Lexington, KY - Lexington could use more convention space, but in order to use it well, it could also use more downtown hotel rooms, more flights in and out of Blue Grass Airport and a stronger marketing presence.
That is the short story from a lengthy analysis of Lexington's potential in the convention game that was commissioned by the Lexington Convention and Visitors Bureau (LCVB). The study recommends expanding the space in the Lexington Convention Center from 66,000 square feet to 100,000 to 125,000 square feet, what John Kaatz of Conventions, Sports & Leisure International, the Minneapolis firm that did the feasibility analysis, calls "a modest improvement" spacewise that makes the most economic sense for attracting new business.
The recommendation comes as Lexington is taking a look at the future of Rupp Arena, which along with the adjacent convention center anchor Lexington's downtown.
While adding meeting space and pumping up the marketing campaign are two things the city has some control over, hotel space and air service are different stories.
"In order to be successful, you want to see additional hotel rooms concurrent with additions to the [convention] center," said Kaatz.
Kaatz added that Lexington may want to partner with a hotel developer to add hotel space when the meeting space is expanded.
Lexington has 777 rooms within a half-mile of its convention center, which ranked it 16th out of 17 competitive and comparable markets reviewed for the study. "The limited hotel rooms proximate to the LCC is considered a competitive disadvantage," the study said.
About 300 more rooms would help Lexington overcome that disadvantage.
The good news for Lexington is that there is space - 46 acres - near the convention center that can be developed, including part of what is known as the Distillery District along Manchester Street. If there is an expanded footprint for Rupp Arena and the Lexington Center, saving room for another hotel makes sense, LCVB president Jim Browder said. The project could essentially increase the size of Lexington's downtown.
"It could, in essence, be the center of downtown," Browder said.
A hotel on the site of the proposed CentrePointe development would be a few blocks away, but a walkable distance to the convention center.
A hotel at the CentrePointe site would be a "wonderful addition" to Lexington's downtown, but it would be up to a developer to decide if there would be a sufficient return on the investment. The original idea for the CentrePointe site was a 250-room hotel, but more recent talk about the project has scaled that number back to 120 to 150 rooms.
But, "if you're staying at a hotel for a convention, you want to be as close as possible, if not attached," Kaatz said.
Ah yes - location, location, location. Lexington has the advantage of being at the intersection of two interstate highways and is an easy drive from most corners of the state as well as several metro areas, such as Columbus, Ohio; Nashville, Tenn.; and Indianapolis, Ind. But Lexington can't match the air service of Louisville and Cincinnati/Northern Kentucky, as well as some other competing cities.
Browder said most of Lexington's current convention attendees drive into the Bluegrass. Browder and Kaatz agree that there is enough convention business to be had within driving distance of central Kentucky to warrant the additional meeting space.
"The demand is there for a modest increase," Kaatz said.
Kaatz said air service is usually driven by the population base and needs of the corporate base, so don't expect the convention center to sell a lot more seats for flights in and out Blue Grass Airport.
Kaatz also said that Lexington does need to do a better job of selling itself.
"Lexington is not top of mind among many of the convention planners," Kaatz said.
And getting Lexington's name out there will take some effort, according to Kaatz.
"It's not an 'if you build it, they will come' kind of thing," he said.
Lexington has several strong selling points, Kaatz said, including a vibrant downtown, with restaurant and entertainment choices and active nearby neighborhoods; the presence of the University of Kentucky; high marks for the Lexington Convention Center staff from recent attendees; and a unique personality as the Horse Capital of the World, with the Kentucky Horse Park and many other equine-related activities for families.
"Those things can be leveraged," Kaatz said.
Browder said the LCVB is already implementing some new marketing strategies. The LCVB has eliminated a position in Washington D.C. in favor of prospecting for more convention business. He said those prospects include more health-care-industry business and more religion-based business, such as gatherings for youth groups or other church-affiliated groups.
Some options for adding space mentioned in the report include moving some of the retail space currently in the Lexington Center Shops. Browder said one option might be giving them more of a "street-front" presence in Lexington Center, which could improve their visibility when events aren't being held.
The addition of a 2,500-seat theater space also is mentioned. That kind of space is desirable for some convention functions and could also create some new entertainment options for the city. That recommendation conflicts with a Rupp Arena Arts & Entertainment District Task Force assessment that a new 800- to 1,000-seat theater is what the arts community needs. Kaatz said that while he understands a group like the Lexington Philharmonic would like that venue size, "it doesn't make much sense" in trying to attract more conventions.
The LCVB-commissioned study has been forwarded to that task force, which was appointed by Mayor Jim Gray earlier this year to assess the future of Rupp Arena and the Lexington Center, including weighing whether renovating the arena or replacing it is the best option for the city. It should be issuing a final report in the next couple of months.
Attorney Brent Rice, leader of the task force, and others from the city recently toured Madison Square Garden in New York when the UK Wildcats, Rupp's primary tenant, were there to play Kansas University. Rice said he was impressed with the Garden's ability to manage a three-year renovation and host events at the same time.
"They had events going on the whole time," Rice said.