Detroit growing as a convention destination

When the American Society of Association Executives selected Detroit five years ago to host its annual convention in 2015, its leadership took a leap of faith in the city.

At the time, the Detroit Regional Convention Facility Authority had recently taken over management of a Cobo Center in need of major renovations and changes in the way it was managed, according to Patrick Bero, its CEO and CFO. There also was a significant shortage of hotel rooms downtown.

Plans were in place to rectify the situation, but questions remained on whether the city would be ready this August to roll out the red carpet to the ASAE's 6,000 attendees, the majority of whom are directly involved in planning major conventions and events for their organizations.

Adding to the pressure, ASAE President and CEO John Graham said if attendees like what they see, at least 20 percent of them typically book a major meeting in the host city within five to 10 years. This translates into $500 million in visitor spending in the convention cities, he said.

Luckily for Bero and Graham, the $279 million renovation to Cobo Center is virtually complete. Its updated ballroom, atrium and other meeting areas provide 723,000 square feet of exhibit space, making it one of the largest convention centers in the Midwest. The renovations also included major technology upgrades, as well as changes to the facility's operations to lower costs for exhibitors. The final enhancements — primarily installation of new outdoor signage, video boards and landscaping — are scheduled to be completed by June 1.

"We saw its potential, kept close tabs on the Cobo Center renovations and it's now a beautiful, gleaming facility on the river," Graham said. "We're really excited about coming there."

This was not the case just a few years ago, Bero said. Prior to the takeover, few event planners would even consider Detroit, he said, citing the fact only two large conventions were booked at Cobo Center in 2008.

"The city was failing and could not provide the service level required to attract major conventions," Bero said. "The convention center was not an asset for the city, but rather a liability."

The Cobo Center's fortunes have apparently turned as word of its transformation has spread. Last fall, the authority announced bookings had reached a 20-year high. Total 2014 fiscal year revenues increased to $25 million, on the strength of a 22 percent increase in the number of events it hosted and 19 percent higher parking receipts compared to the prior year.

Bero said so far this fiscal year the facility has booked 16 conventions. It has seen an 8 percent increase in attendance and 16 percent growth in rented square footage.

In addition to several consumer-oriented shows at Cobo Center this winter and spring, including the North American International Auto Show later this month, a number of other large associations will be hosting their members in Detroit this year besides ASAE.

Among the largest will be the National Baptist Convention Educational Congress in June and its 30,000 attendees. Upwards of 40,000 more people will be in Detroit for the Evangelical Lutheran Church Youth Gathering in July, with the general sessions at Ford Field.

"Planners are always looking for new, interesting places to visit," said Bill Bohde, senior vice president of sales and marketing for the Detroit Metro Convention Visitors Bureau. "We weren't a major player in the convention market for many years, but there's a new vibe and sense of hipness to the city that they want to experience."

Bohde said major renovations to a number of downtown hotels, led by the $30 million transformation of the Detroit Marriott at Renaissance Center, plus the opening of smaller boutique hotels also have played a key role in landing more convention and meeting business downtown.

The Marriott completely renovated its 1,300 rooms, suites, meeting spaces, ballrooms and exhibit hall over the past two years. Last summer, the 367-room Crowne Plaza Detroit Downtown Riverfront Hotel (known in the past as the Pontchartrain Hotel) completed $5 million in updates. In addition, after $92 million in renovations the David Whitney Building is now home to The Aloft Detroit, an upscale hotel featuring 136 rooms that opened in December. The Westin Book Cadillac Detroit features 453 luxury rooms and Detroit's casino hotels add another 1,200. Later this year, the Foundation Hotel will open in the old downtown Detroit firehouse headquarters with an additional 100 rooms.

"There's been so much change in the hotel industry downtown in such a short period of time," said Judy Booth, the Marriott's director of sales and marketing. "We're a much stronger convention destination now."

Bohde said the current sweet spot for downtown Detroit is conventions that need 1,000 to 3,500 rooms. There is a need for even more, he said, considering the city has about 4,800 rooms total compared to 9,000 rooms in convention-friendly Indianapolis or 7,000 in St. Louis.

Detroit's convention industry renaissance has not come without other challenges, most notably the stigma of the city's bankruptcy and crime concerns.

But Bero and Bohde both say they have been able to address them with event planners who are now looking at venues for 2018 and beyond. They point out the decrease in crime downtown, the major investment in convention amenities throughout the area, plus a nearby world-class airport.

Coming to Cobo

Officials say convention bookings for Cobo Center have more than doubled since renovations began.

Future bookings include:

■USA Volleyball — 2015 (Open), 2017 (Men's), 2018 (Women's). Total attendance: 10,000 each year

■Communications Workers of America — 2015. Total attendance: 1,400

■National Medical Association — 2015. Total attendance: 2,000

■Service Employees International Union — 2016. Total attendance: 2,700

■Church of God in Christ — 2016. Total attendance: 12,000

Source: Cobo Center