Components: Eight Hotels encompassing 6,500 Rooms
Project Value: $1.2 billion

In 2007, Orange County and four adjacent private-sector land owners engaged SAG to develop a long-range strategic plan for the convention center district. The development of attached hotels was an integral part of the research and strategic initiatives. The study identified hotel expansion opportunities totaling 800 rooms adjacent to the West Convention Center. In addition, three hotel sites totaling approximately 3,500 rooms were identified adjacent to the North/South Convention Center. The study addressed market conditions, development costs, potential investment partners, economic impact and phasing of the hotels over time.

In 2003, Orange County was about to open its North/South Convention Center that offered an additional 1 million square feet of exhibition space. The 1998 Master Plan prepared by SAG noted that three to four 1,000+-room convention hotels needed to be developed to support the expansion. Just prior to the convention center's opening, there were six hotel projects totaling 5,000 rooms that were in various stages of planning and financing, hindered by the recession. The County engaged SAG to study the marketplace, meet with each development team to understand their challenges, and make recommendations on how to accelerate the projects. By 2008, the 1,500-room Rosen Shingle Creek was opened, a new 1,400-room Hilton was nearing completion and a 750-room expansion to the Peabody was underway.

Components: 1,500-Room Convention Hotel Adjacent to the Washington Convention Center
Project Value: $800 million

SAG is managing the pre-development process for the District of Columbia for the development of a 1,500-room hotel adjacent to the new Washington Convention Center. Our services included project sizing, site selection, site acquisition, land swap negotiations, developer identification, contract negotiations, finance plan development, design evaluation, development budget review, room block agreement negotiations, numerous stake holder and City Council presentations, and a number of other tasks required in our role of representing the District in the transaction. After evaluating a number of approaches to the project, the District decided to develop the hotel via a public-private partnership. The hotel will be privately owned by a developer teamed with Marriott. The project's capitalization includes private debt and equity, and public support in the form of a subordinated land lease, conduit financing, and a grant funded by a bond offering repaid by a portion of the taxes generated by the hotel.

Components: 1,200-room Convention Hotel

SAG assisted the City of Detroit study how its convention district could be improved to enhance visitation and utilization. The study began looking at the market support for a 1,200-room convention headquarter hotel located adjacent to the COBO Center, as well as potential expansion of the Center. The market analysis for the hotel revealed that there was not market support for either expansion or the development of a new hotel. However, we did outline a downtown redevelopment initiative focused on revitalizing the closed historic hotels that would improve the destination's appeal.

Components: 1,203-room Convention Hotel
Project Value: $285 million

SAG provided pre-development management services for the development of the 1,203-room Hilton Americas-Houston convention center headquarter hotel adjacent to the George R. Brown Convention Center in Houston, TX. SAG led a multi-faceted team assisting the City with creating the development and financing strategy, establishing a non-profit corporation to facilitate financing and operations, preparing the financial models, selecting the most appropriate project delivery method, writing RFQ/RFP's for other team members (architect, developer, operator) and basically playing the quarterback role until the developer was hired. SAG's role continued as "owner's representative" throughout the construction process. The hotel opened in 2003 and is managed by Hilton.

Components: 1,203-room Convention Hotel
Project Value: $285 million

SAG prepared a market and financial feasibility study for a 1,200-room convention hotel attached to the Boston Convention & Exhibition Center in Boston, MA. A key success factor for any convention center, especially in a first-tier city such as Boston competing for premier national events, is hotel supply near the center. The site of the BCEC is in Boston's Seaport District, an area that is primarily industrial and residential. Although slated for future development, the area offered little in the way of convention infrastructure, such as hotels, retail, entertainment, etc. The study included conducting community forums; hotel site analysis; market supply and demand projections; projections of occupancy, average daily rates and operating cash flows; hotel impact on the center; economic and tax impact projections; and development implementation alternatives.

Components: 700-room Convention Hotel
Project Value: $170 million

SAG provided pre-development project management services for the City of Charlotte for the development of The Westin Charlotte, a 700-room convention hotel adjacent to the Charlotte Convention Center. The hotel was privately financed, with the City making the project financially feasibly by building the hotel's meeting space and parking. The City also participated in conduit financing. SAG led a multi-faceted team assisting the City with evaluating developer proposals, assessing private developer incentive requests, outlining public-private partnership options, contract negotiations, creating an industry leading hotel room block agreement, and managing the City Council communication process. Over a period of eight months, SAG took the project from concept to reality, significantly reducing the public sector involvement. The hotel opened in 2003.

Components: 600-room Convention Hotel

The City of Portland desired to increase it marketability within the convention and tradeshow industry. With a recently completed expansion of the Oregon Convention Center, those charged with marketing and booking the facility continued to face obstacles in attracting many key, high-impact events. Would-be customers of the Center and visitors of the City frequently vocalized the need for a larger, first-quality hotel adjacent to the OCC. Therefore, the City of Portland, the Portland Oregon Visitors Association (now "Travel Portland"), and later the Portland Development Commission engaged SAG to create a Headquarter Hotel Strategic Plan and help realize the project. The project involved understanding and defining the market, customer needs, and required hotel program; assessing the impact of a new headquarter hotel on the existing hotel market; quantifying the economic impact on the OCC and the community; estimating the hotel's cost and financial feasibility. SAG's Plan did detail a need for a new hotel but also described other necessary steps Portland would need to take to truly maximize its penetration in the industry. The HQ Hotel project is currently being evaluated by elected officials.

Components: 500-room Convention Hotel
Project Value: $150 million

SAG was engaged by the Franklin County Convention Facility Authority's ("FCCFA") to examine the market and development potential for a convention hotel to be located adjacent to the Greater Columbus Convention Center in Columbus, OH. SAG evaluated the lodging market, convention center, projected market performance, projected cash flows, estimated development costs, calculated the warranted private investment and analyzed methods to fill the funding gap. It was determined that the amount of public subsidy required to privately finance the project could not be assembled. However, it was determined the project could be developed utilizing a tax-exempt bond finance structure that incorporated other FCCFA resources and City and County credit enhancements.

Components: Renaissance Schaumburg
Project Value: $100 million

The Village of Schaumburg, a Chicago suburb, engaged SAG to complete a comprehensive market and financial feasibility study for a convention hotel that was part of a mixed-use projected that also included a convention center, performing arts center and arena. The study process included analyzing demand trends by segment, including induced demand anticipated to be generated by the attached convention center; assessing the project's competitive position; and translating this information into a facility program, occupancy, average daily rate and operating cash flow projections. The hotel was financed using a tax-exempt bond structure. SAG led the Village through the financing process, helping structure the financing, retain the development team (construction manager and architect), select the operator and brand, negotiate the management contract, and negotiate all transaction documents. The hotel opened in 2006.

Components: 402-room Convention Hotel
Project Value: $47 million

SAG managed the development of the 400-room Sheraton Myrtle Beach. The hotel was financed using a tax-exempt bond structure. SAG led the City through the financing process, helping structure the financing, retain the development team (construction manager and architect), select the operator and brand, negotiate the management contract, and negotiate all transaction documents. The hotel opened in 2003.

After a troubled hotel opening, SAG was brought back in to review the hotel's operations and make operating recommendations. It was discovered that the management company needed to be changed. SAG was able to negotiate termination of the management contract with no penalty to the City. SAG then assisted with identifying and contracting with a new management company and brand. The hotel significantly improved profitability within a year and met owner expectations.

Components: 405-room Hotel; 60,000 sf Meeting Space

SAG represented the City of Norfolk, the Norfolk Redevelopment and Housing Authority, and the Norfolk Convention and Visitors Bureau in their renegotiation of the Norfolk Waterside Convention Center management contract as part of the sale of the hotel between private parties. The convention center and 405-room Marriott was originally developed as a single asset under a public-private partnership with the private sector investing in the hotel and the public sector investing in the convention center. The hotel management company managed both the hotel and convention center. SAG's advisory services encompassed a variety of related agreements, including the Operating Agreement, Catering Agreement, Hotel Room Block Agreement, and other transaction related documents, and addressed issues such as general terms and conditions, allocation of profits/deficits, capital reserve funding, operational control, room block parameters, service standards, insurance, budget process, financial reporting, termination, non-compete provisions and others. The original management contract (not negotiated by SAG) required the City to fund operating shortfalls and a reserve fund for capital replacements. SAG was able to renegotiate the management contract with the new hotel management company limiting the City's exposure to capital replacement funding only. The private sector assumed responsibility for all operating shortfalls.