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Convention Centre Proposal

Convention Centre Proposal. Introduction. Approach made by consortium P artnership to deliver: - 5 star Hilton hotel (165 rooms) + purpose built ‘city scale’ conference centre - Council lease convention centre for 20 years - Strategically located opposite Te Papa. Strategic Context.

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Convention Centre Proposal

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  1. Convention Centre Proposal

  2. Introduction • Approach made by consortium • Partnership to deliver: - 5 star Hilton hotel (165 rooms) +purpose built ‘city scale’ conference centre - Council lease convention centre for 20 years - Strategically located opposite Te Papa

  3. Strategic Context • Conventions are important to Wellington. Per year: - $146m in expenditure - $76m in GDP - supports over 1,000 FTE’s. • Government investment to increase NZ market share - $34m over four years • Current civic facilities not always competitive in the market - limited functionality - capacity issues - aging facilities • More market competition from 2018 - Auckland, Christchurch, Queenstown • Need for improvement known / outlined in ‘Big 8 Ideas’ adopted earlier this year

  4. Two Strategic Options

  5. What the market is doing

  6. Developer Convention proposal structure and terms Lease Pro-rata rates and insurance Term 20 years + right of renewal in year 15 Annual rent reviews at CPI Development agreement and lease WCC Net Operating Profits After building costs and Operating Co incentives After any operating loss clawbacks Sub-lease Operating Company Management Agreement Licence fees based on revenue Incentives based on operating profits Hilton

  7. Cost and return on investment

  8. Other Benefits • Construction Benefits - Circa $50m to the regional economy - About 300 FTEs during construction • Hilton presence in Wellington - Most recognised hotel brand in world - Number 1 hotel in Asia pacific past 5 years - Loyalty programme 40 million members worldwide - Pre-eminent and most visited brand website - Strong corporate responsibility standards • Support for the sector - retail sector - transportation - hospitality sector - acoomodation providers

  9. Other Benefits - secondary investment

  10. Who benefits and who pays • To be tested through consultation • Subject to Financial Strategy and Revenue & Financing Policy LTP process

  11. Questions

  12. Advisors

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