|If a 600 room Hyatt ran 70% occupancy for a year and each room occupied averaged 1.6 guests per room (that’s the average from a study by Crossroads Consulting) and each guest ate 2 meals per day and the average price for each of those meals was $20.00 then … that would represent $9,811,200 in restaurant revenue generated per year because of the guests staying at the Convention Center Hotel.Just imagine not only the money that restaurants would enjoy but also the wages that would be paid, the taxes generated from the payroll, the tips that would be generated for the staff (15% gratuity on $9,811,200 in sales would equate to $1,471,680 in tips for staff.)
And just imagine the retail sales from all those new people shopping in Portland!
Here’s some basic math for you:
600 room hotel X 365 days a year = 219,000 possible rooms available to sell, but we are going to assume the hotel runs a 70% average occupancy per year, so the actual number of rooms rented per year would be 153,300
- If each of those 153,300 rented rooms had 1.6 guests in each (again that’s an average from a study done on conventions that occurred in Portland) then the hotel would have hosted 245,280 guests that year.
- If those 245,280 guests eat just 2 meals per day outside the hotel then 490,560 restaurant meals would have been consumed (let’s assume the 3rd meal was either not eaten or was eaten in the hotel.)
- If the average cost of each of those restaurant meals was $20.00 (and that’s REALLY conservative) then the revenue generated by those 490,560 meals would be $9,811,200 in NEW BUSINESS to the Portland restaurant community each year.
- If each guest left a 15% gratuity on those 490,560 meals that averaged $20 each then the tips earned by restaurant staff would be $1,471,680 per year.
- If it costs $50 to commute round trip from the airport, and we assume that each visitor is in town for 3.5 days, and that 70% of the 245,280 guests use a taxi for that purpose, it generates $2,452,800 in basic taxi fares to and from the airport. Despite the convenience of our award-winning transit system, there will undoubtedly be additional money infused into the economy through the use of taxis to go to Lloyd center,downtown and many other places by convention visitors. Then add in the tips given to the drivers.
- If each of the 245,280 guests buys two $5 all-day TriMet passes per 3.5-day visit, it will generate another $700,800 in TriMet revenue.
- If each of the 245,280 guests spends an average of $20 per day in the local community on the things we all seem to need while at a convention… batteries, candy, film, soda, newspapers… it infuses another $4,905,600 into the local small business economy.
That’s a projected yearly total increase of over $19 million dollars in local revenue based on basic convention travel expenses. If you add the additional revenue generated from spending on things like more food, night life, museums, rental cars, movies, souvenirs, clothing and whatever else you can imagine, there are millions and millions more… the benefit to the local economy becomes enormous!