City Ready to Subsidize Grand Bohemian Hotel Rates for MLS Conference

The City of Orlando plans to use public dollars to subsidize a private business once again, this time in order to help the Grand Bohemian Hotel downtown offer discounted room rates for a Major League Soccer conference bid. The 2016 Major League Soccer Operations Seminar is considering Orlando as the site of their 2016 seminar because of the new MLS stadium and team.

That makes sense since the City of Orlando is constructing a brand new stadium, the new team continues to generate excitement and local officials have long touted events just like this seminar as perks of investing big in MLS. But the Grand Bohemian Hotel downtown is competing against another major Orlando area hotel, the Gaylord Palms Resort, in addition to hotels across the country.

In order to be competitive in their bid, the Grand Bohemian Hotel submitted a request for public funds from the City of Orlando to offer room rate discounts for the potential multi-day conference scheduled for January 2016. The Grand Bohemian is requesting a total of $16,080, or $60 per night discounted for 268 total room nights for the five-day meeting.

 Audio: Downtown Development Board – Grand Bohemian Funding Request

Rates in downtowns are naturally a little more expensive than other areas, for many reasons. The MLS Operations Seminar should expect to pay a little more for the convenience of staying right downtown, close to the home of the new MLS stadium and close to the other Venues and everything else downtown offers that the Disney suburbs do not. Are subsidies needed in order to make downtown Orlando competitive?

“It’s a big number,” Executive Director of the Downtown Development Board Thomas Chatmon, Jr. told DDB members prior to the vote. Mr. Chatmon stated efforts like this funding request are to make downtown “more competitive in certain situations.” He also stated downtown hotels have a disadvantage in terms of free parking options compared to other hotels. The Gaylord Palms is known for some pretty expensive parking itself though, with self parking costing about $18/day.

But questions still remain about the local government providing subsidies for private businesses to influence the appearance of a competitive economic environment downtown. What about other businesses? What about hotels or businesses that do not have close relationships with City Hall? Shouldn’t the MLS bring a larger economic impact directly to downtown Orlando after the massive public investment and involvement from our local elected officials?

One question about the $60 amount per room was even asked by a member of the Downtown Development Board before the vote. Mr. Chatmon explained the Gaylord Palms rate is apparently $59 cheaper than the Grand Bohemian room rates. He stated this funding request will allow the Grand Bohemian to increase its occupancy and be more competitive against the Gaylord Palms.

 Audio: Downtown Development Board Question about Discounted Room Rates

This also is not the first public subsidy to help make events and meeting bids “more competitive” in downtown Orlando, as staff explained around $59,000 of similar public funds have already been spent. Mr. Chatmon reminded members that the Grand Bohemian Hotel also previously submitted a $10,000 request for a different meeting and that request was also approved. Staff is allowed to approve any downtown funding requests to help subsidize events or meetings up to $3,000 and the Downtown Development Board needs to weigh in for larger requests.

Staff recommended approval for the use of Downtown Events and Meeting Program funding for the Grand Bohemian Hotel and the Downtown Development Board agreed.