The columns would
simply be extended up vertically and new floor beams would create a platform for this new
construction. Service and loading would be connected to this level and new mechanical systems
would be placed to support this new space.
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An outdoor events plaza would be capable of having event tents, food & beverage service and
outdoor parties looking to the sunset over the mountains to the west.
Option B: Ballroom Only Above Theater
Option B provides only the 50,000 sf flexible, divisible ballroom. This location provides dramatic
panoramic views to the Rocky Mountain Front Range. Its location adjacent to the C and D Halls
will help activate these Halls. This option could be seen as an initial expansion, with less cost,
while still preserving a future expansion on the rooftop of the 2004 addition. In other words,
Option B could be constructed first, while still preserving Option A or Option C as a future
expansion.
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Option C: Ballroom above Theater, Meeting Rooms/Jr. Ballroom at Rooftop
Option C looks at adding new space over the top of the existing theater and meeting space on
the roof of the 2004 expansion. This potential site is directly adjacent to the C & D Exhibit Halls
and has direct views to the Rocky Mountains to the west. This location has the potential to add
events to the west end of the center and the C & D Exhibit Halls. The research indicated that
more attractive entry points and lobbies, which could be used for multi-group events and used by
delegates staying in hotels being developed around the CCC, would enhance CCCs
competitiveness.
The theater was not designed to have an addition over the top of it. In order to accommodate an
expansion in this location, new structural columns would be added to the outside perimeter of the
theater. New structural trusses would be designed to span across and over the roof of the
existing theater to these new perimeter columns. The depth required for these new trusses would
elevate the floor of the new Ballroom above the current existing exhibit hall floor. Escalators
would be added to efficiently transport delegates between these levels.
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This western location for a new Ballroom would feature the panoramic views to the mountains.
The west wall of the Ballroom could be glass, with motorized, electronically controlled blackout
shades. These shades allow for ultimate flexibility for audiovisual events as well as a
spectacular, dramatic event of opening the blinds to expose the sunset over the mountains
(similar to the Sewell Ballroom). The west side meeting space could have a positive impact on
activating west facing halls.
This site location is more limited in size than Option A, and would only allow for the ballroom and
associated support space to be built over the theater. The upper roof area above the 2004
expansion could be utilized to add additional meeting space, or it could be preserved for
another future expansion.
The cost to construct new space above the theater will have a higher unit cost due to the fact that
the structure was not provided to add space over the theater. The total cost will depend on the
final plan and resulting size of the gross area of the new construction. Internal staff and planner
input should be factored into the final direction of these options. Both Option A and Option B
would allow for meeting space to be added in the near future, while preserving the
opportunities for expansion at a later date.
The Views the Denver Brand
The following are the potential views from the new spaces that are recommended in this report.
The proposed locations combine the need for additional ballroom and meeting space with the
ability to highlight the views towards the Rockies and Downtown Denver. As stated earlier, the
Meetings Planners indicated a high degree of interest in the CCC having specialty space that
capitalizes on the Denver Brand.
Downtown
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Rockies
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Economic Impact
The implementation of the Convention Center
recommendations herein is estimated to enable
Denver to maintain its historical level of success and
to improve its overall impact. As outlined in the
study, in 2012 there were 50 four-day periods
(excluding holidays) that the center could book
events needing up to 100,000 square feet of
exhibit space if there were ballroom and meeting
space as recommended herein. If the CCC could
book half of those dates with 25 events that
average 3.0 days in length and 800 hotel rooms on
peak, it would equate to 36,000 incremental
attendees and 60,000 room nights annually.
According to Destination Marketing Association
Internationals (DMAI) event calculator, the average spending per attendee in markets similar to
Denver is $1,314. This incremental impact results in an additional $47.2 million in annual direct
delegate spending, generating an additional $3.4 million annually in local sales and hotel taxes.
Over a 30-year period (assuming 2.5% inflation), incremental spending totals $2.1 billion and
incremental local taxes total $148.6 million.
SAG did not analyze the local, regional and social business that may choose to use the space or
the additional ancillary business that might be gained by current conventions hosting their
opening reception in the CCC versus an outside venue. This incremental activity would further
support the addition of recommended space.
The level of incremental direct spending in conjunction with the importance of staying competitive
in an industry where new investment is prevalent validates the importance of the
recommendations contained in this report.
Average Spending
per Attendee
Lodging $679.84
Transportation 75.13
Food & Beverage 251.35
Retail 46.04
Recreation 35.29
Space Rental 44.01
Business Services 182.16
Total Direct $1,313.83
Source: DMAI Event Calculator.
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The Cost of Doing Nothing
The customer survey and focus groups delivered a clear message that Denver is currently a
highly successful conventions and meetings destination. The level of activity in the CCC is above
many of Denvers key competitors and while there is always opportunity to increase overall
bookings, Denver is in a strong position currently. The Denver Alliance has been a highly
successful collaboration, which has proven to deliver excellent customer service and continues to
growth results in the shared metrics of overall success.
If Denver and CCC were to take no action related to the recommendations in the report and not
improve the physical plant or evolve the overall service delivery it would be logical to assume
that it will lose market share to its competitors. This comes in many forms from not evolving the
approach to capture and service smaller groups that will use the CCC and nearby hotels to not
investing in technology and creating specialty space.
The smaller groups which are an important highly competitive market have given specific
feedback on how the CCC can compete in winning their business. The development of the
Gaylord Rockies and competition from other large convention hotels create a real possibility of
the CCC losing as much as 20% of its current smaller group business. This market is a critical
area for future growth and will require additional resources and focus in the coming years. If
Denver does not move in the direction outlined in this report, which includes a streamlined
booking, contracting and servicing approach, it will risk losing significant market share over time.
This is highlighted further by the fact that the number of larger premier conventions are staying
flat with more convention center space coming on line in competing destinations. This ongoing
development will force more destinations to focus on smaller groups to fill their convention
centers.
The future of the downtown Denver hotel industry is another key consideration. The addition of
the Hyatt Regency has been well received by convention planners. The ongoing challenge is the
need for more meeting space to accommodate self-contained groups for the Hyatt that book
after the larger conventions have been secured. Without additional meeting space, the Hyatt
and therefore Denver, stand to not realize the full share of meetings business from an 1,100
room downtown hotel.
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The importance of effecting planning for future downtown hotel development in commensurate
with other recommendation contained in the report. If there is no specific plan put into action to
encourage full service hotel development, Denver stands to lose market share as well as
decrease the opportunities to grow additional business after the allocated rooms at the Hyatt
are committed. If Denver does nothing and lets the natural market forces dictate future hotel
development there is a high likelihood of an abundance of limited service hotels, which research
shows are not a primary factor when convention and meeting planners are determining which
destination they will choose for their group. While Denver is performing well today, if nothing is
done to alter the meeting facility package as recommended, Denver can expect to see a slow
decline in market share and bookings over time.
This study was designed to specifically look at the facilities and marketplace. The
recommendation, based on opportunity and lost demand is to increase flexible and iconic
meeting space, which in tax dollars could generate nearly $3.4 million a year. However, it is
important to understand the other two opportunities would be to convert more large business with
iconic space and the cost of doing nothing at all in this competitive market place.
In 2014 dollars, just a 10 percent decline of convention center business would represent $40
million of business, and nearly $2 million decline of tax revenue to the city. The negative impact
of doing nothing will most likely be significant. In addition, if the sales staff converts just 1 0%
more of the larger lost business (52 groups and $400 million) it also represents an additional $2
million a year in revenue. Both hard to quantify, but valid considerations.
SAG recommends the full implementation of the recommendations in this report to keep Denver a
market leader in the future.
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Exhibit A Study Participation
Internal Team
Rich Carollo Director of Sales and Marketing, Colorado Convention Center
Chris Adamec Senior Event Manager, Colorado Convention Center
Randy Welsh Director of Operations, Colorado Convention Center
Lindsey Richeaux Senior Event Manager, Colorado Convention Center
Morgan Wheeler Senior Event Manager, Colorado Convention Center
Brandon Sims Senior Event Manager, Colorado Convention Center
Tyler Hunt Event Manager, Colorado Convention Center
Brian Clark Event Manager, Colorado Convention Center
Tricia Weldon Event Manager, Colorado Convention Center
Becky Capolungo Event Manager, Colorado Convention Center
Karissa Burns Event Manager, Colorado Convention Center
Samantha McDonald Event Manager, Colorado Convention Center
Mona Roy Event Management Coordinator, Colorado Convention Center
Harry Emmerson Convention Information Analyst, Visit Denver
Rachel Benedick Vice President of Sales and Services, Visit Denver
Jason Lusk Director of Sales, Visit Denver
Vikki Kelly Convention Service Director, Visit Denver
The Denver Alliance
Kent Rice Executive Director Denver Arts & Venues, Denver Alliance
John Adams General Manager, Colorado Convention Center, Denver Alliance
Community Leaders
Kelly Leid Executive Director, North Denver Cornerstone Collaborative
Tracy Huggins Executive Director, Denver Urban Renewal Authority
Navin Dimond President & CEO, Stonebridge Companies
Tom Clark CEO, Metro Denver EDC
Paul Washington Executive Director, Denver Economic Development
Rob Cohen CEO, IMA Financial Group
Rus Heise Managing Director, RBC Capital Markets
Craig Piper President/CEO, Denver Zoo Mission
Bill Mosher CEO, Denver Convention Center Hotel Authority
Kelly Brough President, Metro Denver EDC
Lance Zanett AGM, Colorado Convention Center
Customer Advisory Board
Emily Catanzaro Director, Meeting Services, American Thoracic Society
Kara Cox Marketing/Event Specialist, Emerson Process Management
Carol Cudworth Meetings Manager, Society for Mining, Metallurgy & Exploration, Inc.
Nancy Gavin Operations Director, National Safety Council
Jim Goodman Managing Vice President, Division of Conference & Meeting Services, American
Dental Association
Tonya Horsley Director, Large Meetings & Registration, American Institute of Architects
Ron Houghtaling Vice President Americas Marketing, CBRE
Jackie Newis Meetings Manager, American Association of Critical Care Nurses
Jackie Riscoe Director, Meetings and Conferences, International Council of Shopping Centers
Gail Schuster Manager, Village Gatherings, Wisdom Team, DaVita Healthcare Partners
Debbie Smithey Director, Educational Meetings, American College of Emergency Physicians
Stacey Trey Manager, Meetings & Events, NCATE National Council for Accreditation of Teacher
Education
Danielle Urbina Director of Meetings & Exhibits, American Nuclear Society
StrategicAdvisoryGroup
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Industry Thought Leaders
Steve Bagwell President & CEO, Charlotte Convention Center, Charlotte, NC
Kathie Canning Executive Director (CEO), Orange County Convention Center, Orlando, FL
Bob DeFacci Managing Director, Czarnowski Europe, Cologne, Germany
Les Goldberg President & CEO (Owner), LMG, Las Vegas, NV
Richard Maples Executive VP/National Sales, Shepard Exposition Services, Atlanta, GA
Jeff McCaw Senior VP of Operations, Freemanco (Freeman Decorating Co.), Dallas, TX
Ken McAvoy Senior VP, Reed Expositions, Norwalk, CT
Jim Milanowski VP, Czarnowski (Exhibit Services), Austell, GA
Jon Mills General Manager, Brede/Allied, Orlando Florida
Sisco Spence Regional Director of Operations (Eastern US), Levy Restaurants, Charlotte, NC
Charles Starks President & CEO, Music City Center, Nashville, TN
Doug Ducate Former CEO, CEIR
Vicki Hawarden President and CEO, International Association of Venue Managers (IAVM)
David DuBois President, International Association of Exhibitions & Events (IAEE)
Hotel Community
Walter Isenberg CEO/Founder/President, Sage Hospitality
Tom Curly GM, Westin Denver Downtown
Ed Bucholtz GM, Hyatt Regency Denver at the Colorado Convention Center
Suppliers
Nicole Marsh President, Arrangers DMC
Rob Venus General Manager, FREEMAN
Customer Focus Groups
Donna Cappo Director of SIG Services, Association for Computing Machinery
Cathy Scheck VP of Meetings, Heart Rhythm Society
Tom Pellet Director, Meetings & Conventions, American Academy Of Family Physicians
Cele Fogarty VP for Meetings and Member Experience, American Society of Nephrology
Christopher Gribbs Managing Director, AIA Convention, American Institute of Architects
Stephen Emery Senior Mgr., Meetings and Expositions, Society of Exploration Geophysicists
Sharon Sullivan Vice President, Conference Services & Sales, LeadingAge
Cynthia Airhart Director, Division of Conv. & Meeting Svc., American Academy of Pediatrics
Trina Armstrong Director of Meetings, American Society for Cell Biology
Kristin House Vice President/Team Director, ConferenceDirect
Frank Hugelmeyer President, Outdoor Industry Association
Ann Kilian Senior Conference Manager, International Association of Chiefs of Police
Gary Schirmacher Senior Vice President, Strategic Account Services, Experient
Steve Kinsley President, Kinsley Meetings
Steve Okuley Associate Vice President, National Conferences & Events, Noel-Levitz Inc
Gail Schuster Manager, Wisdom, DaVita Healthcare Partners
Cari (Cas) Strouse Meeting & Event Director, CH2M Hill
Amy Kreps Senior Corporate Events Manager, IHS
Michael Clarke Operations Director, Penton Media Inc.
Pia Williams General Manager, Dish Network
Kristin House Vice President/Team Director, ConferenceDirect
Jeff Wood Vice President, Worldwide Product Management, Hewlett-Packard Company
Janice Field Event Coordinator, E Source
Pam Newman Vice President, Event Management, RE/MAX International, Inc.
Julie Kraft Manager, Event Planning & Marketing, AVNET TECHNOLOGY SOLUTIONS
Daniel Stones Institutes Department, Solution Tree
Matt Pesce Vice President of Product Strategy, Zoll Data Systems
Gretchen Bliss Director, Conference and Educational Activities, EDUCAUSE
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Debbie Kaylor Executive Director, Conventions & Meetings, National Cattlemens Beef Assn.
Chuck Potter Director of Meetings American Animal Hospital Association
Justin Ball President, Bespoke Event Group
Russell Kraus President, Meetings in General
Garth Jordan Vice President, Operations, EDUCAUSE
Melissa Cummiskey Senior Director of Meetings & Events, Geological Society of America
Dave Kanagy Society for Mining, Metallurgy & Exploration, Inc.
Nelson Fabian Executive Director, National Environmental Health Association (NEHA)
Stephanie Lasser Director of Conferences, Investment Management Consultants Association
Heather Plush Program Manager, National Conference of State Legislatures
April DeBaker Director of Conventions, American Water Works Association
James Cousin CFO, Association of periOperative Registered Nurses
Carol Cudworth Meetings Manager, Society for Mining, Metallurgy & Exploration, Inc.
Sondra Doolittle Meetings and Expositions Manager, American Academy of Forensic Sciences
Lori Buster Director of Meetings & Conferences, MGMA-ACMPE
Frank Hugelmeyer President, Outdoor Industry Association
Lori Herrera Executive VP and COO, Outdoor Industry Association
Jill McClure Senior Vice President, Colorado Oil & Gas Association
Elizabeth Price Executive Director, Metropolitan Denver Dental Society
Lori Herrera Executive VP and COO, Outdoor Industry Association
Leslie Hettenbach Meetings Manager, American Urological Association
Beverly Johnson Manager, Dept, of Mtgs. and Exposition Svc., American Chemical Society
Susan Katz Director of Corporate Events & Travel, True Value Company
Amy Kreps Senior Corporate Events Manager, IHS
Jill Perlstein Meetings and Planning Officer, American Booksellers Association
Debra Arneson Associate Director of Convention & Events, Metropolitan Denver Dental Society
Diane Vidoni Vice President, Operations and Conferences, National Trade Productions
Melissa Cummiskey Senior Director of Meetings & Events, Geological Society of America
Kristin Bakota Meetings Manager, APICS-The Association for Operations Management
Michael Clarke Operations Director, Penton Media Inc
Carol Cudworth Meetings Manager, Society for Mining, Metallurgy & Exploration, Inc.
Janice Field Event Coordinator, E Source
Kristin House Vice President/Team Director, ConferenceDirect
David Kanagy Executive Director, Society for Mining, Metallurgy & Exploration, Inc.
Stephanie Lasser Director of Conferences, Investment Management Consultants Association
Fun Lee Manager, Meeting Planning, Cardiovascular Research Foundation
Janee Pelletier Senior Account Manager, Conference and Logistics Consultants, Inc.
Heather Plush Program Manager, National Conference of State Legislatures
Eva Wilczek Meeting Services Manager, American Association of Endodontists
Pia Williams General Manager, Dish Network
Jodie Wilmot Director of Meetings, National Association of College Stores
James Goodman Managing VP, Division of Conf. & Meeting Svc., American Dental Association
Russell Kraus President, Meetings in General
Renee Peiper Assistant Director, Institutes Solution Tree
Kirsten Olean Director of Meetings, Association of American Medical Colleges
Carrie Abernathy Director of Education, Training & Events Practice, Greenhealth
Lauren Chelf Director of Meetings and Education, AOAC International
Bethany Chirico Dir. of Conference & Mtgs, National Assn, for College Admission Counseling
Windy Christner Senior Director, Meetings & Expositions, American Pharmacists Association
James Cousin- CFO, Association of Perioperative Registered Nurses
Cameron Curtis Senior Manager, Meetings and Events, Courtesy Associates
Nancey DeBrosse Sr. Vice President, Sales and Account Management, Experient
Sondra Doolittle Meetings and Expositions Manager, American Academy of Forensic Sciences
Sue Dykema Executive Director, American Society for Aesthetic Plastic Surgery
Nelson Fabian Executive Director, National Environmental Health Association
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Jill Ferguson Associate VP Meetings and Registration Services, Mortgage Bankers Association
Tamera Gayden Meetings Manager, American College of Obstetricians and Gynecologists
Jennifer Haire Director of Assn, and Conference Services, National Center for State Courts
Pam Harris Vice President, Event Management, RE/MAX International, Inc.
Frank Hugelmeyer President, Outdoor Industry Association
Garth Jordan Vice President of Operations, EDUCAUSE
Ray Kopcinski Meeting Services Director/Executive Producer, Million Dollar Roundtable
Julie Kraft Manager, Event Planning & Marketing, Avnet Electronics
Eileen Mantel Sr. Administrator Heating, Air Conditioning and Refrigeration Distributors, Inti.
Jill McClure Chief Operating Officer, Colorado Oil and Gas Association
Kristina Mechelis Meeting Planner, Association for Financial Professionals
Catherine Mills Director, Council on ADA Sessions, American Dental Association
Matt Pesce Vice President, Product Strategy, ZOLL Data Systems
Felicia Price Sr. Mgr., Meetings, Am. Academy of Otolaryngology-Head and Neck Surgery
Stuart Ruff Director Meeting & Events, Risk and Insurance Management Society
Robert Smith Director of Meetings, American Council for Technology
Daniel Stones Solution Tree
Cari (Cas) Strouse Meeting & Event Director, CH2M Hill
Pam Valenzuela President, ASCENT Management, LLC
Jennifer Vaughn Asst. Director Conventions and Meetings, American Farm Bureau Federation
Chris Wehking Director of Meetings & Exhibits, American Society of Anesthesiologists
Jeff Wood Vice President, Worldwide Product Management, Hewlett-Packard Company
April DeBaker Director of Conventions, American Water Works Association
Consumer Show Industry
Jim Fricke Executive Director, Colorado Garden Show Inc.
Rick Flattum Director of Operations, International Angler's Expositions, Inc. dba International
Sportsmen's
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Exhibit B Livestock Industry Overview Slides
The following presents slides from various livestock industry presentations provided by CattleFax,
a global leader in beef industry research, analysis, and information since 1 968. This information
is summarized in the Livestock sub-section of the Stock Show section of this report.
UN/FAO Projections
Global food production will need to
increase 40% by 2030 and 70% by 2050;
beef and dairy production will need to
DOUBLE by 2050
Farming in 2050 will occupy only 13% more
land than is used in 2008
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World Population
Source: US Department of Commerce, plus other published
estimates
GrtdeRix
Meat Consumption and Per-Capita Income
300 y
250
2
§ 200
0
1
£ 150
0)
D
i 100
o
0.
50
$10 $100 $1,000 $10,000 $100,000
Per Capita Income (real GDP)
Source: FAO, USDA, 2003 data, includes beef, pork, and poultry
Changes in income explain 89% of the
growth in U.S. meat/poultry exports
U.S.
>
w**
Serbia

N
v:*
China
-----------------------.
9!
-----
Zimbabwe

Norway
Japan
Catflelax
THE
DECIDING
FACTOR
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Global Meat/Poultry Inflation
225
200
o 175
" 150
N
O
^ 125
CM
O
CM 100
75
50
Source: UN/FAO
QdfleRix
Food Spending* %
Selected Countries
U.S. 6.2%
U.K. 8.8%
Australia 10.5%
Netherlands 11.5%
Hong Kong 12.2%
France 13.5%
Japan 14.2%
S. Korea 15.1%
Argentina 20.3%
S. Arabia 23.7%
Mexico 24.0%
Brazil 24.7%
Russia 28.0%
China 32.9%
Tunisia 35.7%
Philippines 36.7%
Egypt 38.1%
Morocco 40.4%
Indonesia 43.0%
Pakistan 45.5%
The worlds
poor bear
the brunt of
global food
inflation
1 in 6
are
hungry
today
UN/FAO
Source: USDA, Euromonitor, *% of spending on food
consumed at home
CatfleEix
31 1
StrategicAdvisoryGroup


120
100
80
| 60
40
20
Surf & Turf: Global Production
-Pork
-Poultry
-Saltwater Fish
-Beef
--Freshwater Fish
-Lamb/Goat

CattleRix
THE
DECIDING
FACTOR
Global Meat/Poultry Production
2030/2050 Projections
Poultry
Pork
Beef
Source: FAO, FAOSTAT
Catflelax
THE
DECIDING
FACTOR
StrategicAdvisoryGroup
312


Global Meat CONSUMERS: PER CAPITA
250
200
(/)
c
c-
3
O
CL.
V/>V^Y
*
y Cr
Source: 2013 F, USDA/FAS, care wt equiv.
CatfleEix
THE
DECIDINa
FACTOR
90
85
80
75
70
*2 65
5 60
55
50
45
40
35
U.S. Consumer Expenditures on Beef

1
11
t-
11
n i i i i i i i i
.1
.11

n~i 1111111 n 1111111111 i i i i
87 89 91 93 95 97 99 01 03 05 07 09 11
Source: USDA & CattleFax
Domestic disappearance valued at all-fresh retail
Catflelax
StrategicAdvisoryGroup
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Segments of the U.S. Beef Industry
'Hotel, Restaurant, Instituation
CatdeEtx
THE
DECIDING
FACTOR
Beef Industry Concentration
Cow/Calf 70,000 producers Control 55% of cows
* Feedlot ^- 275feedyards 64% market share Top 26 companies 47% market share
Packer 4 major packers 85% fed slaughter
Retail Big 10 retail chain 70% market share
* Consumer 314 million domestic 10% export
Catflelax
StrategicAdvisoryGroup
314


Industry Margin Structure
Consumer Revenue Fuels the Industry
Roughly $73 billion in consumer spending on
beef annually
Costs and Margin for
Retail
Packer
Feeder
Cow-calf
Affiliates (seedstock, pharma, equipt, etc)
CEddeRixlE
Top 10 Cattle Countries in the World 2012
Rank 1. India 2. Brazil 3. China Head (000) 323,700 197,550 104.346 Percent of Total 32% 19% 10%
4. United States 90,769 9%
5. EU-27 86,196 8%
6. Argentina 49,597 5%
7. Colombia 30,910 3%
8. Australia 28,506 3%
9. Mexico 20,090 2%
10. Russian Fed. World Total 19,695 1,019,291 2%
Source: USDA/FAS CatdeElX I a
StrategicAdvisoryGroup
315


Global Meat PRODUCERS
-2013F-
Source: USDA/FAS
GrtdeRix
0)
o
.Q
OQ
Global Beef PRODUCERS
30
25
20
15
10
5
0
-2013F-
TOP 4= 60%


B
I I HI n
ii n _ri

&
J>

Source: USDA/FAS
GrtdeRix
THE
DECIDING
FACTOR
StrategicAdvisoryGroup
316


CattteRix

Beef Herd Contracting:
Weather
Land Values
Ethanol
Alternative Land Uses
Urban Sprawl
Government Policy
Age of Producer
U.S. Drought Monitor
July 16, 2013
Valid 7 a.m. EOT
Intensity:
f 1 DO Abnormally Dry
I I D1 Drought Moderate
D2 Drought Severe
D3 Drought Extreme
H D4 Drought Exceptional
r* Delineetes dominant impacts
S = Short-Term, typicaty <6 months
(e.g. agriculture, grasslands)
L Long-Term, typically >6 months
(e.g. hydrology, ecology)
The Drought Monitor focuses on broad-scale conditions
Local conditions may vary. See accompanying text summary
for forecast statements
http://droughtmonitor.unl.edu/
Released Thursday, July 18, 2013
Author: Richard Heim, NOAA/NESDIS/NCDC
QdfleRix
THK
DECIDING
FACTOR
StrategicAdvisoryGroup
317


CatfleEix
U.S. Beef Production Breakdown
2008-2012 Avg.
CatfleEix
THE
DECIDING
FACTOR
StrategicAdvisoryGroup
318


Beef and Dairy Cow Numbers
CatfleEix
U.S. Cattle Inventory & Beef Production
150
140
o 130
| 120
| 110
| 100
90
80
70
50 54 58 62 66 70 74 78 82 86 90 94 98 02 06 10
Source: USDA YEARS
CatfleEix
StrategicAdvisoryGroup
319


Source: USOA, 2013 Projected
CatfleEix
Additional Beef Tonnage due to Increase Carcass Weights
2950
98 99 00 01 02 03 04 05 06 07 08 09 10 11 12
Source: USDA, Compared to 1997 weights
CatfleEix
THE
DECIDING
FACTOR
StrategicAdvisoryGroup
320


Number of calves weaned
per cow exposed has gone
up through the years.
Increasing productivity
CattieRix
Percent of Beef Cows by Operations Size
2012
27.7%
CatfleEix
StrategicAdvisoryGroup
321


56
55
54
53
52
2 51
50
u
5 49
Q.
48
47
46
45
44
Percent of U.S. Beef Cow Herd Operations
100 plus Less than 100

rr
i i i i i i i i i i i i i i i i i i i
93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12
Source: USDA YEARS
CatfleEix
Top 10 Cattle Slaughter States for 2012
StrategicAdvisoryGroup
322


United States Feedyards >16,000 Head
January 1, 2013
CatfleEix
United States Feedyards >4,000 Head
January 1, 2013
CatfleEix
THE
DECIDING
FACTOR
StrategicAdvisoryGroup
323


60%
o> 20%
| 10%
fe 0%
-10%
-40%
2012 vs 1996
Percentage Change in the Number of Feedlots by Capacity
Total 1000+ 1-999
1000-
3999
4000-
15999
16000- 32000- 32000+ 50000+
31999 49999
Source: USDA
Feedlot Capacity
CatfleEix
Year
-o-China
Canada
Mexico
Japan
S. Korea
Others
Source: USDA/FAS
Catflelax
THE
DECIDING
FACTOR
StrategicAdvisoryGroup
324


U.S. TRADE
-Broiler
Pork
-*-Beef
YEARS
Source: USDA/FAS
GrtdeRix
THE
DECIDING
FACTOR
US$ Billions
$5 T
U.S. Animal Product Exports
to China/H. Kong
$4.3 billion in 2012

Year
Source: USDA/FAS
GrtdeRix
THE
DECIDING
FACTOR
StrategicAdvisoryGroup
325


Source: USDA, 2013 -14 Projected YEAR
CatfleEix
45
40
52 35
Q
Z
D
O
CL
U.S. Poultry Production
30
0
6 25
5 20
15
10
\ I I I I I I i
i I (
\ i i
81 83 85 87 89 91 93 95 97 99 01 03 05 07 09 11 13
Source: USDA, 2013-14 Projected YEAR
CatfleEix
StrategicAdvisoryGroup
326


Cattleliix
In Summary:
Global Beef
Tightening global supplies
Increasing global demand
Price inflation
U.S. Beef
Exports slightly higher
due to Japan
Global opportunities are
great (billions vs millions)
GLOBAL potential for U.S.
beef is VERY GOOD
. '*

{
J
StrategicAdvisoryGroup
327


Downtown Skyline
Views from the proposed new
Colorado Convention Center Ballroom
and Meeting Space


Full Text

PAGE 1

230 SECTION 2 COLORADO CONVENTION CENTER Overview A recent study conducted by Watkins Research ranked Denver fourth among destinati ons in the U.S. and Canada. The areas of the study included value, positive experience and activities of the destination management organization. The study showed improvement in Denver in key categories including convention center service and facilities. The Democratic National Convention and the Major League Baseball All Star Game are examples of high profile events that have elevated Denvers stature as a destination. Convention business has a wide range of benefits for Denver beyond economic gains. Examples of these include being catalytic for potential long-term investment, cultural and educational exchange, opportunities for residents to participate by attending shows, concerts and private events, new business opportunities being showcased and community pride that is associated with Denver hosting high profile events. The overriding theme that was consistent in the discussions and surveys with the variety of constituents was the high level of satisfaction with the overall meetings and convention experience in Denver. Clients, suppliers, internal team members, and community partners shared this view. The recommendations contained in this section of the report are reflective of an opportunity to utilize the input received to improve an overall experience that currently receives high marks from a wide spectrum of stakeholders. The success of the Denver Alliance, coupled with the continued improvement in Denvers perception in the market place, creates an opportunity to implement recommendations that will continue to move Denver forward as a leader in the convention market.

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231 Brief History of Expansion of the Colorado Convention Center 1970s The convention center in Denver started in the 1970s as a simple exhibit hall called Currigan Hall. It was bounded by Champa Street, Stout Street, 14th Street, and 12th Street. In the late 1980s, a master plan was developed to provide future expansions of the convention center. A nine-block site, bounded by Speer Boulevard, 14th Street, Welton Street, and Champa Street was defined.

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232 1990s In 1990, the city added what is now the Colorado Convention Center adjacent to Currigan Hall. As part of the master plan developed in 1990, the center was planned to double in size by expanding onto the Currigan Hall site.

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233 2000s In 2004, the center realized this expansion which removed Currigan Hall and doubled the size of the convention center to its current size. The current center is bounded by Champa Street, Welton Street, 14th Street, and Speer Boulevard. In its 40 year history, the convention center has gone through many transformations including constructing and tearing down Currigan Hall, building the original Colorado Convention Center and then expanding it. In order to preserve at least one additional future expansion for the center, the city had the vision to incorporate the structural ability for the center to expand vertically over the 2004 addition. This was important to the city and the convention center as it planned for the future growth on a land-locked urban site, saved on the cost of purchasing new land, and provided a future expansion site which could take

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234 advantage of the spectacular Rocky Mountain views for which Denver is famous. The site area available for this expansion was over 340 ,000 square feet. An Inclusive Approach In conjunction with VISIT DENVER and industry leadership input, an inclusive approach was developed to determine opportunities to evolve the Colorado Convention Center (CCC). The intent of the approach was to gain understanding and insight from the Denver hospitality and tourism industry, community leaders, meeting planners, consumer show executives, convention centers and CVBs in competing destinations, suppliers to the convention center, convention industry thought leaders, and the internal teams of VISIT DENVER and the CCC. The names of the participants are listed in Appendix A of this report. Internal Team Meetings with members of the internal teams of VISIT DENVER and the CCC were conducted and included senior leadership, as well as the sales and services teams. These discussions encompassed all aspects of building design and overall operational opportunities. SAG also met with the partners in the Denver Alliance, which include SMG, Centerplate Catering, VISIT DENVER, The Division of Theatres and Arenas for the City and County of Denver and the Hyatt Regency Denver. These discussions included design and operational input, as well as the future !"#$"%& '(#$"#)(#& '"#*"%+,-.-*& !"#$"%&& /(*"0& 1(223#-*4&& '(223#-*4& 0"56"%.&& 7"")#8& 905##"%.&&& '3.*(2"%& 56$-.(%4& :(5%6&& '(#.32"%& .;(<& -#63.*%4&& '(29&."*& 1(#$"#)(#& 1"#*"%.+',=.&& >3990-"%.&& ?#63.*%4& *;(38;*& 0"56"%.&& ?#*"%#50&*"52& @;"&!"#$"%& A00-5#1"&&

PAGE 6

235 opportunities to enhance the Denver downtown hotel package. Finally, SAG facilitated a charette with members of the Denver Alliance, the Denver hotel community, and Fentress Architects to review the research findings and discuss the implication and potential direction for the CCC. Community Leaders Meetings with members of the Denver Business Community, Economic Development Corporations, and key organizational partners were conducted to gain insights on the Denver economy, future development and the Denver brand. Customer Advisory Board Two sessions of focus groups with the Denver Customer Advisory Board (CAB) were conducted to gain insight and validate the input gathered throughout the process. The final session with the CAB was an interactive design discussion with SAG and Fentress Architects. The members of the CAB reviewed the outcome of the qualitative and quantitative research and gave input to the architecture team on key areas and trends. Industry Thought Leaders Feedback from the leaders of the following industry organizations was included in the ov erall analysis: Center for Exhibition Industry Research Professional Convention Management Association International Association of Exhibitions and Events International Association of Venue Managers These discussions centered on the future of the industry and recent research that had been conducted. The trends that were surfaced in the focus group discussion were also reviewed with these industry leaders. Hotel Community Meetings with leaders from the Denver hotel community were conducted to gain insig ht related to market opportunities and understand the dynamics of the Denver downtown hotel package.

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236 Suppliers Meetings and interviews were conducted with many of the key vendors who are active in the CCC, including general service contractors and technology providers. The focus of these discussions related to physical and operational trends in the convention center industry. Companies that participated in the interviews included Shepard Exposition Services, Freeman Decorating Company, Reed Expositions, Levy Restaurants, and Brede Allied Services. Customer Focus Groups Work sessions were conducted with over 100 customers in a combination of focus groups and one on-one meetings. The focus of these discussions was to understand specific thoughts on the current design of the CCC, as well as operational input. A wide variety of both corporate and association planners expressed their ideas on current strengths and areas for future improvement. The discussions also focused on future trends of the meetings industry. Customer Surveys The target market was surveyed to understand how Denver could compete effectively over the next 25 years. The online survey was designed to seek input on CCC design and configuration opportunities, as well as validate key industry trends that emerged from other research. The surveys were designed for three sizes of meeting/convention events and included: 1. Groups with 1,500 to 4,500 hotel rooms needed on their peak night, with exhibit space needs that fit into the Colorado Convention Center. 2. Groups with less than 1,500 hotel rooms needed on their peak nights, with overall space needs that fit into the Colorado Convention Center. These groups are also able to meet in the larger hotels with large amount of convention and meeting s pace. 3. Groups with a need for more exhibit space than is currently available at the Colorado Convention Center. The list of meeting planners surveyed was provided by VISIT DENVER and included 965 targeted meeting planners. The responses include a cross section of event types and sizes of events, primarily from the groups with less than 1,500 peak room nights (small groups) and those ranging from 1,500 to 4,500 peak room nights (large groups). The groups with a need for more exhibit space than is offered at the CCC did not respond and are not included in the analysis.

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237 Consumer Show Leadership Event organizers for consumer shows that are held in the CCC were interviewed to gather feedback on the CCC, and to gain insight on the value of a potential new expo hall at the Western Stock Show site. Discussions included design input and overall insight on the future of the consumer show market in Denver. Competitive Convention Center and Destination Benchma rking A review and comparison of Denvers convention infrastructure and the Colorado Convention Centers performance was benchmarked to 15 competitive destinations. This included comparing the leasable exhibit, ballroom and meeting square feet, divisibility of leasable space, downtown hotel infrastructure and nearby convention hotel infrastructure, total event and citywide activity level. Facilities included in the benchmarking analysis were as follows: !"#$%&'()"*+,"-./#'./0#-!"#$%#&'"#(!%#&%)(*+ +,--.*%)$'/%(0"&%-1 !%#&%) 2"3,-4&'"# 5')-'6& 789':'& ;"&4-( <%414:-% ='&9'#(>( ?-"/@1("6(!! A"B#&"B# 1%/$'20 345664788 794:8;4688 6453;4588 <49:74888 ;88 6=4583 ,'>>':4=894888 <943654588 =754;88 3834:88 94889 994<5: ?0@-.0# :49==4888 6748;64=88 ;:64888 3;34=88 64;:: 543<7 A%/>'*">B%/' :489;4;88 9745;34<88 =974888 3794388 <467= ;4375 C'-%/#2.0#+,1 54;:84<88 6846=;4588 =8<4888 3874788 <46:< 6648<7 D.>'#.' 5475=4;88 754=3;4388 94<::4888 94:=64788 94<39 994=;9 !0-.0#+E!1F1G 74:784;88 97463<4=88 59:4888 =874788 =3< 954=<= H'#+I('#$/-$0 747554:88 6946;74688 5<;4=88 ;:84<88 <4;:6 694938 A%0"#/J 74<634588 9345:84388 :964588 ;374788 647:6 54;3= H"'..>" <45564688 9:49694988 6854=88 <754388 64=3< =4=3; H'#+,/"20 <49==4988 ;4:;:4:88 :954=88 ;9:4988 543<8 9645:< ,"#K"( 64:754689 654=334;88 5=34888 =5<4988 7487= =485; H'#+D#.0#/0 646<74888 748<:4:88 7<;4588 :<84988 74:=8 =478; L(>'#*0 6466<4=88 9=49534788 6485<4;88 645<:4;88 5458= 9945:9 M#*/'#'B0>/943634888 <45;:4788 5::4:88 =<;4;88 7476; 54895 N"O+L(>"'#9466=4988 7463<4:88 9486:4<88 946384=88 <47== 9547<:!"#$%&'()*++,)-&.'#')/#$&0#,)*0%12131&',)-4/'5 6"3&()-71%08",)90220',)9-,):"#'3".)1.%2#;&)3<")01$="$3'5

PAGE 9

238 The destinations were selected in conjunction with VISIT DENVER based on destinations that Denv er competes with on a routine basis. In addition to the benchmark analysis, interviews were conducted with the general managers of the Charlotte, Orlando and Nashville convention centers to gain additional insight for the analysis. Current Utilization and Lost Business Analysis The CCC calendar was analyzed to gain an understanding of the overall utilization of the available space. Additional analysis was performed on events that considered Denver, but had to be turned down due to CCC space not being available and/or hotel rooms not being available. This analysis included assessing the additional CCC space and/or additional hotel rooms required to be able to accommodate the lost business. Convention Center Industry Trends Moving forward in a strategic direction needs to take into account where key societal, technological, business, and industry trends are headed. From the broadest worldview, dramatic geopolitical and economic pressures are reshaping our planet. Today, political and economic changes are allowing many countries to exert significant influence on global markets. U.S. demographics are changing as the boomers age while the echo generation becomes earners, and personal technology is changing the way people interact at every level. All this plays into the convention industry that has experienced tremendous growth in supply over the past two decades, while demand experienced the impact of two major recessions. Demographics Demographics in the U.S. are shifting. The baby boom generation has dominated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

PAGE 10

239 wealth creation and business thinking for the past 20 years. However, major shifts are coming. While the baby boomers grew up in a world where their primary influences were the other kids on the block and the local newspaper, the ways of this older generation are giving way to new generations who view the world and conduct their lives in new and rapidly evolving ways. These new generations are growing up in a different political, economic, technological and social environment. Today, many children learn without textbooks and comfortably employ a stunning array of communications tools on a global basis. Destinations must be thinking about Gen X, Gen Y (Millennials) and beyond. They do things differently Trends suggest that the economy will experience a huge shock factor as the numerous boomers transition from their most productive years to retirement and the potential collapse of their spending, as well as their influence on decision making at all levels. Technology Technology will continue to have a material impact in our lives and in the convention industry. Twenty-five years ago, personal computers had barely been introduced, and one might have had to insert a floppy disk to make the new machine work. Today, communications are instantaneous via text, email, cellular phones, video-teleconferencing, even virtual reality. Most workers have more computing power in machines the size of a book than NASA had with machines that filled entire rooms. Further, unfathomable amounts of information are available at the touch of a button and the exponential rate of change of todays technology is difficult to comprehend even for todays most forward thinkers. This also bodes well for the importance of meeting and conventions as a platform to learn the latest technological advances. With todays interconnected world, one persons reach can be global, and a global companys goods can be tailored to be personal. Real-time holographic presence is already here. Additive manufacturing (3D printing) is today allowing the making of three-dimensional solid objects of virtually any shape from a digital model desktop manufacturing. Need a new golf club? Hit

PAGE 11

240 print. Google has rolled out computer glasses that will surely lead to greater use of virtual reality. And technology is advancing at an exponential rate. Convention Center Supply From 1980 to 2007 (led by the boomer generation), travel and the convention/trade show industry blossomed into an economic powerhouse. Cities have grown to covet the economic impact large conventions and tradeshows deliver while imposing relatively little stress on the services cities/states provide to their residents. In their zeal to win this lucrative business, cities have participated in an exhibit space race and all major cities now have large convention centers From 1985 to 2012, the supply of exhibit space averaged 3.7% annual growth annually. Due to the time it takes centers to be constructed, supply typically grows into recessionary periods. For example, supply grew 6.0% annually from 1985 to 1995, well past the 1991/1992 recession. Supply was relatively stable through the 1990s economic expansion, but cities were busy planning and funding projects that opened during and after the 2001 recession. Supply grew 4.6% on average from 1999 to 2005 and slowed to 1.8% annually from 2005 to 2012. According to Trade Show Executive, there are 17 North American convention centers under construction and nearly 30 more considering development. This equates to approximately 640,000 square feet in prime exhibit space and 280,000 square feet of meeting space to be added. Recent announced or completed expansions include San Diego, San Francisco, and San Antonio. !""# !$"# %""# %$"# &""# &$"# '""# !()$# !()*# !()+# !())# !()(# !(("# !((!# !((%# !((&# !(('# !(($# !((*# !((+# !(()# !(((# %"""# %""!# %""%# %""&# %""'# %""$# %""*# %""+# %"")# %""(# %"!"# %"!!# %"!%# ,-./01#23456# 7899:;<#=5385#>61?@?0#79AB5## C5DA34<#E50#7F8A-5#G550#H53054# ,CI# !"##$%&'()&*+,'()&-.&/012324&!#'5+& JK,H#!()$L%"!%# 7899:; #&M+N# C5DA34 #%M'N# ,CI #%M*N#!"#$%&'()*+,-(.$/0&12"3(4&&56(,&0(7(8&09/6(:;!;()&<1#1(=#$&/#(

PAGE 12

241 Convention Center Demand The meetings business is a mature industry and generally ebbs and flows with the broader economy. Over time, the demand for convention center exhibit space, in terms of net square feet rented, has grown at an average rate of 2.4% annually since 1985, slightly less than GDPs growth rate of 2.6% over the same period. During the economic expansion from 2003 through 2007, building revenues and net square feet rented grew approximately 10%; however, the number of exhibitors and attendees remained relatively flat. In 2012, only th e number of attendees has returned to 2000 levels, while net square feet, exhibitors and rental revenues are still below the 2000 benchmark. CEIR projects that all demand measures, other than number of exhibitors, will exceed 2000 levels by 2015 The size of events is shrinking. Large events are subdividing into smaller events. For example, there are a small number of events that require 1 million net square feet or more of exhibit space, and these events have been decreasing over the past five years. Since 2008, these mega tradeshows have dropped from eight to five annually. Similarly, those needing 500,000 to less than 1 million net square feet has also shown a decline from 30 events in 2008 to 24 events in 2012. (Net square feet represents the space rented to the exhibitor. Gross square feet adds isles and other non-rentable areas and is generally double the net square feet. So a 500,000 net square feet event requires 1 million gross square feet.) !"# !$# %"# %$# &""# &"$# &&"# &&$# '"""# '""&# '""'# '""(# '"")# '""$# '""*# '""+# '""!# '""%# '"&"# '"&&# '"&'# '"&(,# '"&),# '"&$,# -./012#34567# 861#9:#;64165# <72=>=1/.?# @A64566?# ;6B64C6?# !"#$%&&'()*+,+-+./'0/123-$4'5$.6-*'!"#$%&'()*+,(

PAGE 13

242 The convention industry is driven by the different economic sectors CEIR reports convention demand growth in terms of net square feet rented by sector. From the year 2000 to 2012, the sectors that grew the most for convention industry included government, machinery and finished business outputs, and sporting goods, travel and amusement. CEIR projections through 2015 indicate growth of the next few years will be fueled by finance, legal and real estate; building, construction & home repair; transportation; communications & IT; and consumer goods & retail. The following are excerpts from the CEIR Index Report titled : An Analysis of the 2012 Exhibition Industry and Future Outlook. Financial, Legal & Real Estate The economic crisis of 2007 to 2010 originated within the finance and real estate industries, and these sectors sustained above average hits to employment. By 2012, a sustained recovery was underway across the board. This recovery was led by improving household and business balance sheets and a revival of housing markets. This strong momentum should continue. Despite moderate employment growth, there are important developments in regulation, technology and products occurring across the finance, insurance and real estate industries. Therefore, conferences and exhibitions that offer consumers and firms value in this changing environment can enjoy a thriving business. Building, Construction & Home Repair The building, construction, and home repair sectors exhibitions grew substantially from 2002 to 2007, but they collapsed along with construction activity as the recession spread across the economy. Underlying fundamentals in the private sector are favorable for faster growth. In particular, the balance sheets of nonfinancial firms, commercial banks and the average household have impr oved dramatically since the depths of recession. The end of deleveraging in the private sector bodes well for nonresidential investment in Growth Index by Sector 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013p 2014p 2015p Growth 2012-2015 Financial, Legal, & Real Estate 100.0 96.2 88.5 89.6 95.5 100.4 90.1 101.3 99.5 78.6 79.7 81.9 88.0 91.8 96.8 103.0 17% Building, Construction & Home Repair 100.0 109.1 101.0 104.1 105.3 111.7 121.8 126.0 117.7 100.1 93.6 87.4 86.4 89.4 94.0 100.1 16% Transportation 100.0 100.4 97.5 93.5 97.8 100.2 99.7 99.3 96.5 83.7 81.7 85.6 91.4 94.0 96.9 101.3 11% Communications & IT 100.0 97.9 83.6 82.2 85.7 89.3 92.5 98.3 99.2 88.0 82.4 88.3 92.0 94.8 97.1 101.4 10% Consumer Goods & Retail Trade 100.0 97.6 89.5 88.5 91.9 94.2 91.4 91.1 84.6 73.9 77.3 80.1 82.1 84.0 87.4 90.3 10% Discretionary/consumer Goods & Services 100.0 97.0 87.6 91.1 91.2 95.4 94.9 95.9 92.9 88.1 89.4 92.3 95.0 96.6 99.3 103.2 9% Sporting Goods, Travel and Amusement 100.0 105.7 107.1 114.0 115.6 119.0 122.6 130.3 126.6 109.3 107.2 108.0 110.7 113.2 116.2 119.7 8% Machinery and Finished Business Outputs 100.0 112.3 109.2 128.6 114.6 126.5 135.3 144.6 144.8 139.5 131.7 145.2 146.3 148.7 152.0 157.3 8% Food 100.0 99.8 95.4 97.6 95.1 92.3 91.5 92.2 85.1 73.6 74.5 75.1 77.6 79.0 80.7 83.1 7% Raw Materials and Science 100.0 97.2 99.0 96.8 101.0 98.8 105.0 109.4 109.7 103.8 101.7 106.0 106.4 106.6 108.5 112.0 5% Medical and Health 100.0 101.8 105.4 105.4 112.7 116.5 118.5 118.9 116.4 107.3 105.9 106.2 106.3 106.7 108.4 111.4 5% Business Services 100.0 94.2 83.3 80.7 81.5 83.6 82.1 83.9 81.9 74.7 71.0 72.8 73.0 72.5 72.5 73.2 0% Education 100.0 97.3 97.3 95.6 104.3 96.9 85.6 90.9 86.2 80.5 82.9 82.8 79.5 77.6 77.4 78.6 -1% Government 100.0 106.5 110.1 114.4 113.4 121.4 131.2 137.3 137.0 138.1 146.5 156.4 152.6 148.9 146.5 145.7 -5% Overall 100.0 99.8 95.8 96.5 99.5 101.9 102.1 105.9 103.2 93.1 91.9 94.4 95.7 96.8 98.8 102.0 7% Source: CEIR

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243 equipment, software and buildings. Improved household finances are combining with low interest rates and substantial pent-up demand to boost housing. Continued low interest rates, rising housing prices and home equity, and releases of pent-up demand should spark a recovery in construction and home improvement through 2015. Spending on both residential and private nonresidential construction is projected to rise at robust rates, which bodes well for the sectors output and employment. Transportation Output in the industries making up the transportation sector declined substantially during the Great Recession. The growth of industry output accelerated, in 2011 and 2012. The recovery of motor vehicles production and purchases, albeit from depressed levels, led the resurgence. The sector is projected to maintain production growth by approximately 2.5% to 5.0% per year through 2015. The transportation sector exhibition performance is correlated with sector output and employment growth. As the economy gains momentum, increased production and employment for the sector should improve the business climate for sector exhibitions. From 2013 to 2015, transportation-related exhibitions are expected to grow between 2.8% and 4.6% per year. Transportation sector exhibitions are projected to outperform the overall exhibition industry. Communications & Information Technology Communications and information technology exhibitions grew from 2004 to 2008 but collapsed in 2009 and 2010. These decreases were driven by declines in IT sector employment during the Great Recession. Consumer sentiment is on an upward trend as financial wealth and home equity recover from recession. Inflation and interest rates remain low and the unemployment rate is slowly but steadily is falling. Business also is more optimistic and there are signs that corporations are ready to put some of their stockpiled cash to work. However, the reduction in government spending on employees, contractors, manufactured goods and construction might adversely affect the climate for some business services and information technology exhibitions. Moreover, political gridlock concerning the federal budget still could undermine confidence. The private economy should gain strength, but cuts to federal spending and higher taxes will dampen growth in 2013. Overall GDP growth in 2013 is expected to register approximately 1.7%, down from 2.2% in 2012. Growth over 2014 to 2015 likely will accelerate, reaching almost 4.0% by 2015. Personal spending on electronics and communications services is expected to grow more rapidly than overall consumption spending. In particular, purchases of personal IT devices (computers, tablets, phones, etc.) are expected to expand substantially between 2013 and 2015. Increases in IT sector sales should bolster output, leading to better IT exhibition performance.

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244 Consumer Goods and Retail Trade Consumer goods and retail trade exhibitions declined precipitously in 2008 and 2009 but have since rebounded with growth of 4.6%, 3.6% and 2.5% respectively in 2010, 2011 and 2012. Growth in 2012 was mainly driven by gains in NSF (3.2%) and number of exhibiting companies (3.3%). Overall GDP growth in 2013 is expected to register about 1.7%, down from 2.2% percent in 2012. Employment will grow at about 1.0% and unemployment will fall only slightly, from 8.1% in 2012 to 7.7% in 2013. Personal consumption expenditures, in real terms, are projected to expand between 2.1% and 3.3% annually from 2013 to 2015. In particular, durable goods appear to be poised for several more years of strong growth. Following declines in 2008 and 2009, retail sales expanded in ea ch of the last three years. Thanks in part to improving balance sheets and a stronger housing market; consumers have begun to unleash pent-up demand for retail goods such as apparel, gifts, home improvement and jewelry. Despite political gridlock, recovery in the consumer sector is expected to continue through the forecast horizon. SupplyDemand Relationship Over time, supply growth that has averaged 3.7% annually has outpaced demand growth that has averaged 2.4% annually. Exhibit hall occupancies are lower nationwide as a result. It is a buyers market. Meeting planners now consider the convention center somewhat of a commodity as the development boom has led to larger and nicer buildings. So building more exhibit space is not necessarily the answer for every city to win more business. The meetings industry is in a slow growth mode and competition is diluting opportunities to attract additional events. There has been pressure on facility rental rates, food and beverage pricing, local transportation subsidies, and even hotel pricing. Many cities have gone to the extent of offering free rent as an inducement for events. Hotel Development According to Smith Travel Research, the number of hotel rooms under construction in July 2013 was 23% higher than the same time in 2012. Further, the vast majority of development included limited-service hotels and only a few full-service hotels. A recent US pipeline data report

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245 indicates that 90% of all current hotel development is in limited service properties. Limitedservice hotels are less expensive to develop and provide less financial burden than full-service properties, which generally require public investment in order to make the project financially feasible. The last large convention headquarter hotel to be built, outside of Las Vegas or Orlando without public participation, was the Chicago Sheraton that opened in the early 1990s. The popularity of developing full-service hotels through public private partnerships has increased over the past five years. Many destinations have either recently announced new development, completed new hotels or are actively pursuing public private partnerships to facilitate full service hotel development. !"# $# %# "# &'# ()# ")# !"# !"# (# *# !*# "*# (*# &*# %*# )*# '*# "**+# "**$# "*!*# "*!!# "*!"# "*!(,# -./0#!*1%*2***#34#54# 67789:#;,<=7# -./0#>?7
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246 Destination Appeal Destination appeal can be understood using the -8-10 rule. Meeting/event attendees spend 6 hours at the meeting/event so the convention center must be competitive. Delegates spend 8 hours sleeping, so the hotel package must be right. They spend 10 hours doing something else. Those ten hours can make or break the success of an event (and a destination). Culture, the environment, transportation infrastructure, entertainment, shopping, convenience, and price are just of a few attributes to consider. Destination appeal is a critical sales component. Meeting planners are successful when they draw large attendance, and they do that by selecting fun and interesting destinations. Each destination possesses its own unique destination attributes outside the doors of the facility. !"#$%#&'"#()"&%*(+'#,#-'#./(Pittsburgh!1991!Norfolk!1992!Philadelphia!1995!Denver!1998!Providence!Miami!1999!Nashville!2000!Tampa!Baltimore!2001!Pittsburgh Airport!Jacksonville!Sacramento!North Charleston!Seattle!Charlotte!2002!Overland Park!Richardson!Trenton!St. Louis!San Jose!2003!Cambridge MD!Myrtle Beach!2004!Austin!Houston!2005!Omaha!Winston-Salem 2006!Schaumburg!Raleigh!Denver!Columbus OH!Washington DC!San Antonio!San Juan! La Vista!2008! Phoenix! Manhattan KS!Baltimore!Lancaster!2009! Shreveport! 2011!2012! 2014! 0123456( +2747!278((!"#$%&'()"*% +,*-,#".-/% ( 09:;2!( +2747!278(Houston!2016! Miami Beach*!2018! Nashville!2013! Austin!2015! Dallas!Ft Worth!Indianapolis! "!#$!%&'()*!)+*,+-.,/0!Chicago! Cleveland Kansas City!2017! Portland!Salt Lake! Orlando*!2010! Orlando*!

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247 Conclusion As Denver moves forward with its convention center product, it will do so under changing broad demographic and technological forces. The convention center industry is struggling to absorb historical growth in supply while demand has experienced moderate overall growth impacted by recessionary periods. In the end, destinations with a convention center that anticipates the changing clients needs from both a physical and service perspective, coupled with the best hotel room block and destination attributes will win. !"# $!"# %!"# &!"# '!"# (!"# )!"# *!"# +!"# ,!"# $!!"# -./012134#12#5163./2#70/89#:1;/<1=# >?8@A499?=8B#C3.A32/.B#DA@92#EF2/;<1=4# EG/?./H?.?AI#1J#K9;29/<1=/.#L/;?.?<94# M/=N/A9N#HI#C12612/A9#51.?;I# C.?0/A9# C.9/=#/=N#O=461?.9N#P=G?21=09=A#1J#Q94<=/<1=# R2/=4612A/<1=#C14A4# Q?4A/=;9#R2/G9.9N#HI#EF9=N994# P/49#1J#R2/=4612<=8#EF9=N994#A1SJ210#:1;/<1=# >/J9AI#/=N#>9;32?AI#1J#Q94<=/<1=# ET12N/H?.?AI#1J#Q94<=/<1=# EG/?./H?.?AI#1J#U1A9.4#/=N#L/;?.?<94# E441;?/<1=#C1=G9=<1=4# C12612/A9#M99<=84# !"#$%&'$%(&)*"+",$%(&)-.%$".%')!"#$%&'()&&*+,-(.(/"+0&+*"+-(

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248 Current Program The Colorado Convention Center offers 584,000 square feet of contiguous exhibit space on one level, 63 meeting rooms providing 92,000 square feet of meeting space on one level, the 50,000 square foot Mile High Ballroom and the 35,000 square foot Four Seasons Ballroom. In addition, the CCC offers the 5,000 seat Bellco Theatre. EXHIBIT HALL D 92,000 SFRestrooms Restrooms RestroomsLOBBYRestr o o msRestrooms LOBBYRestrooms Restrooms RestroomsRestr o o ms O ffi ces Ab o ve C T errace Restr o o ms O ffi ces Ab o ve A O ffi ces Ab o ve FLOBBY LOBBY T errace EXHIBIT HALL E 91,000 SF EXHIBIT HALL F 106,000 SF EXHIBIT HALL B 90,000 SF EXHIBIT HALL A 105,000 SF EXHIBIT HALL C 95,000 SF O R O R S T OUT S T RE E T W E L T ON S T RE E T S P E E R BOUL E V A RD ( M OUNT A I N V I E W )1 4 T H S T RE E T ( C I T Y V I E W )E X HI BI T L E V E L Bal l r o o m Pre-F u n cti o nRestr o o msBal l r o o m Pre-F u n cti o nRestr o o ms F o u r Seaso n s Bal l ro o m 1f 1e 4 3 2 1 1d 1c 1b 1a 2c 2b 2a 3c 3b 3a 4f 4e 4d 4c 4b 4aMi l e Hi g h Bal l ro o m O R S P E E R BOUL E V A RD ( M OUNT A I N V I E W ) 1 4 T H S T RE E T ( C I T Y V I E W )S T OUT S T RE E TW E L T ON S T RE E TBA L L ROOM L E V E L WELLS FARGO THEATRE LOBBY D LOBBY F LOBBY A LOBBY B LOBBY CafeBallroom Pre-FunctionShuttle Drop-offNo rth Sh u ttl e Dro p -o ffBallroom Pre-FunctionMile High Ballr o o m1 through 4Four Seasons Ballr o o m1 through 4Rest r o o ms Rest r o o ms Rest r o o ms Restr o o ms Rest r o o ms Restr o o ms O ffi cesRestrooms RestroomsRest r o o m sL i g h t Rai l Stati o nW est Sh u ttl e Dro p -o ffC LOBBYRest r o o ms Business CenterI n f o r m a t i o n C e n t e rGift Shop6 0 1 6 0 3 6 0 7 6 0 5 7 0 2 7 0 4 7 0 8 7 0 6 7 1 0 7 1 2 7 0 1 7 0 3 7 0 5 7 0 7 7 0 9 7 1 1 1 1 3 1 1 1 1 0 9 1 0 7 1 0 5 1 0 3 1 0 1 1 1 2 1 1 0 1 0 8 1 0 6 1 0 4 1 0 2 2 0 7 2 0 5 2 0 3 2 0 1 2 1 2 2 1 0 2 0 8 2 0 6 2 0 4 2 0 2 4 0 7 4 0 6 4 0 5 4 0 4 4 0 3 4 0 2 4 0 1 3 0 4 3 0 3 3 0 2 3 0 1 6 0 2 6 0 4 6 0 6 6 0 8 6 1 0 6 1 2 5 0 1 5 0 2 5 0 3 5 0 4 5 0 5 5 0 6 5 0 7T i c k e t O f f i c e Restrooms O ffi ces So u th Sh u ttl e Dro p -o ff S T OUT S T RE E T W E L T ON S T RE E T 1 4 T H S T RE E T ( C I T Y V I E W )S P E E R BOUL E V A RD ( M OUNT A I N V I E W )M E E T I NG ROOM L E V E L

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249 Utilization Number of Events According to VISIT DENVER and the CCC, the center hosted 234 events with more than 847,000 attendees in 2012. This included 52 conventions and tradeshows with 252,700 attendees, 29 consumer shows with 334,700 attendees and 153 other meetings and events with 259,600 attendees. Denvers performance compares favorably in terms of the total number events among benchmarked destinations, second only to San Antonio. In terms of conventions and tradeshows, CCC ranked fourth overall, third when excluding industry powerhouse Orlando Interestingly, Denver hosted more conventions and tradeshows than many larger destinations with more convention facilities, including Chicago, Atlanta, San Francisco, Boston, and Houston. Convention Center Citywide Events Denver defines a citywide event as one requiring at least 1,200 room nights on peak utilizing multiple hotels and the CCC. In 2012, the CCC hosted 30 convention center related citywide events. Most of these are classified as conventions and tradeshows by VISIT DENVER, with five citywide events classified as meetings or sports. Denver ranks among the top in hosting larger !"# "$# %&# '(# %&# !)# %"# $!# %)# )!# *%# %+# $"# $'# %$# )"# )$# ))# &# *# $&# )"# $)# %# )'*# )"*# )$$# &+# )("# +)# !%# '*# ")# &$# %+# %%# (# "(# )((# )"(# $((# $"(# *((# *"(# ,-.# /.01.21# 34.546# 718901.# :6;-.<1# =>2?-@1# ,4-A;4# B1901.# C7D.49E# B1901.# CB=F=E# G>14.2H# 3-;;-9# /0;-.0-# ,-.# I6-.?29?1# :0>46# =1.98J46#,>1K9# =1.54.L1.9MN6-<49>1K9# !"#$%&'()'*+%,-.'!"#$%&'()*%+,+-&.(*/0(123.4(

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250 room night driven conventions and tradeshows. When excluding larger destinations/facilities Orlando and San Francisco, and Seattle that has a lower citywide definition threshold definition of 1,000 rooms on peak, Denver is the top performer. Each destinati on varies in its definition of a citywide event. Denver defines a citywide event as one requiring at least 1,200 room nights on peak using multiple hotels and the CCC Other destinations have similar measures that vary from 1,000 to 2,500 on peak. The analysis of the Convention Center included reviewing the number and size of citywide events in the CCC. The current 30 citywide events were reviewed by the date they occurred and by which exhibit halls they utilized. Citywide events drive 33% of the CCCs occupancy, with an additional 20% driven by smaller convention and tradeshows, consumer shows and other events. The analysis reveals that there are open dates throughout the calendar year, less availability in the warmer periods and more availability du ring colder times of the year. There appears to be exhibit space available for additional citywide convention bookings. !" #!" $!" %!" &!" '!!" '#!" ()*+,-." /+,"0)+,1231." /4+5*4" 64,74)" 89*+,9+" :.39.,";:<=<> ?2,43@" /+,"8,9.,2." A,-2+,+B.*23" ?.C39.," 6+**+3" DE.4,2F" !"#$%&'()'*(+,%+-.(+'*%+-%&'*.-/0.1%'2,%+-3'!"#$%&'()*%+,+-&./((

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251 Operating Revenues and Expenses SAG reviewed the financial information that was supplied by the benchmarked Convention Centers. Based on this information, the Colorado Convention Center has one of the lowest operating deficits of the benchmarked facilities. Of the comparable sized centers that were studied, Denver has the third lowest reported deficit. This is an important foundat ion in gaining support for enhancements or expansion to the CCC. The ability to demonstrate an efficient operating model that is focused on increasing economic impact while maintaining the fiscal results of the CCC will be an important overall goal in the proposed expansion and capital investment recommendations.

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252 Exhibit Space Benchmarks The Colorado Convention Center (CCC) ranked 11th out of 16 benchmarked facilities in total leasable square feet of exhibit space and 7th in contiguous leasable square feet. VISIT DENVER stated the CCC loses convention business most often to the facilities benchmarked; however, several of the facilities offer substantially more exhibit space than the CCC, including Chicago, Orlando, Atlanta, New Orleans, and Houston. Also, the Washington State Convention Center in Seattle is a smaller facility, offering just over 200,000 square feet of exhibit space. When excluding these facilities from the analysis and focusing on the most comparable facilities in terms of exhibit square feet offered, the CCC ranks near the middle out of 10 facilities The average square feet offered at these nine facilities is 605,000 compared to the CCCs 584,000. The exhibit space at the CCC has the ability offered as one large contiguous hall or can be subdivided into a maximum of six separate halls. The CCCs ability to offer a maximum of six separate halls is similar to the benchmarked facilities.

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253 Target Market Survey In addition to comparing the CCC to the benchmarks, the target market s urvey results revealed that a majority of the respondents feel the existing exhibit hall configuration meets their needs Survey respondents were asked whether they strongly agree, somewhat agree, are neutral, somewhat disagree or strongly disagree the CCC exhibit space works well for their needs. More than 80% of the Large Event survey respondents stated they strongly agree or somewhat agree the exhibit space works well. More than 65% of the Small Event survey respondents indicated they strongly agree of somewhat agree the exhibit space works well. The only negative comment cited by Small Event respondents related to the location of the exhibit halls being located one floor above the ballroom and meeting space. !"#$%&'(')*+'%&',-$,./',%&$,.$)%$0#/1/.%23*4$%5')62%5$((%7')%'8)%$0#/1/.')29:% !"#$%& '(#'%& $!#'%& $#!%& )#*%& )*#'%& )(#+%& )'#"%& '#)%& *#*%& *%& '*%& (*%& "*%& ,*%& $**%& -./01234& 52/66& -07689:.& 52/66& ;6<./:3& -07689:.& =>?:2/66& -./01234& =>?:2/66& @6/A61.&0B&C6?D01?6?& E:/26&FG61.?&H&$I!**&.0&(I!**&@6:J&C007&;>29.?& -7:33&FG61.?&H&E6??&.9:1&$I!**&@6:J&C007&;>29.?& !"#$%& '(#)%& !"#$%$&'()*+,'-..,../,0&'

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254 Occupancy Analysis Exhibit hall occupancy was calculated on a common basis for benchmarked facilities, utilizing move-in/move-out days and event days during a calendar year. The CCC total exhibit hall occupancy for 2012 was 53% *, similar to the 54% average of the benchmarked facilities. Event day occupancy (excluding move in/out periods) was 25%, similar to the average at 24% at the benchmarked facilities. Generally, expansion is considered for exhibit halls when occupancy approaches 70%. It is not feasible to achieve higher occupancies du e to holidays and dark days between events that are too small to accommodate an event. The calculation of exhibit hall occupancy takes into account all of the available days at the convention center. The benchmarked data that SAG received was also ca lculated using all available exhibit hall space. There are dates in a convention center that are generally considered unsellable. These include major holidays where there are virtually no large conventions that meet during these times. If the unsellable dates are removed from the available days, the CCC occupancy would be at or near 70%. !"# $!"# %!"# &!"# '!"# (!"# )!"# *!"# +!"# ,!"# $!!"# -./01.# -/2#34/2567589# -/2#:2;8268# 8# ?87;82#@?ABAC# D8E7;82# AF65/G8# <.2H.4# :;1/2;/# ?87;82#@DI2.7C# JF8.26K9# L8H.#M2N=E;#
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255 Denver Consumer/Public Shows The primary focus of the CCC is to host conventions and other events that generate economic impact by bringing out-of-town delegates to Denver. In addition, the CCC hosts a number of consumer shows, shows that are generally attended by local Denver residents. The following is a summary of the large consumer/public shows. The CCC hosts nine large public shows during the year. These shows range in exhibit hall needs from one hall to four halls. Over the course of a year, these shows consume over 77 exhibit hall days. This includes dates needed to move in and move out as well as show days. Six of the nine major consumer shows take plac e in the cold months of January, February, March, and November. These colder months coincide with the months that are most challenging to book conventions in Denver due to perception of bad/ unpredictable weather, which results in lower overall occupancy for the hotels and thus lower Lodgers Tax and spending. Moreover, three of the events occur in January at the same time as the Western Stock Show making it impossible to relocate these events to a facility at the Western Stock Show site. There are only three consumer shows (Fall Home Show, Beerfest, and the Ski & Snowboard Expo) that meet during ideal convention booking periods. While these events might be relocated to an exhibit facility at the Western Stock Show site, this is not enough to warrant dev eloping a new facility solely for purposes of freeing up the CCC calendar. If there are other reasons to develop an expo hall on the Western Stock Show site then there might be an opportunity to relocate CCC High-Profile Large Consumer/Public Shows Event Dates Days Attendance Exhibit SF The Denver International Sportsmen's Expo 1/2 1/9 8 37,000 288,000 The Colorado RV and Adventure Travel Show 1/8 1/15 8 20,100 290,000 The Denver Boat Show 1/9 1/15 7 8,600 196,000 The Colorado Garden and Home Show 2/6 2/21 16 53,500 391,000 The Denver Auto Show 3/17 3/27 11 68,300 383,000 The Fall Home Show 9/4 9/10 7 9,200 151,000 Beerfest 10/7 10/14 8 52,900 288,000 The Colorado Ski and Snowboard Expo 10/31 11/5 6 9,300 106,000 The Holiday Food and Gift Show 11/7 11/12 6 31,000 105,000

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256 events that meet during prime convention months. Discussions with show planners indicated there was not overwhelming support to relocate to the Stock Show site. This level of interest may change when a formal plan can be viewed for the new Expo Hall at the Western Stock Show s ite. Recommendation As discussed in the Industry Trends section of the report, exhibit hall supply growth has outpaced demand growth in terms of net square feet rented and this had led to a highly competitive environment for exhibit space rental. The market for exhibit space is generally perceived as a buyers market. In addition to this, the universe of events requiring is shrinking while available exhibit space is still expanding. Two high profile examples of this are San Diego and San Francisco. An analysis of the CCCs exhibit hall utilization indicates that there is no need to master plan additional exhibit space. Overall occupancy is 53%, and occupancy driven by citywide conventions is 33%. This provides ample opportunity to book additional higher impact conventions into the exhibit space. Moreover, both the benchmarking target market survey results and lost business report indicate additional exhibit space at the CCC is not required. Given this and the broader over supply of exhibit space throughout the country, it is not recommended that additional exhibit space be master planned

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257 Ballroom & Meeting Space Ballroom Benchmarks The CCC currently offers a 50,000 square foot grand ballroom and a 35,000 square foot junior ballroom. A comparison of the grand ballroom space offered at the benchmarked facilities revealed the CCC offers a larger grand ballroom than most ranking fifth out of 16. Only the larger facilities in Chicago, Orlando, Philadelphia and Washington, DC offer larger grand ballrooms. A comparison of the facilities most comparable in size to the CCC revealed the CCCs grand ballroom is similar in size to the other facilities. When analyzed from an exhibit space to ballroom ratio perspective, Denver is among the top of its competitors. The focus groups indicated satisfaction with the size and divisibility of the grand ballroom at the CCC. However, there was a suggestion was to create a more effective transition between the grand and junior ballrooms. From the junior ballroom perspective, while the CCC offers one competitively sized ballroom, approximately half of the competitive facilities offer more than one junior ballroom !"# $!"# %!"# &!"# '!"# (!!"# ($!"# (%!"# (&!"# ('!"# $!!"# )*+,-./# 0*/12+3# 456-27/# 0*+6-7168*+-# 9-2#:2;/2+/# <12=15# 9-2#<+1./# 9-2#>5-2,+?,/# <-66-?# 91-@61# :;6-2;-# A27+-2-8/6+?# B-?*+2.;/2#<)# C/?;/2#DC)E)F# G1H#4561-2?# I/J?;/2# KJ2+/5#C-665//L#M# KJ2+/5#C-665//L#$# KJ2+/5#C-665//L#(# N5-27#C-665//L# !"#$%&"'()*)+,-% !"# $!"# %!"# &!"# '!"# (!!"# ($!"# (%!"# (&!"# ('!"# $!!"# 0*/12+3# 0*+6-7168*+-# 9-2#:2;/2+/# <12=15# 9-2#<+1./# 9-2#>5-2,+?,/# <-66-?# A27+-2-8/6+?# B-?*+2.;/2#<)# C/?;/2#DC)E)F# KJ2+/5#C-665//L#M# KJ2+/5#C-665//L#$# KJ2+/5#C-665//L#(# N5-27#C-665//L# !"#$%&'()*%+,+-&./( .,,%/)01,1$1-#% !"##$%%&'()*"$+',++-' Ratio of Exhibit SF to Ballroom SF Ratio !"#$%&"'()*)+,San Antonio 0.20 Phoenix 0.15 Denver 0.14 San Diego 0.13 San Francisco 0.13 Philadelphia 0.13 Indianapolis 0.10 Dallas 0.09 Boston (BCEC) 0.08 Washington DC 0.07 !!"#$%&'$ 0.12 Other Seattle 0.31 Chicago 0.07 Orlando 0.05 Atlanta 0.04 Houston 0.04 New Orleans 0.04 Source: Facilities.

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258 Meeting Space Benchmarks The CCC currently offers 91,900 square feet of leasable meeting space. A comparison of the meeting square feet, excluding ballroom and fixed theater square feet, revealed the CCC ranks near the lowest in leasable square feet. Only the Washington State Convention Center offers less breakout meeting space and it only has 200,000 square feet of exh ibit space. When focusing on those most comparable facilities in terms of exhibit square feet, the CCC offers the least amount of breakout meeting space. When analyzed from an exhibit space to meeting space ratio perspective, Denver is among the lowest o f its competitors If Denvers exhibit space to meeting space ratio were among the best in class at 1 to 0.3, the facility should offer a total of approximately 175,000 square feet or an additional 83,000. Focus groups also indicated they often must look for additional meeting spaces outside the CCC in nearby hotels to accommodate their needs. Meeting Planners also indicated the need have increased space for educational and continuing education purposes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atio of Exhibit SF to Meeting SF Ratio !"#$%&"'()*)+,San Francisco 0.47 Boston (BCEC) 0.29 Phoenix 0.27 San Antonio 0.23 Washington DC 0.21 Indianapolis 0.20 Philadelphia 0.19 San Diego 0.19 Denver 0.16 Dallas 0.13 !!"#$%&'$ 0.24 Other Seattle 0.37 New Orleans 0.22 Orlando 0.19 Atlanta 0.18 Chicago 0.15 Houston 0.11 Source: Facilities.

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259 Divisibility Benchmarks Flexibility of ballroom and meeting space is a high priority for event planners. The CCC offers just over 174,000 square feet of ballroom/meeting square feet that can be divided into a maximum of 63 separate rooms. When compared to the benchmarks, Denver is among the lowest in terms of the number of divisible meeting rooms which is consistent with Denver being among the lowest in terms of square feet offered. !" #!" $!!" $#!" %!!" %#!" &'()*+," -./0)1," 234"&'(3)*5" 67()*7)" 8.,3*/9" :)*";')*0/50," <)(()5" =,>57,*" ?*+/)*)@,(/5" A,57,*"BA-C-D" E)5./*17,*"<-" :)*"I"J,,I5" H)9/I>I"J,,I5" !"#$%&"'()*)+,-% .,,%/)01,1$1-#% !"##$%%&'"()'*++,-(.'/%%&'0-1-2-3-#-,4' !" #!" $!!" $#!" %!!" %#!" 8.,3*/9" :)*";')*0/50," <)(()5" ?*+/)*)@,(/5" A,57,*"BA-C-D" E)5./*17,*"<-" :)*"I"J,,I5" H)9/I>I"J,,I5" !"#$%&%'()*+,$-%#.$/#$0%-1+/0$%2$$#3%%4"+0)$5%6/)7*78$-3%

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260 Target Market Survey Meeting Space The target market was surveyed to understand their impressions of the CCC mee ting space. Results indicated that the CCC meeting space generally meets the needs of the target market. Moreover, those with higher ratios of exhibit space to meeting space (Boston-BCEC, San Francisco and Phoenix), only San Francisco (53 events) books m ore citywide events than Denver (30). !"#!$% &'#($% )#!$% "#*$% "#*$% ''#!$% "+#($% !#!$% *#*$% *#*$% *$% &*$% )*$% !*$% (*$% ,**$% -./01234% 52/66% -07689:.% 52/66% ;6<./:3% -07689:.% =>?:2/66% -./01234% =>?:2/66% @6/A61.%0B%C6?D01?6?% E:/26%FG61.?%H%,I'**%.0%)I'**%@6:J%C007%;>29.?% -7:33%FG61.?%H%E6??%.9:1%,I'**%@6:J%C007%;>29.?% !"#$%& "'#$%&!"#$%&'(')*+'%&',-$,./',%&$,.$)%#*0%0123/4/$,.%5$$./,6%07*4$%2')%'1)%,$$+089% !""#$%&'()*+"',--"--."%#'

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261 Flexibility/Divisibility The target market was also surveyed to understand if the flexibility and divisibility of the CCC worked well for their needs. While the benchmark analysis revealed the CCC offers the fewest divisible meeting rooms, the survey responses indicated the flexibility/divisibility of the CCC works well for the target market needs. !!"#$% &'"($% )"!$% &"($% *"!$% &+",$% --"-$% *!"#$% ("($% '"'$% '$% ('$% -'$% #'$% ,'$% *''$% ./012345% 63077% .1879:;/% 63077% <7=/0;4% .1879:;/% >?@;3077% ./012345% >?@;3077% A70B72/%1C%D7@E12@7@% F;037%GH72/@%I%*J!''%/1%-J!''%A7;K%D118%
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262 Layout Focus Group discussion and industry research indicated growing interest in having meeting room environments that were focused on creating unique gathering spaces, and moving away from traditional U-shape or classroom style meetings. Discussions in the focus group supported this as a potential enhancement for the CCC. The target market was surveyed to understand if planners believe meeting room layouts will evolve to include such options as gathering spaces, utilizing non -traditional furniture and layouts. The responses revealed that planners believe that meeting room layout will evolve and move toward non-traditional meeting room set-ups. The discussions around this topic also included the interest of the planners to keep as much neutrality and flexibility in the design of spaces so they could create the type of identity and layouts that best fit their particular group. Meeting rooms do not necessarily need to be redesigned; rather the set -up of the space for a particular event needs to evolve. !"#!$% &'#($% )*#!$% )#($% '#'$% &"#)$% !+#($% ))#*$% ,#!$% '#'$% '$% ,'$% !'$% ('$% "'$% )''$% -./01234% 52/66% -07689:.% 52/66% ;6<./:3% -07689:.% =>?:2/66% -./01234% =>?:2/66% @6/A61.%0B%C6?D01?6?% E:/26%FG61.?%H%)IJ''%.0%!IJ''%@6:K%C007%;>29.?% -7:33%FG61.?%H%E6??%.9:1%)IJ''%@6:K%C007%;>29.?% !"#$%& '(#!%& !""#$%&'())*'+,-).#'/00"00*"%#'!"##$%&'()**+(,-.*/$0(1%,,(#2*,2#($*(%&3,/4#(*5$%*&0(0/36(-0(!'-$6#)%&'(05-3#078( /$%,%9%&'(&*&:$)-4%$%*&-,(;/)&%$/)#(0/36(-0(0*;-08(-)+(36-%)08(#$3<<7(

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263 CCC Calendar Analysis As mentioned above, the exhibit space is 53% occupied. A detailed day -by-day analysis of the 2012 calendar revealed that there are 50 4 -day booking windows (excluding holidays) that could accommodate an event requiring 100,000 exhibit square feet. There are 30 (of the 50) 4 day booking windows that could accommodate a show requiring 200,000 exhibit square feet. Further analysis of the calendar revealed that the exhibit booking opportunities are materially reduced when considering an events need for ballroom and meeting space. The 50 4 -day booking windows for events requiring 100,0 00 of exhibit space is reduced to 15 when considering the lack of available ballroom and meeting space. The 30 4 -day booking windows for events requiring 200,000 square feet of exhibit space is reduced to five when considering the lack of available ballroom and meeting space. While there are a number of opportunities to book the exhibit hall, it cannot be accomplished without additional ballroom and meeting space. The analysis revealed that the best opportunity for Denver to book additional events are for events requiring 100,000+/square feet of exhibit space. Such events generally require a ballroom of 35,000 to 40,000 square feet and 25,000 to 35,000 square feet of meeting space. If an additional ballroom and meeting space are developed, it could enable the CCC to increase its exhibit hall occupancy and ultimately the facilitys economic impact. If the space is developed and is booked one-half the available days, an additional 60,000 room nights could be generated by the CCC annually. CCC Lost Business An analysis of the CCCs lost business corroborates the need for additional ballroom and meeting space. The 2012 lost business report summarizes 157 events that were turned down due to unavailability of adequate space in the CCC, unavailability of req uested dates due to existing bookings, or insufficient hotel rooms to accommodate the room block. Focusing on the CCC space issues revealed that the CCC could have accommodated 50 of the events listed on the lost business report if an additional 35,000 to 40,000 square foot ballroom and 25,000 to 35,000 square feet of meeting space were available. This is not to indicate 50 events would have been booked, rather it indicates that there were at least 50 additional proposals that could have been submitted to meeting planners. SAG found approximately 50 groups that were considering Denver, but were unable to be accommodated since they needed additional ballroom and meeting space. SAG assumed that only 30% annually would be booked. SAG also validated that each group would have had enough hotel room s to accommodate the convention.

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264 The review of the 2013 lost business report for the CCC also reinforces the need for the proposed ballroom and meeting space. The summary of the lost business indicated that 236 events were turned away due to lack of convention center space. In addition to reviewing lost business, an assumption could be made that larger groups that are currently selecting other cities, might chose Denver if Denver added this new flexible and intriguing space. If the Denver team converted 10% more large center business with more than 2,000 rooms on peak, it would represent nearly $493 million in economic impact or $49.3 million in direct spending, which would generate nearly $4 million in tax revenue. Therefore, citywide business for Denver has the potential to grow as well. The combination of available opportunities for smaller events and the consistent high level of lost business of groups that could utilize currently available exhibit space with an increase in meeting and ballroom space provide compelling support for expansion. Specialty Space The focus groups indicated that the CCC might be able to improve its marketability with the addition of specialty space that takes advantage of D envers unique topography. There is an opportunity to expand upward to take advantage of the spectacular views of the Rocky Mountains. A few of the benchmarked convention centers offer unique leasable space as an added amenity for convention delegates. The following are examples of some of the unique leasable spaces: San Diego Convention Center The 90,000 square foot g lass enclosed Sails Pavilion, which offers panoramic views of downtown San Diego and San Diego Bay.

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265 Henry B. Gonzalez Convention Center in San Antonio The 15,800 square foot Grotto spans the entire width of Bridge Hall of the Center and has numerous trees, foliage, and a waterfall. This space can accommodate up to 3,000 people for a reception and opens on to the River Walk. McCormick Place Offers several outdoor terraces, including the West and East Garden with 3,000 square feet, the West and East Terraces with 70,200 square feet, and the Lakeside Fountain Terrace with 13,500 square feet. Georgia World Congress Center The Georgia Aquarium, adjacent to the center, offers a 60,000 square foot ballroom where one of the walls is a glass wall looking into the whale exhibit. The majority of the benchmarked facilities do not offer unique leasable spaces; however, these features can offer an additional selling point when a facility is competing against other destinations. The target market was surveyed to understand how they view unique specialty spaces within a convention center. The survey responses indicate the larger groups that typically use convention center space more often, believe specialty spaces will become more important in enhancing the overall attendee experience, reflected in the 80% that responded they strongly agreed or somewhat agreed. The smaller groups believe this type of space is not as important to enhancing attendee overall experience, reflected in the 50% that responded they strongly agreed or somewhat !!"#$% &'"($% (#"($% ("#$% ("#$% ()"*$% +("*$% ,*"&$% -"($% !",$% *$% !*$% ,*$% #*$% '*$% (**$% ./012345% 63077% .1879:;/% 63077% <7=/0;4% .1879:;/% >?@;3077% ./012345% >?@;3077% A70B72/%1C%D7@E12@7@% F;037%GH72/@%I%(J&**%/1%,J&**%A7;K%D118%
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266 agreed. The CCC may want to consider adding specialty space as part of its program in the future. The results indicate that the addition of specialty space will enhance Denvers ability to convert larger conventions. In the current competitive meetings and convention market, facilities alone are not enough to be successful. Competitors in other cities are building ballrooms that have an entire wall facing an aquarium, or ballrooms that open to outdoor decks offering ocean views, or on to decks filled with trees, waterfalls, and gardens. It is imperative that Denver think beyond square footage and envision a facility that captures the spirit of the city. Meeting planners are demanding unique spaces that add networking opportunities to the convention, and competitors in other cities are providing such spaces. This type of space could also enhance the ab ility to facilitate networking by keeping attendees in the Convention Center for events after the meeting day is completed. The focus groups also supported the need to develop opportunities to experience the Denver Brand in the future. Hyatt Meeting Sp ace Expansion The Hyatt Regency is proposing to develop a 56,000 square foot ballroom and 6,600 square feet of meeting space. This ballroom could help solve the CCCs ballroom/meeting space shortfall issue if it could be available for CCC events. The cha llenge is that the hotel needs this new ballroom to book in-house group meetings and the CCC needs to keep a ballroom available to accommodate the needs of smaller, shorter term booking convention center events. To succeed at both the hotel and CCC, both projects will need to be developed SAG has reviewed the proposed expansion of ballroom and meeting space, and concurs with the industry standard of 100 square feet of meeting space per guest room as an industry average. The Hyatt is currently well below this standard. After review of the information provided, there is a need for further exploration. The clear indication of the importance of proximity of a headquarter hotel and supporting meeting space would suggest that the convenience and proximity needs to be evaluated. The opportunity to construct a bridge could provide advantages that should be further explored including the potential of a joint sales approach with the Convention Center. A survey of planners to understand the importance of a bridge in mitigating weather concerns would help understand whether a bridge could affect the conversion of groups during challenging weather periods. SAG recommends conducting a study to review these opportunities. This would include an analysis of the viability and impact of creating space that is jointly operated by the Hyatt and CCC.

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267 Technology Bandwidth Convention centers across the country are struggling to keep up with the ever-increasing technology demands. Bandwidth is the single most challenging issue as users demand flawless wireless connection everywhere. The focus group and discussions with industry leaders confirmed the importance of staying ahead of the technology needs of the industry. The target market clients were surveyed to understand b andwidth issues. The CCCs target clients do not agree that the centers technology effectively support s the needs of their attendees Many attendees carry multiple devices and exhibitors are requiring more and more bandwidth to effectively service and ev ent. This trend is not changing. CCCs target customers almost holistically agree that the need for increased bandwidth at the center will continue to increase in the future. It is recommended the CCC and their technology partners create an ongoing plan, and allocate the appropriate budget, to create a class-leading technology infrastructure with sufficient bandwidth to meet the needs of the customer base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268 Streamed Content Citywide conventions, especially the association market, are continually looking for vehicles to reach their members. One emerging trend is the online streaming of event content to members unable to attend an event. One planner described this as a new hybrid approach to managing educational content and providing content to a broader audience that is intended to both educate and encourage attendance in future meetings. The survey of the target market indicated that more event content will be streamed online in the future. It is recommended the CCC and their technology partners crea te an ongoing plan, and allocate the appropriate budget, to create a class -leading technology infrastructure to accommodate the online streaming needs of the customer base. !!"#$% &'"&$% (("!$% )"*$% +"+$% ,("&$% &-")$% ()"-$% (&"!$% +"+$% +$% ,+$% &+$% )+$% '+$% (++$% ./012345% 63077% .1879:;/% 63077% <7=/0;4% .1879:;/% >?@;3077% ./012345% >?@;3077% A70B72/%1C%D7@E12@7@% F;037%GH72/@%I%(J*++%/1%&J*++%A7;K%D118%
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269 Crowd S ourcing Crowd sourcing in the convention industry is using technology to gather and disseminate information about the attendees to maximize their event experience and the exhibitors ability to connect with their customers. Crowd sourcing can enhance an event experience by enabling attendees to locate each other, exhibitors to find target customers and target customers to find exhibitors. It also can assist event and center management better plan and execute staffing and other event planning needs. The survey of the target market indicated a high degree of interest in crowd -sourcing technology, especially for the larger groups. The industry interviews and discussions with the current technology service provider reinforced the increased interest in providing this type of technology. It is recommended the CCC and their technology partners create an ongoing plan, and allocate the appropriate budget, to implement crowd -sourcing technology to accommodate the needs of the customer base. Denver is currently doing a good job of keeping up with the competition in offering new technologies at the Colorado Convention Center. The current approach is to contract with a national firm, making improvements and upgrades periodically during contract negotiations. This allows Denver to be competitive with other cities; however, it also treats technology as more of a !"#$%& '(#)%& *)#+%& *#,%& -#-%& ""#-%& !)#-%& !)#-%& -#-%& -#-%& -%& "-%& '-%& ,-%& $-%& *--%& ./012345& 63077& .1879:;/& 63077& <7=/0;4& .1879:;/& >?@;3077& ./012345& >?@;3077& A70B72/&1C&D7@E12@7@& F;037&GH72/@&I&*J(--&/1&'J(--&A7;K&D118&
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270 commodity. SAG recommends an investment in the technology infrastructure to increase the built in capacity of the CCC. The recommended approach is to make more cutting edge upgrades to technology, which is done with industry and expert analysis. This would allow Denver to be able to stand alone in the center world, have a reputation for technology and innovation. In addition, customers are willing to pay for new technologies but just are not able to afford establishing tentative infrastructure city to city. An example of the importance of importance of staying competitive and investing directly in technology is the recent announcement by Chicagos McCormick Place of the completion of their state-of-the-art Internet and Wi-Fi upgrades, which represents a significant change in their business model for providing Internet services to attendees, exhibitors, and show management. The new wireless infrastructure will support up to 45,000 concurrent users facility -wide. &

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271 Meeting Experience Creating an Experience The industry research indicated that there was an increasing need to create an experience for attendees to drive attendance. The focus groups and interviews revealed a consistent interest in developing new opportunities for attendees to participate in new activities. Denver should continue to explore its unique facility and destination attributes to maximize its penetration in the target market. From a facility perspective, this could be through the development of the specialty space, thoughtful human interaction/networking areas, and by providing a state-of-the-art technology environment. Outside the facility, Denver has a number of destination attributes that will continue to play a major role in winning events. Networking Industry research has indicated that a prospective meeting attendee has more access to relevant content on a year round basis due to on-line education and other vehicles. This has created a challenge for meeting planners to enhance other aspects of the overall experience. The ability of attendees to interact and learn from their peers is an increasingly important activity. One planner relayed that over 60% of their attendees stated that the primary reason for attending their conference was networking with colleagues. The focus groups and interviews with industry !"#$%& '(#!%& !#)%& (#(%& (#(%& )(#(%& *"#$%& +#,%& (#(%& (#(%& (%& "(%& *(%& !(%& -(%& ,((%& ./012345& 63077& .1879:;/& 63077& <7=/0;4& .1879:;/& >?@;3077& ./012345& >?@;3077& A70B72/&1C&D7@E12@7@& F;037&GH72/@&I&,J)((&/1&*J)((&A7;K&D118&
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272 leaders indicated that there is a need to continue to improve the ability for attendees to network during a conference. The planners expressed the important of proactive planning for how attendees could interact during a conference. The interviews and focus groups noted that a networking plan should be holistic, addressing all areas from offering more seating opportunities to internet cafes, pre-function area lounges, food and beverage settings, and other social functions. The quantitative survey validated the importance of attendee networking. Over 80% of the planners surveyed indicated an increased need to improve the attendees ability to network with others as a key factor in overall satisfaction. Meeting planners supported the need for the Colorado Convention Center to create a design and operational plan to support this trend in the meetings industry. The work session with the Customer Advisory Board reinforced the importance of networking and the need for the CCC to provide a networking plan that was designed to bring attendees together, and not just supply furniture or areas for people for network. The plan would create options for the planner to choose from. The opportunity is to p rovide a reason to come to a networking space due to a food and beverage offering and/or an activity for attendees. A current possibility to improve the networking opportunities at the CCC is the reconfiguration of the B lobby as well as the caf space in this area. The re-working this space would provide new networking locations in this area !"#$%& !'#(%& ''#"%& '#)%& (#(%& *+#'%& !,#$%& '$#(%& (#(%& (#(%& (%& ,(%& !(%& )(%& +(%& '((%& -./01234& 52/66& -07689:.& 52/66& ;6<./:3& -07689:.& =>?:2/66& -./01234& =>?:2/66& @6/A61.&0B&C6?D01?6?& E:/26&FG61.?&H&'I"((&.0&!I"((&@6:J&C007&;>29.?& -7:33&FG61.?&H&E6??&.9:1&'I"((&@6:J&C007&;>29.?& !"#$%& !'#(%&!"#$%&'(&&$%)$$*+',%&$-$*&',%'%$&./-0,%1'.,22',%3-$(*$45' !""#$%##&'#"()*+,$-&!..#../#$"&

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273 of the CCC. This would also create an opportunity to have more usable front doors for the CCC as surrounding hotels are developed. This could have a positive imp act on stacking multiple groups and accommodate the hotel development on the Welton side of the building. Selling Denver The stakeholder discussions and focus group meetings discussed which Denver attributes resonate with the target market. These discussions generated 17 words or phrases that were tested in the target market survey. The following are groupings of common words that were popular among planers when describing Denver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274 Those terms that resonate highest with the meeting planners should be integrated into the messaging, as well as the design and branding of the convention center itself. For example, the specialty space might be defined as providing a beautiful, friendly, and safe environment with views of the Rocky Mountains. Another example would be to stress health in the food and beverage offerings. Interestingly, the Western theme was not viewed by many as an important characteristic of Denver. This is consistent with the results of the recent State Branding exercise. In conjunction with the feedback regarding the need for creating space that is more reflective of the Denver brand, SAG recommends utilizing this information as a foundational part of future design decisions. Recommendation The following summarizes the recommendations related to the convention center in order of priority. 1. Ballroom/Meeting Space It is recommended that the CCC master plan for the addition of a 35,000 to 50,000 square foot ballroom and 25,000 to 35,000 square feet of meeting space. As much of the new space as possible should be developed as specialty space, providing a unique experience that takes advantage of Denvers natural attributes, such as a view to the Rocky Mountains. This recommendation is driven by the analysis of the event calendar, which demonstrated there are over 50 4-day periods a year where the convention could host a 100,000 square foot exhibit event if it had additional ballroom and meeting space. The lost business analysis also indicated the need for meeting and ballroom space and the benchmarking revealed that the CCC has a low exhibit space to ballroom/meeting space ratio among its competitors. This need, coupled with a current positive perception of Denver and the CCC by the target market surveyed, provides further support for this recommendation. 2. Meeting Experience It is recommended the existing and any proposed new facilities consider the creation of unique meeting experiences and social networking in any !"#$%&'$()*+$%,--./)*0-123*4-$5%#&5/)*6.""5 )*7#8-.#9("*:(&;#%" :("#5)*7.&"5,(3)*<#'")*=''-.,#9(" >"#(%?3)*@-$5A)*=1%&8" B&5&5A)*C.9#5)*:$(%$."

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275 planning effort. This recommendation is supported by discussions with meeting planners and industry thought leaders, as well as the survey of the target market. 3. Technology It is recommended that the CCC create a plan and allocate the appropriate budget to be a class-leading facility from a technology perspective. The main areas of focus should include offering sufficient bandwidth to accommodate the needs of the attendees and exhibitors, providing the infrastructure to accommodate event online video streaming, and supporting leading edge crowdsourcing technology. Based on discussions with the current technology service provider and Cisco Systems, it is understood that there are new technological approaches to support the evolving needs of clients. This includes conducting a thorough site survey and increasing the overall coverage by adding access points in hard to reach (non line of sight) areas, reducing dead spots to enable attendees to connect to Wi-Fi from any location within the facility. To enhance Wi -Fi capacity and overall network performance, it is recommended utilizing the newest Smart Antennas which automatically tune the Wi-Fi signals traveling up and down between a visitors mobile device and the Wi-Fi network. This helps optimize speeds, regardless of the model of smartphone, tablet or laptop. The wireless Access Points support streaming content and provide crowd -sourcing opportunities for Denver clients. Specific recommendations to accomplish this plan could include: a. Increasing the number of access points to 1 per 2,500 square feet. Currently the CCC has a ratio of 1 per 18,000 square feet. b. Utilizing the latest standards and smart technology with access points that will provide crowdsourcing capabilities. c. Utilize the latest Wi-Fi standards for access point capacity to better optimize the existing building infrastructure needs for bandwidth thus reducing the cost of delivering a higher quality experience. d. Increasing building outbound Internet transport back-haul to match the improvement in the new wireless network to support premium services such as user generated rich media (e.g. iPhone photos, short video uploads) sent from conventioneers out to the Internet. e. Installing a VideoScape server infrastructure for content management and streaming. The recommendations above are designed to elevate Denver s meeting and convention product, and enhance its position as a leading destination. The meetings and convention industry is evolving due to new dynamics and is highly competitive. Industries such as auto and technology

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276 dedicate significant ongoing resea rch to stay in front of the needs of their customers. If companies in these industries decided not to advance their products, they would lose market share. The same logic can be applied to the negative impact that could occur if the CCC does not continue to invest in design and operational advancements. While it is difficult to quantify, there is a risk to not moving forward. Competing convention centers and destinations are developing new and innovative approaches to increase their market share. Denver has already demonstrated that it can elevate its position as a top tier destination. The implementation of the recommendations can create a new path to advancing Denvers competitive position in the future.

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277 HOTEL INVENTORY AND CONFIGURATION Downtown M arket Overall Market Denvers downtown full and limited-service hotel market has performed well over the last 15 years. The supply of rooms in 1999 was 5,600 and it has grown an average of 3.4% annually through 2013. Today there are 8,900 full and limited service rooms in downtown. Supply and demand have remained in equilibrium, with the average growth in demand of 3.4% tracking the average growth in supply at 3.4%. On average, the downtown hotel market has added 235 rooms annually since 1999. Average daily rate has kept up with inflation, growing 2.4% annually to $164 in 2013. !"## !$%## !%"## !&%## !'""## !'$%## !'%"## !'&%## !$""## !$$%## !$%"## !$&%## !(""## !($%## !(%"## ")"*# ")%*# ')"*# ')%*# $)"*# $)%*# ()"*# ()%*# '+++# $"""# $""'# $""$# $""(# $"",# $""%# $""-# $""&# $"".# $""+# $"'"# $"''# $"'$# $"'(/# 0123452#64789#:4;2# :<<*#=75>;?# Average Daily Rate Supply Demand !"#$%&'()))*+,(-' @A//89 #(),B# 62*4CD #(),B# 06: #$)&B#EFFA/4CF9 #&$B #-+B #-%B #-%B #-,B #-(B #-%B #-.B #-.B #-.B #-,B #-+B #&'B #&$B #&$B#!"#$%&'(!)*+,(-$./&0(1&2&.$%,3( !"#$%"#$&'"%()&*(+,"+-.$/(&GA88#4CD#H7*7;2DI@2317F2#J<;28?#

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278 Full Service Downtowns full-service hotels have also performed well. Since 1987, the demand for full-service rooms has grown an average of 3.7% annually, outpacing supply, which grew at 2.7%. The supply of rooms was relatively flat from 1987 through 1994. The economic expansion of the late-1990s facilitated the addition of 1,100 -rooms in downtown. Supply remained relatively flat until the JW Marriott opened in 2004, followed by the Hyatt in 2005. The Ritz -Carlton opened in 2008 and the Embassy Suites and the Four Seasons opened in 2010. In 2014, the new full service Renaissance hotel is expected to open as well. Downtown now offers 6,800 full-service hotel rooms. On average, the downtown hotel market has added 125 full-service rooms annually since 1987 and 155 annually since 1999. Beginning in 1999, supply and demand have grown in equilibrium at 2.8% annually through 2013. Average daily rate for full-service hotels has kept up with inflation, growing at 2.7% over the same time period. The average daily rate for full-service hotels has grown from $68 in 1987 to $125 in 2000 to an estimated $172 in 2013. !"## !$%## !%"## !&%## !'""## !'$%## !'%"## !'&%## !$""## !$$%## !$%"## !$&%## !(""## !($%## !(%"## ")"*# ")%*# ')"*# ')%*# $)"*# $)%*# ()"*# '+,&# '+,,# '+,+# '++"# '++'# '++$# '++(# '++-# '++%# '++.# '++&# '++,# '+++# $"""# $""'# $""$# $""(# $""-# $""%# $"".# $""&# $"",# $""+# $"'"# $"''# $"'$# $"'(# /012341#53678#93:1# 9;;*#<64=:># Average Daily Rate Supply Demand !"#$%&' '()*+,-.(/ '())),-.(/' ?@AA78 #$)%B #$),B# 51*3CD #()&B #$),B# /59 #()&B #$)&B#EFF@A3CF8 #%$B #%-B #.(B #.%B #.&B #&"B #&'B #.-B #.(B #.-B #.&B #.(B #&"B #&$B#!"#$%&'(!)*+,(-$./&0(1&2&.$%,3( !"#$%"#$&'())&*+,-./+&0"%+)&1+,2",34$/+&G34C;763# H6*A:;C# I13:2;# JK# G3226;L# M83L# 96:NO# P327:;C# Q;@2# ?13>;C># R*S3>>8# ?@6:1>#

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279 Limited Service Consistent with the overall trend in the U.S., the limited-service hotel market has outperformed the full-service hotel market. Beginning in 1999, supply and demand grew in equilibrium at 5.9% annually through 2013. The supply of rooms has grown from 900 in 1999 to 2,000 in 2013. Recent supply growth has been driven by the Hampton Inn in 2005, followed by the Residence Inn and another Hampton Inn in 2006, a Hilton Garden Inn in 2007, a Springhill Suites in 2012, and a Homewood Suites and another Hampton Inn in 2013. On average, the downtown hotel mar ket has added 80 limited -service rooms annually since 1999. Average daily rate for limited-service hotels has outpaced inflation growing at 3.7% since 1999. The average daily rate for full-service hotels has grown from $89 in 2000 to an estimated $137 in 2013. !"## !$%## !%"## !&%## !'""## !'$%## !'%"## !'&%## !$""## !$$%## !$%"## !$&%## !(""## !($%## !(%"## ")"*# ")'*# ")$*# ")(*# ")+*# ")%*# "),*# ")&*# ")-*# '...# $"""# $""'# $""$# $""(# $""+# $""%# $"",# $""&# $""-# $"".# $"'"# $"''# $"'$# $"'(# /012341#53678#93:1# 9;;*#<64=:># Average Daily Rate Supply Demand !"#$%&'()))*+,(-' ?@AA78 #%).B# 51*3CD #%).B# /59 #()&B#EFF@A3CF8 #&(B #,.B #,.B #&'B #,-B #,-B #&$B #&"B #&'B #&'B #,&B #&(B #&(B #&(B #&$B#!"#$%&'(!)*+,(-$./&0(1&2&.$%,3( !"#$%"#$&'()(%*+&,*-.(/*&0"%*1&2*-3"-)4$/*&G;HC1I73F1# ?@6:1># J3*A:;C#KCC# 5G# 91>6D1CF1# KCC# J3*A:;C#KCC# ?A112 # J67:;C# L32D1C#KCC# ?A26C4=677# ?@6:1># ?A26C4=677# ?@6:1># J3*A:;C#KCC# MM#

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280 Convention Room Package A destinations convention room package is an important selection criterion for meeting planners. Destinations with the most full-service rooms that are closest to the convention center are ideal for meeting planners. Planners desire their delegates in close proximity to reduce transportation costs and promote group interaction/networking. Denver offers a convention package comprised of 9,300 full and limited-service hotel rooms in downtown. This includes 2,000 hotel rooms within two blocks of the CCC. The largest convention hotels include the 1,100-room Hyatt Regency adjacent to the CCC and the 1,231-room Sheraton located 3 blocks from the CCC.

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281 Benchmarks Downtown Hotel Supply According to Smith Travel Research (STR), Denver offers nearly 9,300 full and limited service hotel rooms downtown. Denver competes, from a convention center perspective, with several facilities that are located in larger metropolitan area that support more hotels rooms in their downtown. When comparing Denvers downtown supply to the facilities that Denver competes with, Denver ranks 13th out of the 16 benchmarked communities in terms of total downtown hotel room supply. !" #$!!!" %!$!!!" %#$!!!" &!$!!!" &#$!!!" '!$!!!" '#$!!!" (!$!!!" )*+,-./" 0-1"23-1,+4,/" 5-4*+1.6/1" 738-19/:" ;<="738<-14" >/46/1" 0-1"?+<./" ?-88-4" @68-16-" 0-1"@16/1+/" 0<-A8<" B*+8-9<8C*+-" ?<1D<3" B*/<1+E" F19+-1-C/8+4" G/H46/1" ;HIJ<3"/K"L//I4" M+I+6<9N0<3D+,<" 2H88N0<3D+,<" !"#$%"#$&'"%()&*""+&,-./-0(&!"#$%&'(!)*+(,!(-&./#/(0#$&1#2(( 3(45675.(68"(95:&/(";(67&(%".<&.=".(%&.6&$2(B/CH8-O/1 "PQ#I "(Q#I "#QPI "&Q&I "%Q&I "(QRI "'Q&I "RQSI "#Q#I "&Q&I "'QRI "RQ!I "&QRI "(Q'I "%QPI "RQ&I"

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282 Supply near the Convention Center The number of full-service, convention quality hotel rooms attached or adjacent to the convention center is also important to event planners. Denver currently offers 1,503 adjacent hotel rooms in two hotels, the 1,100-room Hyatt and the 403 -room Embassy Suites and ranks 9th in the number of full-service rooms attached or adjacent to the convention center. The attached/adjacent hotels are augmented by an additional 2,500 rooms in seven hotels (including the Renaissance projected to open in January 2014). When comparing Denvers rooms within three blocks of the center, it ranks 5th out of the 16 benchmarks, exceeded only by tourist and larger destinations including San Diego, Orlando, San Antonio and up and comer Indianapolis. Competing destinations such as Houston, Salt Lake City, Indianapolis, and others have evaluated the best approach to improving their full service room block capacity. This has resulted in public private partnerships including incentives for private developers to build new full service hotels in close proximity to their convention centers. !" #$!!!" %$!!!" &$!!!" '$!!!" ($!!!" )$!!!" *$!!!" +,-"./012" 345,-62" +,-"7-82-/2" 9-6/,-,:25/;" .0-<04" +,-"=4,->/;>2" ?0@"3450,-;" A,;B/-182-".C" DB/5,605:B/," E2F;82-" +0,G50" DB20-/H" 785,-8," .,55,;" CB/>,12" I2;82-"JICKCL" A/8B/-"&"I52>M;" 7G,>B06N76O,>0-8" !"#$%&'""(&)*+,*-$&.$*/�$&1"23$2#4"2&1$2#$/&!"#$%&'(!)*+((

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283 Target Market Survey Supply near the Convention Center The target market survey indicated the overall hotel package near the CCC is generally sufficient to meet their events needs. Over 86% of the respondents in the Larger Group and over 90% of the respondents in Smaller Group stated they strongly agree or somewhat agree that Denvers hotel package near the CCC is sufficient for their needs !"#$%& $"#'%& (#$%& ((#)%& (#(%& !*#+%& $)#,%& '#'%& -#*%& (#,%& '%& $'%& *'%& !'%& +'%& (''%& ./012345& 63077& .1879:;/& 63077& <7=/0;4& .1879:;/& >?@;3077& ./012345& >?@;3077& A70B72/&1C&D7@E12@7@& F;037&GH72/@&I&(J)''&/1&*J)''&A7;K&D118&
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284 Adjacent Headquarter Hotel The size and location of convention headquarters hotels are becoming increasingly important in planners decisions when selecting a destination. Cities across the U.S. understand this and have been actively developing headquarter hotels over the past two decades. Denver proactively invested in the 1,100-room Hyatt in 2005 and it made a positive impact on the citys ability to book events. The survey of meeting planners confirmed that Denver made the right decision with over 87% of the respondents agreeing that the Hyatt meets their headquarter hotel needs !"#$%& '"#(%& '#)%& $#*%& +#)%& !!#$%& +,#!%& ,#*%& !#!%& !#!%& -%& '-%& )-%& $-%& "-%& ,--%& ./012345& 63077& .1879:;/& 63077& <7=/0;4& .1879:;/& >?@;3077& ./012345& >?@;3077& A70B72/&1C&D7@E12@7@& F;037&GH72/@&I&,J!--&/1&)J!--&A7;K&D118&
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285 Remote Headquarter Hotel Meeting planners generally require their headquarter hotel to be attached or adjacent to the convention center. Survey respondents were asked if the distance of the Sheraton Denver (3.5 blocks) would be sufficient for their headquarters hotel if the Denver Hyatt were not available. Although Denvers hotel package is well received by the target meeting planners surveyed, the responses indicate the importance of headquarters hotel location. The focus groups reiterated that planners had more destination options with adjacent or attached hotel room blocks and were less willing to consider a headquarter hotel that was two to three blocks away. Even though the Denver Sheraton is located only 3 blocks from the CCC, the survey respondents satisfaction with this location for their headquarter hotel was materially lower than an attached/adjacent location. The meeting planner level of satisfaction with their headquarter hotel located 3 blocks away was cut in half when compared to their satisfaction with an attached/adjacent location. To maximize the convention center success, full-service hotel development should be fostered as close to the CCC as possible This concept was reinforced when meeting planners were asked whether or not they would book an event at a convention center if the headquarter hotel was attached, adjacent or 2 to 3 blocks from the center.

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286 Current Denver Hotel Inventory and available lots in proximity to CCC The diagram above demonstrates the small amount of land and options for full service hotel development. The research indicated the growing importance of full service hotel rooms within a short distance of the Convention Center for Denvers !"#$%& $"#'%& ''#(%& )#)%& )#)%& !!#"%& *+#*%& (#,%& )#)%& )#)%& -#,%& $,#,%& $,#,%& $+#"%& ')#+%& )%& $)%& -)%& +)%& ,)%& '))%& ./012345& 63077& .1879:;/& 63077& <7=/0;4& .1879:;/& >?@;3077& ./012345& >?@;3077& A70B72/&1C&D7@E12@7@& 6F;B:7G&/1&/:7&H72/70& 6GI;B72/&/1&/:7&H72/70& $J*&K41BL@&C018&/:7&H72/70& !"#$%&'(#)%%*#+,#-.-/0#10#1#2%/.-/03%/#2-/0-4#35#06-#6-1(7&140-48#6%0-'#389:# !"#$%&'(")*+*#,&-+./0#&"1&2""3*14& 644&MN72/@&

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287 competitive position. The development of full s ervice hotels in close proximity must be a focus of future planning efforts. Minimum Room Block Requirements Future Hotel Development Meeting Planners who supported groups with less than 1,500 rooms needed for their peak room night indicated their minimum room block requirements for a headquarter hotel. Over 40% of the respondents indicated a requirement of less than 700 rooms for their headquarter hotel room block needs. SAG also reviewed a recent study by the Watkins Research Group that included larger meeting and conventions. The Watkins Research Group Meeting and Convention Planners Survey is a biennial study of perceptions about 46 cities and convention bureaus and about important industry topics as perceived by meeting planners. The 2012 rep ort is based on surveys of 730 participants, representing 650 unique companies and/or associations. This is one of the most prestigious and respected meeting planner studies in the nation. This study indicated that 54% of the respondents needed 750 rooms or less on the peak room night for a hotel to be considered their headquarter. 43% of respondents required a headquarter hotel room block of 700 rooms or less

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288 The results of this research reinforce the importance of encouraging full service hotel development in Downtown Denver within close proximity to the CCC. Competitive Forces in Convention Center/Hotel Industries The chart above illustrates the market dynamics that currently impact Denver as a meeting and convention destination. The expansion of competitive convention centers have created significant pressure on center pricing as well as increased the destination options for large groups. The review of the largest tradeshows indicates no significant growth and more conventions centers where they can meet. The development of new full-service hotels that are within one block of competing convention centers has created an expectation for the location of a headquarter hotel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289 This makes the selling of Denver when the Hyatt is full more challenging. These are examples where Denver has the opportunity to stay ahead of these market dynamics and develop new physical enhancements in conjunction with new operating approaches. These investments and improvements will continue to elevate Denvers position in the meetings industry.

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290 Recent Convention Center/Hotel Developments Competitive Destinations The following are examples of new developments in competitive destinations. This reinforces the need to continue to improve the overall Denver convention and meetings experience. The expectation of having improved Convention Center space and connected or adjacent hotel rooms is continuing to increase due to new developments Destination Hotel/Convention Center Opening/Completion Orlando, Florida 1,400 room Hilton (connected to Convention Center) 2009 Dallas, Texas 1,000 room Omni (connected to Convention Center) 2011 San Antonio, Texas 1,003 room Grand Hyatt 2008 San Antonio, Texas Convention Center Renovation/ Expansion 2016 San Diego, California 1,190 room Hilton (adjacent to Convention Center) 2008 San Diego, California Convention Center Expansion 2016 San Diego, California 500 room Hotel (adjacent to Convention Center) TBD (approved) Indianapolis, Indiana 980 room JW Marriott Hotel 2011 Indianapolis, Indiana Convention Center Expansion 2011 Austin, Texas 1,012 room JW Marriott Hotel 2015 Houston, Texas 1,000 room Hilton Hotel (connected to Center) 2003 Houston, Texas 1,000 room Marriott Hotel (adjacent to Center) 2016 San Francisco, California Convention Center Expansion 2018 Chicago, Illinois 1,200 room Hotel (connected to Center) TBD (approved) Phoenix, Arizona Convention Center Expansion 2009 Phoenix Arizona 1,000 room Sheraton Hotel (adjacent to Convention Center) 2008 Philadelphia, Pennsylvania Convention Center Expansion 2011 Anaheim, California Convention Center Expansion 2016 Chicago, Illinois Internet and Wi-Fi Upgrades 2014 Washington D.C. 1,175 room Marriott Marquis (connected to Center) 2014

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291 Large Convention Hotels The growth of hotels with large amounts of exhibit, ballroom, and meeting space increases the competition for groups that could also meet in the CCC. The proposed Gaylord Hotel that the Marriott developers plan to build will be the state's largest hotel and convention center and only 9 miles from the passenger terminal of Denver Int ernational Airport. The subsidy for the proposed hotel is $81.4 million in state sales tax rebates and an additional $300 million from the City of Aurora. The 1,500 room Gaylord Rockies Hotel & Conference Center is projected to have exhibit and meeting room space that will compete with Denver for conventioneers. The following chart compares the meeting room space and hotel rooms. CCC Gaylord Exhibit 584,000 180,000 Ballroom 50,000 49,000 Jr. Ballroom 35,000 32,000 Meeting Space 92,000 45,000 Total Leasable 761,000 306,000 Hotel Rooms 9,000 1,500 An analysis of the fifty-seven 2012 CCC events that VISIT DENVER classifies as convention, tradeshows or citywide events indicates that 26 of the 57 events could be accommodated by a large convention hotel if the event desired to meet at a singular property instead of a downtown Convention Center. While the number of events appears large, the events that are vulnerable represent 19% of the room nights booked. In 2013, the number of events represented 16% of the rooms nights booked. A 2011 study by Greenwood Village-based Hospitality Real Estate Counselors Inc. for the Denver Metro Convention & Visitors Bureau produced a similar percentage of room nights that were vulnerable at 20%, and in addition to center business that would be vulnerable, analyzed Sheraton and Hyatt Hotel business as well. The numbers may fluctuate annually, however two years of analysis with two independent consultants demonstrate roo m night vulnerability in the range of 20%.

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292 2012 and 2013 Vulnerability Comparison 2012 2013 Room Night Generating Events 97 82 Total Room Nights Conventions/Tradeshows/Citywide 375,973 383,537 Other Room Night Generating Events 44,699 48,266 Total Room Nights 420,672 431,803 Vulnerable to Large Convention Hotel Conventions/Tradeshows/Citywide 35,651 34,911 Other Room Night Generating Events 44,506 35,204 Total Room Nights 80,157 70,115 Percent of Total Room Nights 19% 16% Conventions/Tradeshows/Citywide Events % lost 9.5% 9.1% The smaller meeting planners surveyed (requiring up to 1,500 rooms on peak) as part of this study indicated they were more interested in utilizing the CCC and downtown hotels than a large convention hotel. Sixty-nine percent of the respondents indicated a preference for a downtown package, with another 19% being neutral. Those surveyed generally desire an urban downtown experience over a suburban resort.

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293 One of the selling points a suburban resort will use when competing against a downtown product relates to ease in the booking process. A suburban resort by definition is a one-stop-shop. One salesperson and one event manager can tak e care of an events sleeping, meeting, and eating needs. In a downtown environment, a meeting planner often deals with a CVB salesperson upfront, negotiates with more than one hotel, negotiates with a convention center for space rental, negotiates with a separate caterer, and must coordinate the event with multiple event managers at the hotels, convention center, caterer and other vendors. The survey revealed that 54% of the respondents believe that the single hotel experience is much better than a downt own convention center multi -hotel experience. When asked the question with a list of service options, planners specifically mentioned fewer contacts, fewer contracts, centralized billing, and ease of planning, as reasons for favoring the single hotel expe rience like the large convention hotels will offer. !"#$%& $'#(%& )*#)%& ))#*%& +#+%& +%& $+%& !+%& ,+%& (+%& )++%& -./01234& 52/66& -07689:.& 52/66& ;6<./:3& -07689:.& =>?:2/66& -./01234& =>?:2/66& @6/A61.&0B&C6?D01?6?& -7:33&EF61.?& !"#$%&!"#$%&'$((($)##'*'+$%&'$),'*-..$'/0'*1'23'$-2+$&)%'.$0-34-5'$*'671*'+$#)*$89$','2%:$"$ ;)7.+$3&))<'$%&'$+);2%);2$='2,'*$0-34-5'$),'*$-$&)%'.>*'<)*%$;&'*'$89$','2%$ 3)7.+$?'$<'.#@3)2%-12'+$?7%$.)3-%'+$)7%<1+'$)#$+);2%);2$='2,'*AB$ !"#$%"#$&'"$()$%*"$&')$%)+&(,-&./0/+01$&2),"+%&

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294 Destinations across the country are experimenting with the implementation of a one -stop-shop program to better compete for smaller meetings. Such programs generally involve bringing together key partners such as the convention center, its service contractors, and key hotels to create a cohesive package One Denver. The sales teams are trained and empowered to sell all the assets. Contracts are coordinated with a goal to have one contract go to the client (often the rooms contracts must be separate but the terms for each hotel are identical). Finally, there is one event coordinator from the clients perspective, with others assisting behind the scenes. To minimize the impact of the Gaylord Rockies, it is recommended a One-Denver concept be developed that will make it as easy to book in downtown as it will be to book at a suburban resort. The opportunity for Denver is to build off an operational structure that is known as the Denver Alliance. The Denver Alliance is a partnership that was established in 2008 between SMG, Centerplate Catering, VISIT DENVER, the City & County of Denver, the Division of Theatres and Arenas, and the Hyatt Regency Denver at the Colorado Convention Center. The Alliance collaborates on sales, marketing and operations of the Colorado Convention Center. The feedback received from planners is an indicator of the success of the Denver Alliance. This collaboration will be an important foundation for the implementation of the One-Denver concept. !" #" $%" $%" $&" $'" ($" ((" )" %" $)" $%" ()" (%" !)" !%" *)" +,-./" 01/."2.,31/4526"1771/,8259.:" ;<:."1="<>>"<:7.?,:"1="7><22526" @.2,/<>5A.B"C5>>526" 01/."529D<,."=..>"<2B"526"35,-"=.3./".H.2,"?12,"/11D:"<2B"D..926":71?<912" J8DE./"1="K.:712:.:" LD<>>";H.2,:" !"#$%&'(%)#*+%,-.,+/,01,%$/2&%,3(%4,,0%4,22,+56% !""#$%&'$%'()#"*+',+-'.)%,"%#$)%'."%#"/+'

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295 Recommendation The convention hotel package is the single most important destination selection criteria once an event knows it can be accommodated in the convention center. The closer the hotel block is to the convention center the better it will work for meeting planners. It is recommended that the city foster hotel development as close to the CCC as possible This can be accomplished through the acquisition of desirable sites and by offering incentives for full service hotel projects near the CCC. It is also recommended that a One-Denver concept be developed that will make it as easy to book a convention in downtown Denver as it will be to book at a suburban resort with large exhibit and meeting space. This type of functionality and service approach is critical if downtown Denver and the CCC is to maintain and grow its share of these types of meetings. Denver is positioned well to be the first major destination offering a seamless approach to servicing conventions including all destination and convention center services, as well as downtown hotels. In 2008, a new advisory structure was implemented called the Denver Alliance. The Alliance members include Visit Denver, SMG, City & County of Denver division of Theatres & Arenas, Hyatt Regency Denver at Colorado Convention Center, and Centerplate Catering. The purpose of the Alliance is to effectively maximize space and profits at the Colorado Convention Center and visitor spending in the community. This functioning collaboration creates a solid foundation for the implementation of a seamless approach to selling and servicing smaller conventions. SAG believes that the Alliance is already industry leading and that others will be reshaping their management based on Denvers system. SAG also believes that the Alliance could go to the next step by perfecting a One Denver concept One Denver will entail creating a CCC and hotel package that can be sold and executed as one product to the meeting planner. This will enable d owntown to effectively compete with the Gaylord Rockies project and large convention hotels, as well as set Denver ahead of its competitive convention destinations.

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296 Conceptual Approach to CCC Expansion Recommendations SAGs architectural team at Fentress Architects has reviewed the proposed expansion and examined the potential opportunities for achieving the recommendations of this report. Preliminary investigation shows there are at minimum three possible options for these additions. Other options will be investigated in different price ranges to finalize the direction for the expansion. The following is an overview of their findings. Potential Program Space Expansion options were explored for a potential program of the following new spaces: Ballroom 50,000 net leasable square feet Meeting Rooms 25,000 net leasable square feet The new net leasable space would total 75,000 square feet. Generally, to get to a total area required to support net leasable areas a factor of 2.0 to 2.3 is typical to get to a total gross building area. For the 75,000 net leasable square feet roughly an additional 75,000 to 97,500 square feet would be required to support the net leasable space. The new support space required would be defined as registration lobbies, pre-function, balconies, terraces, food & beverage concessions, toilets, room entry vestibules, vertical circulation (fire stairs, escalators, public elevators, freight and service elevators), back of house support for service corridors, storage, wall storage closets, kitchen, food storage, pantries, ice and beverage stations, recycling areas, employee break-rooms, lockers, structure, mechanical, electrical, plumbing, audio visual, IT, and other miscellaneous spaces. If the citys desire is to create a special outdoor space as a rooftop events plaza, which will take advantage of the expansive views to the Rocky Mountains, then it would be prudent to use the 2.3 factor for support space. This factor would equate to a gross building area of approximately 172,500 square feet. In discussions with the city, an outdoor event space which could accommodate convention closeout parties was discussed. If the space could accommodate up to 10,000 people, then events could remain at the center rather than being bused off -site.

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297 Potential Expansion Options Given a net leasable area of 75,000 square feet and a gross building area of 172,500 square feet, three potential expansion options have been discussed. Option A: Rooftop North West Corner Option A would place a new 5 0,000 square foot Ballroom and 25,000 square feet of new Meeting Rooms on the North West corner of the roof of the 2004 addition. This location would provide the best possible western views to the front range of the Rocky Mountains and a strong visual connection to the urban core of the Downtown Denver skyline. Vertical circulation and access to this new space would occur at the west D and F Lobbies. Structural capacity was designed and built into the foundations and vertical support columns during the 2004 expansion, to accommodate expansion at this location. The columns would simply be extended up vertically and new floor beams would create a platform for this new construction. Service and loading would be connected to this level and new mechanical systems would be placed to support this new space.

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298 An outdoor events plaza would be capable of having event tents, food & beverage service and outdoor parties looking to the sunset over the mountains to the west. Option B: Ballroom Only Above Theater Option B provides only the 50,000 sf flexible, divisible ballroom. This location provides dramatic panoramic views to the Rocky Mountain Front Range. Its location adjacent to the C and D Halls will help activate these Halls. This option could be seen as an initial expansion, with less cost, while still preserving a future expansion on the rooftop of the 2004 addition. In other words, Option B could be constructed first, while still preserving Option A or Option C as a future expansion.

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299 Option C: Ballroom above Theater, Meeting Rooms/Jr. Ballroom at Rooftop Option C looks at adding new space over the top of the existing theater and meeting space on the roof of the 2004 expansion. This potential site is directly adjacent to the C & D Exhibit Halls and has direct views to the Rocky Mountains to the west. This location has the potential to add events to the west end of the center and the C & D Exhibit Halls. The research indicated that more attractive entry points and lobbies, which could be used for multi-group events and used by delegates staying in hotels being developed around the CCC, would enhance CCCs competitiveness. The theater was not designed to have an addition over the top of it. In order to accommodate an expansion in this location, new structural columns would be added to the outside perimeter of the theater. New structural trusses would be designed to span across and over the roof of the existing theater to these new perimeter columns. The depth required for these new trusses would elevate the floor of the new Ballroom above the current existing exhibit hall floor. Escalators would be added to efficiently transport delegates between these levels.

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300 This western location for a new Ballroom would feature the panoramic views to the mountains. The west wall of the Ballroom could be glass, with motorized, electronically controlled blackout shades. These shades allow for ultimate flexibility for audiovisual events as well as a spectacular, dramatic event of opening the blinds to expose the sunset over the mountains (similar to the Sewell Ballroom). The west side meeting space could have a positive impact on activating west facing halls. This site location is more limited in size than Option A, and would only allow for the ballroom and associated support space to be built over the theater. The upper roof area above the 2004 expansion could be utilized to add additional meeting space, or it could be preserved for another future expansion. The cost to construct new space above the theater will have a higher unit cost due to the fact that the structure was not provided to add space over the theater. The total cost will depend on the final plan and resulting size of the gross area of the new construction. Internal staff and planner input should be factored into the final direction of these options. Both Option A and Option B would allow for meeting space to be added in the near future, while preserving the opportunities for expansion at a later date. The Views the Denver Brand The following are the potential views from the new spaces that are recommended in this report. The proposed locations combine the need for additional ballroom and meeting space with the ability to highlight the views towards the Rockies and Downtown Denver. As stated earlier, the Meetings Planners indicated a high degree of interest in the CCC having specialty space that capitalizes on the Denver Brand. Downtown

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301 Rockies

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302 ECONOMIC IMPACT The implementation of the Convention Center recommendations herein is estimated to enable Denver to maintain its historical level of success and to improve its overall impact. As outlined in the study, in 2012 there were 50 four-day periods (excluding holidays) that the center could book events needing up to 100,000 square feet of exhibit space if there were ballroom and meeting space as recommended herein. If the CCC could book half of those dates with 25 events that average 3.0 days in length and 800 hotel rooms on peak, it would equate to 36,000 incremental attendees and 60,000 room nights annually. According to Destination Marketing Association Internationals (DMAI) event calculator, the average spending per attendee in markets similar to Denver is $1,314. This incremental impact results in an additional $47.2 million in annual direct delegate spending, generating an additional $3.4 million annually in local sales and hotel taxes. Over a 30-year period (assuming 2.5% inflation), incremental spending totals $2.1 billion and incremental local taxes total $148.6 million. SAG did not analyze the local, regional and social business that may choose to use the space or the additional ancillary business that might be gained by current conventions hosting their opening reception in the CCC versus an outside venue. This incremental activity would further support the addition of recommended space. The level of incremental direct spending in conjunction with the importance of staying competitive in an industry where new investment is prevalent validates the importance of the recommendations contained in this report. !"#$%&#'()#*+,*& ')#$'!--#*+##./+&,*& 0123456 7$%*8)/$-%-,/* 294:; #"#$%&# ?9:4;9 @#-%,A 614B6 @#C$#%-,/* ;94?3 ()%C#'@#*-%A' 664B: >D8,*#88'(#$",C#8 :5?4:1 '''7/-%A'E,$#C0:F;:;45; !"#$%&'()*+,(-.&/0(123%#320"$4

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303 The Cost of Doing Nothing The customer survey and focus groups delivered a clear message that Denver is currently a highly successful conventions and meetings destination. The level of activity in the CCC is above many of Denvers key competitors and while there is always opportunity to increase overall bookings, Denver is in a strong position currently. The Denver Alliance has been a highly successful collaboration, which has proven to deliver excellent customer service and continues to growth results in the shared metrics of overall success. If Denver and CCC were to take no action related to the recommendations in the report and not improve the physical plant or evolve the overall service delivery it would be logical to assume that it will lose market share to its competitors. This comes in many forms from not evolving the approach to capture and service smaller groups that will use the CCC and nearby hotels to not investing in technology and creating specialty space. The smaller groups which are an important highly competitive market have given specific feedback on how the CCC can compete in winning their business. The development of the Gaylord Rockies and competition from other large convention hotels create a real possibility of the CCC losing as much as 20% of its current smaller group business. This market is a critical area for future growth and will require additional resources and focus in the coming years. If Denver does not move in the direction outlined in this report, which includes a streamlined booking, contracting and servicing approach, it will risk losing significant market share over time. This is highlighted further by the fact that the number of larger premier conventions are staying flat with more convention center space coming on line in competing destinations. This ongoing development will force more destinations to focus on smaller groups to fill their convention centers. The future of the downtown Denver hotel industry is another key consideration. The addition of the Hyatt Regency has been well received by convention planners. The ongoing challenge is the need for more meeting space to accommodate self -contained groups for the Hyatt that book after the larger conventions have been secured. Without additional meeting space, the Hyatt and therefore Denver, stand to not realize the full share of meetings business from an 1,100 room downtown hotel.

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304 The importance of effecting planning for future downtown hotel development in commensurate with other recommendation contained in the report. If there is no specific plan put into action to encourage full service hotel development, Denver stands to lose market share as well as decrease the opportunities to grow additional business after the allocated rooms at the Hyatt are committed. If Denver does nothing and lets the natural market forces dictate future hotel development there is a high likelihood of an abundance of limited service hotels, which research shows are not a primary factor when convention and meeting planners are determining which destination they will choose for their group. While Denver is performing well today, if nothing is done to alter the meeting facility package as recommended, Denver can expect to see a slow decline in market share and bookings over time. This study was designed to specifically look at the facilities and marketplace. The recommendation, based on opportunity and lost demand is to increase flexible and iconic meeting space, which in tax dollars could generate nearly $3.4 million a year. However, it is important to understand the other two opportunities would be to convert more large business with iconic space and the cost of doing nothing at all in this competitive market place. In 2014 dollars, just a 10 percent decline of convention center business would represent $40 million of business, and nearly $2 million decline of tax revenue to the city. The negative impact of doing nothing will most likely be significant. In addition, if the sales staff converts just 10% more of the larger lost business (52 groups and $400 million) it also represents an additional $2 million a year in revenue. Both hard to quantify, but valid considerations. SAG recommends the full implementation of the recommendations in this report to keep Denver a market leader in the future.

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305 EXHIBIT A STUDY PARTICIPATION Internal Team Rich Carollo Director of Sales and Marketing, Colorado Convention Center Chris Adamec Senior Event Manager, Colorado Convention Center Randy Welsh Director of Operations, Colora do Convention Center Lindsey Richeaux Senior Event Manager, Colorado Convention Center Morgan Wheeler Senior Event Manager, Colorado Convention Center Brandon Sims Senior Event Manager, Colorado Convention Center Tyler Hunt Event Manager, Colorado Convention Center Brian Clark Event Manager, Colorado Convention Center Tricia Weldon Event Manager, Colorado Convention Center Becky Capolungo Event Manager, Colorado Convention Center Karissa Burns Event Manager, Colorado Convention Center Samant ha McDonald Event Manager, Colorado Convention Center Mona Roy Event Management Coordinator, Colorado Convention Center Harry Emmerson Convention Information Analyst, Visit Denver Rachel Benedick Vice President of Sales and Services, Visit Denver J ason Lusk Director of Sales, Visit Denver Vikki Kelly Convention Service Director, Visit Denver The Denver Alliance Kent Rice Executive Director Denver Arts & Venues, Denver Alliance John Adams General Manager, Colorado Convention Center, Denver Alliance Community Leaders Kelly Leid Executive Director North Denver Cornerstone Collaborative Tracy Huggins Executive Director, Denver Urban Renewal Authority Navin Dimond President & CEO, Stonebridge Companies Tom Clark CEO, Metro Denver EDC P aul Washington Executive Director, Denver Economic Development Rob Cohen CEO, IMA Financial Group Rus Heise Managing Director, RBC Capital Markets Craig Piper President/CEO, Denver Zoo Mission Bill Mosher CEO, Denver Convention Center Hotel Aut hority Kelly Brough President, Metro Denver EDC Lance Zanett AGM, Colorado Convention Center Customer Advisory Board Emily Catanzaro Director, Meeting Services, American Thoracic Society Kara Cox Marketing/Event Specialist, Emerson Process Manage ment Carol Cudworth Meetings Manager, Society for Mining, Metallurgy & Exploration, Inc. Nancy Gavin Operations Director, National Safety Council Jim Goodman Managing Vice President, Division of Conference & Meeting Services, American Dental Associat ion Tonya Horsley Director, Large Meetings & Registration, American Institute of Architects Ron Houghtaling Vice President Americas Marketing, CBRE Jackie Newis Meetings Manager, American Association of Critical Care Nurses Jackie Riscoe Director, Meetings and Conferences, International Council of Shopping Centers Gail Schuster Manager, Village Gatherings, Wisdom Team, DaVita HealthCare Partners Debbie Smithey Director, Educational Meetings, American College of Emergency Physicians Stacey Trey Manager, Meetings & Events, NCATE National Council for Accreditation of Teacher Education Danielle Urbina Director of Meetings & Exhibits, American Nuclear Society

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306 Industry Thought Leaders Steve Bagwell President & CEO, Charlotte Convention Center, Charlotte, NC Kathie Canning Executive Director (CEO), Orange County Convention Center, Orlando, FL Bob DeFacci Managing Director, Czarnowski Europe, Cologne, Germany Les Goldberg President & CEO (Owner), LMG, Las Vegas, NV Richard Maples Executive VP/National Sales, Shepard Exposition Services, Atlanta, GA Jeff McCaw Senior VP of Operations, Freemanco (Freeman Decorating Co.), Dallas, TX Ken McAvoy Senior VP, Reed Expositions, Norwalk, CT Jim Milanowski VP, Czarnowski (Exhibit Services), Aus tell, GA Jon Mills General Manager, Brede/Allied, Orlando Florida Sisco Spence Regional Director of Operations (Eastern US), Levy Restaurants, Charlotte, NC Charles Starks President & CEO, Music City Center, Nashville, TN Doug Ducate Former CEO, CE IR Vicki Hawarden President and CEO, International Association of Venue Managers (IAVM) David DuBois President, International Association of Exhibitions & Events (IAEE) Hotel Community Walter Isenberg CEO/Founder/President, Sage Hospitality Tom Curl y GM, Westin Denver Downtown Ed Bucholtz GM, Hyatt Regency Denver at the Colorado Convention Center Suppliers Nicole Marsh President, Arrangers DMC Rob Venus General Manager, FREEMAN Customer Focus Groups Donna Cappo Director of SIG Services, Association for Computing Machinery Cathy Scheck VP of Meetings, Heart Rhythm Society Tom Pellet Director, Meetings & Conventions, American Academy Of Family Physicians Cele Fogarty VP for Meetings and Member Experience, American Society of Nephrolog y Christopher Gribbs Managing Director, AIA Convention, American Institute of Architects Stephen Emery Senior Mgr., Meetings and Expositions, Society of Exploration Geophysicists Sharon Sullivan Vice President, Conference Services & Sales, LeadingAge Cynthia Airhart Director, Division of Conv. & Meeting Svc., American Academy of Pediatrics Trina Armstrong Director of Meetings, American Society for Cell Biology Kristin House Vice President/Team Director, ConferenceDirect Frank Hugelmeyer President, Outdoor Industry Association Ann Kilian Senior Conference Manager, International Association of Chiefs of Police Gary Schirmacher Senior Vice President, Strategic Account Services, Experient Steve Kinsley President, Kinsley Meetings Steve Okule y Associate Vice President, National Conferences & Events, Noel Levitz Inc Gail Schuster Manager, Wisdom, DaVita HealthCare Partners Cari (Cas) Strouse Meeting & Event Director, CH2M Hill Amy Kreps Senior Corporate Events Manager, IHS Michael Clark e Operations Director, Penton Media Inc. Pia Williams General Manager, Dish Network Kristin House Vice President/Team Director, ConferenceDirect Jeff Wood Vice President, Worldwide Product Management, Hewlett Packard Company Janice Field Event Co ordinator, E Source Pam Newman Vice President, Event Management, RE/MAX International, Inc. Julie Kraft Manager, Event Planning & Marketing, AVNET TECHNOLOGY SOLUTIONS Daniel Stones Institutes Department, Solution Tree Matt Pesce Vice President of Product Strategy, Zoll Data Systems Gretchen Bliss Director, Conference and Educational Activities, EDUCAUSE

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307 Debbie Kaylor Executive Director, Conventions & Meetings, National Cattlemens Beef Assn. Chuck Potter Director of Meetings American Animal Hospital Association Justin Ball President, Bespoke Event Group Russell Kraus President, Meetings in General Garth Jordan Vice President, Operations, EDUCAUSE Melissa Cummiskey Senior Director of Meetings & Events, Geological Society of America Da ve Kanagy Society for Mining, Metallurgy & Exploration, Inc. Nelson Fabian Executive Director, National Environmental Health Association (NEHA) Stephanie Lasser Director of Conferences, Investment Management Consultants Association Heather Plush Pr ogram Manager, National Conference of State Legislatures April DeBaker Director of Conventions, American Water Works Association James Cousin CFO, Association of periOperative Registered Nurses Carol Cudworth Meetings Manager, Society for Mining, Met allurgy & Exploration, Inc. Sondra Doolittle Meetings and Expositions Manager, American Academy of Forensic Sciences Lori Buster Director of Meetings & Conferences, MGMA ACMPE Frank Hugelmeyer President, Outdoor Industry Association Lori Herrera Ex ecutive VP and COO, Outdoor Industry Association Jill McClure Senior Vice President, Colorado Oil & Gas Association Elizabeth Price Executive Director, Metropolitan Denver Dental Society Lori Herrera Executive VP and COO, Outdoor Industry Association Leslie Hettenbach Meetings Manager, American Urological Association Beverly Johnson Manager, Dept. of Mtgs. and Exposition Svc., American Chemical Society Susan Katz Director of Corporate Events & Travel, True Value Company Amy Kreps Senior Corpor ate Events Manager, IHS Jill Perlstein Meetings and Planning Officer, American Booksellers Association Debra Arneson Associate Director of Convention & Events, Metropolitan Denver Dental Society Diane Vidoni Vice President, Operations and Conferences National Trade Productions Melissa Cummiskey Senior Director of Meetings & Events, Geological Society of America Kristin Bakota Meetings Manager, APICS The Association for Operations Management Michael Clarke Operations Director, Penton Media Inc C arol Cudworth Meetings Manager, Society for Mining, Metallurgy & Exploration, Inc. Janice Field Event Coordinator, E Source Kristin House Vice President/Team Director, ConferenceDirect David Kanagy Executive Director, Society for Mining, Metallurgy & Exploration, Inc. Stephanie Lasser Director of Conferences, Investment Management Consultants Association Fun Lee Manager, Meeting Planning, Cardiovascular Research Foundation Janee Pelletier Senior Account Manager, Conference and Logistics Consul tants, Inc. Heather Plush Program Manager, National Conference of State Legislatures Eva Wilczek Meeting Services Manager, American Association of Endodontists Pia Williams General Manager, Dish Network Jodie Wilmot Director of Meetings, National Association of College Stores James Goodman Managing VP, Division of Conf. & Meeting Svc., American Dental Association Russell Kraus President, Meetings in General Renee Peiper Assistant Director, Institutes Solution Tree Kirsten Olean Director of Meetings, Association of American Medical Colleges Carrie Abernathy Director of Education, Training & Events Practice, Greenhealth Lauren Chelf Director of Meetings and Education, AOAC International Bethany Chirico Dir. of Conference & Mtgs, National Assn. for College Admission Counseling Windy Christner Senior Director, Meetings & Expositions, American Pharmacists Association James Cousin CFO, Association of Perioperative Registered Nurses Cameron Curtis Senior Manager, Meetings and Events, Cour tesy Associates Nancey DeBrosse Sr. Vice President, Sales and Account Management, Experient Sondra Doolittle Meetings and Expositions Manager, American Academy of Forensic Sciences Sue Dykema Executive Director, American Society for Aesthetic Plastic Surgery Nelson Fabian Executive Director, National Environmental Health Association

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308 Jill Ferguson Associate VP Meetings and Registration Services, Mortgage Bankers Association Tamera Gayden Meetings Manager, American College of Obstetricians and Gy necologists Jennifer Haire Director of Assn. and Conference Services, National Center for State Courts Pam Harris Vice President, Event Management, RE/MAX International, Inc. Frank Hugelmeyer President, Outdoor Industry Association Garth Jordan Vi ce President of Operations, EDUCAUSE Ray Kopcinski Meeting Services Director/Executive Producer, Million Dollar Roundtable Julie Kraft Manager, Event Planning & Marketing, Avnet Electronics Eileen Mantel Sr. Administrator Heating, Air Conditioning an d Refrigeration Distributors, Intl. Jill McClure Chief Operating Officer, Colorado Oil and Gas Association Kristina Mechelis Meeting Planner, Association for Financial Professionals Catherine Mills Director, Council on ADA Sessions, American Dental A ssociation Matt Pesce Vice President, Product Strategy, ZOLL Data Systems Felicia Price Sr. Mgr., Meetings, Am. Academy of Otolaryngology Head and Neck Surgery Stuart Ruff Director Meeting & Events, Risk and Insurance Management Society Robert Smith Director of Meetings, American Council for Technology Daniel Stones Solution Tree Cari (Cas) Strouse Meeting & Event Director, CH2M Hill Pam Valenzuela President, ASCENT Management, LLC Jennifer Vaughn Asst. Director Conventions and Meetings, Ame rican Farm Bureau Federation Chris Wehking Director of Meetings & Exhibits, American Society of Anesthesiologists Jeff Wood Vice President, Worldwide Product Management, Hewlett Packard Company April DeBaker Director of Conventions, American Water Wo rks Association Consumer Show Industry Jim Fricke Executive Director, Colorado Garden Show Inc. Rick Flattum Director of Operations, International Angler's Expositions, Inc. dba International Sportsmen's

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309 EXHIBIT B LIVESTOCK INDUSTRY OVERVIEW SLIDE S The following presents slides from various livestock industry presentations provided by CattleFax, a global leader in beef industry research, analysis, and information since 1968. This information is summarized in the Livestock sub-section of the Stock Show section of this report. UN/FAO Projections Global food production will need to increase 40% by 2030 and 70% by 2050; beef and dairy production will need to DOUBLE by 2050 Farming in 2050 will occupy only 13% more land than is used in 2008

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310 We are living in extraordinary times!!!What does this tell us about agriculture the past 100 years?! What about the next 100 years? !Source: US Department of Commerce, plus other published estimates Changes in income explain 89% of the growth in U.S. meat/poultry exports

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311 Source: UN/FAO 50 75 100 125 150 175 200 225 2002 2004 = 100 Global Meat/Poultry Inflation Poultry Pork Beef Sheep/Lamb The worlds poor bear the brunt of global food inflation Source: USDA, Euromonitor *% of spending on food consumed at home 1 in 6 are hungry today UN/FAO

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312 Source: FAO, FAOSTAT

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313 Global Meat CONSUMERS: PER CAPITA 0 50 100 150 200 250 U.S. Argentina Australia Brazil Canada EU-27 Singapore Mexico China Pounds Poultry Pork Beef Source: 2013 F, USDA/FAS, carc wt equiv.

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314 Feedlot Operator Buys calf or yearling to grow, and or place on feed for 100 to 250 days; sells when at Choice grade at 1200 to 1350 lbs.

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315 Consumer Revenue Fuels the Industry Roughly $73 billion in consumer spending on beef annually Costs and Margin for! !Retail! !Packer! !Feeder! !Cow-calf! !Afliates (seedstock pharma equipt, etc)!Industry Margin Structure Top 10 Cattle Countries in the World 2012 Rank Head (000) Percent of Total 1.! India 2.! Brazil 3.! China 4.! United States 5.! EU-27 6.! Argentina 7.! Colombia 8.! Australia 9.! Mexico 10. Russian Fed. 323,700 197,550 104,346 90,769 86,196 49,597 30,910 28,506 20,090 19,695 32% 19% 10% 9% 8% 5% 3% 3% 2% 2% World Total 1,019,291 Source: USDA/FAS

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316 Global Meat PRODUCERS 2013 F 0 20 40 60 80 100 120 140 160 180 China EU-27 U.S. Brazil Russia Mexico India Argentina Canada Australia Bil Lbs, cwe Poultry Pork Beef Source: USDA/FAS TOP 4= 72% Global Beef PRODUCERS 2013 F 0 5 10 15 20 25 30 U.S. Brazil EU-27 China India Argentina Australia Mexico Pakistan Russia Canada Bil Lbs, cwe Source: USDA/FAS TOP 4= 60%

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317 Beef Herd Contracting: Weather Land Values Ethanol Alternative Land Uses Urban Sprawl Government Policy Age of Producer

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318

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319

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320

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321 !"#$%&'()'*+,-%.'/%+0%1' 2%&'*(/'%32(.%1'4+.'5(0%' "2'64&("54'64%'7%+&.8' 90*&%+.:05'2&(1"*;-:67

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322

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323 United States Feedyards >16,000 Head January 1, 2013 MN MN MN MN MN MN MN MN MN KY KY KY KY KY KY KY KY KY IN IN IN IN IN IN IN IN IN IL IL IL IL IL IL IL IL IL ID ID ID ID ID ID ID ID ID IA IA IA IA IA IA IA IA IA GA GA GA GA GA GA GA GA GA FL FL FL FL FL FL FL FL FL CO CO CO CO CO CO CO CO CO CA CA CA CA CA CA CA CA CA AZ AZ AZ AZ AZ AZ AZ AZ AZ AR AR AR AR AR AR AR AR AR AL AL AL AL AL AL AL AL AL NV NV NV NV NV NV NV NV NV NM NM NM NM NM NM NM NM NM ND ND ND ND ND ND ND ND ND NC NC NC NC NC NC NC NC NC MT MT MT MT MT MT MT MT MT MS MS MS MS MS MS MS MS MS MO MO MO MO MO MO MO MO MO MN MN MN MN MN MN MN MN MN MI MI MI MI MI MI MI MI MI ME ME ME ME ME ME ME ME ME LA LA LA LA LA LA LA LA LA WI WI WI WI WI WI WI WI WI VA VA VA VA VA VA VA VA VA UT UT UT UT UT UT UT UT UT TX TX TX TX TX TX TX TX TX TN TN TN TN TN TN TN TN TN SD SD SD SD SD SD SD SD SD SC SC SC SC SC SC SC SC SC PA PA PA PA PA PA PA PA PA OR OR OR OR OR OR OR OR OR OK OK OK OK OK OK OK OK OK OH OH OH OH OH OH OH OH OH NY NY NY NY NY NY NY NY NY WY WY WY WY WY WY WY WY WY MN MN MN MN MN MN MN MN MN KY KY KY KY KY KY KY KY KY IN IN IN IN IN IN IN IN IN IL IL IL IL IL IL IL IL IL ID ID ID ID ID ID ID ID ID GA GA GA GA GA GA GA GA GA FL FL FL FL FL FL FL FL FL CO CO CO CO CO CO CO CO CO AZ AZ AZ AZ AZ AZ AZ AZ AZ AR AR AR AR AR AR AR AR AR AL AL AL AL AL AL AL AL AL NV NV NV NV NV NV NV NV NV NM NM NM NM NM NM NM NM NM ND ND ND ND ND ND ND ND ND NC NC NC NC NC NC NC NC NC MS MS MS MS MS MS MS MS MS MO MO MO MO MO MO MO MO MO MN MN MN MN MN MN MN MN MN MI MI MI MI MI MI MI MI MI ME ME ME ME ME ME ME ME ME LA LA LA LA LA LA LA LA LA WI WI WI WI WI WI WI WI WI VA VA VA VA VA VA VA VA VA TX TX TX TX TX TX TX TX TX TN TN TN TN TN TN TN TN TN SC SC SC SC SC SC SC SC SC PA PA PA PA PA PA PA PA PA OR OR OR OR OR OR OR OR OR OH OH OH OH OH OH OH OH OH NY NY NY NY NY NY NY NY NY WY WY WY WY WY WY WY WY WY United States Feedyards >4,000 Head January 1, 2013

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324 Source: USDA/FAS

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325 U.S. TRADE Source: USDA/FAS 0 1 2 3 4 5 6 7 8 50 55 60 65 70 75 80 85 90 95 00 05 10 Bil Lbs U.S. Meat/Poultry Exports Broiler Pork Beef YEARS Source: USDA/FAS

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326

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327 In Summary: Global Beef Tightening global supplies Increasing global demand Price inflation U.S. Beef Exports slightly higher due to Japan Global opportunities are great (billions vs millions) GLOBAL potential for U.S. beef is VERY GOOD

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328 !'(#)'(#&!"#$"%& & !'(#)'(#&*+,-.#" & D&"E /*'.-;*%?"*F.-F-/",*5"E* :-(-.#,-*:-58"5%&-5*:"5%".*!#((.--;* #5,*4""%&5A*