Heywood Sanders Presentation On Madison and Monona Terrace 111413

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C. H. J OHNS ON CONS UL T I NG, I NC.
EXPERTS IN CONVENTION, SPORT AND REAL ESTATE CONSULTING
Billings, Montana Section 4 Page 20
Executive Conference Center Market Analysis March 2011
Conclusion
There are literally millions of conventions, tradeshows, and meetings happening
annually throughout North America and around the world. The number of
associations is changing, as is the number of corporations, but meetings will
continue to occur. Although 2009 was a down year and there may be a slight
structural change in meeting format, and hence volume, the 2009 drop in demand
was a short-term aberration, with signs of recovery appearing in 2010. Furthermore,
the rationale for meetings and associations still exists and will continue to do so.
Billings is well suited to participate in the convention, conference, and meetings
sector given its role as the largest city in Montana, a significant regional commerce
hub, and the growing medical industry. The proposed conference center provides
an opportunity for Billings to invest in long-term community infrastructure
developments to diversify the economy away from dependency on any one sector
alone. As this trends analysis indicates, there are major positive economic and fiscal
impacts associated with conference and meeting events. In order to retain those
impacts, grow market share, and as the industry and participation rebounds from
the global recession, Billings needs to position itself to remain attractive and
competitive.
C. H. J OHNS ON CONS UL T I NG, I NC.
EXPERTS IN CONVENTION, SPORT AND REAL ESTATE CONSULTING
Billings, Montana Section 4 Page 20
Executive Conference Center Market Analysis March 2011
Conclusion
There are literally millions of conventions, tradeshows, and meetings happening
annually throughout North America and around the world. The number of
associations is changing, as is the number of corporations, but meetings will
continue to occur. Although 2009 was a down year and there may be a slight
structural change in meeting format, and hence volume, the 2009 drop in demand
was a short-term aberration, with signs of recovery appearing in 2010. Furthermore,
the rationale for meetings and associations still exists and will continue to do so.
Billings is well suited to participate in the convention, conference, and meetings
sector given its role as the largest city in Montana, a significant regional commerce
hub, and the growing medical industry. The proposed conference center provides
an opportunity for Billings to invest in long-term community infrastructure
developments to diversify the economy away from dependency on any one sector
alone. As this trends analysis indicates, there are major positive economic and fiscal
impacts associated with conference and meeting events. In order to retain those
impacts, grow market share, and as the industry and participation rebounds from
the global recession, Billings needs to position itself to remain attractive and
competitive.

6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125
www.chjc.com | cjohnson@chjc.com
Section 4 Industry Trends | DRAFT April 2013
South Padre Island Convention Centre Feasibility Study Update South Padre Island, TX
PAGE 41
SUMMARY
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1he Stute of the lndustry
Yesterduy, 1oduy & 1omorrow
Lseclully reured for lCCC
lCCC zc
8y: Louglus L. Lucute, CLM, CMP
CLlR Presldent & CLC
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CONVENTION CENTER
4
The Fort Worth Convention Center completed a $75 million, two-
phase, expansion and renovation in May 2003.
Submitted to:
City of Fort Worth
Facilities and Public Events Department
April 2001
Submitted by:
C.H. Johnson Consulting, Inc.
36 S. Wabash Ave., Suite 602
Chicago, IL 60603
Phone: 312-444-1031
Fort Worth Convention Center
Headquarters Hotel Analysis
)*+$,-"#.(
24
HVS FeasibiIity Study Process
Methodology
n-depth hotel market overview
Selection of a "competitive set of hotels
Project future performance of the competitive
set
Analyze how the headquarters hotel will
"penetrate the competitive set
Price of hotel rooms "average daily room rate
Number of rooms occupied "occupancy rate
Analyze financial statements of other hotels that
are similar to the proposed headquarters hotel
Project net operating income
32
Impact on the Convention Center
HVS Lost-Business Analysis (2004) interview of
42 event planners involved in 108 "lost events
from 2002 - 2003:
55% of event planners stated that a
headquarters hotel "would have made a
difference in the decision
44% of event planners stated that a
headquarters hotel "would have probably have
changed the decision
Estimate of room night impact - recover 103,000
room nights annually through a reduction in lost
business
4427 W. Kcnncdy Bnu!cvard 5uitc 200 Tampa, F!nrida 33609 Phnnc 813.281.1222 Fax 813.315.6040
www.crnssrnads-I!.cnm

"#$%%#$&'% "$(%)*+,(- ./#0,1/% ,% & 2,3,+/' 2,&4,*,+5 "$36&(5

Maryland Stadium Authority

Baltimore Convention Center Expansion
Market & Economic Analysis

Final Report
February 2012

2. Market Analysis 41

Event Type
Number
of Events
Event
Days
Event
Length
Total Usage
Days
Total
Attendance
Average
Attendance
Per Event Event Type
Number of
Events
Event
Days
Event
Length
Total Usage
Days
Total
Attendance
Average
Attendance
Per Event
Conventions/Trade Shows 62 176 2.8 307 286,087 4,614 Conventions/Trade Shows 58 179 3.1 321 286,784 4,945
Meetings 85 157 1.8 179 67,736 797 Meetings 64 127 2.0 152 67,726 1,058
Food Functions 9 8 0.9 12 8,642 960 Food Functions 11 11 1.0 18 17,155 1,560
Public Events 29 59 2.0 82 143,635 4,953 Public Events 20 47 2.4 70 146,233 7,312
Sporting Events 8 26 3.3 32 31,147 3,893 Sporting Events 6 11 1.8 14 19,459 3,243
Other 8 16 2.0 18 7,435 929 Other 7 13 1.9 14 7,325 1,046
Total 201 442 630 544,682 Total 166 388 589 544,682
Event Type
Number
of Events
Event
Days
Event
Length
Total Usage
Days
Total
Attendance
Average
Attendance
Number of
Events
Event
Days
Event
Length
Total Usage
Days
Total
Attendance
Average
Attendance
Per Event
Meetings 70 130 1.9 155 81,237 1,161 Meetings 55 132 2.4 146 73,765 1,341
Food Functions 12 18 1.5 28 12,420 1,035 Food Functions 4 4 1.0 7 3,300 825
Other 6 17 2.8 19 6,960 1,160 Other 4 6 1.5 7 4,765 1,191
Total 172 456 627 514,144 Total 139 349 490 435,992
Event Type
Number
of Events
Event
Days
Event
Length
Total Usage
Days
Total
Attendance
Average
Attendance
Number of
Events
Event
Days
Event
Length
Total Usage
Days
Total
Attendance
Average
Attendance
Per Event
Meetings 53 100 1.9 115 46,272 873 Meetings 76 178 2.3 313 61,558 810
Food Functions 2 2 1.0 5 2,200 1,100 Food Functions 5 12 2.4 23 5,495 1,099
Other 6 6 1.0 7 9,400 1,567 Other 5 8 1.6 15 3,505 701
Total 131 332 475 368,834 Total 162 477 820 488,469
FY2008 FY2009
FY2010 FY2011
Detailed Summary of Historical BCC Utilization
FY2006 FY2007

Source: BCC management.

Meetings have consistently represented the largest number of BCC events but tend to have the smallest average attendance. Food
functions represent larger social events averaging 1,100 attendees in the past two years.

Public events, which typically attract local residents, can be beneficial in terms of occupying a building during non-peak seasons for
other events generating overnight stays. These events also serve the local community by bringing many dealers/providers of a
particular product or service to one location for buyers convenience.

Sporting events, which include competitions such as gymnastics, wrestling, cheerleading, and the martial arts, are likely to attract
family and/or friends who join the competitor as part of the overnight visitors. In addition, sporting competitions are also likely to
have attendees who extend their stay to enjoy the host destinations amenities.
Research Update:
Baltimore Hotel Corp.'s Series
2006B Bond Rating Lowered To
'BB-' On Underperformance;
Outlook Stable
Primary Credit Analyst:
Jodi E Hecht, New York (1) 212-438-2019;jodi_hecht@standardandpoors.com
Secondary Contact:
Ben Macdonald, San Francisco 415-371-5005;ben_macdonald@standardandpoors.com
Table Of Contents
Overview
Rating Action
Rationale
Outlook
Related Criteria And Research
Ratings List
August 30, 2011
www.standardandpoors.com/ratingsdirect 1
888185 | 300001291
Research Update:
Baltimore Hotel Corp.'s Series 2006B Bond
Rating Lowered To 'BB-' On
Underperformance; Outlook Stable
Overview
Baltimore Hotel Corp.'s 757-room Hilton hotel has underperformed as the
Baltimore market has struggled to absorb the new room capacity added as
the Hilton opened in 2008 and recover from the recession. The hotel has
not reached a stabilized occupancy of 74% in 2011 as ownership forecast
and faces a 12% increase in debt service payments as the principal
payments begin in 2012.
We are lowering the rating on the company's $53.4 million series 2006B
second-lien revenue bonds to 'BB-' from 'BB'. The outlook is now stable.
We also are affirming the 'BB+' rating on the $247.5 million series 2006A
senior secured revenue bonds and the stable outlook.
The recovery ratings of '3' on the series A bonds and '6' on the series B
bonds are unchanged.
Rating Action
On Aug. 30, 2011, Standard & Poor's Ratings Services lowered its rating on
Baltimore Hotel Corp.'s $53.4 million second-lien revenue bonds, series 2006B
bonds to 'BB-' from 'BB'. At the same time, we affirmed the 'BB+' rating on
the $247.5 million senior secured revenue bonds series 2006 A bonds. The
outlook on both series is stable.
Rationale
The 757-room hotel is located at the Baltimore Convention Center and operated
by Hilton Hotels Corp. It opened on Aug. 22, 2008. Bond proceeds funded the
hotel construction. The hotel's net revenues and city revenues secure the
bonds. The city revenues include a $7 million annual guarantee funded through
a second lien on the citywide hotel occupancy tax revenue. It also includes a
pledge of site-specific hotel occupancy tax revenue, which will vary based on
the project's occupancy levels, and the tax increment payment, which is equal
to the hotel's property tax payment.
The following credit concerns limit the ratings:
Dependence on the cyclical and competitive convention center and lodging
market, which is driven by discretionary meeting, business, and
entertainment travel. The recession affected the Baltimore hospitality
market and we believe this cyclicality will continue throughout the
debt's term.
Standard & Poors | RatingsDirect on the Global Credit Portal | August 30, 2011 2
888185 | 300001291

ISSUER COMMENT
INFRASTRUCTURE

JULY 11, 2013

Baltimore Convention Center Hotel Will
Need City Funds, a Credit Negative
From Credit Outlook
On Monday, Harry Black, the finance director for the City of Baltimore, Maryland (Aa2
stable), confirmed a Baltimore Sun report that in September 2014, the Baltimore Hotel
Corporation (Ba1 negative) will likely have to dip into the citys general fund and its feeder
funds from citywide hotel occupancy tax collections (HOT) to cover its debt service
payments. The hotels need of these funds to pay debt service is credit negative and likely
marks the beginning of the hotels long-term financial dependence on the citys general fund.
The hotel, doing business as the Hilton Baltimore Convention Center Hotel, has struggled
financially since opening in August 2008, during the recession: it started using its own
reserves annually and in increasing amounts to make up for revenue shortfalls. In 2010,
the hotel used $2.2 million and depleted its cash trap fund. Later, it drew $3.82 million of its
operating reserve fund, and had to use a portion of the site-specific HOT collections
(another hotel support, separate from the citywide HOT) to cover 2013 debt service
payments. The hotel has not yet required any outside support, such as the citywide HOT,
but this will most likely not be the case with the September 2014 debt service payment. The
hotel also has a $25 million guarantee from Hilton Corporation (unrated).
Despite efficient operations, the hotel faces challenges common to many convention center
hotels: narrow financial margins because of high leverage and a rising debt service structure.
The hotel continues to perform in line with its peers and improved its revenue per available
room (RevPAR) by 2% to $109.41 in 2012. But it fell short of its initial projection of
$158.88. The hotel made its initial RevPAR projections at the time of its financing in 2006
and forecasted steady year-over-year occupancy and daily rate growth that would meet the
rising debt service payment schedule. Since the lodging industry is volatile and competitive,
many hotels cannot meet these projections and rely on reserves and external revenue support
before falling short on their payments.

Analyst Contacts:
NEW YORK +1.212.553.1653
Esra Beril Akyol +1.212.553.0238
Associate Analyst
esra.akyol@moodys.com

What is Moodys Credit Outlook?
Published every Monday and Thursday
morning, Moody's Credit Outlook informs
our research clients of the credit
implications of current events.

ISSUER COMMENT
INFRASTRUCTURE

JULY 11, 2013

Baltimore Convention Center Hotel Will
Need City Funds, a Credit Negative
From Credit Outlook
On Monday, Harry Black, the finance director for the City of Baltimore, Maryland (Aa2
stable), confirmed a Baltimore Sun report that in September 2014, the Baltimore Hotel
Corporation (Ba1 negative) will likely have to dip into the citys general fund and its feeder
funds from citywide hotel occupancy tax collections (HOT) to cover its debt service
payments. The hotels need of these funds to pay debt service is credit negative and likely
marks the beginning of the hotels long-term financial dependence on the citys general fund.
The hotel, doing business as the Hilton Baltimore Convention Center Hotel, has struggled
financially since opening in August 2008, during the recession: it started using its own
reserves annually and in increasing amounts to make up for revenue shortfalls. In 2010,
the hotel used $2.2 million and depleted its cash trap fund. Later, it drew $3.82 million of its
operating reserve fund, and had to use a portion of the site-specific HOT collections
(another hotel support, separate from the citywide HOT) to cover 2013 debt service
payments. The hotel has not yet required any outside support, such as the citywide HOT,
but this will most likely not be the case with the September 2014 debt service payment. The
hotel also has a $25 million guarantee from Hilton Corporation (unrated).
Despite efficient operations, the hotel faces challenges common to many convention center
hotels: narrow financial margins because of high leverage and a rising debt service structure.
The hotel continues to perform in line with its peers and improved its revenue per available
room (RevPAR) by 2% to $109.41 in 2012. But it fell short of its initial projection of
$158.88. The hotel made its initial RevPAR projections at the time of its financing in 2006
and forecasted steady year-over-year occupancy and daily rate growth that would meet the
rising debt service payment schedule. Since the lodging industry is volatile and competitive,
many hotels cannot meet these projections and rely on reserves and external revenue support
before falling short on their payments.

Analyst Contacts:
NEW YORK +1.212.553.1653
Esra Beril Akyol +1.212.553.0238
Associate Analyst
esra.akyol@moodys.com

What is Moodys Credit Outlook?
Published every Monday and Thursday
morning, Moody's Credit Outlook informs
our research clients of the credit
implications of current events.

1"#"#. &%)).!% K%)0")1.#!% .#/ &,%
K)"K"*%/ ,"&%-

Section VI Hotel Market Analysis & Review of Monona Terrace | DRAFT December 2012
Madison Hotel Feasibility Study Madison, WI
PAGE 95
Figure 6-20
Madison, Wisconsin
Historical Annual Revenue Per Available Room (RevPAR) 2006 thru 2011
*CAGR = Compounded Annual Growth from 2006 through 2011.
Source: Smith Travel Research, Madison WI Convention and Visitors Bureau
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
City-wide
$48.37 $54.56
Comp Set #1
$81.05 $86.22 $90.78 $80.33 $82.12 $88.24 1.7%
Comp Set #2
$73.16 $76.49 $81.35 $71.00 $74.18 $79.92 1.8%
Nat'l Comparables
$106.36 $107.68 $105.36 $89.11 $94.84 $96.49 (1.9%)
2006 2007 2008 2009 2010 2011 CAGR*

"# #$%&' %' ($) *$+,( +-%.)/ ($) '+(0%'+1 *%23+,+-1) 3,%3),(0)# +1#% )43),0)'*)5 $06$), 7).8"7 ($+'
9+50#%' $%()1# :,%2 ;<<= ($,%>6$ ;<??@
A$)#) #(+(0#(0*# %: '+(0%'+1 *%23+,+-1) 3,%3),(0)# #$%& ($) 3%()'(0+1# :%, ($) 3,%3%#)5 B)+5C>+,(),# B%()1
0' 9+50#%' (% +*$0).)@
REVIEW OF MONONA TERRACE
A+-1) =DE ($,%>6$ A+-1) =DF #>22+,0G) ).)'( 5)2+'5 +'5 +(()'5+'*) +( ($) 9%'%'+ A),,+*) :,%2 ;<<H
($,%>6$ ;<??@

PAGE 96
TabIe 6-5
Monona Terrace, Madison, Wisconsin
Summary of Event Demand
2007 2008 2009 2010 2011 % of Total
Banquets 275 274 233 231 210 37%
Meetings 213 238 193 206 207 32%
Conventions 30 33 28 26 30 4%
Conferences 38 49 40 36 32 6%
Consumer Shows 11 15 13 19 23 2%
Entertainment 33 27 26 30 30 4%
Community Events 72 69 76 61 82 11%
Community Meetings 19 23 23 13 16 3%
Total 691 728 632 622 630 100%
Source: Monona Terrace

"# $%&'()* +'$, (-./010.(02 (-.30.$'-.2 ('3'( (0.$01#4 5).670$# ).8 900$'.:# 9);0 7& .0)1*% <= &01(0.$ -/
030.$# )$ >-.-.) ?011)(04 870 $- $,0'1 /10670.(% ).8 *-()* 809).8 -1'0.$)$'-.@ A-+03014 $,0#0 030.$#
:0.01)$0 -.*% BC &01(0.$ -/ )$$0.800#4 )# #799)1'D08 '. ?)5*0 EFE4 50*-+@
TabIe 6-6
Summary of Actual Attendance
2007 2008 2009 2010 2011 % of Total
Banquets 32,287 44,061 51,174 54,530 49,805 26%
Meetings 18,006 26,956 31,811 33,023 36,535 16%
Conventions 15,119 18,232 17,241 30,242 31,151 13%
Conferences 6,013 9,138 9,918 10,659 9,725 5%
Consumer Shows 13,960 28,153 38,862 40,930 41,368 18%
Entertainment 1,542 7,060 15,279 13,457 9,045 5%
Community Events 28,572 28,610 24,759 30,608 35,345 17%
Community Meetings 197 185 381 252 327 0%
Total 115,696 162,395 189,425 213,701 213,301 100%
Source: Monona Terrace

G.80084 5).670$# ).8 900$'.:# )10 #9)**01 030.$# (-9&)108 $- (-.30.$'-.# ).8 (-.#7901 #,-+#@ ?)5*0 EF<
#,-+# $,0 )301):0 )$$0.8).(0 5% $%&0# -/ 030.$#@ H-$0 $,0 7&$'(; '. )301):0 (-.30.$'-. #'D0 /1-9 C==I $-
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?011)(0 '# (-9&)108 $- $,)$ -/ (-9&)1)5*0 #'$0# ).)*%D08 0*#0+,010 '. $,'# 10&-1$4 $,0 /)('*'$% 8-0# 301% +0** '.
$019# -/ 5-$, 030.$# ).8 )$$0.8).(0@

PAGE 103
!"#$%"&' )*+,%# -./0 12341 52$5 6,+,15 #7#851 $%# "38+#% $89 "$%+#%: ;2# 15%$5#+& <3% =3838$ ;#%%$># *1 53 <*""
352#% ?38521 $1 >"31#"& 53 6,+,15 $1 @%$>5*>$""& @311*A"#: B"#$1# $"13 835# 52# >3%%#"$5*38 3< @#$C 3>>,@$8>&
$89 6DE <3% 6,+,15 $89 F#@5#?A#% *8 )*+,%#1 -.G $89 -.0: ;2# +3$" 43,"9 A# 53 ?$C# ?$8& ?3%# ?38521
$1 A,1& $1 6,+,15 4*52 52# >3%%#>5 235#" 15%$5#+&:
MONONA TERRACE-BASED ROOM NIGHTS SEASONALITY
)*+,%# -./H 12341 52# 8,?A#% 3< %33? 8*+251 +#8#%$5#9 A& #7#851 $5 52# =3838$ ;#%%$># A& ?3852' <%3?
/IIJ 52%3,+2 /IKK: L35# 52$5 *8 3,% #M@#%*#8>#' A,*"9*8+ ?$8$+#?#85 38"& >$@5,%#1 $ 1?$"" <%$>5*38 3<
%33? 8*+25 9$5$ $A3,5 #7#851: =$8& ,1#%1 $%# 835 $4$%# 3< %33?1 A33C#9 A& *89*7*9,$"1 3,51*9# 52# %33?
A"3>C:
Figure 6-25
Historical Monthly MT-Generated Room Nights 2007 thru 2011
Source: Monona Terrace, Johnson Consulting
1,407
1,046
1,984
2,674
3,587
4,539
2,705
6,390
9,135
4,129
1,293
343
0
2,000
4,000
6,000
8,000
10,000
12,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
U
s
e
d

S
F
-
D
a
y
s
2007
2008
2009
2010
2011
Average

61 12348 38 52# <*+,%#' 6,+,15 $89 F#@5#?A#% $%# 52# ?315 @%39,>5*7# ?38521 53 +#8#%$5# >387#85*38
%33? 8*+251:

)*+,%# -./- 12341 $7#%$+# %33? 8*+251 @#% #7#851' A& ?3852 <%3? /IIJ 52%3,+2 /IKK:

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