Acquisitions & Hotel Openings

$272 M 600-key Cleveland Convention Center Hotel, Hilton Cleveland/Downtown Breaks Ground in Ohio

CLEVELAND April 30, 2014 - Cuyahoga County Executive Ed FitzGerald and Cleveland Mayor Frank Jackson were joined by Ted Ratcliff, Senior Vice President of Operations, Eastern North America, at Hilton Worldwide, and other distinguished guests this afternoon for a groundbreaking ceremony to formally recognize the start of construction on the largest hotel project in downtown Cleveland.

"The start of this construction project marks another step forward in Cleveland's rebirth, and puts Ohio's largest city in an even stronger position to compete for trade show and convention business," said County Executive FitzGerald. "I am especially proud that we are creating hundreds of new jobs for hardworking families in our region, and I thank all of our public and private partners for their unprecedented collaboration in moving this project forward."

"The groundbreaking for this hotel is yet another sign that Cleveland continues to improve itself in order to provide visitors and businesses with the finest amenities," said Mayor Jackson. "World class entertainment venues, great amenities and Clevelander's welcoming attitude are the things that will keep people coming to Cleveland to work and play."

The hotel will feature a 28-story tower filled with 600 guest rooms positioned atop a fourstory podium of ballrooms, meeting space, retail space, and the lobby. The hotel will feature a rooftop bar as well as underground connections to the Cleveland Convention Center and the Global Center for Health Innovation. The hotel is scheduled to open in 2016. "Hilton Hotels & Resorts is pleased to be entering the downtown Cleveland market with a property which will play to the brand's considerable strength in managing convention center properties. The hotel's location will undoubtedly be of great advantage not only to the Cleveland Convention Center but also to the Global Center for Health Innovation," said Ted Ratcliff, Senior Vice President, Operations, Eastern North America, Hilton Worldwide.

Situated on the site of the former Cuyahoga County Administration Building, the $272 million project is expected to employ 2,800 workers on the construction job and 450 full-time jobs at the hotel.

"Hilton's brand recognition, loyalty programs and national sales teams will add to Cleveland's growing reputation as a meeting and convention destination," says David Gilbert, President & CEO of Positively Cleveland. "Bringing Hilton to Cleveland marks an unprecedented increase in the number of hotel rooms available and adds depth and variety to the city's downtown market, creating a healthy competition between all of the existing hotel brands."

The hotel was designed by Atlanta architecture firm, Cooper Cary, and is being constructed by Turner Construction Company, Ozanne Construction Company, and Van Aukin Akins Architects. Cuyahoga County and Turner Construction Company have voluntarily compiled an inclusion plan for construction to include 25% small businesses, 7% female-owned businesses, and 15% minority-owned businesses. Cuyahoga County and Turner Construction Company are also committed to meeting or exceeding residency goals for employees hired during the construction project, including 40% Cuyahoga County residency and 20% City of Cleveland residency.

For additional information on the Hilton Cleveland/Downtown hotel project, including a time-lapsed video and photos of construction, please visit: http://www.cuyahogacounty.us/en-US/Cuyahoga-County-Convention-Center-Hotel-Project.aspx

About Hilton Hotels & Resorts

Founded in 1919 as the flagship brand of Hilton Worldwide, Hilton Hotels & Resorts continues to build upon its legacy of innovation by developing products and services to meet the needs of savvy global travelers at more than 550 hotels across six continents. Hilton is the stylish, forward-thinking global leader in hospitality with Team Members shaping experiences in which every guest feels cared for, valued and respected. Access the latest news at news.hilton.com and begin your journey at www.hilton.com or www.hilton.com/offers for the latest hotel specials. View a list of official social channels at www.hilton.com/social. Hilton Hotels & Resorts is one of Hilton Worldwide's ten market leading brands.

Coming Up In The October Online Hotel Business Review


Feature Focus
Revenue Management: Measuring All Hotel Revenue Streams
Revenue Management is a dynamic and ever-evolving profession and its role is becoming increasingly influential within hotel operations. In some ways, the revenue manager's office is now the functional hub in a hotel. Primarily this is due to the fact that everything a revenue manager does affect every other department. Originally revenue managers based their forecasting and pricing strategies on a Revenue per Available Room (RevPAR) model and some traditional hotels still do. But other more innovative companies have recently adopted a Gross Operating Profit per Available Room (GOPPAR) model which measures performance across all hotel revenue streams. This metric considers revenue from all the profit centers in a hotel - restaurants, bars, spas, conference/groups, golf courses, gaming, etc. - in order to determine the real gross operating profit per room. By fully understanding and appreciating the profit margins in all these areas, as well as knowing the demand for each one during peak or slow periods, the revenue manager can forecast and price rooms more accurately, effectively and profitably. In addition, this information can be shared with general managers, sales managers, controllers, and owners so that they are all aware of and involved in forecasting and pricing strategies. One consequence of a revenue manager's increasing value in hotel operations is a current shortage of talent in this field. Some hotels are being forced to co-source or out-source this specialized function and in the meantime, some university administrators are looking more closely at developing a revenue management curriculum as a strategy for helping the hospitality industry close this gap. The October issue of the Hotel Business Review will address these significant developments and document how some leading hotels are executing their revenue management strategies.