New York-based UBS Warburg predicts that San Diego, San Francisco and Washington, D.C., are the markets that will experience the biggest increases in convention business in 2003 — an increase of 30% to 40%. HiltonCorp. and Host Marriott Corp. are the two hotel companies expected to benefit the most from the growth in convention business in these cities.
According to the UBS Warburg’s 2003 Convention Outlook, the markets expected to see the greatest decrease in citywide conventions include Boston, Los Angeles, New Orleans, Philadelphia and San Antonio, Texas, based upon advanced bookings. UBS Warburg notes that convention business accounts for approximately 40% of total revenues at a large convention center hotel with 1,000 to 2,000 rooms.
UBS Warburg reports that the recent growth in convention center and meeting space in Las Vegas is siphoning conventions from other major convention cities, including Dallas,, Denver Atlanta, Houston and Orlando, Fla.