Cincinnati Undergoing Citywide Revitalization

<B>Cincinnati Undergoing Citywide Revitalization</B>

By Bruce Serlen

Hoteliers in Cincinnati are looking to a raft of civic projects, due to come on line between this year and 2004, to help jump start business and be a catalyst for boosting downtown property occupancy rates which, during 1997-1999, were stuck in the low 60 percent range. Until then, however, buyers will remain in a strong position to negotiate individual travel and group business in this second-tier destination.

Stephen McCarthy, director of sales and marketing for the 872-room Regal Cincinnati Hotel, citing Smith Travel Research data, said, "for travel buyers, this is a terrific opportunity, especially for short-term bookings. Negotiated midweek rates for most of the downtown properties are in the high $90s to $140 a night range. That makes this a most affordable city right now."

The Regal--the city's largest hotel--and four other downtown properties are either adjacent, or in close proximity, to Cincinnati's Sabin Convention Center. Currently, the Sabin is in the midst of arranging funding for an expansion, which is widely regarded as essential to Cincinnati's growth.

"The proposed expansion will double the facility's size, thereby allowing the city to compete for many of the larger national shows and exhibits, many of which now pass us right by," said Wayne Bodington, area managing director and general manager of the 448-room Westin Cincinnati Hotel.

In fact, according to Mike Wilson, president of Cincinnati's Convention and Visitors Bureau, the 33-year-old convention center, totally renovated in 1987, will grow to 400,000 square feet of exhibit space and 240,000 square feet of meeting room.

To help provide the estimated $400 million in funding, there has been a thrust to boost the city hotel tax from 10.5 percent to 12 percent. While that increase would raise a significant portion of the expansion dollars, Cincinnati still would be in the hotel tax midrange for cities of its size. However, the tax increase has yet to be realized.

What has happened was last year's pledge by Delta Air Lines, which operates a major hub in Cincinnati, to pay $30 million for Convention Center naming rights. But, as several sources noted, that's still a long way from $400 million.

However, assuming plans do come to fruition, the Regal's McCarthy is confident an expanded center should make Cincinnati a contender for more of the extremely lucrative citywide conventions. "Right now, we're booking 10 to 12 of these a year, but the potential is much greater down the road," he said. "Since conventions themselves are getting bigger in terms of the amount of exhibit space they require, we need the space that would let us go after the big ones.

Complementing a bigger and better convention center will be a number of other civic improvements intended to make Cincinnati more appealing to travel buyers. "In total, they represent a $1.8 billion investment, which really shows the extent of the commitment this city is making to turning things around," said Wilson.

Projects include tearing down the existing Riverfront Stadium and constructing two separate nearby facilities. The first, Paul Brown Stadium, the new home for the NFL's Cincinnati Bengals, is scheduled to host the team's first home game in August. As for the Reds, a new "old-style" park should be ready by 2003. Fountain Square, a focal point for the city, also is getting a much-needed overhaul.

And pivotal highway connections downtown are being reconfigured to improve access and open up more of the Ohio River waterfront. Other City upgrade components include construction of the new National Underground Railroad Freedom Center, and a new contemporary arts center.

"We have a great opportunity to expand our business base through expansion of the convention center," said Wilson. "Clearly, that will assist our hotel community by attracting meetings that now are taking place in second- and third-tier cities." Wilson is hopeful the revitalized Sabin will be open by 2004.

Something else the hotel community would love to see is a mixed-use development downtown, preferably one that combined retail with movie theaters and other forms of entertainment. "Other cities in our competitive set, such as Indianapolis and Cleveland, have made improvements like this and seen business take off," said the Westin's Bodington. "Now it's our time. Coupled with the expanded convention center, I feel Cincinnati's prospects will become much stronger.