1
Effects of the Wrigley Field Renovation on the City of Chicago
To: The U.S. Conference of Mayors
Prepared by: Febrina Boediman Shan Du Kyle Jin Matthew Lee Renee Verdier Won Sun You
2
Executive Summary
Objective: To explore the effects of the approved Wrigley Field Renovation Plan for the City of Chicago and its key constituents and stakeholders. The findings of this report will identify economic and socio-economic effects for Chicago as well as its direct effect towards hospitality and tourism.
Positive Effects: The report finds a positive growth in economic impact to Chicago while considering nonconventional revenue streams through spending, job creation, and tax incentives. ● The renovation will generate $57M in annual net new direct spending ● $94M in annual new indirect and induced spending ● Restoration will create approximately 2,100 jobs (1,300 permanent/800 in direct construction) ● $232M renovation of Wrigley Field would be supported by Class-L property tax incentive
Negative Effects: The amended Wrigley Field Planned Development causes negative effects on the Lake View community and its residents both financially and socially. ● The approximate total cost of 41,397 sq. ft. of Lake View land is $11M ● $3.75M that the Cubs must pledge in order to compensate for the expansion plan of the left- field and the right-field walls is below the market value of 41,397 sq. ft. of public land that Lake View must sacrifice ● Narrowing of Sheffield Ave and Waveland Ave erodes quality of life of Lake View residents ● Increase in night games minimizes economic activities, invades residents’ quality of life and causes traffic congestion within the community
Hotel and Restaurants Development: The projected hotel and restaurants development will be a good addition to the Wrigleyville area, as the report found that there is an increase in hotel demand in this particular area. ● The demand average for hotel rooms in the Wrigleyville area has reached 112,854 per year ● The current hotel rooms supply has covered the number of average rooms demand, with a mixed of upscale and midscale hotels in the area, which gives an opportunity for an upper- upscale hotel to be developed ● Restaurants and bars around Wrigley Field clustered along N Clark Street vary from fast food restaurants to sports themed bars ● The projected restaurant and retail space should take the current restaurants and bars supply in the area into consideration (types and price) when deciding on the space tenants
Tourism Development: The renovations are projected to increase the capacity of and visitation to Wrigley Field and Wrigleyville, creating new demand and opportunities for tourism product development. ● Wrigley Field is already Illinois’ 3rd most popular tourist attraction, drawing over 3 million visitors per year ● In addition to being a sports attraction and the home of the Chicago Cubs, Wrigley Field is also considered a heritage destination and social gathering place ● Renovations should take these various motivations into account and ensure the preservation of historical artifacts as well as promote niche social events ● Wrigley Field can maximize economic benefits for community-owned businesses by giving local vendors satellite locations within the renovated Wrigley Field stadium 3
Impact Analysis
Wrigley Field, home of the Chicago Cubs, a Major League Baseball club is scheduled to undergo a significant renovation. The 5-year project will cost a total of $500M. $200M will be devoted to redevelopment of the Wrigleyville community and $300M will be solely devoted to the renovation of the stadium.
Assessment of Economic and Social Effects The goal of the economic and social assessment is to analyze additional future growth while locating nonconventional revenue streams through spending, job creation, and tax incentives as a result of the Wrigley Field renovation.
Investment The renovation of Wrigley Field will lead to economic impacts determined by variables such as growth in increase in local, county, and state revenue, tax revenue, job creation, personal earnings and consumer spending. The forward will depict just how much of an economic impact will the Wrigley Field renovation project will generate for Chicago and the neighboring region. The data below supported by the Conventions, Sports, and Leisure International report highlights the amount of new growth in terms of revenue reinvested into the economy as a result of the renovation that otherwise would not be present. The renovation project will generate roughly $57M in new annual direct spending.1 Direct spending consists of the revenue driven by in & out of ballpark fan spending and other spending from premium seats, league sources, advertisers, and visiting teams. Table 1 is a categorical breakdown of the direct spending allocation. Table 1: Direct Spending
1 Greenberg, Jon. "A Simple Plan? Hardley." ESPN. 17 11 2010: n. page. Print. .
4
2013 Direct Spending ($ millions) Categories Spending Game-day operations 118 Lodging 76 Restaurants 110 Retail Shops 48 Non-Cubs Entertainment 48 Total Direct Spending 400
The renovation project will also generate roughly $94M in new annual indirect and induced spending. Indirect spending consists of “supplies of goods or services as a result from the direct spend” at Wrigley Field2. Induced spending encompasses the “change in local consumption due to the personal spending by individuals whose incomes are affected by direct and indirect spending.” 2 Table 2 is a chart that exemplifies the categorical breakdown of direct, indirect, and induced spending.
Table2: Direct, Indirect, Induced Spending
Changes in Economic Impacts ($ millions) Direct Indirect + Induced Total Spending Spending Spending 2019 457 332 789 2013 400 238 638 Net New Spending 57 94 151
Job Creation The $200M investment by the Ricketts family towards Chicago will help increase job growth and enhance the surrounding areas. According to the Conventions, Sports, & Leisure
2 Chicagoland Chamber of Commerce. “The Restoration of Wrigley Field. 2013. PDF file.
5
International reporting, Wrigley Field will instantly create over 7,000 jobs. 2,100 of the total jobs will be positions directly affiliated with the actual renovation of Wrigley Field. 800 of the jobs will be created through construction.2
Class-L $232M of the Wrigley Field renovation is supported by a property tax incentive titled Class-L. Class–L encourages the rehabilitation of landmark properties such as Wrigley Field in Chicago. As a result, taxes will be reduced on the 99year old ballpark by an estimated $8.1M over 12 years. As of November 12th, 2013, the Finance Committee & Commission on Chicago Landmarks approved of the Class-L incentive and the project will reach its final stage of approval in voting by the city council. The current property taxes on Wrigley are estimated at $1.5M a year.3 With the proposed renovation plans, Wrigley Field will increase in stadium value. According to the Landmarks Commission, the project will increase property tax to $4.2M at the completion of the 12 year- incentive periods.
Community The Chicago Cubs commitments to the community are unparalleled. The renovation plans include a $1M new ballpark at 1230 W. School Street in Chicago. The Cubs fund will also increase donation support of already $2M a year to children in the Lakeview community since 2000 (Greenberg).
Competitive Set The renovation of Wrigley Field draws many parallels to the Boston Red Sox’s Fenway Park renovation. Built two years apart from each other, Fenway in 1912 and Wrigley in 1914, both are recognized by the Landmark Commission of Historic Preservation. Table 3 is a chart of the direct, indirect, and induced spending that economically benefited the city of Boston.
3 Chicago Cubs. "FAQ." Restore Wrigley Field. N.p., n.d. Web.
6
Table3: Boston Red Sox as a Competitive Set
7
Negative Effects Referred to as the planned development (PD), the Wrigley Field renovation and the Lake View redevelopment plans have gone through various amendments. The latest amendment calls for various architectural changes to the original renovation plan, which was approved by the Chicago City Council back in April. On December 11th, the Chicago City Council passed the latest amendment with support from Mayor Rahm Emanuel.4 Additionally, the Lake View community groups such as the East Lake Vie Neighbors strongly contend the Wrigley Field renovation plan as it will negatively affect the livelihoods of many residents in the community.
Cost Overruns Initial design of the Wrigley Field renovation located the advertisement signage and the video board in a way that obstructed views from the rooftop clubs. However, the Cubs and the rooftop owners have a binding contract for which the rooftop club owners pay the Cubs 17% of their annual revenue in exchange for allowing rooftop views to be preserved.5 The original renovation plan of the Wrigley Field violates this contract and the Cubs have been challenged with a threat of lawsuits from the rooftop owners. Thus, the rationale for the latest amendment is to prevent any litigation from the rooftop owners. The amended Wrigley Field Planned Development includes expansions of the left-field and right-field walls. Specifically, the left-field wall will be extended by 16 ft. and the right-field wall will be extended by 7 ft. 4 Expanding the Wrigley Field footprint gives the Cubs the space they need to erect the 650 sq. ft. advertisement signage on the right field and install the 5,700 sq. ft. video-board on the left field further out to preserve rooftop views that otherwise would have been obstructed. However, these architectural changes require more funding from the Cubs than $300 million that they allotted for the original budget. Cost overruns mean unexpected cost increase from the original budget and they are inevitable in most stadium projects. Two most recent stadium projects in the Major League Baseball have experienced cost overruns in their construction phase. The Minnesota Twins had undergone cost overruns with reconstruction of their stadium, the Target Field, in 2010. The
4 Dardick, Hal and John Byrne. “City Council Approves More Wrigley Field Renovation Changes.” Chicago Tribune. 11 Dec. 2013. Web. 5 Suddath, Claire. “Wrigley Field's Planned Renovation Threatens a Chicago Rooftop Tradition.” BlommbergBusinessweek. 05 Sept. 2013. Web. 8 overall cost of the reconstruction project exceeded the original budget by $37.5 million.6 In 2010, the Yankees Stadium had also experienced substantial amount of cost overruns with their stadium construction. The initial project budget for the Yankees Stadium was set at $825.3 million but only to be exceeded by $812.6 million. 6 1) 2010 Target Field Construction
Financial Summary ($ in millions) Project Costs Minnesota Twins Construction Costs $390 On/Off Site Development Costs 90 Cost Overruns 37.4 Bond Issuance Costs 42 Total Project Costs $559.40 Source: Conventions Sports & Leisure
2) 2009 Yankees Stadium Construction Financial Summary ($ millions) New York Project Costs Yankees Initial Project Budget $825.30 Scope Modifications & Add'l Build Out 424.7 Security/Safety Improvements 59.8 Construction Delay from Litigation 40 Museum & Conference Center 8.4 City Parkland Replacement 194.7 State Parking Garage Construction 70 Rent Credits 15 Total Project Costs $1,637.90 Source: Conventions Sports & Leisure Architectural changes in an effort to accommodate the rooftop club owners will lead to increased costs of resources for modifications on the original renovation plans, workers’ compensation and destruction of public land. Even though, the renovation has not even begun, the issue of cost overruns looms the Wrigley Field Planned Development. Based on the case studies of above, the Cubs should expect cost overruns in other areas as well when the renovation commences. Funding sources for the amendment have yet to be determined. According to Chicago Sun-Times, Mayor Emanuel has exempted the Cubs from pledging more than $4.75 million they
6 Conventions Sports &Leisure. “Economic Impact Analysis: Proposed Major League Ballpark in San Jose, CA.” 2009. PDF file. 9 already have invested into the “Cubs Fund” for the use of public streets and sidewalks needed to expand the left-field and the right-field walls since the Cubs have already agreed to provide $500 million for not only the Wrigley Field renovation but also the redevelopment project of the Lake View community.7 Of those $.4.75 million, $1 million contribute to the School Street Play Lot so in reality, the Cubs only have to pledge $3.75 million in excess cost.3
Quality of Life The outfield wall expansion plan can only be accomplished with sacrifices from Lake View residents. Specifically, the outfield wall expansion plan comes at an expense of 41,397 sq. ft. of public land on Waveland Avenue and Sheffield Avenue.8 In order to allow enough spaces for the Cubs to make proper expansions, Sheffield Avenue will be narrowed from 33.5 ft. to 23.5 ft. in width. Waveland Avenue will shrink from 31.5 ft. to 23 ft. A total of 56 public parking spaces will be lost. 8 On the ballpark sides of the streets, sidewalks on Waveland will go from 16 ft. wide to 8.5 ft. wide and Sheffield sidewalks are reduced from 15 ft. wide to 10 ft. wide. 8 Accordingly, cost overruns of the amended Wrigley Field Planned Development also account for the public land that the Lake View community is asked to sacrifice. Average price per sq. ft. for homes in Lake View is valued at $267 in the month of December.9 Taking that value into account, the approximate overall cost of public land that Lake View residents are forced to give up is $11,052,999. Certainly, $3.75 million that the Cubs are required to pledge are well below the market value of 41.397 sq. ft. of Lake View land. In effect, architectural improvements to the initial renovation plans would put unexpected financial burdens on taxpayers. If the Ricketts family is not required to fully compensate for public land given up by Lake View, then, the only reasonable assumption is that the cost of those destructions would have to be compensated by public subsidy. In addition to public land being lost, the quality of life for many residents who live around the Wrigley Field, some who have lived there for more than four decades, are negatively affected as a result of the amended renovation plan. About 125 residents in homes on the 1000 block of Waveland and the 3600 block of Sheffield are directly affected.8 Due to narrowed
7 Spielman, Fran. "Cubs Won't Have to Give Taxpayers More After $4.75M for Wrigley Renovation." Chicago Sun- Times. 2 Oct. 2013. Web. 8 “East Lake View Neighbors Denounce Mayor Emanuel’s Plan to Give Cubs Public Land for Free.” East Lake View Neighbors. News Release. 21 Nov. 2013. PDF file. 9 “Lakeview Market Trends.” trulia.com. Dec. 2013. Web. 10 streets and sidewalks, simple daily activities such as jogging and walking kids back home from school will be intervened. With elimination of street parking, Lake View residents will be forced to move further away from their homes to park their vehicles while the Cubs are allowed to build more parking spaces for their employees and players. Additionally, the 5,700-ft. video-board erodes the livelihood of many residents who live in apartments near the stadium. 8 Sounds and illumination of lights coming from the video-board could be intrusive to residents who live near the Wrigley Field.
Night Game Ordinance The intention of the “Cubs Fund” agreed between the Cubs and Lake View was to allocate $4.75 million to community infrastructure improvements in exchange for approving the Night Game Ordinance, which included a dramatic increase in night games from 33 to 44, the addition of 6 Friday games with 3:05 starts and 4 concerts. Most MLB teams play 5 to 6 games per week during the season including 3 or 4 weekday games. 3 “For example, in 2006 the White Sox, a typical team in MLB, played 81 home games of which only 26 were day games that start before 3:30 in the afternoon. On the other hand, the Cubs have continued to be the last in the MLB in the number of night games they host”.10 The Cubs only scheduled and played only 33 of their 81 home games at night last season. Playing night games affect residents as well as local establishments in neighboring communities for various reasons. First, night games do not spur as much economic activities as the day games do. Taking into account of 3-hour duration of a typical baseball game, fans tend to leave late at night on games that start after 3:05 pm, which diminish spending in local restaurants and bars. On the other hand, day games discharge fans in the late afternoon or early evening leading to larger foot traffic to local bars or restaurants, thus, inducing more economic activities. 10 “Like most MLB teams, frequently attracting visitors in other local establishments very difficult. The Cubs crowd out local business through night games only half as often as a typical MLB team.” 10 Second, night games and concerts that come after lead to negative quality of life on the neighborhood and its residents. 8 The Wrigley Field is unique from all other ballparks in the
10 Baade, Robert A., Mimi Nikolova, and Victor A. Matheson. “A Tale of Two Stadiums: Comparing the Economic Impact of Chicago’s Wrigley Field and U.S. Cellular Field.” International Association of Sports Economists. Working Paper Series, Paper No. 06-14. 2006. PDF file. 11
MLB in that it is located at the heart of downtown Chicago. Noises, lights and behaviors of fans directly affect the neighborhood. With fans occupying the streets of Sheffield and Waveland, carrying out normal daily activities such as walking kids back home from school, walking dogs or running errands could all become more difficult than they have to be. Finally, playing games at night causes traffic congestion in the community. 8 The motive for doing stadium renovations and neighborhood redevelopment project is to attract higher volume of tourists. Thus, the Lake View community can expect increase in foot traffic, especially on game days, when the Wrigley Field planned development is complete. To make matters worse for local residents, night games bring higher attendance than day games do. Even after considering three-hour duration of a typical baseball game, day games still end before rush hour and most fans leave the town by the time local residents come back from work. On the other hand, night games end after rush hour, thus, causing traffic in the neighborhood. Since there is no overlap in time between the day game and rush hour, fans can afford to park on the streets and in personal garages10 without invading parking spaces designated for local residents. Fans’ cars merely substitute the number of vehicles that would have been parked by local residents on the streets. However, during night games, local residents have to deal with a possibility of sharing their own parking spaces with visiting fans since night games end after rush hour. Furthermore, the expansion of the outfield walls limit local residential parking spaces and diminish local streets that surround the Wrigley Field in the first place. The obvious reason as to why the Cubs sought out more night games and the city approved the ordinance is because night games bring higher revenue than day games do for a ball club on average. While hosting more night games brings economic benefits to the Chicago Cubs, it has detrimental effect on the quality of life of the Lake View community.
Relationship Between the City and the Community The consensus among Lake View residents on the Wrigley Field planned development with the newest amendment is clear; the community is opposed to many aspects of the planned development. The East Lake View Neighbors, a representative group of the Lake View community, has sent numerous letters to the Cubs and mayor Emanuel expressing their concerns on the negative effect that the planned development would have on the community. On July 10th, another group called the Lake View Citizen’s Council organized a “Rally to Save Wrigleyville” 12 to protest the original planned development.11 Despite these efforts, the community’s voices “are falling at deaf ears” 11 as evidenced by the ease at which the planned development and the amendments have been approved by the Chicago Plan Commission, the Commission on Chicago Landmarks and the Chicago City Council. The time span between the introduction of the proposal and the hearing simply has been too short to provide the Lake View community enough time to assess how the proposal or amendments to thereof affect the community. For example, the Cubs proposed the newest amendment for the Wrigley Field planned development on October 16th 12 and only about 5 weeks have passed when the proposed amendment went before the Chicago Plan Commission and subsequently approved on November 21st.13 Since then, it took less than three weeks for the city council to finally pass the proposed amendment on December 11th. 4 This gives an unfair advantage to the city in meetings since it does not give proper amount of time for the Lake View community to develop an effective defense. Another factor that contributes to the community’s voice being ignored by the city is the strong support of Mayor Emanuel on the Wrigley Field renovation plan. Mayor Emanuel has a reputation for his authoritative style of leadership.14 Since he has assumed the mayoral position, “Emanuel has openly advocated for his city’s respective cultural assets and tourist appeal, as well as for the vast economic potential.” 14 Mayor Emanuel’s authoritative leadership style in conjunction with his strong support of the renovation plan has had influence on the outcomes in plan commission, landmarks commission and city council meetings regarding the Wrigley Field Planned Development. The approved amendment, which allows the Cubs to pledge no more than $3.75 million to compensate the public land being given up for the expansion of outfield walls, solidifies his strong support for the planned development. Therefore, regardless of the outcry from the Lake View community, the approval by the Chicago City Council seems to indicate that the Wrigley Field renovation plan will occur.
11 Ambrosius, Andy. "Wrigley Rally: 'Residents Are Not Being Listened To'" Lake View Patch. N.p., 17 July 2013. Web. 12 Dec. 2013. 12 Byrne, John. “Advertising Arch Across Clark Part of Wrigley Renovation.” Chicago Tribune. 22 Nov. 2013. Web. 13 “Drastic Changes to Sheffield Avenue to Come Before City Plan Commission on Thursday, November 21.” 14 Prechtel, Jason. "Bloomberg Already Has a Mayoral Successor: Rahm Emanuel." Gapers Block. 13 Sept. 2013. Web. 13
Wrigley Field Hotel & Restaurants Development Description of the Hotel Project The site The hotel located in the intersection of N Clark Street and Addison Street. Walking distance to the numerous theaters, shops, restaurants, and bars in the Lakeview community, the hotel will be just 15 minutes from the Magnificent Mile. The hotel will provide fans and visitors with accommodation on the North side outside of Cubs baseball games.15 The site is under city zoning plan with code PD- 958(Planned Development Area), together with Wrigley Field Renovation, Ball Park Renovation and surrounding area renew plan. The Cubs have already agreed to eliminate the pedestrian bridge over Clark Street connecting the park and hotel. Additionally, it has been proposed that the hotel's entrance be moved from Patterson Avenue to Clark Street, with the hotel balcony at Clark and Patterson getting nixed.16
Local Access and Visibility
The CTA Red Line provides direct service to Wrigley Field via the accessible station at Addison. Fans can transfer to Red Line trains from all other rail lines and from most east west bus routes.17 The Cubs also operate a shuttle and parking service at the DeVry University campus located off Addison Street and Western Avenue for all weekend and night games. The first shuttle leaves two and one half hour prior to the game. The shuttle runs for one hour after all Night Games and for two hours after all Weekend Day Games. Fans in the northwest and west suburbs can take Pace's
15 Carrie Bloom. “Starwood Hotels Announces Exclusive Partnership to Become "Official Hotel of the Chicago Cubs", Starwood Hotels and Resorts. < http://development.starwoodhotels.com/news> (17 January 2013) 16 Carrie Muskat. “New Proposals in the works for Wrigley renovations”, MLB.com < http://mlb.mlb.com/news/article> (16 October 2013). 17 “Public Transportation,” MLB.com, < http://chicago.cubs.mlb.com>. 14
Wrigley Field Express Route non-stop to Wrigley Field. The routes operate during all evening, weekend and holiday games, as well as to every game in June, July and August.
Parking
The parking lot is located on West Grace Street between North Clifton and North Seminary Avenues. Parking at this lot is available to fans who have purchased a parking pass. Street parking in the neighborhoods surrounding Wrigley Field is extremely limited and highly restricted. The blocks closest to the stadium do not allow parking for any amount of time without a residential parking permit, which are available only to neighborhood residents and guests of residents. However, a limited number of blocks within walking distance of the stadium might allow parking without a permit during day games. A number of independently owned and operated parking lots offer parking in the neighborhood surrounding Wrigley Field on game days. Price and availability in these private lots can vary greatly from game to game. Online service like Park for Wrigley offer fans the opportunity to reserve a spot in a privately-owned parking lot by paying online.
15
Market Area Analysis
Historical Supply and Demand Trend (STR)
Available Rm Year Occupied Rm Ngts Change Ngts Change Occ(%) Change Available Rate Change RevPAR Change 2007 111681 152570 73.2 149.47 109.41 2008 106525 -4.6% 152570 0.0% 69.8 -4.6% 147.78 -1.1% 103.18 -5.7% 2009 103029 -3.3% 156242 2.4% 65.9 -5.6% 125.59 -15.0% 82.82 -19.7% 2010 112541 9.2% 161330 3.3% 69.8 5.8% 128.70 2.5% 89.78 8.4% 2011 119485 6.2% 161330 0.0% 74.1 6.2% 134.60 4.6% 99.69 11.0% 2012 123864 3.7% 161330 0.0% 76.8 3.7% 139.90 3.9% 107.41 7.7% 2013 123095 -0.6% 161330 0.0% 76.3 -0.6% 147.03 5.1% 112.18 4.4%
Average 114317 1.8% 157562 0.9% 72.3 0.8% 139.01 0.0% 100.64 1.0% Compounded Change 1.6% 0.9% 0.7% -0.3% 0.4%
Aff Hotel Included in Sample No of Rms Date Open Date Class Days Inn Chicago 133 32143 32143 Economy Class Inn @ Lincoln Park 74 37773 30407 Upper Midscale Class Willows Hotel 55 10380 10380 Upscale Class Hotel Majestic 52 34851 34851 Upper Upscale Class Best Western Plus Hawthorne Terrace Hotel 83 40483 9649 Upper Midscale Class City Suites Hotel Chicago 45 9649 9649 Upscale Class Total 442
16
Chicago Hotel Performance18 Below is the data from “STR report for August 2013” that concludes the hotel performance in the greater Chicago area. This data helps to recognize the type of market coming into the city and how much each segment contributes to the Chicago hotel occupancy, revenue per available room, and average daily rate. • The overall occupancy number for luxury hotels in the United States has been increased 2.4% from the year 2012, which makes luxury hotels to have the highest percentage of occupancy from transient and group customer. • Chicago is placed as number 7 (80%) on the top 25 market occupancy in the United States o Transient 48.9% o Group 28.8% o Contract 2.3% • In regards to Average Daily Rate (ADR), it has been placed as number 4, with the average of 168.55 o Transient 176.66 o Group 161.68 o Contract 81.60 • Number 9 for the Revenue Per Available Room (RevPar), with the total of 134.84 o Transient 83.34 o Group 46.64 o Contract 1.86
18 STR Monthly Segmentation Hotel Review: U.S. Hotel Industry Performance for the Month of August 2013. Rep. Hendersonville: Smith Travel Research, 2013. Web. 17 Sept. 2013. 17
Competition
The map of hotel competitors’ location
A. City Suites B. Best Western Plus Hawthorne Terrace C. Majestic Hotel D. Days Inn Chicago E. The Willows Hotel Chicago F. Inn at Lincoln Park
With regards to competition, there are six hotels located within short distance from Wrigley Fields. These hotels are being considered as possible competitors to the projected hotel. The 6 hotels around Wrigley Field’s provide 161,330 room nights per year. These hotels accommodate the demand average of 112,854 room nights per year. Since 2007, demand for these hotels has been increasing; it reached to the highest number of 123,864 room nights in 2012. Based on the STR reports, the hotels’ occupancy starts to escalate on April, which coincide with the beginning of baseball season.19
19 STR: Chicago, IL Selected Properties. Rep. Hendersonville: Smith Travel Research, 2013. Web. 17 Sept. 2013. 18
Factor Sheet of Major Competitors
Inn at City Best Majestic Days Inn The Willows Hotel Lincoln Park Suites20 Western21 Hotel 22 Chicago23 Hotel24 25 No. of Rooms 45 Rooms 59 Rooms 52 Rooms 133 Rooms 55 Rooms 74 Rooms Upper Upper Upper Hotel Class Upscale Economy Upscale Midscale Upscale Midscale Distance from 0.6 miles 0.7 miles 0.7 miles 1.2 miles 1.2 miles 1.4 miles WF Rate 189 163 189 147 161 91 Launch Year Jun-1926 Jun-1926 Jun-1995 Jan-1988 Jun-1928 Apr-1983 Restaurant No No No No No No Meeting Space Yes Yes Yes Yes No Yes Outside On-Site Outside Hotel, On-Site Outside Fitness Center Hotel, Outside Hotel Fitness 40,000 SF Fitness Hotel 3,500 SF
The factor sheet of proposed Sheraton Hotel’s major competitors above shows details about each hotel’s amenities, location, service level, start year, etc. The following rate-experience matrix will assess all the major competitors based on the information in the fact sheet.
20 "Chicago City Suites." Hotel Amenities. N.p.. Web. 13 Dec 2013.
19
Rate – Experience Matrix
*Each competitor should be compared against the benchmark (your) property. *If you determine the competitor is of the same quality, grade with a 0. *If the competitor ranks better or worse, they should be graded with a +3, +2, +1, -1, -2, -3 accordingly.
The Rate-Experience matrix above is based on each hotel’s advantages and disadvantages. All the strengths and weaknesses are transformed into numerical grades. Majestic Hotel is chosen as the subject hotel, and all its grades are set as “0”. Other hotels are measured based on Majestic Hotel’s features. For example, City Suites is an upscale hotel inferior to Majestic hotel, which is Upper Upscale, so we input “-1” accordingly in its corresponding “service level” grid, and so forth. The rate of each hotel is measured based on the Majestic Hotel’s rate. All the rates are measured by the metric of percentage. For example, Best Western has a lower rate than that of Majestic Hotel, so the percentage difference is -14%.
20
Rate-Experience Graph
The rate and experience graph shown above is created by using the results of the rate – experience matrix. From the graph, it is clear that each hotel seems to be normal competition for Majestic Hotel. The projected Sheraton Hotel now faces two options in order to gain the market share. First, the projected Sheraton Hotel has to set a higher price and to offer a premium experience than the Majestic hotel. Second, the projected Sheraton is recommended to offer a better experience value and to set a lower price than Majestic Hotel. However, for the second option, we doubt if the relatively lower room rate of our projected Sheraton Hotel will hinder the hotel’s profitability. All in all, we recommend that the new Sheraton Hotel should give better amenities and services than its potential competitor, Majestic Hotel. Moreover, the room rate for the projected Sheraton is recommended to be set slightly higher than Majestic Hotel at its first year after opening. 21
Demand Generator
!!!!!!!!!!!!!!!!!!!!!!!!!Local!Demand!Generator Approximte' Approximate' Mileage'From' Driving'time' Demand'Generator Subject'Hotel From'Subject' Chicago's!McCormick!Place! 8!mi 15mins Lincoln!Park!Zoo 4.1!mi 11mins Wrigley!Field 1!Block 1min O'Hare!International 22.8!mi 30mins Midway!Airport 18.2!mi 30mins 26
The projected Sheraton Hotel will benefit from the healthy Chicago economy, which is well diversified among industries such as manufacturing, printing and publishing, finance and insurance, and food processing. With its central geographic location and inland port facilities, Chicago is also a national transportation and distribution center and a popular place for large group meetings, the later due in some part to Chicago’s McCormick Place, a 2.6 million square foot convention center, which is the nation’s largest. Furthering the appeal of Chicago as a meeting place is its accessibility by air. Chicago is served by two major airports, which are O’Hare International and Midway. Both airports are served by Chicago Transit Authority metro stations, which allow for inexpensive, fast and easy access to the entire Chicago metro area.
Hotel demand generators for the Chicago market are related predominantly to the meeting and group segment, which includes seminars, conventions, and trade associations shows as well as numerous meeting groups such as corporate groups, associations and SMERFE (social, military, ethnic, religious, fraternal, and educational groups). Moreover, another major generator will be the Wrigley field stadium in which the Chicago Cubs play games since April every year. Chicago’s peak convention demand typically occurs in the spring and fall.
26 Celeste P., Stinson. "Hilton Chicago." MORNINGSTAR. (2013): n. page. Print. 22
Supply Changes
Supply Changes Hotels in pipeline27
Market segmentation
Market Wide Market Segment Accommodated Demand Percentage of Total Commercial 610,566 20% Meeting and Group 1,692,762 56% Leisure 704,040 23% Total 3,007,367 100%
27 “Proposed Hotel – Chicago Area,” TR Mandigo & Company, < http://www.trmandigo.com/proposed.html#content>. 23
Food & Beverage Analysis Restaurant near Wrigley Field mainly clustered along N Clark Street. Fast food are welcomed in this area since people come here mostly for the game. Fans like grab-and-go. Among 45 restaurants we looked into around Wrigley Field area, five American Restaurant, ten Bar & Grill, eleven fast food (including fast food, takeout, hotdog, pizza and sandwich shop), three Mexican food restaurants, one Chinese restaurant and one Thai restaurant. Some don’t have exactly target, are not counted into types. Restaurants around Wrigley Field
No Name Address Spend Theme 1 Uncommon Ground 3800 N Clark St $$ American Restaurant 2 Subway 3776 N Clark St $$ Sandwich Shop 3 Wrigleyville Dogs 3737 N Clark St $ Hot Dog Restaurant 4 FULL Shilling Public House 3724 N Clark St $ Irish Pub 5 Azteca De Oro Mexican Grill 3731 N Clark St $ Mexican Restaurant 6 Big G's Pizza 3716 N Clark St $ Pizza Restaurant 7 Raw Bar & Grill 3720 N Clark St $$ Bar & Grill 8 Yak-Zies 3710 N Clark St $ Bar & Grill 9 Rockit Burger Bar 3700 N Clark St $$ Bar & Grill 10 Bernies Chicago 3664 N Clark St $ Bar & Grill 11 McDonald's 3620 N Clark St $ Fast Food Restaurant 12 United Club 1060 W Addison St 13 Taco Bell 1111 West Addison $ Fast Food Restaurant 14 Vines On Clark 3554 N Clark St $$ 15 Salt & Pepper Diner 3537 N Clark St $ Diner 16 Goose Island Wrigleyville 3535 N Clark St $$ American Restaurant 17 Mullen's On Clark 3527 N Clark St $ Bar & Grill 18 Flaco's Tacos 3530 N Clark St Mexican Restaurant 19 Wrigley Side 3527 N Clark St Bar & Grill 20 John Barleycorn 3524 N Clark St $$ American Restaurant 21 Moe's Cantina 3518 N Clark St $$ 22 Merkle's Bar & Grill 3516 N Clark St $ Bar & Grill 23 Curse 3517 N Clark St $ 24 Pauly's Pizza Ria Wrigleyville 3515 N Clark St $$ Pizza Restaurant 25 The Irish Oak 3511 N Clark St $$ Irish Pub 26 Chens 3506 N Clark St $$ Chinese Restaurant 27 Old Crow Smokehouse 3506 N Clark St 28 Deuce's & The Diamond Club 3505 N Clark St $$ American Restaurant 29 The Stretch 3485 N Clark St $$ Bar & Grill 30 Sweet Baby Ray's 3478 N Clark St BBQ Restaurant 31 The Bar Celona 3474 N Clark St $$ Bar & Grill 32 Lucky's Sandwich Co. 3472 N Clark St $ Sandwich Shop 33 Rockwood Place 3466 N Clark St $$ Nightlife 34 Rebel Bar & Grill 3462 N Clark St $ Bar & Grill 35 Dimo's Pizza 3463 N Clark St $ Pizza Restaurant 24
36 Marko's Tacos 946 W Newport Ave $ Latin American Restaurant 37 Rice'N Bread 3435 N Sheffield Ave $ Hamburger Restaurant 38 The National 3441 N Sheffield Ave American Restaurant 39 Einstein Bros Bagels 3455 N Clark St $ Bagel Shop 40 Cozy Noodle n' Rice 3456 N Sheffield Ave $ Thai Restaurant 41 Subway 953 W Addison St $ Sandwich Shop 42 Sports Corner Bar & Grill 956 W Addison St $ Bar & Grill 43 Bacci Pizzeria 950 W Addison St $ Takeout Restaurant 44 El Burrito Mexicano 936 W Addison St $$ Mexican Restaurant 45 Captain Morgan Club 1060 W Addison St $ Event Venue Bars around Wrigley Field
No Name Address Spend Theme 1 The Cubby Bear 1059 W Addison St $$ Sports Bar 2 The I.O. Theater 3541 N Clark St $$ Bar 3 Red Ivy 3525 N Clark St $$ Sports Bar 4 Smart Bar 3730 N Clark St $$ 5 The Gingerman Tavern 3740 N Clark St $$ 6 Trace 3714 N Clark St 7 Casey Morans 3660 N Clark St $$ 8 Sluggers 3540 N Clark St $$ Sports Bar 9 Chicago's Blarney Stone 3424 N Sheffield Ave 10 Underground Lounge 952 W Newport Ave 11 Nisei Lounge Ltd 3439 N Sheffield Ave Sports Bar 12 Dark Horse Tap & Grill 3443 N Sheffield Ave $ Sports Bar 13 O'Malley's Liquor Kitchen 3551 N Sheffield Ave $$ Sports Bar 14 The Dugout Sports Bar and Grill 950 W Addison St Sports Bar 15 Murphy's Bleachers 3655 N Sheffield Ave $$ Sports Bar
List above showed surrounding bars. There are total 25 bars around, if we add Bars with Grills listed out in restaurant chart. We can easily spot that most bars are of sports theme. Both restaurant and bars in Wrigley field area are under $$. When we decide F&B for proposed
Sheraton hotel, existing competitors pricing level should be taken into account.
Development Plan We recommend hotel property save the first floor for leasing except for entrance and lobby. Since fast food are welcomed in stadium area, hotel could contract with qualified brand restaurants like McDonald, Subway, coffee shop like Starbucks. Owner will have stable lease income from leasing. In addition, contracts can include incentive terms. For instance, if revenue exceeded certain amount, owner will have the right to take 10% profit so on. Lounge & Bar is suggested to be managed under management contract same as hotel rooms. Management sales 25 could also use it as events area. First floor leasing spaces include one or two retail shops. Fans could get logo T-shirts and other souvenirs.Facilities Summary
Guestrooms No of Rooms Configuration No of Rooms King 60 Handicapped Accessible 10 Double/Double 80
Suite 42 Total Guestrooms 18228
Food and Beverage Management Location/Floor Theme American Gourmet Lease 1 Fast food Lounge & Bar Mgmt Contract 1 Sports
Meeting and Banquet Space Size(sf) Location/Floor Total Meeting Space 2800 TBA
Pre-function 700 TBA Total Function Space 3500
Health Club Size(sf) Location/Floor
1000 TBA
Retail Size(sf) Location/Floor
500 1 Parking Size(sf) Location/Floor
2000 B1 Service and Amenities
Valet Parking Ice/Vending
High-Speed Internet Access
28 Serena Dai and Ted Cox. “Wrigley Field’s $ 500 Million Renovation Approved by City Council”, DNAinfo Chicago, < http://www.dnainfo.com/chicago>. (24 Jul4 2013). 26
Sales and Marketing Recommendations 1. Hotel and Restaurant packages In order to enhance the number of tourists coming into the city, especially to the “Wrigleyville”, some packages could be offered. Some examples for the packages would be: • Packages During the Football season o A package that combines the Cubs ticket with hotel stays o A package that combines the Cubs ticket with restaurants gift card/coupon o VIP seating and hotel stays with special early booking rates • Packages during low season (to pick up occupancy) Depending on seasonality and the market performance, each package would be appropriately offered in different period of the year.
2. Partnerships with Choose Chicago to promote the new development, as it is the official destination marketing organization for Chicago. 3. The new developed hotel and restaurants should create more events that involve the WrigleyVille community for public relation purposes.
Hotel and Restaurant’s Conclusion o The hotel demand in this particular area is increasing from year to year and by having a Sheraton hotel with approximately 182 rooms, it will give additional lodging choices for the people who are traveling to WrigleyVille for any purposes. o Although the hotel supply in WrigleyVille area has already covered the average demand, there is still opportunity for the projected hotel to gain market share by offering better value compared to its competitors. With the fresh and new concept and design, it would help the hotel to compete with the other six major competitor hotels in the area. o The restaurant and retail space should take the current restaurant supply in the area into consideration (types and price) when deciding on the space tenants.
27
Tourism Development Chicago Tourism Overview Both Chicago and Illinois had record-setting visitor numbers in 2012. Chicago saw 46,370,000 domestic and international arrivals, a 6% increase from 2011. Illinois also hosted over 100 million visitors for the first time ever in 2012.29 This translates into a tangible opportunity for Wrigley Field to capitalize on the city’s momentum and reach out to new visitor markets. Chicago is currently the 10th most visited city in the United States, outdone only by other Major destinations like New York City, Miami, Orlando, and Las Vegas. Its tourism industry has a significant economic impact, accounting for $12 billion in direct spending, $725 million in tax revenues, and 128,000 jobs. Projected increases in visitor numbers have the potential to increase spending to $15 billion, increase tax revenues to between $1.2 and $1.3 billion, and create 27,000-30,000 new jobs.30 As illustrated in the chart below, visitor arrivals (both domestic and international), expenditures, employment and tax revenue (from the tourism industry) have been on the rise since 2009, corresponding with greater post-recession recovery trends in other US markets. Though Chicago has suffered an image issue over the past few years due to increased crime rates and negative media exposure, it does not appear to have significantly impacted Chicago’s appeal or arrival trends.
29 Bellware, Kim. "Chicago Tourism Numbers: Both City And State Tallied Record Number Of Visitors Last Year." Huffington Post. 06 Sep 2013: Web. 13 Dec. 2013.
Chicago Travel & Tourism Statistics 2006-201231
2006 2007 2008 2009 2010 2011 2012
Visitation (Millions) Total 45.23 46.29 45.57 39.57 39.25 43.59 46.37 % Change 9.6% 2.3% -1.5% -13.2% -0.8% 11.1% 6.4% Total Domestic 44.17 45.14 44.21 38.45 38.11 42.39 45.00 % Change 9.9% 2.2% -2.1% -13.0% -0.9% 11.2% 6.2% Total Overseas* 1.062 1.147 1.368 1.117 1.134 1.199 1.369 % Change -2.0% 8.0% 19.3% -18.3% 1.5% 5.7% 14.2% Domestic Business 11.32 12.31 11.70 9.60 10.07 10.58 10.92 % Change 0.7% 8.7% -4.9% -18.0% 4.9% 5.1% 3.3% Domestic Leisure 32.85 32.84 32.41 28.86 28.03 31.81 34.07 % Change 13.5% 0.0% -1.3% -11.0% -2.9% 13.5% 7.1% Direct Travel Impact (Millions) Expenditures $10,910.8 $11,524.4 $11,826.0 $10,445.2 $11,097.8 $11,963.3 $12,762.5 % Change 9.3% 5.6% 2.6% -11.7% 6.2% 7.8% 6.7% Domestic $9,743.5 $10,148.1 $10,229.3 $9,167.0 $9,749.7 $10,453.5 $11,034.1 % Change 10.2% 4.2% 0.8% -10.4% 6.4% 7.2% 5.6% International $1,167.3 $1,376.3 $1,596.7 $1,278.2 $1,348.1 $1,509.8 $1,728.4 % Change 2.1% 17.9% 16.0% -19.9% 5.5% 12.0% 14.5% Employment (000) 129.7 132.3 131.9 124.6 124.4 128.3 132.4 % Change 0.7% 2.0% -0.3% -5.5% -0.2% 3.1% 3.2% Payroll $4,003.5 $4,083.5 $4,063.2 $3,794.5 $3,889.4 $4,180.5 $4,436.4 % Change 5.3% 2.0% -0.5% -6.6% 2.5% 7.5% 6.1% Total Tax Revenue $616.6 $648.5 $656.4 $586.9 $616.1 $725.7 $805.6 % Change 10.2% 5.2% 1.2% -10.6% 5.0% 17.8% 11.0% Domestic $550.6 $574.5 $574.4 $518.3 $546.1 $636.5 $699.3 % Change 11.1% 4.3% 0.0% -9.8% 5.4% 16.6% 9.9% International $66.0 $74.0 $82.0 $68.6 $70.0 $89.2 $106.3 % Change 3.0% 12.1% 10.8% -16.3% 2.0% 27.4% 19.2%
Wrigley Field Tourism Wrigley Field and the Chicago Cubs are major players in Chicago’s tourism industry. Chicago is the 3rd largest professional sports market in the USA,32 and the Chicago Cubs regularly attract more fans than any other Chicago sports team.33 Wrigley Field itself is the 3rd
31 ChooseChicago. "Choose Chicago Market Analytics: Chicago Tourism Profile." 2012 Chicago Visitation Report. ChooseChicago, n.d. Web. 13 Dec 2013.
Wrigleyville “Wrigleyville” is the neighborhood surrounding Wrigley Field on the north side of Chicago, located within the greater Lakeview area. It is bordered by Halsted St. on the east, Ashland Ave. on the west, Roscoe St. on the south and Byron St. on the north. Wrigley Field’s location in - and integration with - the heart of the neighborhood amplifies its impact on the local economy. Its proximity to a bustling restaurant and entertainment district means that the majority of fans’ spending happens at local businesses rather than at the stadium, where most profits go to the team/owners. According to the
34 Strauss, Ben. "Compared With Cubs, White Sox Can’t Win for Winning." New York Times. 26 Aug 2012: D2. Web. 13 Dec. 2013.
Chicagoland Chamber of Commerce, local businesses “report sizable increases in revenue and jobs when the team is in town.”37 According to the Chicagoland Chamber of Commerce, the tourism industry has a significant economic impact on Wrigleyville; in 2012, annual tourism receipts included $76 million in lodging, $110 million in food & beverage, $48 million in retail, and $48 million in non-Cubs entertainment. Moreoever, a 2011 study by Conventions, Sports & Leisuire International found that the Cubs/Wrigley Field and their visitors account for $638 million in annual local revenue, 7,000 jobs, $282 million in annual lodging, restaurant, retail and entertainment revenue, $244 million in annual personal earnings, and $81 million in annual tax collections.38 According to Michael Mini, Vice President of Public Policy at the Chicagoland Chamber of Commerce, the Wrigley Field renovations and proposed developments will maintain existing economic impacts on Wrigleyville in addition to delivering $94 million in additional spending, $19 million in new tax revenue, and 2,000+ new jobs (including 800+ construction jobs and 300+ permanent jobs.39 A 2012 Chicago Tribune article illustrates Wrigleyville’s dynamic appeal: “Wrigleyville is upscale, dynamic and mostly young, teeming with clubs and restaurants steps from the ballpark, one of the state's most popular tourist attractions… "No. 1, there's a lot more to do’ in Wrigleyville, said Josh Ganal, owner of Grandstand. ‘It's not just, ‘”Come to the game.”’ He added that the area around the Cell is "loaded with places to go," but they're little more tucked away. ‘Here, you've got to do a little more looking," said Ganal, a Sox fan, ‘but I feel our places are a lot better.’” 40
37 Roper, Jerry. "Chicagoland Chamber of Commerce."Chicagoland Chamber of Commerce: Letter to Alderman Tunney . Chicagoland Chamber of Commerce, 15 May 2013. Web. 13 Dec 2013.
40 Gregory, Ted. "Hot Chicago White Sox get Cold Shoulder." Chicago Tribune. 03 Sep 2012: n. page. Web. 13 Dec. 2013.
The vast majority of visitors to Wrigley Field also visit Wrigleyville, whether to enjoy a meal, drinks and entertainment in addition to the game, to shop for Cubs merchandise from the countless sports vendors, or simply to park near the stadium. Much of the neighborhood’s businesses cater to the stadium crowd; there are several sports-themed food & beverage establishments (including Sluggers, Murphy's Bleachers, Casey Moran's, Rockwood Place, and Sports Corner), the majority of the retail is Cubs-centered, and there are even a few lodging options for fans to stay the night after the game. Wrigleyville is also home to a bevy of bars and restaurants - frequented by locals as well as Cubs fans – as well as a handful of popular music and performance venues that draw non-sports visitors to the area, including independent film theatre The Music Box, dance club Metro Smart Bar Chicago, avant-garde theater venue Stage Left Theatre, and live music venue The Cubby Bear.
Wrigley Field/Wrigleyville Visitor Demographics & Behavior As previously mentioned, over 3 million people visit Wrigley Field on an annual basis to see the Chicago Cubs. According to a study conducted by the Macrothink Institute, 73% of visitors to Wrigley Field/Wrigleyville are non-Chicago residents, and 30-40% of visitors are from outside the state. Over 50% of visitors identified the Cubs/Wrigley Field as their primary or sole motivation for visiting Chicago. Another study of visitors to Wrigley Field conducted by Scarborough Sports Marketing in 2012, found that 59% of Chicago Cubs game attendees are, employed full time, 54% are white collar workers, and 40% are college graduates. Additionally, nearly 50% of all adults in 17 counties in the Chicago area viewed a Cubs game via a media platform in the past year.41 The Macrothink survey found that “attendees at Cubs home games may include a larger number of “baseball fans” as opposed to “Cubs fans,” going to Wrigley Field to participate in the tradition and history of professional baseball, that uniquely American game.” This implies that at least a portion of Cubs attendees are motivated to visit not out of any loyalty to or particular interest in the team, but rather out of interest in the sports heritage aspects of the stadium and game experience; “With its ivy-covered walls, natural grass, old fashioned scoreboard, closeness of the seats to the field, and simply years of existence, it’s hard to imagine a major league ball
41 Gregory, Ted. "Hot Chicago White Sox get Cold Shoulder." Chicago Tribune. 03 Sep 2012: n. page. Web. 13 Dec. 2013.
42 Bristow, Dennis, Kenneth Schneider, and Richard Sebastian. "Thirty Games Out and Sold Out For Months! An Empirical Examination of Fan Loyalty to Two Major League Baseball Teams." Journal of Management Research. 2.1 (2010): E2. Print. 43 Mini, Michael. "Chicago Plan Commission: Wrigley Field Expansion and Rehabilitation." Chicagoland Chamber of Commerce. Chicagoland Chamber of Commerce, 18 Jul 2013. Web. 13 Dec 2013. 44 Mini, Michael. "Chicago Plan Commission: Wrigley Field Expansion and Rehabilitation." Chicagoland Chamber of Commerce. Chicagoland Chamber of Commerce, 18 Jul 2013. Web. 13 Dec 2013. 33
SWOT Analysis - Wrigleyville Strengths Weaknesses -Established reputation as entertainment -Retail: lacks diversity; dominated by district sports vendors/merchandise and ticket sales -High degree of fan loyalty -Some local resistance to Wrigley Field -Easily accessible by public transportation Renovations -Highly developed tourist infrastructure -Parking overcrowding (restaurants, bars, entertainment) -Lack of diversity in types of -Proximity to Wrigley Field maximizes accommodations local business revenue
Opportunities Threats -Retail: product diversification to attract all -Delay of Wrigley Field Renovations types of shoppers -Conflicts with rooftop owners -More night games will increase demand -Competition with White Sox, other for local accommodations regional sports attractions
Tourism Plan – Recommendations Based on secondary research of the proposed Wrigley Field renovations, interviews with relevant stakeholders, and analysis of Wrigleyville tourism, we propose the following recommendations for future planning:
1. Ensure that Wrigley Field Renovations correspond with the stadium’s tradition of sports heritage. As previously detailed, it is clear that Wrigley Field does not fit typical models of visitation and fan loyalty, and that one of the primary motivations for visiting Wrigley Field is to experience a piece of sports history. Therefore, it is essential that the renovations preserve and enhance Wrigley Field’s historical assets. Potential strategies include:
§ Establish a small museum to honor Wrigley Field history & tradition 34
§ Consult with sports history experts throughout the renovation process to ensure preservation of Wrigley heritage and prevent destruction of important artifacts/historic spirit § Conduct focus groups before and during renovations to ensure that any new developments do not damage Wrigley Field’s pre-existing heritage appeal
2. Create a regional marketing campaign featuring the Wrigley Field Renovations & their future unveiling, focused on sports fans in target markets less than 350 miles from Chicago. Potential Target Markets include: § Neighboring States: Indiana, Michigan, Wisconsin, Minnesota, Ohio. § Other Major and Minor League Stadiums § Other Sports Stadiums (College athletics, other sports) § Partnerships with regional baseball leagues § 3. Schedule themed day and night games to appeal to current visitors and reach out to new markets. Studies of Chicago Cubs fans have indicated that a significant portion of attendees are not particularly interested in the team or even the sport, but are motivated to visit Wrigley Field based on the social aspects of baseball games (Macrothink). Wrigley Field/Wrigleyville can reach out to untapped markets and highlight the entertainment/socialization appeal of visiting by establishing promotional deals or themed games based on various visitor niches. Suggestions include: family day, history/heritage day, “ladies’ day,” couples’ “date night” night game, .
4. Create opportunities for local vendors to establish in-stadium locations. The recently opened Barclays Stadium in Brooklyn features a food court comprised of satellite installations of local restaurants and other culinary attractions. By allowing local businesses to establish a presence within the stadium, like Barclays, the Wrigley Field developments can maximize financial benefits for local businesses while enhancing the authenticity and spirit of this legendary Chicago attraction.
35
Work Cited
1. Greenberg, Jon. "A Simple Plan? Hardley." ESPN. 17 11 2010: n. page. 2. Chicagoland Chamber of Commerce. “The Restoration of Wrigley Field. 2013. PDF file. < http://files.sj-r.com/media/news/CubsProposal_Final.pdf>. 3. Chicago Cubs. "FAQ." Restore Wrigley Field. N.p., n.d. Web.
15. Carrie Bloom. “Starwood Hotels Announces Exclusive Partnership to Become "Official Hotel of the Chicago Cubs", Starwood Hotels and Resorts.