Hall of Fame Resort revenue grows through hotel and stadium events
CANTON – Events at the Tom Benson Hall of Fame Stadium and use of the downtown DoubleTree by Hilton hotel fueled third quarter revenue for Hall of Fame Resort & Entertainment Co.
The hotel, which this week marked the first anniversary of its reopening, reported third-quarter revenue of more than $ 1.42 million. For the nine months ended September 30, the hotel generated more than $ 2.61 million in revenue.
Hall of Fame Resort is developing the Hall of Fame Village powered by Johnson Controls around the Pro Football Hall of Fame. The stadium and the hotel are key elements of the development.
Activities at the stadium – including this year’s Hall of Fame induction ceremonies – and the youth fields that are part of the village campus have helped bring guests to the hotel.
Michael Crawford, president and CEO of Hall of Fame Resort, said the third quarter showed how the company’s different business units are working together to create revenue. The company’s other business units are involved in media and content creation related to football and games, which includes a national fantasy football league.
Crawford also mentioned the recent change in leadership at the Professional Football Hall of Fame. At the end of October, David Baker announced his intention to retire and Jim Porter was appointed Hall President.
The change is a positive move, Crawford said, adding he was excited about the future. The company and Hall officials have already had productive discussions, Crawford said. “In their interests, lie our interests.”
Construction continues, state reflects on sports betting problem
Crawford and CFO Jason Krum provided an update on the company’s operations and discussed the third quarter results on a conference call Thursday. Site construction and sports betting were key topics.
The company continues to monitor the Ohio General Assembly’s plans for the legalization of sports betting. State lawmakers have been considering proposals for several months, but have yet to agree on a bill.
Crawford said the company is following the process and taking steps to ensure it will be able to obtain a sports betting license once the state passes the legislation. Hall of Fame Resort hopes to have a sports betting connection to the village and have off-campus sports betting options.
A number of companies are involved in sports betting and the Hall of Fame Resort is in talks with potential business partners, Crawford said. It also plans a sports betting connection with the Hall of Fantasy League, which is in the midst of its first season as the national fantasy football league.
The company said the Constellation Center for Excellence is tenant-ready and has started work on other buildings as part of the complex.
Crawford said the company hopes to have the fan engagement retail area under one roof before the end of the year. The goal is for the malls to be open by July, ahead of the 2022 Hall of Fame induction ceremonies.
Work has already started on the performance center, which will be to the west of the Constellation office building. Construction of a 180-room Tapestry by Hilton hotel and football-themed water park is not expected to begin until next year, and completion is slated for 2023.
Supply chain issues have slowed development. Crawford said the steel for the retail hub was due for delivery in May, but didn’t arrive until September. The delivery of a dashboard anchored to the Constellation building was also delayed.
Crawford said the issues had not affected the $ 300 million cost of the project, known as Phase 2.
The company continues to work with lenders on financing for the project, Crawford said. A $ 25 million deal with Erie Bank has unlocked other public and private funding for projects, he said.
Crawford also mentioned the Ohio High School Athletic Association football playoffs and the Amos Alonso Stagg Bowl NCAA Division III Championships as events that will generate revenue in the fourth quarter.
Several factors help the hotel
While events at the stadium and youth fields bring guests to the DoubleTree hotel, the facility has attracted weddings, meetings, and other events. The company spent $ 30 million to buy and renovate the hotel.
On Tuesday at an open house at DoubleTree, Susan Campbell, sales manager, said the hotel has been full or nearly full every weekend for several months.
âIt’s exciting to bring it back to life,â Campbell said of the building’s rebirth.
Chad Cuddy, CEO of DoubleTree, said momentum has grown throughout the year. Vacation travel has picked up and now the industry is waiting to see if business travel picks up, he said.
Hotel revenues accounted for just over 40% of the $ 3.48 million in revenue generated in the third quarter. This compares to revenue of $ 1.68 million in the third quarter of 2020. So far this year, revenue stands at $ 7.76 million, up 45.3% from to $ 5.34 million last year.
The company reported third-quarter profit of $ 8.14 million, or 9 cents per share, compared to a loss of $ 8.39 million, or 26 cents per share, in the first nine months of 2021. But the profit is linked to a change earlier this year. the fair value of the warrants liability which generated $ 26.3 million in revenue.
In the first nine months, the company recorded a loss of $ 102.4 million, or $ 1.16 per share, from $ 31.3 million, or $ 2.15 per share, in 2020.