Last year was a banner year for the Los Angeles Convention Center (LACC), according to operator AEG Facilities, which announced last week that the LACC had its strongest year ever in fiscal year 2016-2017. The year, which ended June 30, saw the largest financial and operational surplus, the highest occupancy rate, and the largest number of citywide conventions and special events in the LACC's 46-year history.
"We are extremely impressed with all of the accomplishments of AEG's Los Angeles Convention Center team. AEG Facilities has been able to surpass all expectations and deliver unprecedented financial results, saving millions of dollars for the city" since taking over management of the LACC in 2013, said Jon F. Vein, president of the Board of Los Angeles Convention & Tourism Development Commissioners.
Financially, the LACC reported an operating surplus of over $10.2 million, an increase of 5 percent over the previous fiscal year. The facility's occupancy rate, meanwhile, was 75 percent, surpassing both last year's rate and the industry standard -- 72 percent and 70 percent, respectively. Likewise, the LACC saw a 7 percent increase in citywide bookings and an increase in favorable post-event survey results, the number of which increased from 92 percent in fiscal year 2015-2016 to 96 percent in fiscal year2016-2017.
"The increase in citywide conventions is a huge success for the City of Los Angeles with attendee direct and indirect spending stimulating the local economy," said Doane Liu, executive director of the Los Angeles Department of Convention and Tourism Development. "Events held this year at the LACC have economically contributed $732 million to the City of Los Angeles and an estimated 300,000 booked hotel room nights."
FY 2016-2017 also was notable for investments in building upgrades and sustainability: The LACC executed a total of $5.2 million in capital improvement projects (CIP), spent $6 million on alteration and improvements (A&I) projects, and reached a record-breaking 75 percent waste diversion rate, surpassing the prior year's rate by 3 percent.
"In under four years of management, the AEG Facilities Team has significantly increased revenues, improved efficiencies, built a healthy reserve, and saved the city millions of dollars. We have also increased the number of events and building occupancy year after year, made millions of dollars in capital improvements and have become leaders in sustainability and social responsibility for the City of Los Angeles," said LACC General Manager and AEG Facilities Senior Vice President Brad Gessner. "The public-private-partnership between AEG Facilities and the City of Los Angeles has transformed the LACC and proves it was the right choice for L.A."
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