If all goes according to plan, Denver’s convention-center expansion and new
headquarters hotel could add thousands of jobs and millions of dollars to the
city’s economy.
The center anticipates hiring an additional 3,800 workers. Meanwhile, the 1,100-
room Hyatt hotel being built across the street will need as many as 1,000
workers to accommodate some of the 1 million-plus visitors expected to attend
convention events each year.
But those numbers depend on city officials’ ability to lure massive national
gatherings in a competitive convention market. If they succeed, the bounty could
spread well beyond the center’s downtown location.
“They are going to have a substantial effect,” said Nick LeMasters, general
manager of Cherry Creek Shopping Center about 3 miles away.
LeMasters sees little downside to the expansion and hotel development.
“When tourists come to town, it’s new money,” he said. “They don’t go to our
schools or spend time using our social services. The overall tax burden for
residents in the city is lowered by a significant sum.”
A single conventiongoer can spend about $1,000 — mostly on lodging, food and
shopping — during a three-day gathering, according to a survey released earlier
this year by the International Association of Convention & Visitor Bureaus.
That means a potential windfall of $10 million could be generated by a 10,000-
person meeting — the event size that convention officials will increasingly chase
to fill the additional space.
“It’s going to generate a huge economic impact for the city,” said Richard
Scharf, president and chief executive of the Denver Metro Convention & Visitors
Bureau, the agency charged with rounding up groups. “And I think we are going
to position ourselves quite well.”
Still, it could be several years before the convention center and hotel realize
their full potential.
“Where I see us turning the corner is probably around ’07, when we start to
mature,” Scharf said.
The new Hyatt is critical to landing bigger convention events — 10,000 to 20,000
attendees, said John Schafer, general manager of the nearby Hyatt Regency at
17th and Welton streets.
“We would not be able to house both more and larger conventions,” Schafer said.
Over the past several years, a number of regular conventions have become too big
for the old center to accommodate.
“Those are the ones that we want to come
back,” Schafer said.
Simply put: “If you don’t have the hotel, you aren’t going to get the business,”
said Linda Mansouria, president of Make It Happen LLC, a San Francisco-based
meeting planner and consultant.
But the new Hyatt comes at the expense — at least initially — of downtown’s
established lodging.
“It’s pretty typical when a new hotel comes online that every other hotel sees a
slight drop in their occupancy until everything levels out,” said Ilene Kamsler,
president of the Colorado Hotel & Lodging Association.
Increased competition could be risky for businesses both new and old. But the
chance of a drop-off hasn’t stopped other hoteliers from entering the market.
“We are on Speer Boulevard, which is a prime exit for anyone going to the
convention center,” said David Amin, developer of a Hampton Inn & Suites under
construction at Speer Boulevard and Zuni Street, west of Interstate 25.
The 61-room facility with surface parking is just one of several downtown-area
hotels being planned or constructed. Amin’s Hampton will be completed in mid-
June.
Downtown restaurants also are looking forward to the expansion and the
convention hotel.
“This is what we need to compete on that level with cities like San Francisco,
Chicago, Houston and Dallas,” said Jackson Lamb, president of the Colorado
Restaurant Association’s Mile High chapter.
Themed eateries, such as ESPN Zone and Hard Rock Cafe, will benefit from
conventiongoers who live in smaller communities without such high-profile
restaurants.
More upscale establishments with private rooms, such as the Palm Restaurant,
Panzano Restaurant and Capital Grille, should benefit from more visiting
conventioneers seeking catering services.
“All the restaurants are anxiously awaiting the first big convention,” said John
Imbergamo, a Denver restaurant consultant.
Hotels will also see an increase in private parties held by trade groups and
companies, such as drug and medical suppliers, trying to sell products to
prospective clients.
“You are talking about some serious dollars,” Imbergamo said.
The 16th Street Mall will continue to be “the backbone for conventioneers,”
Imbergamo said, but restaurants and services throughout downtown Denver should
expect to see more foot traffic and sales.
Staff writer Macario Juarez Jr. can be reached at 303-820-1260 or
mjuarez@denverpost.com.
