The demand for meetings and events in big cities is off the hook:Big City Bash: Hilton CEO Reports Skyrocketing Demand for Urban Group Events

The demand for meetings and events in big cities is off the hook:Big City Bash: Hilton CEO Reports Skyrocketing Demand for Urban Group Events - Downtown Destinations Draw Crowds

Urban city centers have seen a major resurgence as desirable destinations for meetings and events over the past few years. As Hilton CEO Christopher Nassetta noted, demand for hosting conferences, conventions, and large gatherings in downtown areas has skyrocketed recently.

Planners and attendees alike are flocking to the heart of major metros thanks to the walkability, abundance of attractions, and energy provided by a vibrant downtown locale. Whereas suburban convention centers and sprawling hotels once dominated the landscape, event organizers now prioritize locations that allow attendees to easily explore the host city by foot.

Densely populated downtowns offer no shortage of dining, shopping, museums, and entertainment all within close proximity. This allows for stimulating host events that engage and excite attendees in unique ways a suburban setting simply can't match.

Rather than being confined to the walls of a convention center, groups can now take advantage of dynamic urban environments. Imagine closing out a conference by renting out an entire city block for a private event. Or hosting dinners at the hottest new restaurants that attendees couldn't experience anywhere else. The possibilities are endless when the whole city becomes your playground.

The concentration of hotels, venues, and logistical infrastructure also provides advantages for planners. With so many resources in one centralized district, it's faster and easier to move large groups throughout their packed schedules. And the extensive public transportation networks found downtown make it a cinch for visitors to explore on their own.

Of course, the economics have to work as well. As cities invest heavily in modern convention centers and subsidize the travel industry to drive tourism, cost advantages emerge. Newly constructed facilities in downtown areas along with travel incentives make urban settings financially viable for event planners who previously ruled them out based on budget.

While crowds, congestion, and parking challenges in cities can be drawbacks, most planners find the overall energy and experiential nature of downtowns offset any logistical headaches. Attendees overwhelmingly prefer the vibe of a downtown conference to the sterile isolation of a suburban one.

The demand for meetings and events in big cities is off the hook:Big City Bash: Hilton CEO Reports Skyrocketing Demand for Urban Group Events - Conventions Flock Back to City Centers

After years in the wilderness, major conventions and trade shows are returning to downtown locales en masse. The energy and convenience of an urban environment has proven irresistible to event organizers who once wrote off city venues as impractical.

Dense, vibrant downtowns mesh perfectly with the experiential demands of modern attendees. Rather than snoozing through dry lectures, today's participants expect engaging, stimulating environments. And city centers deliver with attractions galore right on the doorstep.

Immerse your group in a world-class art museum or historic neighborhood between sessions. Or gather at night in a trendy entertainment district for networking events. The possibilities for creative offsite gatherings are limitless when the whole city is your campus.

Urban settings also allow for unique brand partnerships that reinforce the conference theme. Picture closing down an entire city block for a private concert sponsored by a hot new startup. Or hosting dinners at restaurants from a famous TV cooking show. Experiences attendees can't get anywhere else make a powerful impact.

Densely developed downtowns also offer practical perks with abundant hotel rooms and transit options. Moving large groups between venues is far easier when everything is centrally located near public transportation. And new conference centers purpose-built for giant conventions provide the infrastructure to accommodate major events.

Cities like Chicago have invested billions in expansive new downtown venues tailored specifically for massive conferences. Attractive subsidies to win convention business make the pricing work too. Urban settings deliver the best of both worlds - excitement and convenience.

While tourists may avoid big cities due to crowding and parking challenges, attendees embrace the energy. People want to experience the vibe of a great downtown, even if navigating it takes patience. For meeting planners, it's a tradeoff well worth making.

With demand skyrocketing, cities from Philadelphia to Phoenix are scrambling to create more downtown hotel rooms, event venues, and attractions to woo conventions back from the suburbs. It's a massive opportunity to drive local economic growth while energizing their urban cores.

The demand for meetings and events in big cities is off the hook:Big City Bash: Hilton CEO Reports Skyrocketing Demand for Urban Group Events - Planners Prioritize Central Locations

Urban centers provide immense advantages that make city locales the first choice for many major event planners these days. After two years of virtual conferences, in-person meetings are back in a big way in 2023. And organizers are flocking to downtown destinations to capture the energy attendees crave.

Take mega trade shows like the Consumer Electronics Show each January in Las Vegas. After going fully virtual in 2021, CES triumphantly returned to the Las Vegas Convention Center with over 100,000 attendees in 2022. Situated right on the famous Vegas Strip, the Convention Center places the massive event in the heart of the action.

Rather than traversing acres of parking lots, attendees at CES can simply walk outside to experience one of the most iconic tourist destinations in the world. This stimulates creative offsite events and networking while avoiding the soullessness of a suburban conference zone.

Urban settings mesh ideally with experience-driven gatherings by providing built-in entertainment infrastructure. You couldn’t ask for a better backdrop than the Vegas Strip. And the city offers endless options for branded pop-up events that capture attention like no beige conference room ever could.

Downtown conferences also win based on logistics. Abundant hotel rooms near transit hubs make it simple to house and move attendees. Cities like San Francisco and New York have ideal layouts to connect convention centers to surrounding amenities. And tech-friendly environments like Austin or Silicon Valley enable forward-thinking events.

Hospitality investment focuses on cities now too. Take Washington D.C. for example. The Walter E Washington Convention Center just completed a $60 million renovation in 2021. This expanded capacity for massive conferences that can take over the capital’s vibrant downtown.

The Hilton corporation is focusing its convention resources on urban destinations as well. Some current projects include a major expansion of the Hilton Chicago and a brand new state-of-the-art Hilton Cleveland Downtown set to open in 2024.

Cities recognize the immense economic benefits of hosting mega conferences. Tourism dollars flow in while showcasing everything that makes these destinations special. Attractive bids lure major conventions away from dull suburban venues. And continued hospitality investment ensures a constant stream of new enticing event infrastructure.

While navigating congested downtowns poses challenges, event planners happily accept this tradeoff. Crowds and jam-packed schedules come with the territory for major conferences. And attendees overwhelmingly prefer contending with the energy of an urban locale over dealing with suburban boredom.

The demand for meetings and events in big cities is off the hook:Big City Bash: Hilton CEO Reports Skyrocketing Demand for Urban Group Events - Suburban Sites Lose Their Luster

After decades of dominance, suburban sites are losing appeal for major conferences and conventions. Massive complexes once seen as ideal for hosting large groups now sit surrounded by empty parking lots as planners turn to vibrant downtowns instead. This shift reveals how priorities and preferences have evolved to favor urban locales.

In the 1980s and 90s, exhibitions like the Consumer Electronics Show and massive medical conferences found spacious homes in suburban conference centers. Attendees would flock to cavernous halls surrounded by thousands of parking spaces outside cities like Atlanta or Phoenix. Transit was an afterthought as nearly everyone drove.

These isolated sites provided plenty of space for exhibits and breakout rooms. Attendees moved effortlessly between buildings, parking right outside each venue. Planners appreciated the convenience of having ample room to spread out. And lower real estate costs kept prices down relative to downtowns.

But over time, the sterility and isolation of these complexes took their toll. Cut off from amenities, attendees stared at bare asphalt during breaks rather than soaking in dynamic cities. Networking events at chain restaurants and hotels felt generic. And good luck exploring without a car!

Today’s attendees crave stimulation and engagement from their conference surroundings. They want experiences that excite and activities beyond the program. And suburban settings simply fail to deliver on this front.

Urban downtowns provide energy, crowds, attractions, nightlife, culture, and convenience planners now desperately need. And cities have invested heavily in transit, tourism infrastructure, and new convention centers offering all the modern amenities.

As priorities shifted, suburban sites saw demand plummet. Former mega-conferences like MacWorld abandoned their soulless Santa Clara home for the vibrancy of downtown San Francisco. Others followed this urban migration, lured by city investments.

Empty parking lots now surround aging suburban facilities devoid of guests. With demand shifted entirely to cities, many sit financially underwater, draining municipal resources just to keep doors open. Without reinvestment, remaining bookings will also evaporate.

To stay viable, these complexes must find new purposes that provide value. Some morph into community centers or trade schools. Others rent space piecemeal to local businesses. A few even tear down buildings to make way for more profitable development.

But make no mistake - the era of suburban sites hosting major conferences appears over. Their sprawling isolation simply no longer aligns with attendee priorities. And adequate investment to reinvent these destinations typically proves too little, too late.

The demand for meetings and events in big cities is off the hook:Big City Bash: Hilton CEO Reports Skyrocketing Demand for Urban Group Events - Urban Meeting Spaces Fill Up Fast

The resurgence of major cities as destinations for conventions and trade shows has led to a mad scramble for available space. Downtown venues are booking up fast, leaving some event planners unable to secure their preferred urban location and dates. This intense competition reveals the immense demand for centralized meeting facilities in vibrant metro areas.

Savvy planners now book their citywide events years in advance to lock in prime urban real estate. For example, Chicago’s McCormick Place convention center is largely sold out through 2025. Major medical conferences have reserved space into the late 2020s knowing they want the energy of a downtown Chicago meeting.

International events like the International Manufacturing Technology Show, which draws over 100,000 attendees, have inked deals with Chicago through 2030. They committed a decade out to guarantee access to McCormick Place rather than rolling the dice.

Those unable to plan so far ahead find downtown spots tough to come by. Last-minute planners in cities like San Francisco and New York struggle to secure sufficient hotel rooms and venues unless they meet during off-peak seasons. Otherwise, the limited event infrastructure in these dense locales fills up fast.

Creative bargains exist by booking adjacent cities simultaneously. For example, major Vegas shows reserve convention space across the entire Las Vegas Strip, benefiting from the concentration of facilities. Chicago events spread to Rosemont and other neighboring locales to find capacity.

Expanding footprints beyond the urban core introduces transit headaches, however. Attendees resent commuting long distances to remote overflow hotels after coming for a downtown experience. And lower-energy suburbs lack engaging evening options.

Third-party event management companies provide consultative guidance to new planners overwhelmed by the complexities of identifying urban opportunities. They understand how to navigate city convention bureau politics and connect clients to spaces not publicly listed yet.

Travel industry relationships also help score access, as hotels selectively hold space for top partners. Hilton and Marriott’s convention sales teams cater to frequent big spenders first. Unknown or smaller events take leftovers.

It all comes down to planning ahead. The days of easily securing major downtown venues last-minute are gone. For the best chance at ideal urban locations, planners should be exploring options 5-10 years out.

The demand for meetings and events in big cities is off the hook:Big City Bash: Hilton CEO Reports Skyrocketing Demand for Urban Group Events - Hotels Add Capacity for Citywide Gatherings

Major hotel chains recognize the seismic shift in demand for urban group events and are responding with a flurry of new downtown hotel projects. These add much-needed capacity in core metro areas to accommodate the needs of massive citywide conferences and conventions. It's a smart investment that caters to where this business is rapidly growing.

Take Hilton, for example. They currently have five separate downtown hotel projects in the pipeline just in the city of Chicago to expand their ability to host large gatherings. The 1,200-room Hilton Chicago is undergoing a $240 million makeover to update the property. This includes over 140,000 square feet of new meeting space able to hold over 10,000 delegates.

Similarly, the historic Palmer House Hilton will benefit from a $240 million renovation to boost its offerings in the heart of Chicago's Loop central business district. With 1,639 guestrooms and over 120,000 square feet of event space, it's primed to handle major citywide events.

Beyond current properties, Hilton is also constructing two completely new downtown hotels in Chicago. One will be a Hilton Curio Collection boutique property located in the vibrant Fulton Market neighborhood featuring 164 rooms and ample event facilities. The other is the Hilton Chicago O'Hare, delivering an airport hotel experience directly connected to the CTA Blue Line train into the city center.

And it's not just Chicago seeing this investment. Hilton has unveiled similar downtown hotel projects in Nashville, Cleveland, Louisville, Fort Lauderdale, and numerous other cities to add capacity where massive conferences want to be. They've committed over $1.5 billion for these urban expansions to capture this growing segment.

Marriott is also going all-in on downtown development. In San Francisco, they're constructing a brand new Marriott Marquis hotel and entertainment complex neighboring the Moscone Center, doubling available group event space. The $500 million project and unique amenities make it ideal for major conferences in the heart of downtown.

Meanwhile, Marriott just announced a $550 million deal to construct a massive new dual-branded W Hotel and Marriott Marquis hotel in downtown Austin. With 1,304 rooms and over 100,000 square feet of meeting space, the project aims to transform the city's ability to attract major conferences. It lies directly across the street from the Austin Convention Center along the vibrant Lady Bird Lake hiking trail, ideal for visitor engagement.

Downtown hotels know they must keep innovating to stay competitive as a desirable group event destination. So properties overhaul food and beverage programs, upgrade fitness centers and pools, and modernize guest rooms regularly. Some add rooftop event space or convert unused real estate into modern new venues. Anything to provide planners and attendees with the newest experiences.

Brands also optimize operations to run major conferences more smoothly. Hilton leverages its vast scope as the largest hotel chain to centralize group event logistics, making it easier for planners to coordinate citywide gatherings. They train staff according to this specialized segment's needs, versus just accommodating typical travelers.

The demand for meetings and events in big cities is off the hook:Big City Bash: Hilton CEO Reports Skyrocketing Demand for Urban Group Events - Cities Invest in Modern Convention Centers

As demand for downtown conventions returns, cities are investing billions into constructing brand new, state-of-the-art convention centers tailored for massive gatherings. They aim to provide the infrastructure necessary to compete for the largest events and energize their urban cores with tourism.

Look at Los Angeles for example. Its aging 1970s era convention center long deterred major shows from even considering the city. With only 720,000 square feet of outdated exhibit space, it couldn't compete against contemporaries like Las Vegas and Orlando. Cosmetic upgrades failed to address the fundamental limitations hampering major conferences.

Beginning in 2018, LA embarked on a $1.5 billion initiative to reinvent its convention center identity by developing a modern facility matching peer cities. The West Hall expansion adds over 260,000 square feet for exhibits, meetings, and special events. Ballrooms and meeting rooms feature the latest audiovisual and digital technology to enable dynamic programming. A series of flexible outdoor event spaces seamlessly connect to indoor areas as well.

The pièce de résistance is the 2.6 acre open-air terrace atop the West Hall featuring unparalleled views of downtown LA. Perfect for receptions up to 4,000 guests, it redefines what's possible for creative event programming. Attendees mingle under the stars with stunning Hollywood backdrops surrounding them.

LA also invested heavily in the surrounding L.A. LIVE campus, adding 4,000 modern hotel rooms connected to the facility by pedestrian corridors and public transit. This creates a walkable hub isolating attendees from struggles with LA's infamous traffic.

Chicago tells a similar story. Its McCormick Place convention center sat outdated in the early 2000s, causing major shows to pass it over. But a $650 million expansion changed perceptions by delivering the Lakeside Center - a cavernous 470,000 square foot facility custom-built for gigantic exhibits like the International Manufacturing Technology Show.

The investment succeeded, luring events back that previously wrote off Chicago as antiquated. Another $400 million renovation modernized existing facilities and improved connectivity between halls via an expansive Grand Concourse. This along with additional hotel investments catalyzed McCormick Place's resurgence.

The bottom line is major conventions demand modern infrastructure to consider destinations now. Cities who invest in creating the newest facilities full of technological capabilities and creative spaces find themselves back in consideration. Those who skimp on upgrades lose out as planners take business to competitive locales rolling out the red carpet.

The demand for meetings and events in big cities is off the hook:Big City Bash: Hilton CEO Reports Skyrocketing Demand for Urban Group Events - Walkable Areas Keep Attendees Engaged

Today's event attendees crave walkable downtown locales that keep them stimulated and engaged between sessions. Urban centers deliver on this front with compact layouts that immerse groups right on the doorstep of attractions. Skip the crowded shuttles and soak in the city vibe on foot.

Look at a host city like Austin during South by Southwest. Attendees flock between venues, parties, and pop-ups throughout the compact downtown area. Roving between the legendary Sixth Street entertainment district, the Austin Convention Center, and surrounding hotels takes mere minutes on foot. No confusing maps or waiting for buses required.

The payoff? Total attendee immersion in the funky "Keep Austin Weird" culture the city is renowned for. Catch impromptu concerts on street corners, sample food truck treats, or shop local art - all during conference breaks. The serendipitous possibilities to explore a new place create lasting memories.

Contrast this to a sprawling Orange County suburb hosting a medical convention. Attendees are stranded on a massive hotel campus surrounded by busy highways. Want to grab dinner off-site? Better plan 45 minutes just to reach restaurants clustered along arterial roads. Exploration feels like a chore versus a delight.

Urban walkability also fosters valuable networking and relationship building. Rather than formal meetups in hotel breakout rooms, you bond while moving between venues. Share an Uber downtown, discuss sessions over tacos at a food truck, or debate ideas over local craft brews.

In experiential-driven conferences like South by Southwest, mobile networking functions as the real "content" versus panels. You gain most by mingling with peers as you bounce between locations. This serendipitous engagement sparks innovation.

Of course, going vertical poses challenges too. Chicago's immense McCormick Place spans structures taking 10-15 minutes to traverse inside. Getting lost in a convention center is real. Scheduling concurrent sessions far apart risks attendees missing content while hoofing between halls.

Still, most planners gladly accept minor headaches with walkable downtowns.Staying active reduces restlessness from prolonged sitting. And integrated neighborhoods provide built-in evening entertainment without shuttling groups to contrived offsite outings.