Convention centre posts record revenue as facelift looms

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Fresh off a record year for business, and revenue, the London Convention Centre has more than $3 million of renovation work on tap, this year.

After a $4 million upgrade of its main floor in 2016, the centre will see a new roof installed on the York street building, as well as a new look for its second floor, including updating the walkway between the centre and the DoubleTree by Hilton hotel, this summer.

“The building is now 25 years old. The roof is due for repair and it made sense to do it as we do interior finishes this year,” said Lori Da Silva, the centre’s chief executive.

“You don’t want to have a banquet hall and have leaks. It has served us well.”

The second floor work will take the 33,000 sq. ft. ballroom off the market for the summer and the balance of the work will be life-cycle maintenance such as new carpets, paint and repairs, she said.

It is hoped the work will be completed by Labour Day. The roof will cost about $1.5 million and the second floor renovation about another $1.5 million, said Da Silva.

The renovations will help build on what has been a record year for the centre, which submitted a financial report to a city hall committee this week. The convention centre brought in $6.7 million in revenue in 2018, up 12.8 per cent from last year and  its highest sales total ever, said Darrin Pollard, business development officer for the centre.

It posted a surplus of $193,000, money that will go to a capital reserve fund to help pay for the upcoming renovations.

The city pays the centre about $600,000 annually as part of a life-cycle renewal fund to pay for repairs, but for 2019 will get an additional $500,000 meaning the centre will get $1.1 million from the city this year, said Da Silva.

The convention centre has about $2 million in its capital reserves, she said.

“We have had a lot of momentum over the last 10 years. We have been building. There are still cycles in our business, ups and downs, but right now business looks very strong,” said Pollard.

The centre also has issued an economic impact statement, saying it hosted more than 300 events last year generating 12,135 hotel room nights with a total direct spending impact of $21.3 million to the city, based on the Ministry of Ontario’s Tourism Regional Economic Impact Model.