UNDER AEG FACILITIES’ MANAGEMENT, LOS ANGELES CONVENTION CENTER REPORTS RECORD-BREAKING RESULTS IN FISCAL YEAR 2015-2016
Aug 16, 2016
(Los Angeles, CA) The Los Angeles Convention Center (LACC) reported its most successful financial and operational year to-date. Fiscal Year (FY) 2015-2016 significantly exceeded revenue expectations and nearly tripled the prior year’s profits of over $2.8 million to a record-breaking profit of $8.1 million. Beyond financial accomplishments, the LACC also completed a myriad of Capital Improvement (CIP) and Alteration & Improvement (A&I) Projects to further enhance building operations and efficiencies while adhering to its overarching environmental sustainability goals.
Under the management of AEG Facilities, the LACC ended this fiscal year, which concluded on June 30, 2016, with an operating surplus of $8.1 million after reimbursing the City of Los Angeles $1.6 million for the Department of Convention & Tourism Development (CTD) overhead. Since taking over management in December 2013, AEG Facilities has generated a total operating profit of over $11.8 million and reimbursed the City of Los Angeles $4.6 million. Moreover, in keeping with convention center management best practices, AEG Facilities set out to build a financial reserve of $2.1 million within the 5 years of its initial management agreement. This goal has already been surpassed with $6.1 million added to the reserve at the conclusion of FY 2015-2016.
“We are impressed with AEG’s LACC team and their ability to consistently deliver exceptional financial results, which in turn save millions of dollars for the City’s General Fund annually. A strategic business vision, efficient business practices, and entrepreneurial spirit have led the LACC to unprecedented financial achievements; we look forward to our continued partnership and to a bright future ahead,” commented Bud Ovrom, Executive Director of the Los Angeles Department of Convention & Tourism Development (CTD).
The LACC has also furthered its partnership with the Los Angeles Tourism and Convention Board (LATCB), resulting in a 30% increase in citywide convention bookings in 2016, which will continue to drive revenue for both the facility and the City of Los Angeles.
“Forming a cohesive partnership with both the LATCB and CTD has been an underpinning of AEG’s success at the LA Convention Center and the substantial rise in citywide bookings attests to the fantastic work being done by the organizations involved. Citywide conventions stimulate the local economy and help sustain thousands of jobs through attendee direct and indirect spending,” commented Jon F. Vein, President, Board of Los Angeles Convention & Tourism Development Commissioners.
Funds from the operating surplus are also allocated to CIP and A&I projects, which are integral to the improvement of the LACC and not only make the LACC a more efficient and better functioning facility but also serve to directly benefit clients and attendees. In FY 2015-2016, LACC spent $4.4 million on A&I and CIP projects; between 2014-conclusion of calendar year 2016, $28.9 million would have been invested in the Center in the form of CIP and A&I projects funded through the City of Los Angeles and the annual operating surplus achieved through AEG Facilities’ management of the LACC.
Notable projects completed in FY 2015-2016 include the addition of high-end lobby furniture in public spaces, carpet replacement in public areas/foyers, critical repairs to the chillers and cooling towers, and improvements to Security and access control. The Security Department experienced positive upgrades and changes with the addition of 28 security cameras for a total of 214 cameras facility-wide (a CIP project) and a total staff of 59 as of June 30, 2016. The LACC also purchased 20 magnetometers to further elevate its safety and security procedures. Moreover, the Guest Services Department, a division of the Security Department, was successfully added in 2015 and has grown to 9 employees. Guest Services Representatives assist guests with way-finding, directions, lost & found, and related requests and enhance the overall attendee experience with their exemplary service and attentiveness.
The LACC also reached new heights in the environmental sustainability arena this past FY. In September 2015, the LACC became the largest convention center in the U.S. to attain LEED© EB:OM GOLD recertification (first certified GOLD in 2010). Furthermore, US Green Building Council: Los Angeles awarded the LACC with the Sustainable Innovation Award: Materials & Resources for its construction & demolition (C&D) recycling program. In 2015, the LACC diverted 1 million pounds of C&D waste and achieved an overall waste diversion rate of 72%. Besides recycling efforts, the venue also reduced its overall water consumption by 13% compared to 2013. The venue is also committed to sourcing environmentally responsible products and sustainable purchases accounted for over 80% of all on-going consumables purchasing in 2015.
“While achieving positive financial results and operating in a fiscally responsible manner is important to us, we are also pleased that the LACC remains a symbol of environmental and social responsibility in the local community. Attaining LEED© GOLD recertification was a monumental feat for the LACC-AEG team and we are very proud of this great achievement that would not be possible without the contribution of LACC employees – especially in the Facilities and Operations departments, and support from the Department of Convention & Tourism Development (CTD) and AEG1Earth,” commented Brad Gessner, General Manager of the Los Angeles Convention Center and Senior Vice President at AEG Facilities.
Los Angeles Convention Center
Alexa M. Diaz
About the Los Angeles Convention Center
The Los Angeles Convention Center (LACC) is renowned internationally as a prime site for conventions, trade shows, and exhibitions. Professionally managed by AEG Facilities, the LACC attracts over 2.5 million visitors annually. The facility is an integral economic component to the Southern California area; based on historical averages the total economic impact based on direct and indirect spending is $540 million annually, generating and sustaining over 3,900 local jobs. The LACC also remains an enduring symbol of environmental sustainability and social responsibility, and is proud to be a LEED® Gold certified facility; the venue was recertified on the Gold level in 2015 making the LACC the largest convention center in the U.S. to receive LEED® EB:O+M Gold recertification! For more information, please visit lacclink.com.
About AEG Facilities
AEG, a wholly owned subsidiary of the Anschutz Company, is the leading sports and live entertainment company in the world. AEG Facilities, a stand-alone division of AEG, and its affiliates owns, operates or consults with more than 120 of the industry’s preeminent venues worldwide, across five continents, providing complete venue management, as well as specialized programs in operations, guest services, ticketing, booking, sales and marketing. AEG Facilities also provides resources and access to other AEG-affiliated entities, including AEG Live, one of the largest live music companies in the world, AEG Global Partnerships and AEG Real Estate, as well as such industry leading programs as AEG 1Earth and AEG Encore to support the success of its venues across the globe. The Los Angeles-based AEG Facilities convention center network operates the world’s most elite convention centers including the Los Angeles Convention Center (Los Angeles, CA), Puerto Rico Convention Center (San Juan, Puerto Rico), Brisbane Entertainment Centre (Brisbane, Australia), Cairns Convention Centre (Cairns, Australia), Darwin Convention Centre (Darwin, Australia), Kuala Lumpur Convention Centre (Kuala Lumpur, Malaysia), Rabobank Convention Center (Bakersfield, California), Sydney Exhibition Centre (Sydney, Australia), Hawaii Convention Center (Honolulu, HI), Oman Convention and Exhibition Center (Muscat, Oman), and venues including STAPLES Center and Microsoft Theater (Los Angeles, CA), StubHub Center (Carson, CA), Sprint Center (Kansas City, MO.), Valley View Casino Center (San Diego, CA), KFC Yum! Center (Louisville, KY.), AmericanAirlines Arena (Miami, Fla.), Prudential Center (Newark, N.J.), Barclays Arena (Brooklyn, N.Y.), Target Center (Minneapolis, MN), BBVA Compass Stadium (Houston, TX), Oracle Arena and Oakland Alameda Coliseum (Oakland, CA), CONSOL Energy Center (Pittsburgh, PA), Mercedes-Benz Arena (Shanghai, China), LeSports Center (Beijing, China), The O2 Arena (London, England), Mercedes-Benz Arena (Berlin, Germany), Barclaycard Arena (Hamburg, Germany), SSE Hydro (Glasgow, UK), Qudos Bank Arena (Sydney, Australia), and Ericsson Globe Arena (Stockholm, Sweden). For more information, please visit aegworldwide.com.