Meeting News - September 21, 2009 - (Page 36)

Dateline: Las Vegas By Alan Tse Many In Las Vegas Continue To Add Rooms Despite Steep Drop In Demand, But Some Projects Begin To Be Postponed The impact of the economic downturn and perception problems on the meetings market in Las Vegas has created a dichotomy when it comes to meeting space development, which is reflected in recent hotel performance figures and in facility openings and postponements. For meeting buyers, that has meant new negotiating opportunities. Even as occupancy is down by 6.5 percent and conventions and meetings are down by 21.6 percent, room inventory has gone up 6.8 percent year-to-date as of June, according to statistics from the Las Vegas and Convention and Visitors Authority. Competition may only get heavier in Las Vegas as the 76-acre CityCenter is expected to open in December 2009. The development’s keystone convention property, Aria, will add Harrah’s completes one Caesars development, freezes another 4,004 rooms and about 300,000 square feet of meeting space. wanted to solve that problem for some time, Attrition and cancellation clauses also have Yet not all Las Vegas developments will be and this space solves both of those problems,” become more flexible.“We need to write attricompleted as planned, as the Boyd Gaming said Michael Massari, Las Vegas Meetings by tion and cancellation clauses that protect our Corp. on Aug. 1 announced the postponement Harrah’s Entertainment vice president of customers to the downside,” Massari said.“That of the Stardust Resort and Casino’s replacemeeting sales and operations. requires us to be flexible in the language and it ment, Echelon, specifically Drop in demand has requires us to be flexible in the block. I wouldn’t due to economic conditions. steered Harrah’s in January describe it as anything new; our smart cusPart of a $1 billion expanto postpone construction on tomers always wanted to be protected.” sion and renovation project their sixth hotel tower, the While Las Vegas has been dealing with fluctuplanned in 2007, Harrah’s Octavius Tower, for which it ations in association meetings, Harrah’s has only Entertainment on July 11 planned to add 665 rooms been slightly affected. opened a new 110,000-sq.-ft. within 23 stories. “We’ve got seven properties,” Massari said. meeting space expansion for For buyers, the impact of “When you take a look at all those properties Caesars Palace, but constructhe economic downturn has together, we were about 60 percent corporate tion of its Octavius Tower has been a new level of flexibility and 40 percent association, but what we’re been stalled and Harrah’s has in meetings negotiations. booking now is probably a little closer to half —Las Vegas Meetings by Harrah's not announced when the In general, customers are and half. We’re OK with that change.” Entertainment VP Michael Massari project will be restarted. asking for more and properThe new space enables to book larger group “Caesars Palace has for many years been a ties are doing all they can to meet those needs, business. Caesars Palace now is accommodating high-demand facility in the meetings business. Massari said, adding, “Over the years, cus“the groups that need a general session for 3,250 It has always lacked two things on the meettomers have always asked for customized people. Just in the first four weeks of the facility ings space side. One is a large ballroom capapackages. Certainly now customers are asking being opened, we had three groups like that,” ble of doing large general sessions, and the for things they haven’t asked for in a while, Massari said.“We’ll have five or six probably in second is a high number of breakouts. We and we’re happy to provide those things.” the next couple of months.” H “We were 60 percent corpo- rate and 40 percent association. Now it’s probably half and half. ” 36 MeetingNews September 21, 2009 www.meetingnews.com http://www.meetingnews.com

Table of Contents for the Digital Edition of Meeting News - September 21, 2009

Meeting News - September 21, 2009

Contents
Pricing Forecast
Newsmaker
Meetings Spotlight
Event Profile

Meeting News - September 21, 2009

Meeting News - September 21, 2009 -

Meeting News - September 21, 2009

(Page Cover1)
Meeting News - September 21, 2009 -

Meeting News - September 21, 2009