DETROIT
Wes Wesley, president and CEO of SMG, announced today a three-year extension of the SMG Management Agreement to oversee the day to- day operations of Cobo Center, originally signed in 2010.
Mr. Wesley said of the contract renewal, “SMG sincerely appreciates this vote of confidence from the Detroit Regional Convention Facility Authority. We are proud to be a part of the team they put together to reorganize and renovate Cobo Center.”
During the September 12th meeting of the DRCFA that voted to extend the agreement, Patrick Bero, CEO/CFO announced, “As we near the conclusion of SMG’s three-year management agreement term, there have been significant achievements to improve Cobo Center’s performance.”
The improvements mentioned include:
• Operating revenue, excluding the state operating subsidy and parking revenue, has increased 52.7%
• During the same three-year period, operating expenses have decreased by 11.9% while simultaneously absorbing numerous administrative functions that were previously provided by support department of the City of Detroit (Finance, Human Resources and Marketing to name a few).
• Building maintenance and efficiency have greatly improved.
• Employee supervision and training have been expanded resulting in recognizable improvements in the quality of guest service and rising customer satisfaction scores.
• Coordinated advertising, sales and promotional efforts with the DMCVB highlighting the Cobo Center capital, operations and service improvements combined with the leveraging of the SMG brand has resulted in a substantial turnaround in the perception of Cobo Center within the convention, trade show and meeting industry.
• SMG’s management of customer relationships, attention to detail and determination to exceed customer expectations have been major contributing factors toward the retention of existing business (NAIAS, SAE), the recapture of lost business (SME) and the forging of new relationships that we hope will product significant value for the city, region and state in the years to come (Veterans, Military, Medical and ASAE).
In September of 2010, the DRCFA embarked on a renovation of Cobo Center, and the SMG success in the facility has been despite of the obvious obstacles presented to a convention center under construction. On September 7, 2013, the new Grand Riverview Ballroom and Atrium opened for business, representing $115 million of the entire $279 million capital improvements project, which will be completed in 2015.
The final phases of the Cobo Center transformation will include: a TV broadcast capability; giant exterior video walls for event information and advertising; open-air terrace overlooking the river for event and community programming.
With 723,000 square feet of exhibit space, Cobo Center boasts one of the largest contiguous exhibit floor spaces in North America and is the 19th-largest convention center in the country.
