AEG Facilities and the City of Los Angeles are celebrating the four-year anniversary of a successful partnership on Dec. 8, 2017. The private and public entities have worked together to refresh the Los Angeles Convention Center (LACC), turning the facility into an economic driver for Downtown Los Angeles. The City’s original goals for AEG Facilities in taking over LACC management:
- Generate an operational surplus each year
- Build a 10% budget reserve within 5 years
- Increase revenues Book more events - particularly citywide conventions
Since taking over at the end of 2013, AEG Facilities has exceeded all of the City’s goals and expectations. The company has operated with a surplus year after year and reinvested more than $40 million into the facility. Over 50 capital and alteration projects were completed including installation of security cameras throughout the facility along with a modernized security command center, LED lighting retrofits, Energy Star appliances, water bottle filling stations, carpet replacement, upgraded landscaping and interior florals and furniture.
AEG has also overseen increased revenue for the LACC. The parking program has improved efficiency, upgraded equipment and established competitive rates, resulting in an increase of over $3 million annually. The new food and beverage program “Taste of LA,” in partnership with Levy Restaurants, increased gross sales and flow through by another $2.9 million annually. The company has also worked in conjunction with the LATCB Citywide sales team toward a unified goal of booking more conventions, resulting in 30% more bookings and an increased occupancy each year. All of these advances allowed for the reimbursement of $7.7 million to the City of Los Angeles for the Department of Convention & Tourism Development (CTD) overhead since privatization.
“AEG Facilities’ best business practices, along with the strategic planning and collaboration between the City of Los Angeles and the CTD have solidified the Convention Center as an important economic driver for Downtown Los Angeles. The past four years of partnership are commemorated with headline achievements and record-breaking years for the LACC,” stated Doane Liu, Executive Director of the L.A. CTD.
“We are very proud of what we’ve been able to accomplish as a collaborative team with the City and the CTD. As 2017 comes to a close, the LACC welcomes 2018 with a booked facility, more building improvement projects, and two large sustainable projects - the LACC rooftop garden and LACC solar panels,” states Brad Gessner, General Manager of the Los Angeles Convention Center and Senior Vice President for AEG Facilities. This past year, the LACC achieved a 75 percent waste diversion rate and became the first convention center of its size to receive LEED Gold recertification.
But not all the improvements are so tangible. AEG Facilities has also increased LACC Security and employed a Guest Services department improving safety and customer service at the same time. The AEG sales and marketing team also developed a refreshed brand and a new strategic approach which increased not only the occupancy but also the client satisfaction rate. As a Downtown stakeholder, the LACC also values giving back to the community through programs like the annual LACC Service Day at the Downtown Women’s Shelter, Earth Day, E-Waste Fair, and other AEG-sponsored programs such as the Read-to-a-Child program at 10th Street Elementary School in Downtown Los Angeles.
The LA Tourism and Convention Board is happy to have such valued partners and wishes AEG and the LACC a happy anniversary!