Durham Convention Center 2011-2012 Annual Report

DURHAM CONVENTION

CENTER

FY11 ANNUAL REPORT

Statement of Purpose Page 3

Letter from Authority Board Chair Page 4

Message from the General Manager Page 5

Letter from the County Page 6

Letter from the Contract Administrator Page 7

Letter from the DCVB Page 8

Facility Overview Page 9

Organizational Chart Page 12

How Are we Doin’? Page 13

Survey Scores Page 15

Financial Performance Page 16

Summary of Accomplishments Page 17

Future Outlook Page 19

T a b l e o f C o n t e n t s

S ta t e m e n t o f P u r p o s e

Global Spectrum, under the direction of our client the City of Durham and County of

Durham, is committed to providing a first-class operation of the Durham Convention Center

that drives economic impact for the greater Durham area by creating a well balanced mix of

events that enhance the downtown Durham Business District. Through this we hope to

motivate residents and visitors to experience all downtown Durham has to offer.

The Durham Convention Center team recognizes that the most efficient way to do this is by

providing exceptional customer service, operating under the highest level of professional

integrity, and through conscientious budget management and revenue generating decision

making.

The Durham Convention Center is the premier meeting and event destination in Durham,

combining state-of the art facilities with a professional, energetic staff that works extremely

hard to provide events and meeting spaces to all citizens of Durham. The facilities serve an

integral role in boosting tourism and local traffic to restaurants, retails and parking facilities

in downtown Durham.

D u r h a m C o n v e n t i o n

C e n t e r A u t h o r i t y

B o a r d

F r o n t R o w : A l B a s s ,

R o s e m a r i e K i t c h i n , D a w n

P a f f e n r o t h , B i l l y R u f f i n

B a c k R o w : R i c h a r d

F o r d , P a t r i c k B y k e r

( C h a i r ) , B i l l K a l k h o f

D u r h a m

C o n v e n t i o n

C e n t e r A u t h o r i t y

B o a r d

P a t r i c k B y k e r ,

C h a i r


C e n t e r

J e n N o b l e , G M

D u r h a m C o u n t y

A s s i s t a n t C o u n t y

M a n a g e r

Page 6

D i r e c t o r ,

D e p a r t m e n t o f

G e n e r a l

S e r v i c e s

Page 7


a n d V i s i t o r s B u r e a u

S h e l l y G r e e n ,

P r e s i d e n t & C E O

Facility Overview

Proudly managed by Global Spectrum, the

Durham Convention Center, located in the heart

of downtown Durham, is a newly renovated

facility owned by the City and County of

Durham. With 33,000 total square feet of

meeting space, the Durham Convention Center

boasts spaces to host events from 10 people to

1,800 guests.

Guests arrive to the center in the 5,400 square

foot pre function area . This space offers guests

additional space for registration or pre-function

receptions.

The 15,500 square foot Grand Ballroom offers

guests traditional décor with 17 foot ceilings

and crystal chandeliers the Grand Ballroom

creates a feeling of an elegant, high-end banquet

and/or meeting space. Amenities include in-

house sound system, adjustable lighting, flexibility of additional break out space and easy load in and out access for exhibitors.

The 11,500 square foot Junior Ballroom offers contemporary design. Air walls provide guests flexibility of space from one large room up to 8–

break out rooms with amenities such as adjustable lighting, in-house sound systems .

Four meeting rooms stem off of the main hallway and can be combined to make two larger rooms or divided for a more intimate setting. Two ex-

ecutive board rooms complete the Convention Center and are equipped with plasma screen televisions and leather swivel chairs giving the client

the ultimate professional setting to conduct business meetings.

Guests enjoy the excitement and amenities of a beautiful and vibrant downtown the offers a variety of shops, unique restaurants, and sporting and

entertainment venues such as the Durham Bulls Athletic Pak and DPAC all just steps away from the Durham Convention Center. The proximity

to Duke University, NCCU, Research Triangle Park and Raleigh-Durham International airport gives guests an unparalleled ease of access to our

centralized downtown location.

Organizational Chart

Sous Chef and

Preparation Cooks

Operations Staff and

Housekeeping

Banquet Captains and

Service Staff

CUSTOMER FIRST

Use all resources available to serve internal and external customer interactions

GOLDEN RULE

Treat co-workers and customers with complete respect, fairness and courtesy

LISTEN

Ask open-ended questions, be attentive and clarify understanding to improve

accuracy of responses

THINK YES

Consistently demonstrate a can-do approach in thoughts and actions

BE PROFESSIONAL

Represent Global Spectrum in an ethical and positive manner with all interactions

POSITIVE ATTITUDE

Solve problems creatively by making decisions that positively impact

the entire organization

24-HOUR RULE

Act with an appropriate sense of urgency when

responding to any and all requests

EVERYBODY SELLS

Suggest and implement new ways to drive and improve our business

ENTHUSIASM

Work with a passion towards achieving individual, team and organizational growth

& success and encourage others to do the same

DO IT NOW

Deliver on the things you have committed to doing and are accountable

for producing

Since 1989, the ‘Civic Center” has been the gracious

home of Project Graduation of Durham...And the

hospitality was at its peak on June 2012. The best

party yet!

-Mary Holderness

On behalf of the Mayor’s Committee for Persons with

Disabilities, I want to thank you for your generous

sponsorship of the event. The food was excellent and

banquet service and audio visual staff rendered impeccable

service.

Deborah Giles,

Dept. of Equal Opportunity

City of Durham

We give high pr

aise to the ent

ire Convention Center

service crew

who exhibited a

n exemplary le

vel of

patience and th

oughtfulness in

accommodating

our

visitors— Jacquelin

e Looney, Duke Universit

y

C o m m e n t C a r d s

Thank you again for everything you and your team did

to ensure that our event occurred without a single hitch!

Today is my first day back in the office and everyone is

still talking about the wonderful time had by all. Thanks again,

Marjorie Black

The performance of the

Durham Convention

Center is measured

through the use of our

Customer Satisfaction

Survey. The survey is

given to event organizers

for each event held at the

Center.

Clients were asked a

series of questions to rate

their overall event

experience.

The results are based on a

combined overall score of

4.35 out of 5.

1

1.5

2

2.5

3

3.5

4

4.5

5

Bo

oki

ng

Sal

es

Pro

cess

F&B

Sal

es

Pro

cess

CS

Man

agem

en

t

Re

spo

nsi

vne

ss

Em

plo

yee

Co

urt

esy

Sale

s T

ota

ls

Qu

alit

y o

f Fo

od

Po

rtio

n s

ize

Pre

sen

tati

on

of

Foo

d

Qu

alit

y o

f Se

rvic

e

Ove

rall

Rat

ing

of

F&B

F&B

To

tal

Acc

ura

cy o

f ro

om

se

t

Co

mfo

rt o

f fa

cilit

y

Cle

anlin

ess

of

faci

lity

Qu

alit

y o

f A

V S

ervi

ce

Ove

rall

Rat

ing

To

tal

Ove

rall

Faci

lity

To

tal

Ove

rall

Rat

ing

C o m m e n t C a r d s

FINANCIAL PERFORMANCE

FY 2011-2012

FINANCIAL PERFORMANCE

FY 2011-2012

Summary of Accomplishments

This year brought much excitement and a wide variety of accomplishments for the Durham Convention Center.

A $6.9 million renovation of the facility began in January 2011. As early as February 2011 Global Spectrum assisted in consulting during the con-

struction phase of the project. Upgrades to the center included HVAC, in-house sound system and lighting, wall and floor coverings. Our sister

company, Ovations Food Service, assisted us in menu development, Chef selections and oversaw the development of our new catering kitchen.

Several key initiatives were taken on by Global Spectrum to run a more efficient operation. A re-branding campaign now identifies the facility as a

stand-alone operation. The re-alignment of the Sales & Marketing Department created an increased focus on market segments driving top-line sales

where growth was anticipated. Emphasis was put on priority market segments that were not realized in the previous management company’s strate-

gy. For the first time since the facility’s inception, a strategic plan was developed for selling the consumer show market.

Additional factors that are strong indicators of Global Spectrum’s success, compared to the prior management firm, include the profitability of food

and beverage. Global Spectrum delivered the following results in this area: -7% in FY 2009-2010 to +42.2% in 2011-2012

A shift in marketing strategies took place when Global Spectrum assumed management responsibilities. Creating awareness and visibility by utilizing

social media outlets, grassroots initiatives, and press releases were new elements implemented in the operation. A streamlined, targeted approach was

employed to advertise the facility, rather than a blanket advertising approach used by the former managers. Direct Sales efforts were activated success-

fully, and continue to be a driving force in the region. The utilization of Global Spectrum corporate resources played an important role in the successes

mentioned above. Several components helped shape the strength and consistency of the Center’s new operation, including participation in the Global

Spectrum national branding campaign and Global Prospecting System, the “How You Doin’?” customer service program, consulting with Ovations

Food Service, and the shared experiences and successes of other Global Spectrum-managed facilities.

Not only did Global Spectrum take measures to increase revenue and visibility, but the fiscal management of expenses also led to achieving positive

financial results. Better understanding of the use of the facility’s energy management systems, evaluation and

renegotiation of facility service contracts, and aligning staff/personnel levels as events dictated, proved to be

additional and viable generators of efficiencies yielded:

41% decrease in utility expenses (focusing on conservation)

35% decrease in payroll of salaried employees

43.5% decrease in food & beverage labor expenses (eliminating overtime, adjusted staffing to event

demand)

Global Spectrum’s commitment to improving the financial health at the Durham Convention Center was substantiated with the Center’s year-end re-

sults, which included a $1 million reduction in net loss compared to the efforts of the prior management company.

FY- 2009-2010 net loss with prior management company - $1,393,277

FY- 2011-2012 net loss with Global Spectrum – $297,223

ATTENDANCE

GROSS REVENUE NET REVENUE

EVENT MIX

Event Mix

Banquets, $719,470

Conventions, $26,473

Special Events,

$333,443

Meetings, $549,766

Tradeshows, $82,284

Banquets, 119

Conventions, 5

Special Events, 45

Meetings, 150

Tradeshows, 16

Banquets, $354,721

Conventions, $13,709

Special Events,

$202,170

Meetings, $308,342

Tradeshows, $56,780

Banquets18,949

Conventions150

Special Events40,523

Meetings14,935

Tradeshows3,320

Future Outlook

The Global Spectrum team at the Durham Convention Center has redefined success in our first fiscal year 2011-2012,

managing the center in a wide variety of areas. Despite renovation delays which created a ten-month stub year, Global

Spectrum’s first year of operation at the Durham Convention Center yielded success in top- line revenue generation, ex-

pense savings, and a significant decrease in net operating loss.

As with any operation, there are obstacles that threaten the Durham Convention Centers full potential. The DCC

competes daily with convention centers and hotels that have the upper hand by having a proportionate amount of hotel

rooms attached or in close proximity to their facility. In order for the center to market to larger conventions, the need

for more hotel(s) within close proximity of the DCC is critical to our future success. Recently, two hotel projects have

been approved for development. Both the Holland Hotel and 21C projects will help support our mission to market and

sell to larger conventions and bring additional

economic impact to the city by way of overnight

visitors. These new hotels will offer guests a

unique experience consistent with the vibrant cul-

ture of Durham. We look forward to partner-

ing with these hotels to increase the number of

conventions being booked for the Durham Con-

vention Center and the Durham hospitality com-

munity at large.

Global Spectrum is very optimistic about 2012-

2013 and the future due to the strength of our rela-

tionship with our clients, local stakeholders, key

partners, the excellence in services provided to our

guests and the facilities offered at the Durham

Convention Center.

Durham Convention Center 2011-2012 Annual Report

Documents

Transcript of Durham Convention Center 2011-2012 Annual Report