Going Private Leads to Profits for Los Angeles Convention Center
February 2, 2015
Most convention centers typically run at a deficit, but the Los Angeles Convention Center has bucked that trend by turning a tidy profit of $3.3 million one year after it was handed over to a private company to run.
AEG Facilities, a division of AEG Worldwide - which owns the adjacent Staples Center and L.A. Live - now oversees the center, and representatives of the company said running it more efficiently, such as cutting back on personnel, helped the building’s bottom line.
“Converting to a private sector contract to operate the Convention Center was a bold experiment and AEG’s performance has exceeded our highest expectations,” said Bud Ovrom, executive director of the Los Angeles Department of Convention & Tourism Development, which oversees AEG’s contract.
Improving operational efficiencies, as well as enhancing the look of the facility and focusing on sustainability, has led to overall high customer satisfaction.
“We’ve observed a significant investment in preventative building maintenance as well as the completion of numerous projects ranging from painting to washing all the windows to replacing and improving lighting systems throughout the building,” Ovrom said.
He added, “Undeniably, these projects have contributed to the positive responses received in the electronic post-show client surveys – the LACC has received an overall rating of 4.5 out of 5.”
Leading to even more cost savings, AEG negotiated 30-plus new contracts with service providers, contractors and suppliers.
The center also unveiled a new Web site and upped its efforts on social media.
“In order to stand out and compete in our industry we have embraced technology and strengthened our communication channels,” said Jon F. Vein, president, Board of Los Angeles Convention & Tourism Development Commissioners.
He added, “The modernization and launch of LACC’s new, user-friendly website and integration of its social media platforms has given the Center a cohesive voice and a consistent presence in the online community. We value engaging with our audience and find these channels to be very effective in our communication strategy.”
For now, the center is looking to improve the bottom line and further streamline operations.
“We look forward to an even better second year,” said Brad Gessner, senior vice president and general manager of the Los Angeles Convention Center, AEG Facilities.
Partner Voices
Dallas already boasts 35,000 hotel rooms, award-winning global cuisine, and a walkable downtown. But we are just getting started.
Visit Dallas is thrilled to announce that the city of Dallas is doubling down with a massive new convention center and entertainment district. Featuring 800,000 square feet of exhibit area, 260,000 square feet of meeting rooms, and 170,000 square feet of ballroom. The center will connect business travelers with dining and shopping options in the popular Cedars District means more places to get down to business, and even more ways to unwind.
“Dallas is already a great meetings and conventions destination, with the accessibility of two major airports, affordable labor, and an outstanding hotel product,” said D. Bradley Kent, Visit Dallas senior vice president and chief sales officer. “The new center and Convention Center District will enhance Dallas’ competitive position and are exactly what our customers’ need and have been asking for."
What’s New – AT&T Discovery District
Located in the heart of Downtown Dallas, this new district on the AT&T corporate campus is tailor-made for groups of all sizes. It boasts a multi-sensory experience, including outdoor event space, the AT&T Theater, and multiple dining outlets including JAXON Beer Garden and The Exchange, a bustling food hall.
Hotels Coming Soon
Names like the JW Marriott (Downtown), lnterContinental Dallas (Uptown), and Hotel Swexan (Uptown) are adding luxury amenities and bountiful event spaces. The projects will debut in 2023 and beyond.
JW Marriott
This new, 15-story, 283-room hotel will open in the heart of the city’s downtown Arts District this year. The property features a 25,000-square-foot grand ballroom, as well as a spa, restaurant, lobby bar, fitness center, and a rooftop pool deck and bar.
InterContinental Dallas
Located in Cityplace Tower in Uptown, InterContinental Dallas will feature sweeping panoramic views of the Dallas skyline. Guests will enjoy spacious, high-end rooms and amenities, including more than 21,000 square feet of event space.
Hotel Swexan
Hotel Swexan, a new, 22-story luxury property, is rising in Uptown’s Harwood District and will make its mark on the Dallas skyline. Opening this year, it is a sculptural building with cantilevered upper floors, as well as a 75-foot rooftop infinity-edge swimming pool and a hidden underground lounge.
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