Los Angeles Hotels Offering Incentives To Entice Corporate Meetings

Experiencing a weakening economy and diminished demand for hotel space, Los Angeles hoteliers have started to offer corporate meeting buyers incentives enticing them to bring their business.

"Los Angeles remains a very strong hotel market, but with concerns about the economy, hoteliers are being more receptive to meetings business at all times of the year than they were over the past few years," said Bruce Baltin, senior vice president of PKF Consulting.

Demand for hotel meetings space still is pretty healthy, said Baltin, despite a weakened U.S. economy and an increasing number of companies moving meetings to onsite facilities.

While demand for hotel space in Los Angeles is a little stronger than other cities, and room rates appear to be holding up, said PKF's Baltin, hotels are going to be "pretty aggressive" when it comes to making deals.

"Hotels continue to offer incentives," said Larissa Schultz, owner and event planner for LJS Meeting Strategies. "I am pleased to see hotels offering corporate versus individual incentives, such as discounts on future business from the corporation or percent discounts off of master accounts—things that help the company's or organization's bottom line."

Some Los Angeles hotels also are offering discounts for longer-term meeting bookings, with a certain window of time before the event. It also allows hotels to see how much space they have booked for a specific date earlier than before.

Hotels also are offering companies credits for food and beverage and are enticing them with double hotel reward points, said Schultz.

Los Angeles has a lot to offer clients in the market for a location to hold an event, particularly for corporate meetings, city officials said.

"The market in Los Angeles has always been a little different from other major cities because we are not really a convention city. We have always been and continue to be popular with corporate groups," said Sarah Best, Los Angeles Business Travel Association board member and transient sales manager for the Loews Santa Monica Beach Hotel.

"Construction is constantly occurring and one of the most exciting new ventures is the L.A. Live complex being constructed next to the Staples Center in downtown Los Angeles," said Schultz.

The L.A. Live downtown sports and entertainment complex will bring several new meeting options when all construction is complete in early 2010, including a JW Marriott and a Ritz-Carlton—operated separately, but under one roof—that will add 1,001 guest rooms and more than 75,000 square feet of meeting space. It also will provide new entertainment and dining facilities.

Areas like Hollywood, Santa Monica and the San Fernando Valley give Los Angeles a diverse selection of places to hold events.

"I believe each city market has something to offer companies and organizations and they do all differ. Los Angeles has so many different types of offerings due to its varied areas," said Schultz. "This city has the benefit of being able to offer many diverse opportunities and venues to groups and the ability to provide for and host many different types of meetings, conferences and events."