The Vancouver Downtown Redevelopment Authority saw a strong 2018, despite a half-million-dollar dip in profits from the year prior, according to an annual report presented Monday to the Vancouver City Council.
The authority, which oversees the Vancouver Convention Center and Hilton Vancouver Washington, reported that the group’s gross operating profit dropped to $5.6 million in 2018 compared to around $6.1 million in 2017.
However, total operating revenue dropped just slightly last year, down to $18.10 million from $18.14 million the year prior.
In Monday’s presentation to the council, Richard Keller, the authority’s board president, attributed the decline to less group business — the Hilton Vancouver Washington saw a 15 percent drop in group stays last year compared to 2017, an occupancy figure that also cut into catering revenue.
Part of that can be traced to an airline flight crew that had previously held a contract with the Hilton Vancouver Washington for several years. The crew moved to a different hotel closer to the Portland International Airport when its contract expired in the spring.
Despite that, occupancy held more or less steady, with 75.7 percent of rooms filled in 2018 compared to 76.1 percent the year before.
All told, last year the authority remitted nearly $1.3 million in sales taxes, $360,000 in lodging taxes and paid about $125,000 to Visit Vancouver USA, the local nonprofit organization that promotes tourism.
The Hilton Vancouver Washington also saw the completion of a major renovation last year when Grays Restaurant unveiled a $1.3 million redesign of the in-house eatery and menu, transforming the formal steakhouse into a more airy, casual joint. Though completed six weeks behind schedule, the project remained on-budget, the report stated.
“The Vancouver Conference Center Hotel had a successful 2018 working through the challenge of a seasonal reduction of group business, the loss of the airline crew, and the Grays renovation,” the report stated. The Hilton team, led by General Manager Mike McLeod, “responded to the challenges the market presented in 2018 and achieved financial results just shy of original goals.”
In 2019, the authority’s board is aiming for stronger gross profits grounded in rebounding group bookings, according to the report, while tracking the performance of Grays to see if the renovated restaurant meets expectations.
The board is also looking to participate in the master planning process in downtown Vancouver while working to secure adequate, long-term parking for the Hilton Vancouver Washington and Vancouver Convention Center.
