City Council defers budget approval for Hyatt Regency Conroe and Convention Center
Published: Fri, 09/29/23
City Council defers budget approval for Hyatt Regency Conroe and Convention Center
The Hyatt Regency Conroe and Convention Center, which opened May 25, cost nearly $109 million to construct.
(Cassandra Jenkins/Community Impact)
Community Impact
By Lizzy Spangler
Updated
At its Sept. 28 meeting, Conroe City Council deferred approving the fiscal year 2023-24 budget for the Hyatt Regency Conroe and Convention Center.
This comes after council members expressed concerns about the budget projections and asked for more conservative projections during their Sept. 27 workshop meeting.
How we got here
During the council’s Sept. 27 workshop meeting, the proposed FY 2023-24 budget for the Hyatt Regency Conroe and Convention Center was shared, which outlined:
- $12.76 million in revenues
- $12.75 million in expenses
In his presentation, Jeff Binford of Garfield Public/Private, which serves as the hotel and convention center’s asset manager, also shared that the hotel expects for FY 2023-24:
- An average occupancy rate of 55.5%
- An average room rate of $176.56
Zooming out
The Hyatt Regency Conroe and Convention Center, which opened May 25, cost nearly $109 million to construct, Community Impact previously reported. Before it opened, council approved a $5.1 million cash infusion needed to sustain hotel operations.
Colin Boothe, director of finance and assistant city administrator, said the city may have to put more money into sustaining the hotel if the budget projections are not met and the $5.1 million is fully depleted.
What else?
Binford said while there is no operating history yet for the hotel, there is operating history for the market.
“We’re matching ourselves with the market, matching with what’s on the books, and this is the best estimate as of now,” Binford said.
What they’re saying
During discussion of the hotel’s proposed FY 2023-24 budget, council members responded to the projections given.
- “I would rather these Hyatt figures come in at a projected low and not have a big surprise at the end,” Council Member Marsha Porter said.
- “We’re all invested in this,” Council Member Harry Hardman said. “This is our asset. We have to manage this thing because it does affect the entire city.”
- “I’d rather plan for the worst and hope for the best,” Council Member Howard Wood said.
- “I just think these numbers seem to be shot from the hip, personally,” Council Member Curt Maddux said.
Stay tuned
Binford said he would work with Hyatt to prepare high, most likely and low budget projections.