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Economy Alert: Convention Center Is Breaking Records Despite Global Economic Factors

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Revenue from the 29 sporting and gaming events at the David L. Lawrence Convention Center grew beyond all previous years in 2023, according to the venue’s latest report.

29

sporting and gaming events at the DLCC in 2023

$294M

economic impact since 2006 from businesses seeking sustainable events

1,000

Pittsburghers celebrating Riverlife’s Party at the Pier on the Rooftop Terrace

The David L. Lawrence Convention Center (DLCC) has seen a trend toward revenue growth over the last year with data showing its 29 sporting and gaming events resulted in higher revenues in 2023 than in any previous year.

Behind the scenes, the annual report to the Sports & Exhibition Authority board shows record-breaking revenues growing at a rapid pace in three of the center’s top five markets — sports and gaming, corporate meetings and standalone food and beverage, which includes concession-stand fare and higher-end catering for elaborate banquets, luncheons and receptions.

The DLCC experienced a 52% increase in direct spending from its 45 major events in 2023 compared to 2022, according to VisitPittsburgh data. Defined as spending by the attendees, exhibitors and organizers based on hotel room consumption and other spending, direct spending in 2023 — at more than $142 million — also slightly exceeded 2019’s total, as a pre-COVID benchmark year.

Jeff Garstka, director of economic development for the Sports & Exhibition Authority, tells IndexPGH that the economic growth is due to post-pandemic rebound across large corporations that are rewarding their sales teams with travel and events. Additionally, the convention center’s sales teams are retaining repeat business and showcasing the sustainable qualities that the site offers.

“We’ve got easy access with parking and public transport,” Garstka says, adding that the DLCC is especially convenient compared to convention venues in places like Las Vegas and Chicago. “It’s easy to get in and around and you can walk from here to major sporting events and restaurants.”

The 2023 National Senior Games ranked as the event with the greatest direct spending in DLCC’s report with $30.5 million generated. The 27,335 attendees of the event hosted by the National Senior Games Association at the Senator John Heinz History Center also used the convention center over a span of 12 days last July and booked 15,000 hotel room nights, a figure based on the total number of individual nights that the room was occupied.

Sporting and gaming events like the Senior Games are the DLCC’s second-highest grossing market, outpacing both the public show and corporate meetings categories, according to the report.

The DLCC achieved historically high revenues in both the corporate meetings and standalone food and beverage programs, supported by a full year of operations on the center’s award-winning Rooftop Terrace.

The Rooftop Terrace hosted 31 events in 2023, wowing visitors with panoramic views, blooming gardens and delectable food and drink, and generated over $600,000 in gross revenues.

“You could have a big crowd — as many as 1,000 guests — but you could have a small event and it wouldn’t feel cavernous,” Garstka said, adding that the second-floor location offers a weather-proofed tent and seating areas.

Last year, the DLCC attained Gold-Level Certification under the Existing Buildings: Operations & Maintenance program, making the center the longest-tenured LEED® Certified Convention Center, according to the report. The center has reduced energy costs by more than $300,000 after implementing energy audit recommendations that arose during the recertification process.

“As technology changes, the useful life of some of this equipment goes out, and when we do make those changes, we try to replace it with more sustainable practices,” Garstka said, adding that the Rooftop Terrace features a garden that adds another layer of green to the venue.

Unlike sports and gaming, which benefits from the creation of the Pittsburgh Sports Commission, the convention and tradeshow market is still struggling to return to 100% attendee and exhibitor participation. The report notes that this drop continues to affect critical ancillary revenue streams such as food and beverage and exhibition floor income.

“Most of the shows aren’t quite back to the level of attendee and exhibitor participation that we saw in 2018 and 2019,” said Carrie Yauch, director of sales and marketing for the convention center. “We are working closely with VisitPittsburgh to identify the market segments that have not returned to pre-lockdown performance and those that have.”

Expansion plans and wish lists for the future of the convention center aim to address lingering concerns about attendance, revenue and building use. Conversations around an integrated hotel dedicated to serving convention center guests and a watercraft launch site at the Convention Center Riverfront Plaza keep hopes high for continued income-generating activity at the event space and throughout downtown Pittsburgh.

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