Few nations, let alone states, can match Texas in business. According to the Texas Economic Development Division, the state’s GDP is the 10th largest in the world, ahead of Australia, Russia and many other countries.
Much of the action is centered in the booming Metroplex, where “super hub” Dallas/Fort Worth International Airport alone contributes $37 billion in total economic output to the region.
Nearly half (22) of the 50 Fortune 500 companies headquartered in Texas are concentrated in Dallas, Fort Worth and Irving, including Exxon Mobil, AT&T, American Airlines and Kimberly-Clark. The region is a magnet for corporate relocations, expansions and investments. Hiring is healthy in this talent-rich market, driving in turn robust demand for office space.
This high-performance economic engine is also revving up the group market. More business means more meetings, conventions and tradeshows, which continues to spur large-scale investment in hotels, convention centers, entertainment districts and related infrastructure.
Last October, leading local publication D Magazine ran a story titled, “Can Dallas-Fort Worth Become a Meetings Mecca?” Ranked fourth in the nation for meetings and conventions by Cvent last year (November 2016 to October 2017), the Metroplex, with four bureaus—Arlington, Dallas, Fort Worth and Irving—participating in the pro-inclusivity Texas Welcomes All coalition, appears well on its way.
Booking Engines
Fiscal 2017 was a banner year for VisitDallas. Through its targeted “Dallas Delivers” campaign, the bureau booked 1,446 meetings and events, including a record 42 future citywide events, and more than 1.3 million room nights, 20 percent above 2016. In this expanding group market—Dallas alone is Cvent’s eighth top destination—hotel growth is key.
With roughly 42 percent of the Metroplex lodging market, including some 13,000 downtown rooms, the city is presently second behind New York in pipeline development, with some 6,685 rooms in construction.
“Dallas is fortunate to have an abundance of existing hotels,” said Phillip Jones, president & CEO of VisitDallas. “The announcement and completion of additional properties serves as a good forecast for continued growth in our convention business. With the increase in capacity, meeting planners and companies will be able to bring larger and grander events to Dallas.”
Investing in hotels has provided Dallas with valuable return on meetings. One prime example is the 1,001-room Omni Dallas, which has significantly boosted the city’s hosting profile since opening in November 2011.
Offering 142,000-plus square feet of indoor and outdoor space, the LEED Gold-certified headquarter hotel is connected by skybridge to the Kay Bailey Hutchison Convention Center, providing ready access to more than 2.1 million square feet of convention space.
Notable arrivals in the current wave include the 237-room Lorenzo Hotel. Two blocks from the convention center, this art-filled boutique offers innovative spaces such as two poolside Idea Labs. The legendary 1956 Statler Hilton was reborn last October as the Statler Dallas, Curio Collection by Hilton following a $230 million makeover. The Hilton Curio property offers 159 hotel rooms and 17,000-plus square feet of versatile space. Slated for 2019, Virgin Hotels’ $80 million property in the resurgent Design District will offer 200 rooms and a variety of meeting spaces.
Jones noted that “while these properties significantly broaden Dallas’ luxury profile, several mid-range openings will provide convention guests with more affordable alternatives.”
The drive for expanded lodging is also on in Fort Worth. Today, with meetings momentum building against limited supply, the city is increasing its downtown inventory of 2,500-plus rooms by around 42 percent, or 1,053 rooms in seven announced projects.
Located steps from the Fort Worth Convention Center, both the 120-room Fairfield Inn & Suites Fort Worth Downtown, and the 245-room Hampton Inn & Suites Fort Worth Downtown, with conference space, opened last October. Other projects include a 180-room Aloft (early 2018); 162-room Hilton Garden Inn (2019); and new 170-room SpringHill Suites by Marriott in the Stockyards District, featuring a rooftop cafe and bar from star Fort Worth chef-restaurateur Tim Love.
PageBreakExpectations are also high for the $540 million Dickies Arena. On target for November 2019, the 14,000-seat, multifunctional venue will feature nearly 87,000 square feet of meeting space. Slated for late 2018, the new TEXRail commuter rail line will extend from downtown Fort Worth into DFW International Airport’s Terminal B.
Midsize Movers
While tapping into convention overflow remains a durable strategy, cultivating distinct identities and drawing power is the top priority for the Metroplex’s other destinations.
Home of colossal AT&T Stadium, Arlington is aiming for more major-league convention and tourism appeal with the new $1.25 billion Arlington Entertainment District.
Components include Texas Live! Slated to open in fall 2018, this 200,000-square-foot mixed-use campus will feature an array of dining, entertainment and event venues. Spring 2019 sees the anticipated debut of the $150 million, 302-room Live! By Loews hotel, a new flagship concept with a 35,000-square-foot convention center annex. Aiming for the 2021 season, the adjacent new $1 billion Texas Rangers ballpark will feature a retractable roof—vital for hot Texas summers.
“The Entertainment District creates a discrete, walkable destination that makes it easy for delegates and visitors to extend their time in the city,” said Arlington CVB Vice President of Sales Jon Hixon. “Bookending the Arlington Convention Center (along with the Sheraton Arlington), the Loews hotel provides housing that will not require shuttle service to the convention center, a cost savings and logistical benefit to planners. And the Rangers’ newer, more experiential ballpark will serve as a world-class meeting and special event venue.”
Major mixed-use investments are also enhancing group appeal in Irving and in Plano.
Once known mainly for its proximity to Southfork Ranch, from TV’s Dallas, Plano has evolved into a magnet for business and job creation. Choosing Plano for its North American headquarters, Toyota opened its new facility last July in the sprawling $3.2 billion Legacy West development, where FedEx Office, JP Morgan Chase and Liberty Mutual also have head offices.
For groups, Legacy West offers 415,000 square feet of open-air retail and restaurant space; the new 304-room Renaissance Dallas at Plano Legacy West Hotel, offering 26,000-plus square feet of space; and Legacy Hall, which at press time was set to open late last month. The first of its kind in Texas, this three-story, 55,000-square-foot venue features an artisanal food hall, a 1,500-capacity outdoor live entertainment venue, a craft brewery and more.
“Plano is already reaping the benefits of these developments as planners are excited to bring their meetings to a thriving city with unique amenities,” said Visit Plano Executive Director Mark Thompson.
In 1987, Frisco was a farming community of around 5,000 people. Then came the Dallas-area farm teams, giving the city a base in sporting events. Today, Frisco, home to some 167,000 people, is the nation’s second-fastest growing city, and according to personal finance website WalletHub, the U.S. leader in economic growth.
Representing four large-scale mixed-use projects along the North Dallas Tollway, the “$5 Billion Mile” includes The Star. Set on 91 acres, this $1.5 billion development, incorporating the Dallas Cowboys’ new world headquarters, features a veritable playbook of group options, including the newly opened, 301-room Omni Frisco Hotel, offering 24,000 square feet of flexible space. And the runaway growth continues, with a slate of new hotels expected to nearly double current inventory of 2,000-plus rooms by 2019.
According to Brady Closson, managing director of sales and marketing for the Grapevine CVB, this historic destination, 23rd on Cvent’s 2017 list, is positioned for “tremendous growth” in 2018.
“Adding 303 rooms and 86,000 square feet of space, the Gaylord Texan Resort’s $120 million expansion will bring the property’s totals to 1,814 rooms and more than 490,000 square feet of space,” Closson said. “With completion expected by June 2018, the expansion will include a new 30,000-square-foot ballroom, 30,000 square feet of breakout space and approximately 26,000 square feet of carpeted prefunction space.”
Other major plans include a 121-room boutique hotel with event space at Grapevine’s TEXRail station; a $330 million, 1,020-room Stand Rock Hospitality resort with 190,000 square feet of event and entertainment space; and slated for late 2018, a 10,000-square-foot outpost of Austin’s famed Salt Lick Barbecue. In November 2017, the 329-suite Embassy Suites by Hilton Dallas DFW Airport North, two miles from Dallas/Fort Worth International Airport, completed the first phase of its multimillion-dollar property renovation.
Less than 20 minutes from Dallas, Mesquite, established in the SMERF, association and sports markets, features an ongoing group diversification strategy that includes specialized groups such as boat shows and church meetings.
