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Thursday, March 15, 2012

Building Boom Raises Questions, Especially for Proposed UCLA Hotel/Conference Center

Every time a construction crane is sighted on the UCLA campus, questions are raised such as those appearing in an article in today’s San Francisco Chronicle.  (See the italicized text below.)  All the more reason why – if there is a sound financial plan for the proposed UCLA hotel/ conference center - it needs to be released now.

California has slashed public university budgets, yet construction is booming at campuses statewide.  The University of California system has $8.9 billion in building projects under way at its 10 campuses and five medical centers, including about $2 billion at UCSF, which is near the top of the spending list. With less money to operate the new buildings once they're finished, universities are straining maintenance and energy budgets. At least one new UC campus building is sitting empty because the university can't afford to operate it. University officials say all the construction was in the pipeline before the 2008 economic downturn squeezed state spending for higher education. Some construction is being paid for by part of a $10.4 billion bond voters approved in 2006, from which more than $3 billion went to public higher education. Some is being underwritten by private donations, government research grants and student fees.

…The schools also have to clean, light, heat, cool and maintain the new buildings, the burden of which comes out of hard-pressed operating budgets that were cut by $1.4 billion this year, including $650 million at UC. "The universities seem to treat this like a birthday gift or something," said Richard Vedder, director of the Center for College Affordability and Productivity, an independent national research organization. "But there is a pain associated with the maintenance of these new buildings."

…The UC system already has at least $800 million in deferred maintenance, or needed repairs, and that was in 2008, when a report was prepared for the Board of Regents. At CSU, the estimated cost of deferred maintenance has grown to just under $450 million systemwide…


Meanwhile, it appears the proposed UCLA hotel will have competition - from UCLA:
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Changing the game for on-campus room rentals: UCLA Conference Services

Published by Jill at 2:43 pm under California,Venues
College dorms used to be synonymous with bland architecture, hallway water fountains, and those long, twin mattresses that sheets never fit on.  UCLA is changing that perception, though, with a new fleet of suites that are making meeting and event planners stop in their tracks.  Are these really today’s dorm rooms?
According to Jason Walley, Director of Conference Services, the answer is yes.  “We’ll have 100 of these rooms available beginning in June 2012,” he says.  “And there’s more to come.”
The Courtside Collection, designed by Walley and his colleagues, feel much more like a hotel room than your traditional dorm room.  “We had  recently  renovated one of our buildings, and after we crunched the numbers, it really was within our reach to offer something unique .”
The suites come complete with modern-day amenities, like a 24-hour front desk, flat screen televisions, free WiFi, usage of recreation areas, and daily house cleaning.  The cost? “It’s just $150 per room, per night, and that includes a hot breakfast,” says Walley.
Even more of a reason, because groups are staying at a university as opposed to a hotel, they save by not having to pay an occupancy tax or a service charge. Additionally, the revenue generated offsets student housing costs during the academic year.  It’s really a no brainer.
Also included in UCLA’s renovation was a new ballroom (see design on right) with three breakout rooms, which pairs perfectly with the new suites for groups, associations, or even special events.
To learn more about UCLA Conference Services, visit them on uniquevenues.com.
The above ad is reproduced from:
http://blog.uniquevenues.com/changing-the-game-for-on-campus-room-rentals-ucla-conference-services/

Seems like time is running out.  It's time to produce the hotel business plan:

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