January 18, 2010 | News

Hoteliers advocate for funding to market proposed convention hotel - Business First

By Brian R. Ball

Marketing Columbus as an attractive convention site could fall short if more money isn't found for getting the word out about a planned second convention center hotel.

Franklin County and city officials on March 5 unveiled financing plans for a 500-room, $150 million hotel and conference center on North High Street between Nationwide Boulevard and Vine Street. But three hotel managers in the city said tapping $1.9 million in bed taxes the hotel is projected to generate each year for debt service could hurt efforts to land the larger conventions the newest hotel is designed to attract.

"I couldn't be more excited that they finally figured out a way to get this hotel built, even though it includes redirection of that property's bed tax dollars," said Charles Lagarce, whose Columbus Hospitality LLC operates the Crowne Plaza Hotel near the convention center. "Now we have to figure out how to get the marketing dollars."

Complicating factors

Experience Columbus, the region's convention and tourism bureau, will spend nearly $5.2 million of its 2009 $6.4 million annual budget marketing the city after hoping it could match the $6 million marketing budget of a $7.5 million budget in 2008.

Its 2009 campaign took a $531,000 hit in February, when the city cut its support in the face of a mounting budget deficit. Projections also call for falling revenue based on reduced travel to the region this year.

Lagarce said national associations typically choose convention sites years ahead of their events. With expectations the new hotel will open in 2013, he said Columbus has little time to waste. Such a marketing campaign could need a $2 million to $5 million shot above and beyond Experience Columbus' regular marketing efforts.

"We have to start selling it now for 2013," Lagarce said. "You can't wait two years from now."

Tim Dant, general manager of the Hyatt Regency, the city's principal convention hotel with 631 rooms, is among those supporting a boost to marketing efforts.

"It's very critical (the new hotel) gets marketed before the shovel even goes into the ground," he said. "We have to sell this enhanced package."

The general manager of Holiday Inn on the Lane near Ohio State University agreed.

"For the convention business, we're going to have to be at trade shows," said Fred Harris. "That's traveling and setting up at exhibit halls. That can be expensive."

Promised relief

Paul Astleford, Experience Columbus' CEO, defended the planned use of the bed taxes for the hotel despite the financial punch his organization will take this year.

"Without that (funding) assurance," he said, "we may not have had the hotel."

Astleford said he expects the city, county and Convention Facilities Authority to boost revenue beginning as early as 2010.

"Now that we know we're getting the hotel, all parties are going to work on what we need to do to build our national convention marketing," he said.

While those details are yet to be worked out, Lagarce said he doesn't like raising money by increasing the city's bed tax. Combined with state and county sales taxes, Columbus visitors pay a 16.75 percent room tax, which puts the city among the three highest room taxes in the nation.

"There's no more to tap there," Lagarce said.

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