Bazan: Revenue Reality vs Consultants on the Hilton Americas

Kevin · 2012-03-21 22:20:24

Tom Bazan passes along this interesting chart he put together detailing the projections made by one of the city's favorite consultants to justify its deep involvement in the convention center hotel versus actual revenue performance over time:

{Hilton America's revenue: PKF vs Reality}

Since the City of Houston is considering a number of initiatives ranging from yet another convention center hotel to Hobby Airport expansion to accommodate international travel (even though Houston has a designated international gateway with an expansion plan), we thought it would be a useful reminder that sometimes the consultants picked by the city to "analyze" these issues tend to come up with the answers that city officials already wanted to hear (and that these don't always conform with reality).

Link to post: http://www.bloghouston.net/item/8915

Ross · 2012-03-21 23:13:37

I never understood why the City is willing to build a business that's considered unprofitable by the free market. Are taxpayers on the hook for any losses here?

Factotum · 2012-03-22 05:38:56

PKF is in the business of promoting hotel building, whether or not there is a market.
City hall takes the view that; 'We'll lose money on every deal but make it up in volume', ergo the push to put the taxpayers in the tank for even more hotels.
And if you take your views to city hall you'll find that it only listens to its own bought and paid for 'CONsultants'.
What happened to the plan to sell the Taxpayer Hilton? No takers?

Royko · 2012-03-22 07:15:12

Factorum, Here are my comments four years ago.

http://www.bloghouston.net/forum/viewto … 262#p27262

Royko · 2012-03-22 07:17:41

Factotum, Sorry about the misspelled title. Still formulating a plausible excuse.

Factotum · 2012-03-23 05:28:25

Thanks for the reminder Royko...

BarksintheCountry · 2012-03-23 08:51:01

The days of large, recurring conventions are over, with a very few exceptions. Study after study has confirmed that these are bad investments and a waste of taxpayer money. The WSJ ran the most recent confirmation of this.

Royko · 2012-03-23 13:44:44

BarksintheCounrty,

There had been reports on studies twelve years ago, before the COH voted to approve the formation of the hotel corporation, documenting that only a few cities would be able to attract the Superconventions. But the City Council wanted to proceed with the massive boondoggles.

missmsry · 2012-03-23 14:01:21

Stupid city. Stupid politicians. Glad I moved away 3 weeks ago. Unfortunately, Houston isn't the only stupid city around.

Fairly Old · 2012-03-23 16:54:31

There is another facet, possibly. I'm just cynical enough to believe that this is just another secure fortress from which the SEIU can reach out to janitors in the downtown buildings. The other city-sponsored hotel was the first beachhead here for SEIU, as I recall.

The leftist elite's motivation often is gaining control and promoting their agenda.

Royko · 2012-03-23 20:53:02

I'm inclined to speculate that simple graft and corruption was the prime motivation for those who voted for it.

Further, look at METREAUX over th past several years. With the tsunami of "windfall" sales tax they have been able to feather just about every nest they needed to to kill any opposition to the boondoggle rail.

Factotum · 2012-03-23 21:58:20

Sweet corruption Royko...remember the 'hotel 6' (no offense intended toward 'motel 6')

Factotum · 2012-03-23 22:36:31

I'm sure Hilton's management contract insures its profits no matter the situation. Would like to get a copy of that doc.

Royko · 2012-03-24 22:17:09

It likely is subject to a TPIA request.

Although, several years back, I tried to get information about the Aquarium, and the city Finance department insisted I get the information from Landry's. That was a joke. I could not get any return call from Landry's, and likely knew they would force me to file another complaint with the TXOAG, and they could drag that out for 120 days, and then file a lawsuit (I know this because METREAUX did that several times on my TPIA requests), which could easilly drag it out for at least one year in the best case.

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#1 2012-03-21 22:20:24

Bazan: Revenue Reality vs Consultants on the Hilton Americas

#2 2012-03-21 23:13:37

Re: Bazan: Revenue Reality vs Consultants on the Hilton Americas

#3 2012-03-22 05:38:56

Re: Bazan: Revenue Reality vs Consultants on the Hilton Americas

#4 2012-03-22 07:15:12

Re: Bazan: Revenue Reality vs Consultants on the Hilton Americas

#5 2012-03-22 07:17:41

Re: Bazan: Revenue Reality vs Consultants on the Hilton Americas

#6 2012-03-23 05:28:25

Re: Bazan: Revenue Reality vs Consultants on the Hilton Americas

#7 2012-03-23 08:51:01

Re: Bazan: Revenue Reality vs Consultants on the Hilton Americas

#8 2012-03-23 13:44:44

Re: Bazan: Revenue Reality vs Consultants on the Hilton Americas

#9 2012-03-23 14:01:21

Re: Bazan: Revenue Reality vs Consultants on the Hilton Americas

#10 2012-03-23 16:54:31

Re: Bazan: Revenue Reality vs Consultants on the Hilton Americas

#11 2012-03-23 20:53:02

Re: Bazan: Revenue Reality vs Consultants on the Hilton Americas

#12 2012-03-23 21:58:20

Re: Bazan: Revenue Reality vs Consultants on the Hilton Americas

#13 2012-03-23 22:36:31

Re: Bazan: Revenue Reality vs Consultants on the Hilton Americas

#14 2012-03-24 22:17:09

Re: Bazan: Revenue Reality vs Consultants on the Hilton Americas

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