Convention center officials told the Dallas City Council on Wednesday that more than 40 events have already been booked at the Kay Bailey Hutchison Convention Center for when the new facility opens in five years.
“We’re focusing on component one, which is the convention center expansion, the connection with Dallas, and the demolition of the existing center,” said Rosa Fleming, director of convention and event services. “What we’ve really done is move from concept to implementation.”
The Kay Bailey Hutchison Convention Center Dallas (KBHCCD) master plan includes seven components funded by Proposition A — the measure allowing the City to raise its hotel occupancy tax rate from 13% to 15% and allocate the money toward replacing KBHCCD. The Dallas Express has reported that the project is expected to cost more than $3 billion, including $26 million for demolition and $2.9 billion for new construction.
“We’ve done well financially on our revenues,” Fleming said. “Originally, we forecasted to recover [from the COVID-19 lockdowns] in 2025. We saw about $66 million in [hotel occupancy taxes] in 2022. We’re forecasting about $78.6 million for this fiscal year. And we’ve outperformed in our event-related revenue. We’ve started to put in some of the operation changes that will carry over into the new building.”
The design process is scheduled to begin this summer and will take about 18 months. Delivery on the project is expected by the end of 2028.
“I’m thrilled to report that we’ve been able to sell a convention center … that has not been designed beyond 2029 for 41 events,” said Craig Davis, president and CEO of Visit Dallas. “We fully expect that many of those will actually close in the next little while. This convention center has the attention of our industry. It is very exciting. The returns are really wonderful.”
Council members praised the efforts to market and rebuild the convention center.
“I have all the confidence that you’re going to be able to produce and get this across the line,” Council Member Jesse Moreno (District 2) said.
The KBHCCD master plan calls for “knitting the fabric of Dallas together” by linking South Dallas, The Cedars, and the Southern Sector “like never before.”
“Our project’s North/South orientation on Lamar maintains a vital link to South Dallas along Botham Jean Boulevard,” reads the project website. “In addition, the creation of a new rail district will oversee the operation of a north-to-south trolley line. This initiative aims to significantly improve connectivity and accessibility.”
The connectivity focus also prioritizes developing green space and public art installations and integrating the convention center with Downtown Dallas and South Dallas neighborhoods.
“Our customers want one place to go,” Davis said. “They don’t want to jump into buses and be bused to other places. If we had a campus that supported their ability to do evening events and other entertainment options, we’d be able to keep them right here.”
Project construction is expected to result in $6 billion in direct development spending, supporting about 50,000 jobs and generating billions in taxes.
“It looks like we’re on the right track,” Council Member Omar Narvaez (District 6) said. “You haven’t had a glitch from what I can tell or have seen.”
The Dallas Express reported that KBHCCD exhibition halls will increase from 724,000 square feet to 800,000 square feet. Ballroom space will increase from 65,000 square feet to 170,000 square feet, and the meeting room area will increase from 100,000 square feet to 260,000 square feet.
Managed by OVG360, KBHCCD claims to be one of the largest convention centers in the country, with annual visitors exceeding 1 million.
