December 12, 2019 ACVB Board of Directors Presentation

ACVB BOARD OF DIRECTORS MEETING THURSDAY, DECEMBER 12, 2019 | 8:00 a.m.

STATE FARM ARENA

CALL TO ORDER

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DEXTER WARRIOR CHAIR, BOARD OF DIRECTORS

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WELCOME

ANDREW SALTZMAN PLACE IMAGE HERE

EVP & CHIEF REVENUE OFFICER ATLANTA HAWKS & STATE FARM ARENA

CELEBRATION BOWL COACHES PLACE IMAGE HERE

JOHN GRANT EXECUTIVE DIRECTOR CELEBRATION BOWL

DESTINATION REPORT

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MARK VAUGHAN EVP/CSO

ATLANTA OCCUPANCY – OCTOBER 2019 October 2019 YTD occupancy ACVB tax revenue district

Atlanta convention hotels

Hotels within 1-mile radius of GWCC

Metro Atlanta

Source: STR

2018

2019

75.6%

76.2%

79.8%

81.0%

77.4%

78.6%

71.5%

71.0%

KEY SALES ACTIVITIES Through November 2019, we finished 93.0% of our room night goal and 108% of our lead goal.

Direct sales events

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ASAE Partner Meeting IAEE Expo! Expo!

AMX Interaction Holiday Showcase Travel South International Showcase CVB Rep Holiday Event PCMA Destination Showcase ASAE Winter Harvest

Omaha Las Vegas Denver Chicago St. Louis Washington, D.C. San Francisco Washington, D.C. Washington, D.C.

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2020 MEN’S FINAL FOUR UPDATE CARL ADKINS EXECUTIVE DIRECTOR ATLANTA BASKETBALL HOST COMMITTEE

ACVB Update December 12, 2019

The Big Three • College Football Playoff National Championship Game – January 2018 • Super Bowl LIII – February 2019 • NCAA Men’s Basketball Championship – April 2020

Planning Update • Wrapping up our eighth monthly planning meeting with the NCAA today

• Only 2 more planning meetings with the NCAA before March Madness begins • 113 days until Final Four Friday • NCAA staff have said that our staff/ City is the best they’ve worked with • This will be Atlanta’s fifth Men’s Final Four – 1977, 2002, 2007, 2013 and 2020

Event Overview Admission is free. Fans can check out each of the Final Four teams in their final open practice and stick around for the Reese’s College All-Star Game.

Interactive games, special celebrity and athlete appearances, autograph signing and much more, take place inside Fan Fest at the GWCC – Friday thru Monday.

Free and open to the public. Friday, Saturday and Sunday nights.

Past artists include Maroon 5, Zac Brown Band, Kenney Chesney, Katy Perry, Bruce Springsteen. Already announced this year is Taylor Swift on Sunday night.

March Madness Music Festival 2013

Event Overview Youth ages 18 and under are invited to participate in this unique parade and FREE event. The first 3,000 participants will receive a t-shirt, basketball and free entry to Fan Fest for participants and accompanying adults.

The National Association of Basketball Coaches Convention, held annually in conjunction with the NCAA Men’s Final Four, is the nations premier professional development and networking event for basketball coaches. Expected attendance 2500.

Atlanta became the only city to host all 3 Division Championships in 2013, and will repeat that honor in 2020.

DII and DIII games will be played at State Farm Arena.

• DII National Championship.

• Sunday, April 5, 2020.

• State Farm Arena.

• 4:00 p.m. (EDT).

• CBS. • DIII National Championship.

• Sunday, April 5, 2020.

• State Farm Arena.

• 12:30 p.m. (EDT).

• CBS Sports Network.

• DI National Semi-Finals • Saturday, April 4, 2020 • Mercedes-Benz Stadium • 6:10 p.m. (EDT) • CBS • DI National Championship • Monday, April 6, 2020.

• Mercedes-Benz Stadium • 9:10 p.m. (EDT).

• CBS

Legacy Restoration Project • Renovations will be made to the Joseph B. Whitehead Boys and Girls club in SW Atlanta

• Renovations will include a new basketball court and upgrades to the teen learning center • Ground breaking will be Feb 11 and will coincide with a day of service at the club • Ribbon cutting will be held the week of Final Four

Read to the Final Four Competition

A bracket style competition that pits third grade students and their schools against others January 28th, the final bracket will be announced based on most minutes read The Final Four schools will be recognized and featured during Fan Fest and will win prizes for most minutes read

38,800 third grade students and 361 schools participating (104% student increase from last year) 17 school districts across 54 cities (DeKalb and Cartersville now onboard) (4/5 largest school districts in the state are participating)

3 million minutes read to date

Spring Cleaning • Campaign through the CVB and CAP to make sure that all of downtown is looking it’s best for the 2020 Final Four • Need all of the hotels, restaurants and businesses to pressure wash the sidewalks, cleanup the storefronts and make everything shine •

More info to follow…

ABHC PARTNERSHIPS The ABHC brings together our community's top local businesses, civic leaders and basketball personnel in an effort to make the 2020 Final Four a truly historic experience both for visitors and residence.

6 - Seats

CHAIRMAN PACKAGE The Chairman partnership is the highest level of distinction within the ABHC. Each package includes VIP experiences, access to premium tickets, community engagement opportunities and bonus rights to official events that have yet to be announced.

FINAL FOUR - OFFICIAL EVENTS Monday Night Preview Final Four Friday Fan Fest Tickets MM Music Festival Volunteer Spots FINAL FOUR - GAME EXPERIENCES Super Suite Tickets: LL Loge Suite (2): Courtside Tickets Lower Level Tickets 200 Level Tickets Pregame Hospitality Parking

10 VIP credentials Super Suite (4) & Loge Suite (6) 30 tickets - good for any day 10 VIP credentials for all 3 nights 50 guaranteed spots (if desired) 6 tickets on Saturday (w/F&B) 12 tickets for both days 4 tickets for both days 4 tickets for both days 4 tickets for both days 18 credentials of Saturday Min of 4 for Sat & 4 for Mon

SAMPLE - $125,000 CHAIRMAN PARTNERSHIP PACKAGE Quantities may be adjusted, based on availability and all game tickets will be invoiced directly from the NCAA

Questions?

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2020 BUSINESS AND FINANCIAL PLAN

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WILLIAM PATE PRESIDENT AND CEO

GREGORY PIERCE EVP/CAO/CFO

Vision 2020 FIVE-YEAR STRATEGIC PLAN

ACVB MISSION To sell and market metro Atlanta and Georgia globally as the premier conventions, meetings and tourism destination in the regional, national and international marketplace and favorably impact the Atlanta economy through conventions and tourism

ACVB VISION

To be the most hospitable convention city in the U.S. that is the easiest with which to do business

VISION 2020 FIVE-YEAR STRATEGIC PLAN OVERALL OBJECTIVE PLACE IMAGE HERE

While continuing objective to reach a minimum

925,000 room nights for meetings greater than 2,500 on peak, also maintain a minimum of

20 citywide bookings in each year of 5,000 room nights and greater on peak

VISION 2020 FIVE-YEAR STRATEGIC PLAN

STRATEGIC PRIORITIES Targeted focus to optimize the city by increasing meetings booked with room nights between 2,500 and 5,000 on peak which will add 50,000 room nights per year

Execute plan for increased member engagement

Shift processes and technologies to deliver to consumers, meeting planners and stakeholders inspiring, engaging and compelling destination content when, where and how they want it

Continue emphasis on growth of visitation from Europe and Latin America and dramatically increase our focus on China, doubling visitation by Chinese visitors to 100,000 annually

VISION 2020 FIVE-YEAR STRATEGIC PLAN Strategic Priorities

OVERALL OBJECTIVE

Targeted focus to optimize the city by increasing meetings with room nights between 2,500 and 5,000 on peak which will add 50,000 room nights per year

While continuing objective to reach a minimum

925,000 room nights for meetings greater than 2,500 on peak, also maintain a minimum of

20 citywide bookings in each year of 5,000 room nights and greater on peak

Key Initiatives • • •

•

Execute plan to increase member engagement

Shift processes and technologies to deliver to consumers, meeting planners and stakeholders inspiring, engaging and compelling destination content when, where and how they want it

•

• • • • •

Continue emphasis on growth of visitation from Europe and Latin America and dramatically increase our focus on China, doubling visitation by Chinese visitors to 100,000 annually

• • •

Align ACVB sales process with GWCC revenue management strategy Target Atlanta Updates and key sales initiatives toward groups of 2,500 to 5,000 room nights on peak Identify strategic partners that influence conventions in order to optimize GWCC and fill gaps in hotel room demand

Fully define member engagement around mutually beneficial relationships, program involvement across ACVB functional areas and member satisfaction Increase engagement and measure against benchmarks through ongoing programs and initiatives

Re-evaluate target audiences and their content needs and organize accordingly Redesign (and potentially reposition) existing websites, with objective to be more automated for content personalization and agile to layout changes Develop new video and photography rich digital channels to inspire travelers in the "dreamer" phase Establish strategic partnerships with content creators Continue the successful international marketing alliance of Atlanta, Nashville and New Orleans (Rhythms of the South) by expanding target markets and furthering our consumer and trade outreach Invest in Chinese in-language marketing and sales assets and dedicated native language support as needed Invite key Chinese travel trade to visit Atlanta and investigate hosting targeted industry events that focus on the Chinese market Continue work with Brand USA

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2020 BUSINESS AND FINANCIAL PLAN

2019 HIGHLIGHTS 2018 Actual 1,595,282

Total room nights

Goal 1,608,500

Projected 1,583,500

% of Goal 98.4%

Citywide room nights

1,250,000

1,225,000

98.0%

1,240,456

925,000

960,000

103.8%

1,009,726

20

28

140.0%

20

6,196

5,750

92.8%

5,644

Room nights 2,500+ peak

Number of major citywides > 5,000 peak nights 3-year running average Leads Total number of leads Number of citywide leads Attendance goal for major citywides

736

741

100.7%

719

100%

102%

102.0%

102.0%

2019 HIGHLIGHTS • Hosted a successful Conference Direct annual meeting • Hosted 30 customers for Super Bowl LIII • Promoted awareness of GWCCA expansion among current and new customers • Maintained top five ranking among meetings destinations (No. 4) • Hosted 500 meeting and convention site visits • Maintained positive eight-year convention booking pace • Positive progress booking the GWCC expansion with two additional bookings • Achieved 96 million social media impressions (YTD) and 5.1 million engagements (YTD) • Supported ASAE and IAEE with debut of immersive and high-impact trade show booth including virtual tours and GWCCA new developments video loop

• Premiered two new Music Voyager Atlanta episodes V and VI, syndicated on four continents

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2020 BUSINESS PLAN

2020 GOALS • Increase room night bookings and maintain positive booking pace • Room nights: • Book 1,250,000 trade show sales room nights • Book 358,000 in-house room nights • Three-year average of major citywide conventions booked/events (5,000 peak nights and above) to continue at 20 • 925,000 room nights booked for 2,500 on peak and above • Leads to increase by 2% over year-end actual • Achieve 100 percent attendance goal for major citywide conventions • Increase visibility of Atlanta as one of the top U.S. meeting and travel destinations • Establish ACVB content distribution channels as the premier marketing platform for the Atlanta hospitality industry • Continue to position ACVB as an industry expert nationally and as the singular voice of hospitality in Atlanta

TOP LEVEL SUMMARY OF PROGRAMS AND INITIATIVES IN SUPPORT OF 2020 GOALS • Expand GWCC expansion efforts by hosting: • Large Show Roundtable • IAEE board of directors • Host Southeastern Conference Football Media Days • Finalize agreement to host ASAE annual meeting in 2023 • Expand Rhythms Of The South partnership to include Travel South Global Partnership Program, extending our reach in seven international markets • Maximize Final Four exposure and experience by hosting major accounts for the weekend • Create new long-term strategic plan commencing in 2021 • Market Atlanta at 13 future convention pre-shows in preparation for their 2021 convention in Atlanta • Develop brand campaign targeting leisure and meetings markets with emphasis on culinary • Ramp up focus on all legislation which could impact our industry

2020 FINANCIAL PLAN

2020 FINANCIAL PLAN NARRATIVE •

We are projecting hotel room revenue in City of Atlanta to be down 1% from 2019 projected year-end results. However, when normalizing 2019 for a year without Super Bowl, hotel tax will be up 5% in 2020.

•

We are budgeting an increase in payroll and related expenses of 5%. This is due to normal increases in both compensation and employee benefits.

•

Operating expenses and expenses related to capital assets will increase primarily due to increased depreciation expense.

•

Direct promotional expenses will be relatively flat.

2020 SUMMARY BUDGET

Total revenue Total expense Excess(deficiency)

2020 Budget 2019 Forecast $ 36,514,921 $ 36,834,516 35,952,672 36,189,241 $ 562,249 $ 645,275

TOTAL PUBLIC SECTOR REVENUE

Hotel tax - City of Atlanta Hotel tax - Fulton County Atlanta Convention Marketing Fund - 80% Atlanta Convention Marketing Fund - 20% Total Public Sector Revenue

2020 Budget 2019 Forecast $ 16,750,000 $ 17,000,529 8,507,937 8,635,189 2,126,984 2,158,797 $ 27,384,921 $ 27,794,515

TOTAL PRIVATE SECTOR REVENUE Annual meeting/HHOF Contributed services Co-op cash support Grants/sponsorships Internet revenue Membership dues Membership services Other revenue Publication ad revenue Total private sector revenue

2020 Budget 2019 Forecast $ 235,000 $ 235,000 5,265,000 5,000,000 725,000 675,000 85,000 85,000 1,425,000 1,418,000 18,000 17,000 277,000 475,000 1,100,000 1,135,000 $ 9,130,000 $ 9,040,000

TOTAL EXPENSE

Direct promotional expense Expense against capital assets Other operating expense Payroll and related expense Transfer to ACMF reserve Total expense

2020 Budget 2019 Forecast $ 13,621,677 $ 14,589,052 2,245,474 1,975,000 994,573 915,000 10,583,011 10,075,000 8,507,937 8,635,189 $ 35,952,672 $ 36,189,241

TOTAL BUDGET BY CORPORATE ENTITY

Atlanta Convention & Visitors Bureau, Inc. ACVB Enterprises, LTD ACVB Foundation, Inc.

2020 Revenue 2020 Expense $ 33,827,921 $ 33,375,226 1,185,000 1,077,446 1,502,000 1,500,000 $ 36,514,921 $ 35,952,672

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@christopherbw

PRESIDENT’S REPORT

WILLIAM PATE PRESIDENT AND CEO

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OLD BUSINESS

GREGORY PIERCE

2020 ELECTION OF OFFICERS • • • • • •

• • •

Jo Ann Herold Chair Dexter Warrior Vice Chair, Advisory Board Brad Koeneman Vice Chair Erica Qualls Battey Vice Chair - Compensation Plan and CEO Contract Committee Ken Bernhardt Vice Chair - Atlanta Convention Marketing Fund Committee Stan Wilson Treasurer - Chair, Finance and Human Resources Committee Peter McMahon Secretary Staff Officers • William Pate • Mark Vaughan • Gregory Pierce - Assistant Treasurer/Assistant Secretary • Andrew Wilson

Honey Baked Ham T. Dallas Smith & Co. Hilton Atlanta Atlanta Marriott Marquis Marketing Consultant/GSU

Elarbee, Thompson, Sapp & Wilson Hyatt Regency Atlanta

President and Chief Executive Officer Executive Vice President and Chief Sales Officer Executive Vice President and Chief Administrative Officer / CFO Executive Vice President and Chief Marketing Officer

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2020 ELECTION OF EXECUTIVE COMMITTEE MEMBERS • • • • • • • • •

Ed Baker Leona Barr-Davenport Karen Bremer Debby Cannon Thomas Dortch, Jr. Daryl Evans Hector Gallardo Sharon Goldmacher Sheffield Hale

• • •

George McKerrow Nancy Oswald Frank Poe

• • • • • •

Kris Reinhard Derek Schiller Alexis Scott Steve Smith Ron Tarson Armand Vari

Georgia State University Atlanta Business League Georgia Restaurant Association Georgia State University TWD, Inc. American Cancer Society The Coca-Cola Company communications 21 Atlanta History Center/Margaret Mitchell House Ted’s Montana Grill Ruth’s Chris Steakhouse Georgia World Congress Center Authority Fifth Group Atlanta Braves Consultant Pendleton Group Westin Peachtree Plaza Jacoby Development

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NEW BUSINESS

ADJOURN