Schaumburg convention center had a great fall

In the midst of a slump in the convention and hotel industries, a projected improvement in the bottom line for Schaumburg's Renaissance Hotel and Convention Center this year is coming as welcome news to village officials.

Operations at the village-owned facility were originally expected to cover only $1.9 million of the $11.4 million construction debt to be paid this year.

But better-than-expected business last fall, added to expected savings from a more energy-efficient cooling system, has raised the number to $2.6 million.

"It's going in the right direction," Village Manager Ken Fritz said.

Before the revisions, the operating deficit for the hotel and convention center this year was originally projected at $4.6 million, one that would have dropped its reserves from prior years from $8 million to $4.4 million.

While the gains made by the new improvements are relatively modest, Fritz said adding hundreds of thousands of dollars to one's financial outlook in these economic times is no small victory.

On the revenue side, another $453,518 has been added to the 2010 business plan. Most of that comes from an increase in business last October and November that was not foreseen when the plan was first presented to the village, hotel General Manager Tom Robertson said.

The village has also received a $60,000 energy-savings grant to buy a smaller cooling mechanism than the two currently operating.

While the existing systems are still necessary during warmer months, the use of the smaller chiller next fall and winter is expected to save the village approximately $250,000, Robertson said.

Though some upturn in business is reflected in the improved budget, the changes began from a desire to see greater efficiencies in operations and not a quick recovery in the convention and hotel industries, Fritz said.

Even a limited recovery isn't expected until 2011, and to be significant only by 2012 or 2013, Robertson said.

The Schaumburg Convention Center opened in July 2006 and enjoyed stronger than expected business during its early years before the overall economic crash.

Fall: Limited recovery expected next year