Schaumburg convention center sees business improve

The proposed 2011 budget for Schaumburg's convention center and Renaissance Hotel foresees a marked upswing in business as the hospitality industry continues to show signs of improvement.

Though it projects a deficit of $564,999, that's notably better than the $3.1 million shortfall expected this year.

“We're significantly better off financially than we were last year,” Schaumburg Village Manager Ken Fritz said. “Things aren't where we'd like them to be yet, but we're heading in the right direction.”

Schaumburg Finance Director Doug Ellsworth agreed, saying that after a major slump the industry appears to be moving back toward 2007 and 2008 levels.

One of the signs regarded as most positive in the budget is that revenues related to operations including hotel, telecommunications and entertainment taxes are exceeding operational expenses.

That indicates that the facility could be self-sufficient and profitable once construction debt is paid off, Fritz said.

The hotel and convention center's total cash and investments balance at the end of 2011 is estimated to be $12.2 million in the black.

Operating revenues in 2011 are projected at $36.2 million, an 18 percent increase over the 2010 budget. Operating expenses are budgeted at $31.3 million, 10 percent more than last year.

Total revenues in 2011 are estimated at $48.8 million, an increase of 24 percent over the 2010 budget and 17 percent over current projections for the current year.

Total expenses in 2011 are budgeted at $49.4 million, an increase of 14 percent over the 2010 budget and 10 percent over the projected actual costs for 2010.