Premium hospitality is on fire

As MLB’s domestic season begins Thursday, there is one positive thing to take away from the Ohtani gambling scandal. The thing is, no one is talking about see-through uniforms anymore.

“What you call love was invented by men like me to sell nylons.” — Jon Hamm The role of Don Draper in “Mad Men.”

In mid-December, the Ravens announced to the public that 10 new suites would be added to M&T Bank Stadium as part of a three-year, $430 million renovation. By early this year, long before completion, those suites were sold. This has become a completely lucrative situation across sports and entertainment over the last few years. The increase in demand for hospitality assets is as certain as the changing seasons, and the higher end the better.

“We’re fully in the experience economy, there’s no disputing that,” said Ed Horn, president of 160over90, noting that the agency’s hospitality business is at its peak. “Attending an important event and elevating it with an elevated experience, whether it’s food, music or all of the above, has never been more powerful. Of course, it’s rooted in strategy. But the experience as part of that strategy has never been more powerful for clients. ”

Take me to the ball game (or anywhere)

Many still point to the pandemic as a catalyst for an overheating premium hospitality market. Even now, four years after lockdown, demand seems to continue unabated.

Among the Braves’ new premium offerings at Trust Park this season are “semi-private suites” that can accommodate 12 to 20 people in the rebranded Lexus level (the space that used to be behind the seating section). There are 18 rooms. Braves President Derek Schiller said these suites were offered on multiseason leases and were sold within two weeks of being on the market.

“There wasn’t even a rendering,” Schiller laughed. “We’re only seeing more fans looking for a social atmosphere with fewer nine-inning seats. The importance of social connection has been re-emphasized through COVID-19, but it’s not waning. I don’t think so. In fact, it may be increasing.”

Similar stories exist across the industry.

“It’s crazy,” Ravens Chief Sales Officer Kevin Rochritz said. “You can’t have enough premium inventory. The demand for this stuff has exploded due to COVID-19, so businesses and individuals are investing like never before.”

Hearing these drumbeats, the Endeavor-owned Professional Bull Rider Circuit launched its Premium Hospitality Sale two years ago. That includes rolling out more than a dozen of his portable luxury suites (about $4,000 per night) on a national schedule. “The demand was immediate,” says PBR CRO Josh Baker. “In his two years, we have grown our business by 320%, probably more than he has.”

Like many, Doug Hall, MKTG Vice President and Head of Consulting, called hospitality the fastest growing business sector. “During the COVID-19 pandemic, everyone predicted that virtual he would be on par with hospitality.” [with physical] By now,” Hall said. “That will never happen and live event hospitality is on fire. F1 has been very successful across the board, even with top dollar hospitality. Look at this year’s Masters.”

Hall had hinted at Augusta National’s new Map and Flag Hospitality House, which quickly sold out despite a price tag of $17,000 per person for a one-week pass.

extreme terrain

As the founder of civil aviation pioneer Wheels Up, Kenny Dichter spent five years creating a pop-up version of Lao’s, a 10-table restaurant in East Harlem famous for being the place where “nobody gets a reservation.” Ta. It’s no coincidence that these pop-ups were installed at the Masters and the Super Bowl, two of the nation’s busiest sporting events for civil aviation.

Today, Dichter, partners Gary Spitalnik, David Kaufman, Jim Pine, and Wheels Up COO Kate O’Malley have plenty of opportunities (even at prices in the thousands of dollars each). The next move in civil aviation will be what Dichter calls a “new category” — the ultimate in hospitality. ”

At this year’s Masters, Rao’s reenactment will feed 1,000 people over five nights at a venue being built from the ground up in West Lake, about eight miles from Augusta National. “The concept is to have a great place to eat dinner during the Masters and the Super Bowl,” Dichter said. In 2021, Dichter made Wheels Up the first private airline company to be listed on the New York Stock Exchange.

A recent Las Vegas Super Bowl pop-up dinner included NFL Commissioner Roger Goodell and guests from the NFL’s Crucial Catch/American Cancer Society initiative. The other nights were underwritten by SMAC Entertainment and clients Deion Sanders, Jordan Brand and Wheels Up.

“Humans have an innate desire to gather together,” said Dichter, a sociology major. [Rao’s chef] In line with Dino Gatti’s equation, we meet essential human needs. The hospitality industry is heating up, with an increasing demand for high-end, intimate services. [at record levels]. In our view, the trajectory of the hospitality industry remains steeply upward. ”

Dichter, who stepped down as CEO of Wheels Up last May, calls the new hospitality venture “One for the Table.” He hopes to expand to other top-level sports and entertainment events as well. “Expect it,” he insisted. “Hospitality is the first step in our next billion dollar platform.”

Elsewhere, Wasserman’s hospitality revenue has more than quadrupled in the past four to five years. “Brand awareness campaigns take time to be effective,” said Elizabeth Lindsey, president of brands and properties at Wasserman. It’s faster, more proven, and more clients are learning it.” And unlike a lot of marketing, it’s egalitarian. Both Brand A and Brand X can afford top-level hosting. ”

Roger Goodell and Rao’s Chef Dino Gatto at the Super Bowl in Las Vegas

• The Dodgers didn’t have a Japanese sponsor for the 2024 season before signing Shohei Ohtani, but the club has already met with about 20 Japanese companies, including airlines ANA, Toyo Tire and Daiso Sangyo. has reached agreements with at least six companies, including Inaba. According to my colleague Eric Bacharach, the team had a rotating sign behind home plate during every spring training game.

• IOC top sponsor Samsung has signed a deal to support three of the newest Olympic sports in the run-up to this summer’s Paris Games, SBJ’s Rachel Axson reported. Samsung, a global sponsor since 1997, will partner with the World Surf League, Street Skateboard League and Pro Breaking Tour.

• Midwest-focused grocery store chain Hy-Vee will sponsor NASCAR Holdings as part of the racetrack’s first Premier Series weekend at Iowa Speedway this summer, according to SBJ’s Adam Stern reported.