March 1994

Hotel Shows

Is a hotel the right site for your next exposition?

By Jenny Tesar

Comparing hotels is rather like comparing cars. Sure, all cars have four wheels that can carry you from point A to point B. And all hotels have rooms that can be used for sleeping or meeting. But with hotels as with cars, generalizations are... generalizations. There's a tremendous range of size and quality. Show organizers -- like car buyers -- need to recognize the breath of the universe, and be prepared to ask some basic questions before committing their name, money and peace of mind to an event in a new venue.

At one end of the scale are hotels with large, dedicated exhibit space and state-of-the-art services that rival those of the best convention centers. Other hotels have a lot of experience in turning ballrooms and meeting rooms into high-quality exhibit space. And then there are hotels with rooms that can be converted into exhibit space, but that lack many of the support services needed by a show organizer. Nonetheless, with proper planning, they, too, can be excellent places to hold trade or consumer shows. As Steven Shuldenfrei, President of Signature Trade Shows says, "If you're prepared, you can do anything."

Better capture ratio
A major advantage of holding a show in a hotel is the ability to keep everything -- and everyone -- under one roof. "By containing your exhibitors and attendees in one building, they're less likely to go shopping or sightseeing," says Schuldenfrei. "It's easy from their standpoint, too; they can roll out of bed and go right into the program."

"There's a better 'capture ratio,'" agrees Jim Luce, Director of Marketing at the Anaheim Marriott. "When attendees don't have to travel from one building to another, there's less opportunity for them to stray."

It's also conducive to networking, notes Vince Pagone, Exhibit Hall Director at the Hyatt Regency Chicago. "People aren't wasting time," he says. "There's lots of ongoing communication, selling and teaching, not only in meeting and exhibit rooms, but standing in the lobby, meeting in the gift shop, walking through the hallways."

And it often means one less hassle and expense for the show organizer, who doesn't have to arrange for shuttle transportation between buildings.

But find out what other events are taking place at the hotel during your show. "Some large hotels have two floors of ballroom space, and may have two or three different shows running at the same time," says Schuldenfrei. "You're fighting for registration space, lobbies, function space. True, this can also happen in a convention center, but there, events are typically segmented into discrete areas. A hotel may have ballrooms on either side of a lobby, with a common registration area in between. Or other groups may be jamming up food areas at meal times and freight elevators during move-in or move-out."

Facilities and services
Exhibit space. Hotels are less likely than convention centers to have large, column-free expanses of exhibit space. You may have to spread exhibits out over several rooms, perhaps even onto separate floors. Ceilings are generally lower; for instance, most convention centers have 35-foot ceilings, whereas hotel ballrooms are generally 17 to 23 feet high. If your exhibitors insist on large island booths, two-story booths or unusually tall displays, ballroom space may not work for your show.

Product services are generally the same. Utilities, however, are another matter. "If your exhibitors are high consumers of electricity, water or compressed air, you'll have a tougher time finding a suitable hotel," says Schuldenfrei.

Move-in, move-out. Some hotels have loading docks at exhibit hall level, with direct access onto the exhibit floor. Typically, however, hotels have limited loading dock facilities, without direct dock access to the exhibit area. Marshaling facilities may also be lacking, particularly in cities where space is at a premium.

"In most hotels, it's going to take longer to get your show in and set up and to get it out," says Robbi Lycett, Director of Expositions for National Trade Productions.

Often, ballrooms aren't near a loading dock, so you're dealing with an elevator as well as the loading dock for move-in and move-out. "And if the ballroom doesn't have a dedicated elevator, at the same time as you're moving freight, they may be bringing mushrooms and cans of chili con carné into the kitchen," says Schuldenfrei. "Also, you may be dealing with a facility that gets really upset if you run a forklift on the carpet. Or the hotel may require your decorator to put plywood over the carpet."

Because of such problems, contractors often suggest pipe-and-drape packages, which can be set up comparatively quickly. "It's a lot easier if all your exhibitors exhibit in packaged booths rather than bringing in their own displays, especially if there's a short turn-around time," says Lycett.

Be prepared for higher drayage rates. Most of the time, it's going to take longer to unload a truck. Maybe trucks can't be backed up to a loading dock. Maybe you can't drive a forklift onto the truck, which means that everything has to be pushed to the back of the truck before it can be taken off with a forklift. Maybe everything has to be rolled into the exhibit hall on dollies.

General contractors. Working with a general contractor is basically the same regardless of where your show is held. "There's really no difference," says B.J. Aaron, Manager for GES Exposition Services at the Hyatt Regency Chicago. "A contractor like GES is going to give the same level of service in either type of facility."

However, realize that some hotels have exclusive general contractors. Others may have a recommended contractor but allow you to bring in someone else if you prefer. Also ask if the hotel has a dedicated exhibit hall manager whose responsibilities include things such as move-in and move-out.

Exclusive or in-house contractors may present problems for show managers, says Lycett, particularly if you have a long-term contract or long-term relationship with a contractor. "It takes away your ability to negotiate prices and services because you have to use them. Also, you have to use their equipment, and maybe their equipment isn't as nice as that of the contractor you normally use."

Food and beverage. For a long time, it was probably true that hotels beat convention centers when it came to food and beverage service. But in recent years, there has been a dramatic improvement at many convention centers. "You cannot make a general statement about quality, but a major hotel is probably going to be able to do a lot more than a convention center caterer," says Lycett.

At the Hyatt Regency Chicago, for example, the chef sits on the executive committee with the general manager and director of sales and is heavily involved in preparations for shows and meetings. "At most hotels, there's a very high level of input by our food and beverage department," says Pagone.

Booking space and negotiating costs
In many markets, it may be easier to find space in hotels than in convention centers. In addition, there are more hotels than convention centers and hence more competition. "For example, it's tough to get Anaheim in October, but you might be able to find a hotel elsewhere in the Los Angeles area that is eager to help you for that date," says Schuldenfrei.

Another advantage, particularly in hotels geared toward shows and meetings, is that you're dealing with a single entity for exhibit space, room blocks, insurance, catering, audio visual, spouse programs, and so on.

Then there's the potential to negotiate costs, which isn't as likely at a convention center, where you're dealing with separate entities for space rental, catering, etc. -- and where you're probably dealing with a government body. "We are able to look at the entire revenue picture of an event," says Kent Wasmuth, Vice President of Sales at The Opryland Hotel.

"A lot depends on the time of year and what the market demand is for that period of time," Pagone says.

Obviously, if the hotel feels confident that it can sell to someone else, it's not going to be interested in negotiating very much on price. And if you're not going to book sleeping rooms, you may have difficulties. "No matter where you go, hotels are generally rooms-driven," says Pagone. "That's the first priority -- to fill the sleeping rooms. However, hotels work rather like airlines. Rather than have the day or weekend go by with empty space, we try to have people utilizing all the services in our facility. That's the best of all worlds."

"Sometimes, a hotel may have a group in that's taking all the sleeping rooms but not using the meeting space. Then your public show or local trade event makes a great marriage for them," says Lycett.

No absolutes
Luce sees another possible advantage to hotel shows. "I find that most show organizers who are on that cusp -- who could take their events to either a hotel or a convention center -- prefer the hotel, because usually they're the big fish in the small pond. In a convention center, they might be perceived as a small fish in a big pond, especially if there's a much larger show there at the same time. However, some convention centers are designed so you can do a small show and make it feel as if it's the only thing in there. There really are no absolutes."

No absolutes. That's perhaps the most important thing for show organizers to remember. It's not a matter of hotels versus convention centers but, rather, a matter of which specific hotel or convention center makes the most sense for a specific show.

Dickering for a dealShow organizers want to cut the best deal possible when negotiating with a hotel. But there are no formulas, no magic lists -- for show organizers or for hotels. So many factors come into play, says Stephen D'Agostino, Director of Sales at the 2,000-room Hyatt Regency Chicago, that we "tailor make every bid."

The biggest negotiating point, he says, is guest rooms. Perhaps with the exception of casino hotels, that's where the profits are. "We have to look at selling the guest rooms first," D'Agostino says. "If we're maximizing the guest rooms, then the exhibit hall and other public spaces become much more flexible.

"Basically, we book space much like airlines do, through a yield system. The scenario constantly changes as reservations are booked. If you're interested in the exhibit hall for 1999, I need something that's going to bring in a thousand rooms before I even start talking about it or allow the hall to be booked. Whereas, if you're asking for something very short-term, then I'm much more flexible.

"The major exception is if my guest rooms are sold out, perhaps because of a show at McCormick Place, but my exhibit hall is sitting open. Then, I can book the hall for a show that isn't going to use guest rooms."

D'Agostino knows the average rental cost of exhibit space in Chicago. He knows what the competition is probably going to be quoting, so that's where he usually starts. He may set up a sliding scale on costs, depending on the number of guest rooms booked. For example, if the show organizer takes 100 guest rooms, the exhibit hall rental might be $50,000. But if the group picks up 500 guest rooms, the exhibit hall rental might drop to $25,000. Another option may be to drop the guest room cost, especially if bookings will be made through the hotel and he doesn't have to pay a 10-percent commission to a housing agency.

D'Agostino also can offer a better deal for bookings in off-season periods. He recently presented two options to an organizer who wanted to bring her show to a hotel in Chicago. One option was for the dates on which the show has traditionally met; the other option was for dates in a slow period. "She went for the dates in the distressed time period and was able to cut herself a great deal."

If the positions of the show organizer and the hotel are far apart, the hotel is likely to suggest options. For instance, D'Agostino might ask for more guest rooms. He might suggest dropping the standard comp room for every 50 rooms booked. If the organizer has asked for 50 discounted staff rooms, he may ask if they can do with 30 staff rooms.

He looks at other money-making opportunities associated with an event. Will there be a lot of drayage? The hotel may be able to make a deal with the general contractor. Will exhibitors need suites? Will the organizer hold receptions at the hotel or use the hotel's off-premise catering company? Can he open a snack bar in the exhibit hall? If he can pick up revenues in areas such as these, he's able to negotiate on other charges.

Be prepared, however, for the probability that the hotel is going to look at the money you are likely to make.

"If the exhibitors in a show are association members and the organizer isn't making a profit on exhibit space, I'd probably be more lenient on negotiations than with a show that's charging exhibitors $1,500 a booth. If they're making a lot of money, why shouldn't I be making some money, too?"

A show organizer who is looking for a multi-year contract may be able to negotiate better prices, depending once again on the guest room count. "If you're talking 1,000 rooms, yes. But if you're only talking 100 rooms, then your desire for a multi-year contract is actually going to deter me from booking you."

A variation on this theme are multi-year contracts with hotel chains that have exhibit space in various properties across the United States and Canada. Again, there's room for negotiation if you're talking about enough rooms.

D'Agostino researches the history of any potential customer. He wants to know the group's exhibit history.

"The more up-front a client can be with a hotel -- the more information they can provide -- the better their negotiating stance. If you come to me and say, 'Here's our history for the past three years: the space we used, the food and beverage, the hospitality suites,' and you give me names I can check if necessary, you're making my job easier, which means I'm more likely to sit down and negotiate."

Sidebar

Points to ponder when planning a hotel showLooking at a hotel for your next event? Asking the right questions up front makes it easier to solve problems and avoid unpleasant last-minute surprises.

• Spend time on the property. Inspect all spaces you plan to use before signing the contract. Check utilities, audio visual equipment, etc. Talk with the director of sales about your needs -- and your exhibitors' needs. "The more we know about what you want to accomplish, the better we can suggest things," says Vince Pagone, Exhibit Hall Director at the Hyatt Regency Chicago.
• Talk to show organizers who have used the facility. Find out what the facility does well and what its limitations are. You can usually work around the latter -- if you know about them ahead of time.
• Check parking availability and costs, especially if you expect a lot of attendees to arrive by car.
• Is there an exclusive general contractor? If so, get information on the firm. Talk to other show organizers who have used the contractor.
• If you're using a general contractor who always handles your event, bring him or her into the picture before making a final decision. "I'm considering convention center A and hotel B. What are the differences from your viewpoint?"
• Is the hotel a union company? If so, does the union have different work rules for the hotel than for the nearby convention center? How can this impact on your schedules and costs?
• Where are the loading docks in relation to the exhibit space? How is freight moved from one to the other? Are loading and unloading trucks restricted to certain hours? How about move-in and move-out? Where are crates stored during the show? Be careful that your contract gives you enough time for set-up and dismantling.
• Downtown properties have great resources, including last-minute access to extra labor, forklifts, furniture, graphic services and so forth. But at facilities in the suburbs, resources may be limited. Anticipate your needs -- or make sure you have a general contractor who will.
• Even though there may be restaurants in the neighborhood, convention goers tend to stay within the property during the business day. Learn how the hotel plans to handle your attendee's food needs. Will they open restaurants that normally wouldn't be open? Can they set up food service in an area of the hotel that is unique to your event?