Sports Venues and Hotels: A Winning Combination
June 19, 2008 – 6:55 amConference at a hotel in the premises of a sports stadium seems unnatural. Not anymore, there are 1,300 rooms open at 11 hotels at major sports venues in the United Kingdom and the number is growing. The concept took root in the UK. Building hotels at or in sports venues is catching on in other parts of the world as well.
Given high infrastructure and maintenance costs, most managements of sports facilities are looking at ways to generate revenues throughout the year. Developing hotels at sports venues is an innovative approach being considered by some forward looking venue operators.
Managements of stadia are leveraging the assets created, improving on them, and exploring opportunities for revenue generation with state of the art hotels at sports venues
Sports venues provide an opportunity to synergise the hosting of sporting events with the operation of hotels at venue. This integration will bring in revenue for both. During important sporting events, the venue can maximize revenues for itself, a venue with facilities to accommodate sports teams, the accompanying entourage and visitors from afar. With good potential for revenue generation, this new business model is likely to spread all over the world. Also, there is potential for off season activities.
Other possible activities that can help boost revenues that accrue to such facilities are by:
- Extending hospitality to corporates
- Hosting sales and business conferences
- Tapping into the short breaks leisure market
- Allowing the venue to be used for banqueting
- Operating as extended-stay hotels
The opportunity to develop hotels at sports venues is huge and is likely to grow.
Source: Research by PricewaterhouseCoopers (Pwc)
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