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SALT LAKE CONVENTION CENTER HOTEL SALT LAKE CONVENTION CENTER HOTEL

SALT LAKE CONVENTION CENTER HOTEL - PowerPoint Presentation

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Uploaded On 2016-11-22

SALT LAKE CONVENTION CENTER HOTEL - PPT Presentation

  Utah Taxpayers Association Utah Taxes Now Conference May 2013 Existing Downtown Hotel Market 11 fullservice hotels 4800 rooms Existing hotels entered the market with little or no government help ID: 491812

convention hotel existing hotels hotel convention hotels existing market tax downtown taxpaying room business rooms million approach supplied subsidized

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Slide1

SALT LAKE CONVENTION CENTER HOTEL Utah Taxpayers Association“Utah Taxes Now” ConferenceMay 2013Slide2

Existing Downtown Hotel Market11 full-service hotels (4,800 rooms)Existing hotels entered the market with little or no government help

Private investment in downtown hotels has been

extraordinary

—superior to other cities

Downtown well supplied by a wide range of hotel rooms

Grand America Hotel (775 rooms) is a convention hotel

Grand and Little America hotels have surplus capacity

1,000 room convention hotel would add 21% of room inventory (full-service) to a well-supplied marketSlide3

Strategic Advisory Group (SAG) estimates about $100 million (NPV) subsidy is needed to bring a 1,000 room convention hotel to downtown Salt Lake

Source: SAG,

Convention Headquarter Hotel Financial Model Assessment

, December 2012, pg.17Slide4

Problems and IssuesUnfair tax policy (how do existing hotels compete against a hotel receiving about $10 million/year in tax benefits?)Approach incentivizes the subsidized hotel to take business from existing hotels

Public will lose tax revenue when lodging, restaurant and banquet business moves from existing taxpaying hotels to the non-taxpaying convention hotel

Public will lose tax revenue if a heavily subsidized convention hotel keeps taxpaying hotels from entering the market

A large portion of spending by delegates staying at the convention hotel would not be taxed for 15+ years

The approach boost convention business is not supported by Utah’s hotel and restaurant associations—which comprise 67% of convention delegate spending