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.

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Overview: The award-winning Orange County Convention Center (OCCC) goes the extra mile to make every day extraordinary by offering customer service excellence and industry-leading partnerships. From their dedicated in-house Rigging team to their robust Exhibitor Services, The Center of Hospitality brings your imagination to life by helping you host unforgettable meetings and events. With more than 2 million square feet of exhibit space, world-class services and a dream destination, we are committed to making even the most ambitious conventions a reality. In October 2023, the Orange County Board of County Commissioners voted to approve allocating Tourist Development Tax funding for the $560 million Phase 5A completion of the OCCC. The Convention Way Grand Concourse project will include enhancements to the North-South Building, featuring an additional 60,000 square feet of meeting space, an 80,000- square-foot ballroom and new entry to the North-South Building along Convention Way. “We are thrilled to begin work on completing our North-South Building which will allow us to meet the growing needs of our clients,” said OCCC Executive Director Mark Tester. “As an economic driver for the community, this project will provide the Center with connectivity and meeting space to host more events and continue to infuse the local economy with new money and expanding business opportunities.” Amenities: The Center of Hospitality goes above and beyond by offering world-class customer service and industry-leading partnerships. From the largest convention center Wi-Fi network to custom LAN/WAN design, the Center takes pride in enhancing exhibitor and customer experience.  The OCCC is the exclusive provider of electricity (24-hour power at no additional cost), aerial rigging and lighting, water, natural gas and propane, compressed air, and cable TV services. Convenience The Center is at the epicenter of the destination, with an abundance of hotels, restaurants, and attractions within walking distance. Pedestrian bridges connect both buildings to more than 5,200 rooms and is within a 15-minute drive from the Orlando International Airport. The convenience of the location goes hand-in-hand with top notch service to help meet an event’s every need. Gold Key Members The OCCC’s Gold Key Members represent the best of the best when it comes to exceptional service and exclusive benefits for clients, exhibitors and guests. The Center’s Gold Key memberships with Universal Orlando Resort, SeaWorld Orlando and Walt Disney World greatly enhance meeting planner and attendee experiences offering world-renowned venues, immersive experiences and creative resources for their events. OCCC Events: This fiscal year, the OCCC is projected to host 168 events, 1.7 million attendees, and $2.9 billion in economic impact.  The Center’s top five events during their 2022-2023 fiscal year included:  AAU Jr. National Volleyball Championships 2023 200,000 Attendees $257 Million in Economic Impact MEGACON 2023 160,000 Attendees $205 Million in Economic Impact Open Championship Series 2023 69,500 Attendees $89 Million in Economic Impact Sunshine Classic 2023 42,000 Attendees $54 Million in Economic Impact Premiere Orlando 2023 42,000 Attendees $108 Million in Economic Impact