Discover Destination Development to The Palm Beaches

A Compelling Opportunity for Hospitality & Tourism Product Development

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Growing The Tourism Economy New Hospitality and Tourism Investment Opportunities

Discover The Palm Beaches is the Official Tourism Marketing Corporation for Palm Beach County. Our focus is on increasing visitation to the destination and growing the tourism economy.

We partner with the Tourist Development Council and its agencies, including the Sports Commission, Cultural Council and Film & Television Commission, to support new investments in hotels, attractions and other tourism-related businesses. We collaborate with the County’s Economic Development Department to review any potential incentives or other services they can provide. To advance this mission, Destination Development cultivates relationships with the Business Development Board, hotel brands, management companies, developers and investors on a county, state, national and international level.

Our goal is to act as the “matchmaker” between developers and investors for cities and towns within the County that result in successful and profitable projects.

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Don Kolodz SVP, Destination Development Discover The Palm Beaches 2195 Southern Blvd., Suite 400 West Palm Beach, FL 33406 T - 561.233.3090 C - 561.866.2021 dkolodz@ThePalmBeaches.com

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CONTACT INFORMATION

Published by Passport Publications & Media Corporation

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We also work closely with municipalities, community redevelopment agencies (CRAs), downtown development authorities (DDAs) and government leaders to advocate for tourism’s integration into the city’s economic and strategic plans. We partner with the cities’ planning and zoning departments to identify appropriate parcels for tourism product development opportunities.

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Best Way To Experience Florida GEOGRAPHY Palm Beach County, also referred to as “The Palm Beaches”, is a collection of 39 distinctive cities and towns spanning 2,383 square miles. It is the largest county southeast of the Mississippi River, and is bigger than two U.S. states—Delaware and Rhode Island.

PGA National Resort & Spa, Palm Beach Gardens

ECONOMIC IMPACT Tourism is the second-largest economic driver of Palm Beach County, with an annual impact of over $7.7 billion to the local economy. $54 million from bed tax revenue is invested in tourism promotion and infrastructure.

There are 12 tourism districts consisting of various cities and towns within the County that include Boca Raton, Boynton Beach, Juno Beach, Jupiter, Lake Okeechobee/Glades, Lake Worth Beach, Palm Beach, Palm Beach Gardens, Riviera Beach/Singer Island, Wellington and West Palm Beach. Palm Beach County is approximately 60 miles north of Miami and 150 miles southeast of Orlando.

$ 12%

$7.7B

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Total Economic I M P A C T of Palm Beach County’s economy

V I S I T O R S G E N E R AT E

$5.1B in direct spending

POPULATION Palm Beach County is the third most populous in the state of Florida with 1,450,000 people. The County is one of three that make up the Miami metropolitan area, which is home to an estimated 6,012,000 people. There are 906 people moving into the State of Florida each day, or an estimated 330,000 annually.

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FLORIDA ORLANDO 142 mi

TAMPA

1 in10 retailers

PALM BEACH COUNTY FT. LAUDERDALE MIAMI

4 10

in restaurants

25 mi 47 mi

60,000 households

ALL RELY ON TRAVEL

Supports the livelihoods of

70,000

hardworking people

Tourists Pay

$100

MILLION

in local sales tax

Boynton Harbor Marina, Boynton Beach

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•• •• •• •• •• •• •• •• •• •Transportation • •• •• •• •• •• •• ••

Easy To Get To/From & Around

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BY AIR Palm Beach International Airport (PBI) is ranked as one of the most convenient, stress-free airports in the country. Ten domestic and international airlines serve the airport with more than 200 flights arriving and departing daily. The Fort Lauderdale/Hollywood (FLL) and Miami International Airports (MIA) are within an hour’s drive time of the destination. These three airports represent 47 percent of all airline enplaning and deplaning passengers in the State of Florida.

BY RAIL Brightline/Virgin Trains USA is a new highspeed rail service that runs between Miami, Fort Lauderdale and West Palm Beach, with an extension to Orlando currently under construction. Future service also includes Boca Raton, Aventura and the Port of Miami. In addition, Amtrak and Tri-Rail offer services throughout the County.

BY ROAD Travelers can easily reach Palm Beach County via Interstate 95 or Florida’s Turnpike, both of which run the length of the County and feature multiple exits at, or near, essential cities, towns and connecting roads.

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The Demand Factor Visitor Generators

Jupiter

Worth Avenue, Palm Beach

Due to the size and diversity of the destination, there are a significant number of tourism demandgenerators based upon the time of year and city within the County.

The destination features more than 47 miles of beaches, 100 family-friendly attractions, world-class luxury and antique shopping experiences, 125 miles of waterways, more than 150 artificial reefs that line the Atlantic Ocean’s Gulf Stream, 170 golf courses, the Spring Training home for four MLB teams including two recent World Series winners, the largest equestrian and polo facility in North America, award-winning restaurants and a thriving entertainment scene boasting more than 200 arts and culture organizations. There is also $250 million that is being invested in enhancing more than 30 cultural assets.

This diverse collection of assets - coupled with Palm Beach County’s rich history - has earned the destination the following designations: America's First Resort Destination, Florida's Cultural Capital and Florida's Golf Capital -- all of which bolster Discover The Palm Beaches’ brand promise: The Palm Beaches are The Best Way to Experience Florida.

Roger Dean Chevrolet Stadium, Jupiter

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FAU Stadium, Boca Raton

VISITOR PARTICIPATION ACTIVITIES Professional Sporting Events Amateur Sporting Events Festival/Events Business Adventure Sports Nature/Outdoor Activities Art & Culture Beach/Waterfront Sports & Recreation Entertainment/Amusement

International Polo Club — Palm Beach, Wellington

0%

20%

40%

60%

80%

Boca Museum of Art, Boca Raton

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A Proven Track Record Key Performance Indicators

RECORD-BREAKING VISITATION IN ORS

SIT

MILLIONS

8 7 6 5 4 3 2 1 0

N VI O I L L I

R8M

OVE 4.43

4.90

6.00

7.35

6.30

7.89

8.22

OUTPACING FLORIDA SINCE 2009

6.95

100%

5.47

INCREASE VS.

2010

2011

2012

2013

2014

2015

YEARS

2016

2017

GROUP NIGHTS ON

2018

2019

200000 150000

FLORIDA 56%

THE RISE 223,000

250000

ROOM NIGHTS

8.02

2019

606%

Increase in Convention Center Room Nights since 2014

116,000

100000

7,500 TO

50000 0

2014

2019

53,000

GROWING HOTELPRODUCTION RevPAR $300

100

$200

60 40 20

$185

$150

$133

$100 $50

0

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$250

72%

ADR/RevPAR

OCCUPANCY

80

$2019

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ADR

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OCCUPANCY

2019 HOTEL COMPRESSION HIGH/LOW

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ROOM NIGHT DEMAND DAYS

28%

30%

Occ <65%

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Occ 65-79% 42%

Occ>80%

BOLDBRAND

AWARENESS

50

PERCENTAGE

2018

2019 49%

40 42% 30

36%

32% 26%

25%

20 10 LEISURE BRAND AWARENESS

The Seagate Hotel & Spa, Delray Beach

INTEREST IN VISITING

MILLENNIAL INTEREST

INCREASING VISITOR $5,000

MILLIONS

$4,000 $3,000 $2,000 $1,000

$4.66B $1,138

SPEND

$4.87B $1,165

$5.06B $1,214

$877

$911

$1,136

$1,201

$1,270

$1,559

$1,629

$1,662

$823

$0 2017 Q1 : (Jan–Mar)

Palm Beach County Convention Center

2018 Q2 : (Apr–Jun)

SOARING CUSTOMER

2019 Q3 : (Jul–Sep)

Q4 : (Oct–Dec)

SATISFACTION

YEARS

2018

4.6

2015

4.4 4.3

2012

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Harbourside Place, Jupiter

4.1

4.2

4.3 4.4 RATING (1-5)

4.5

4.6

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Opportunities Abound The Lodging Market

Boca Raton Resort & Club, Boca Raton

HOTEL ROOMS

WE NEED MORE

18,500

PLAYING CATCHUP From historic resorts to boutique inns, Palm Beach County is home to more than 145 hotels representing over 17,000 hotel rooms. However, this hotel room inventory is just coming back to the level it was in 2000. The largest county in South Florida has less than half of the hotel inventory in Fort Lauderdale/Broward County and onethird of Miami-Dade.

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18,000 17,500 17,000

11%

16,500 16,000

Increase in Hotel Rooms since 2006

15,500 15,000

TO

14,500 14,000

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 YEAR

17,000

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ROOMS

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KEY DRIVERS ANALYZED

Historical performance by hotel property

New hotel/rooms supply

Demand and Unaccommodated Demand

New transportation channels being deployed

Office space statistics

Convention Center activity and lost business

Population and Employment Forecasts

County wide Macro Data and Trends

Airport traffic

Major Development initiatives

New tourism generators planned

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Existing hotel/rooms supply

LIMITED SUPPLY Hotel Valuation Systems (HVS) was engaged to conduct hotel room supply/demand studies for several key markets within the County, and confirmed a need for significant new hotel supply in several key strategic markets, creating opportunities for investment.

Hilton West Palm Beach, West Palm Beach

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Legendary Hospitality The Palm Beaches’ Advantages

MARKETING & SALES Overall the County annually invests over $30 million in marketing power to drive demand. These funds are derived from a local Tourist Development Tax (Bed Tax). Anyone who offers accommodations for short term rental (six months or less) is required to collect this tax, which is 6% of total taxable rental receipts. The following is an overview by Tourist Development Council:

Discover The Palm Beaches has a budget of $18 million, primarily invested as follows:

$9 million in media and other marketing components

$2.5 million in professional group sales organization

$500,000 for international sales representation offices in key markets

The Cultural Council has a budget of $7 million and provides grants to many of the tourism assets in the County

The Sports Commission has a budget of $3 million and provides grants to sports rights holders and event organizations

The Film & TV Commission has a budget of $1.6 million that is used to support filming and productions within the County and The Palm Beaches TV

FINANCIAL

For investors and developers, the County, municipalities, community redevelopment agencies and downtown development authorities offer potential financial and tax incentives for job-creating new ventures.

The destination has several Opportunity Zones providing significant capital tax gain benefits.

The County is also a magnet for private-equity funds, hedge-fund management companies, venture-capital groups and other financial firms that can be leveraged to finance projects.

SITE IDENTIFICATION

We will work closely with the investor and developer to identify potential sites for hotels, attractions or tourismrelated venues by leveraging our relationships with the County, city planning and zoning departments, the Business Development Board and commercial real estate organizations.

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• • • • • • • Seamless Project Development •• • • • • • Discover will work closely with developers • and investors to ensure a “one-stop shop” • • process that includes: • • • • FACILITATION PROCESS • Business intelligence including historical ADR, • • occupancy and RevPAR data • Market research related to the needs and trends of • • existing and future travelers

Destination Development Services

Identification of potential financial incentives and building sites

Introductions to civic and business stakeholders including chambers of commerce, county/city leadership, CRAs, and DDAs

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CLIENT ONBOARDING

Destination marketing plans available for operators to leverage in creating their leisure and groups sales strategies, including cooperative advertising opportunities

PR and social media support, including press releases touting the estimated annual, economic impact of new hotel properties.

Introduction to tourism development agencies, including Sports Commission, Cultural Council, Film & TV, tourism partners and other County stakeholders that all create demand and support visitation growth

HOSPITALITY WORKFORCE NEEDS Discover partners with CareerSource, the largest placement agency in the County to assist with recruitment and selection of staffing new market entrants at no cost, including:

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Providing labor market information and assisting in job fairs

Recruitment of line level and managerial staffing

Building awareness of post-opening career path development and training programs

Connecting with five major colleges and universities for full- and part-time employees

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