Convention/Conference Center Market & Feasibility Billings, Montana March 16-17, 2015 HVS Convention Sports and Entertainment March 16-17, 2015 1 Consulting For Discussion Purposes Only
Project Scope and Timeline ATION AND DRAFT INTERIM REPORT Analysis of Market Analysis Financial Preliminary D INFORMATION GATHERING Operations Ownership / Building Management Program Models Recommendations AND PRESENTATION Industry Trends Analysis Site Analysis Funding Scenarios Competitive and Analysis of FINAL REPORT AND SITE VISIT IN BILLINGS AND IN CONFERENCE CALL PRESENATION Comparable Venue Comparable Venue Supporting Supporting Analysis Amenities Event Demand Analysis of and Room Night Economic & Fiscal Projections Impacts Preliminary Cost User Survey & Estimates Interviews Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10 Week 11 Week 12 Week 13 Week 14 Week 15 HVS Convention Sports and Entertainment Consulting March 16-17, 2015 2 For Discussion Purposes Only
Billings Market Area Analysis Economic and Demographic Data Summary Estimate Annual Beginning Ending Economic Indicator/Area 2000 2010 2014 2020 Compound Change 2014 Amount Amount to 2020 Resident Population (thousands) 178 Billings, MT MSA 139 1.2% 1,096 State of Montana 904 1.0% 340,554 United States 282,162 1.0% Per-Capita Personal Income* (thousands) $39.5 Billings, MT MSA $29.7 1.3% $35.7 State of Montana $26.1 1.3% $40.2 United States $33.8 1.3% Unemployment Statistics Unemployment Statistics 12% Billings’ economy benefits from strong population growth, low MSA State Country 10% unemployment and a growing employment base. Billings’ well-established healthcare, growing energy, and agricultural 8% industries further support forecasts of continued economic growth for businesses in the city. The economic outlook for 6% the area is generally positive with employment growth anticipated in most sectors, most notably in those associated 4% with healthcare and professional and technical services. 2% 0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 HVS Convention Sports and Entertainment Consulting March 16-17, 2015 Page 3 For Discussion Purposes Only
Billings Market Area Analysis MAJOR EMPLOYERS Passenger counts in Billings generally increased through 2008 Number of and began falling, reaching lows in 2010. Strong growth through Firm Employees 2012 was erased in 2013 when passenger volumes again fell to a new low and below those at Bozeman Yellowstone International. Billings Clinic Health System 3000+ St. Vincent Health System 2000+ Wal-Mart Stores, Inc. 1000+ Avitus Group 1000+ Passenger Volume First Interstate Bank 500-999 900,000 St. Johns Lutheran Ministries 500-999 850,000 Wells Fargo 500-999 Albertsons Food & Drup 500-999 800,000 Employee Benefit Management Services 250-499 750,000 CHS Inc. 250-499 700,000 Advanced Employment Services 250-499 ConocoPhillips 250-499 650,000 Costco Costco 250-499 250-499 600,000 600,000 ExxonMobil 250-499 550,000 McDonalds 250-499 Sysco Food Services 250-499 500,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Yellowstone Boys and Girls Ranks 250-499 Source: Billings Logan International Airport Source: Big Sky Economic Development Authority Billings’ employment profile suggests a diversified employment base with a wide range of industry sectors. Strong healthcare, energy, and agriculture services indicate potential for generating convention and other group demand. HVS Convention Sports and Entertainment Consulting For March 16-17, 2015 Page 4 Discussion Purposes Only
Billings Market Lodging and Meeting Infrastructure While the supply of Billings’ meeting venues contains facilities with larger amounts of function space, many are older, outdated Billings Lodging Inventory properties are without the amenity and finish level expected by Number of Number of Percentage of today’s event planner and attendees. In addition, the larger Chain Scale Properties Guest Rooms Guest Rooms properties in Billings are located in areas without convenient, Upscale 6 806 18% walkable access to dining, retail, and entertainment establishments, a Upper Midscale 11 1,210 26% feature of major importance to event attendees. Midscale 4 343 7% Economy 8 736 16% Current Billings Meeting and Event venues Independent 22 1,494 33% Number of Exhibit / Total 51 4,589 Total Functions Ballroom / Meeting Space (Sq. ft.) Divisions Source: STR Venues with Lodging Size (Number of Guest Number of Number of Percentage of Holiday Inn Grand Montana & CC 19 50,000 Rooms) Properties Guest Rooms Guest Rooms 22,000 Billings Hotel and Convention Center 18 Crowne Plaza 16 15,800 Less than 100 Less than 100 35 35 2,235 2,235 49% 49% Northern Hotel Northern Hotel 12 12 11,500 11,500 100 to 149 12 1,354 30% Big Horn Resort 5 7,700 150 to 199 1 160 Hilton Garden Inn 6 3,700 3% 2,900 Hampton Inn 2 200 and over 3 840 18% Hampton Inn & Suites 2 2,400 Total 51 4,589 Best Western PLUS Kelly Inn & Suites 1 1,500 Best Western PLUS Clock Tower Inn 1 1,400 Source: STR Venues without Lodging Highway access ... Metrapark Arena/Exhibit Hall 11 50,000 Metrapark Expo Center 2 77,400 Montana Pavilion 2 28,800 The Billings MSA has over 50 hotel properties with Other Metrapark Facilities 3 24,609 nearly 4,600 hotel rooms. The majority of hotels in Western Heritage Center 5 10,000 Montana State University 9 7,360 Billings are smaller properties with less than 150 rooms. Historic Billings Depot 3 6,000 Billings has a good mix of service levels available with Auditoriums and Theaters Sq. Ft./Seats the greatest percentage of properties at the upper Shrine Auditorium 3 30,000/2,340 midscale level. The market also contains a large number Alberta Blair Theater 1 na/1,350 NOVA Center for the Performing Arts 8 7.100/120 max of smaller, independent properties. Source: Visit Billings, Respective Venues HVS Convention Sports and Entertainment Consulting For March 16-17, 2015 Page 5 Discussion Purposes Only
Comparable Venue Function Space Analysis HVS compared 5 competing in-state venues, 7 potentially competitive regional venues, and 8 conference hotel properties in Montana and Wyoming with respect to the amount of their function space (exhibit, ballroom , and meeting). Total Function Space Name of Venue Location (square feet) Montana Convention Centers Great Falls Civic Center Great Falls MT 23,938 * Proposed Bozeman Conference Center Bozeman MT 21,000 Montana State University Strand Union Building Bozeman MT 17,858 University of Montana University Center Missoula MT 17,670 Helena Civic Center Helena MT 10,730 Regional Convention Centers Bismarck Civic Center Bismarck ND 95,911 Fargodome Fargodome Fargo Fargo ND ND 94,902 94,902 Rushmore Plaza Civic Center Rapid City SD 87,026 Sioux Falls Convention Center Sioux Falls SD 56,372 Boise Centre Boise ID 33,460 Yakima Convention Center Yakima WA 29,908 Wenatchee Convention Center Wenatchee WA 24,852 Competitve Hotels Little America Hotel & Resort Cheyenne WY 25,989 Best Western Plus Heritage Inn Great Falls MT 18,308 Parkway Plaza Hotel & Convention Center Casper WY 17,209 Hilton Garden Inn Missoula Missoula MT 15,581 Red Lion Colonial Hotel Helena MT 13,536 Hilton Garden Inn Kalispell Kalispell MT 10,046 Fairmont Hot Springs Resort Butte MT 8,614 Holiday Inn Bozeman Bozeman MT 6,398 * Estimated based on preliminary planning reports Sources: Respective Venues HVS Convention Sports and Entertainment Consulting March 16-17, 2015 Page 6 For Discussion Purposes Only
Exhibit Space Comparison Fairgrounds and sports venues throughout the state of Montana are the only venues in the state which offer exhibition space. HVS excludes these venues from this analysis, because they are not competitors for conventions which typically require exhibit, ballroom, and meeting space under one roof. Some regional convention centers contain a dedicated exhibit hall, primarily with modest amounts of exhibit space. Venues in Bismarck and Fargo use a sports stadium floor for exhibit events. These venues do not have ballrooms but contain large amounts of meeting space. EXHIBIT HALL EXHIBIT HALL Regional Convention Centers sf # halls Bismarck Civic Center 80,000 3 Fargodome 80,000 1 Rushmore Plaza Civic Center 41,402 5 Sioux Falls Convention Center 33,600 2 Wenatchee Convention Center 7,506 2 Yakima Convention Center 0 0 Boise Centre 0 0 Average 48,502 3 HVS Convention Sports and Entertainment Consulting March 16-17, 2015 Page 7 For Discussion Purposes Only
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