It is suggested that the Executive Committee approve the construction event venues at the major branches of our regional hotel chain. Event venues are one of the key expectations for hotels, with flexible event spaces being utilized for a wide range of uses by guests and outside parties as well. On-site event and meeting space provides the comfort for guests to book the space if needed during their stay. It can be used for private use such as birthday parties, proms, weddings, presentations. It also makes hotels more appealing to large vendors or events who may wish to utilize the space in close proximity to where its guests are staying. Some examples may include conferences, business negotiations, award banquets, corporate parties. The uses for event spaces are numerous, and highly flexible often with little effort from the hotel staff to manage it (Marriott, n.d.). The overall presence of such event spaces will make our hotels competitive with the major chains that all take significant advantage of their event space, but we will be able to offer it at a fraction of the cost.
There are some risks of course associated with such major investments. It will require both a significant upfront investment for construction and remodeling of space for events as well as some additional fixed costs for hotels to manage. There is a risk that the investment will not provide a strong ROI, with the event spaces being largely underutilized given that our hotels are less appealing to corporate clients which are the most likely users of these amenities. The event venue will likely face an off-season, decreasing revenue. It will also require consistent marketing to ensure that people are aware that the hotel offers the amenity. Potentially, an event manager has to be hired on an on-call basis to aid with planning and hosting events requested (Schoepke, 2019). All of this is highly capital intensive and bears risks, because once completed, the event venue cannot be sold or replaced, it is virtually a permanent investment.
The rewards for such an initiative are also significant. In the short-term, it may provide a boost in revenues, as guests and outside communities become aware of a brand new event space and choose to book it for various events. In the long-term, it is likely to remain a consistent generator of revenue, especially as COVID-19 restrictions are removed, leading to greater business travel and more in-person events. As mentioned, it also creates a positive boost in the status of a hotel as being business-friendly and improves its reputation if everything is done with quality, but affordability in mind. In the long-term, it may also aid hotels to build local partnerships with related businesses in the event management industry, such as catering, helping to formulate a stronger marketing plan and offerings within the hotel. There are multiple avenues the chain or individual hotels can pursue to utilize the space (Norman, 2021).
It is an amenity that is synonymous with hotels and elevates the regional chain to a new level. The presence of the event space positions the regional chain as one that is able to compete with major international brands in the industry by attracting business-oriented clients. Furthermore, this additional investment by the chain likely to see strong payout and ROIs along with a consistent revenue creator for the local branches. Please consider strongly in favor of event space additions to hotel properties at our major branches.
References
Marriott. (n.d.). Corporate & social event planning. Web.
Norman, M. (2021). Is owning an event venue profitable? Web.
Schoepke, G. (2019). 5 risks of running an event venue. Web.