DRCFA Annual Report FY24

huntingtonplacedetroit.com

Page 1

Artist Credit Phillip Simpson

Page 2

huntingtonplacedetroit.com

Message From The DRCFA Chairman Claude Molinari

Huntington Place is on track to break revenue records with an unprecedented lineup of high-quality, large-scale shows.

FY2024 has marked one of the most transformative years for both Huntington Place and the Detroit Regional Convention Facility Authority. We proudly broke ground on the highly anticipated 25-story JW Marriott hotel—announced by Detroitbased Sterling Group. This milestone marks one of the most significant developments for the city’s event and hospitality industry in decades. Once completed, this world-class addition will enhance our ability to attract top-tier conventions, offering attendees the connectivity, convenience, and luxury they expect from a premier destination.

In another landmark achievement, the Detroit Regional Convention Facility Authority (DRCFA) has extended its partnership with ASM Global, now entering its second decade of managing Huntington Place. Going forward, ASM Global will play a vital role in supporting the Convention Authority’s strategic initiatives to bolster Detroit’s competitiveness in attracting major local, state, national, and international events.

Of course, they will also be at the table looking at new revenue streams and operational efficiencies for our valued customers.

Huntington Place played host to an impressive lineup of prestigious shows this year. From iconic consumer events like the Detroit Boat Show and Autorama to industry-defining gatherings such as APWU, EANGUS/NGAUS, Automate, Youmacon, NF Forward, SAE, PCMA, NACCHO, and Turning Point USA, each event showcased the very best of Detroit’s innovation and excellence.

This is only the beginning. As we look to FY2025, Huntington Place is on track to break revenue records with an unprecedented lineup of high-quality, large-scale shows—solidifying our place as a powerhouse in the convention and events industry and a driving force behind Detroit’s economic momentum.

huntingtonplacedetroit.com

Page 1

Mission To be the best convention destination in the world.

Vision Where the region comes together to serve you.

Value Proposition Delivering economic value to the region by providing a premiere convention and meeting center that attracts residents and visitors from the region, state, and around the globe.

Page 2

huntingtonplacedetroit.com

Who We Are We are a team of passionate Detroiters who love to share our amazing city with everyone who visits. As hospitality ambassadors we are proud participants in the resurgence of Detroit. Our character is authentic and our service is genuine.

What We Believe We care greatly for our guests and for one another. Our diversity is our strength. We respect one another’s talents by working together and we aspire to create lasting memories for every visitor to Detroit.

How We Succeed We succeed by creating an environment with trustworthy, enthusiastic and caring people who embrace change. We work together as one very determined team focused entirely on the success of every event. We are only satisfied if we have exceeded expectations.

huntingtonplacedetroit.com

Page 3

Celebrating Our Success Convention Facility Development Fund Distribution Oakland

$13,742,451

Wayne

$12,954,487

Macomb

$8,875,782

Huntington Place continues to be a key driver of economic growth in the region. In FY2024, the venue hosted 134 events, welcoming over 399,000 attendees and generating more than $300 million in economic impact.

This year saw a dynamic mix of new and returning shows, bringing visitors Other MI Counties $40,369,015 from around the world.

The Convention Facility Development Fund Total | $75,941,735 distributed $75,941,735 across Michigan’s 83 counties, supporting initiatives that enhance quality of life for residents and improve visitor experiences. The tricounty region of Wayne, Oakland, and Macomb received $35,572,720, reinforcing the vital role Huntington Place plays in driving statewide economic benefits.

Among the top events of FY2024 were the American Postal Workers Union Biennial Convention, Turning Point Action, AutoRama, the 146th National Guard Association of the U.S., and the IEEE Conference on Intelligent Robots and Systems. Despite a year without numerous million-dollar-plus events, more than half of the top 20 events were first-time bookings at Huntington Place.

A major highlight was hosting the PCMA EduCon conference in June, an industry-leading event that brought over 900 event planners and industry partners to Detroit. This prestigious gathering elevated both Detroit’s brand and our convention center’s reputation on an international scale—and we delivered a standout experience.

Beyond hosting events, we were on the road, actively engaging in global, regional, and local industry events. Our team participated in PCMA Convening Leaders, SISO CEO Summit, IMEX Frankfurt and Las Vegas, ASAE, IAEE, MMPI, MSAE, and Meetings Michigan, strengthening our presence and relationships across the meetings and events industry.

Huntington Place remains committed to attracting world-class events, fostering economic impact, and showcasing Detroit on the global stage. The momentum continues into FY2025!

Page 4

huntingtonplacedetroit.com

Direct Spending in FY2024 Across The State Of Michigan The direct spend in FY2024 includes all operating, labor, capital project expenditures and joint ventures. Over 94% of the total dollars were spent in the State of Michigan.

$108,765,570 Total Direct Spending

Detroit

$72,627,301 Oakland

$5,563,762 Macomb

$17,344,138 Out Of State

$6,393,909 Other MI Counties

$3,173,173 Wayne Excluding Detroit

$3,663,287 huntingtonplacedetroit.com

Page 5

Guest Experience Guest experience is one of our top priorities

89% Overall Experience In FY24, Huntington Place collected results from our Event Organizer survey for the first time. We achieved an outstanding 89% rating for overall client experience.

82%

83%

87%

87%

Ease of Event Navigation

Staff Experience

Cleanliness

Safety and Security

Huntington Place experienced a significant increase in Attendee survey responses, rising from 3,474 in FY23 to 12,523 in FY24, providing valuable feedback on their experience. The team received strong ratings across key attributes, including Ease of Event Navigation (82%), Staff Experience (83%), Cleanliness (87%), and Safety & Security (87%).

Page 6

huntingtonplacedetroit.com

Employee Training and Engagement

1,440 + Training Hours

15 Employee Events

Huntington Place values the importance of investing in our employees. This year, we remained committed to ongoing education and training, with staff completing 1,440 hours of training, including active shooter preparedness, fire extinguisher training, CPR/First Aid certification, and more.

However, our focus extends beyond education— we prioritize team bonding and celebrating our employees. Our Hispanic Heritage Month potluck was a huge success, even earning a feature in ASM Global’s All Hands Meeting. We also hosted a Halloween costume contest, an Opening Day BBQ, a Fourth of July rooftop fireworks night, an all-staff holiday party with an ugly sweater contest and interactive games, and more.

To boost employee morale, we launched initiatives like the Shout-Out Program, where we recognize outstanding employees on our back-of-house monitors and in weekly staff meetings. Our Monday Motivation Program highlights employees on social media, sharing what inspires them each week.

At Huntington Place, we are dedicated to fostering a workplace that supports growth, recognition, and camaraderie.

huntingtonplacedetroit.com

Page 7

A Thriving Community A strong community is the foundation of a successful convention center.

Without community support, success isn’t possible. At Huntington Place, we take our commitment to the community seriously and continuously seek ways to give back.

This year, we collaborated with our on-site catering partner, Sodexo Live!, to support local initiatives. Throughout the year, we donated lunches and dinners to our partners at Forgotten Harvest. In September, we joined them in a major soup donation effort.

During the holiday season, we organized coat and blanket collections, partnered with Old Newsboys Goodfellows to distribute toy packages to families in need, and sponsored a family by providing gifts for both children and parents, along with financial support.

At the start of the school year, we provided backpacks, school supplies, and handwritten notes of encouragement to teachers at Detroit Achievement Academy and Pierce Middle School.

Our team also spent time volunteering with the Michigan Humane Society on various missions, including playdates with animals and making treats and toys for their furry guests.

The staff celebrated Earth Day by refreshing the landscaping around the convention center, re-mulching and planting flowers in the planters lining the sidewalks and roads along its border.

Giving back is at the heart of what we do, and we’re proud to support the community that makes Huntington Place thrive.

Page 8

huntingtonplacedetroit.com

Sustainability Sustainability has been at the core of Huntington Place’s operations since achieving LEED Gold certification in 2019.

546 Municipal Solid Waste

54%

Tons of Waste Diverted

Diversion

Out of 1,007,220 pounds of waste we diverted 546,000 pounds to various recycling channels and achieved a 54% diversion rate.

This accomplishment is a source of great pride, and we remain committed to finding new and innovative ways to improve year after year.

Page 10

huntingtonplacedetroit.com

Key Performance Indicators (KPIs) Our Key Performance Indicators (KPIs) reflect a strong performance for the year and a focus on a vibrant and sustainable future. The team continued to recruit and attract passionate and experienced members that delivered exceptional guest experiences. The number of large events increased with strong retention and overall building occupancy rates.

FY2023

FY2024

50.5%

77.1%

Total Number of Events Over $6K Net

87

94

Total Number Of Event Days

323

436

Total Number Of Attendees

457,092

399,845

Building Occupancy

25%

25%

Retention Event Rate

53%

57%

Waste Diversion Rate

49%

54%

Employee Retention

Long Term Goals Create one billion dollars in economic impact each year Attracting and retaining business while continuing to develop strong partnerships.

Enhance our green practices for a sustainable building Protecting our community and environment.

Deliver best in class customer service Investing in our people and leveraging technology to deliver exceptional experiences.

Recognized leader in Diversity, Equity and Inclusion Strengthening our community.

huntingtonplacedetroit.com

Page 11

Marketing Social Media

540 Posts

2.8M

The Marketing Team focused heavily on growing their social media audience this year, publishing 540 posts and reaching 2.8 million impressions. Starting the fiscal year with 35,900 followers, their total now nears 40,000.

Impressions

40K Followers

2.3K

41.6K

1.9K

1.2K

Digital Presence They published 45 articles and sent out 398,506 emails. The team also drove 257,000 website sessions, marking a 23% increase from 2023.

Email Campaigns Detroit is Making Moves

Page 12

FY23

+23% FY24

Website Sessions

Website Sessions

huntingtonplacedetroit.com

huntingtonplacedetroit.com

Page 13

Awards and Elections Huntington Place is honored to be recognized among the best in the industry, a testament to our team’s dedication, excellence, and unwavering commitment to outstanding service.

This year, we were named one of Exhibitor Magazine’s Top 25 Centers of Excellence, a prestigious award that highlights the topperforming convention centers in North America.

This recognition evaluates facilities based on criteria such as event space, accessibility, customer service, and industry leadership. Additionally, we were named a top three finalist for Best Customer Service and On-Site Support, reinforcing our dedication to providing an exceptional experience for every exhibitor, attendee, and event organizer who walks through our doors.

We are also incredibly proud of our team members who have been recognized for their leadership and impact. Our Human Resources Director, England Zuri Raphael, was named one of Crain’s Detroit Notable Black Business Leaders, a distinction that honors professionals who are making significant contributions to their industries and communities.

This recognition reflects the incredible leadership and vision England brings to our organization every day.

Page 14

huntingtonplacedetroit.com

Awards and Elections In another outstanding achievement, six Huntington Place team members were nominated for the prestigious Detroit Rose Awards, which celebrate hospitality professionals who go above and beyond in delivering exceptional service and community engagement. Among them, one finalist was recognized as a community leader, demonstrating the deep impact our team has beyond the walls of Huntington Place.

Further showcasing our team’s industry leadership, Jennifer Berkmeier, Sales Manager, was elected President of the MPI - Michigan Chapter (Meeting Professionals International), a highly respected organization dedicated to advancing the meetings and events industry.

Additionally, Al Vasquez, Director of Engineering, was elected to the Board of Directors for the 2030 District, a national initiative focused on promoting sustainability and energy efficiency in urban development.

These honors reflect the outstanding talent, dedication, and leadership within our team. We are proud of our collective achievements and will continue striving for excellence, innovation, and community impact at Huntington Place! huntingtonplacedetroit.com

Page 15

Financials BALANCE SHEET

INCOME STATEMENT

Assets

Revenues

Cash And Equivalents

$205,388,711

State Operating Subsidy

$6,000,000

Accounts Receivable and Other Current Assets

$15,702,948

Operations and Other Revenue

$12,439,526

Investment in Joint Venture

$101,666,667

Parking Revenue

$3,743,699

Capital Assets, Net

$327,233,881

Naming Rights

$1,500,000

Total Assets

$649,992,207

Total Revenues

$23,683,225

Liabilities and Net

Operating Expenses

Position Accounts Payable and Current Liabilities Restricted Deposits

$14,702,840 $172,852

Bonds Payable

$437,539,216

Total Liabilities

$452,414,908

Net Position

Operations Expenses

$22,977,919

Authority Administration

$1,312,060

Parking Expenses

$1,269,122

Total Expenses

$25,559,101

Non-Operating Revenues (Expenses)

Invested in Capital Assets

$173,635,302

Depreciation Expense

(12,965,168)

Restricted

$12,709,877

Interest Expense

(19,079,698)

Unrestricted

$11,232,120

Amortization of Bond Premium

1,200,891

Total Net Position

$197,577,299

Bond Redemption Costs

(3,089,498)

Total Liabilities and Net Position

$649,992,207

Interest Income And Other

5,246,359

Total Non-Operating Revenues (Expenses)

(28,687,114)

Total Loss Before Capital Contribution

(30,562,990)

Capital Contribution - Debt Service Subsidy

27,164,377

Decrease In Net Position

$3,398,613

The interest accrued on investments made by the DRCFA for future revenue-generating projects, such as the connected hotel and parking garage, materialized in FY 2024, contributing to a decline in Net Position.

Page 16

huntingtonplacedetroit.com

The Westside Expansion

The Detroit Regional Convention Facility Authority (DRCFA) has made a strategic $150 million investment, securing a 49% ownership stake in a new 600 room conventionstyle hotel being developed on the former Joe Louis Arena site, partnering with Detroitbased Sterling Group. Approved at the Authority’s February 15, 2024 board meeting, this investment aims to boost Detroit’s hospitality infrastructure ahead of major events like the 2027 NCAA Men’s Final Four. The hotel, set to open in early 2027, is expected to recoup the Authority’s investment within four years and generate $6 million to $10 million annually thereafter. To finance the investment, the Authority issued $155.72 million in federally taxable bonds to refinance a JPMorgan Chase lien, as part of a broader $408.7 million bond package that also supports road and parking improvements near Huntington Place.

This investment was made possible by 2022 legislative changes granting the Authority expanded borrowing powers and the ability to form public-private partnerships. The project benefits from significant tax incentives, including a 30-year, $130.6 million Renaissance Zone and an $11.6 million Commercial Rehabilitation Act abatement. The Detroit Economic Growth Corporation (DEGC) estimates the project will yield nearly $2.6 billion in economic benefits, primarily from convention and event-related visitor spending. The development includes a pedestrian bridge connecting the hotel to Huntington Place, enhancing the convention center’s appeal for large-scale events. Without these incentives, the project would not proceed, reinforcing the importance of public-private collaboration in Detroit’s ongoing economic growth. huntingtonplacedetroit.com

Page 17