Houston community sees big business in lead-up to Super Bowl Sunday
The stats are quite overwhelming.
- Consumers will spend more than $14 billion on Super Bowl-related food, beverages, apparel and other confectionery.
- Americans will eat enough wings to circle around the Earth three times over.
- Roughly 188.5 million viewers will be tuned in.
- The average consumer will spend $75 each on Super Bowl festivities.
The best part: The big game between the New England Patriots and Atlanta Falcons is hosted in Houston Feb. 5. The potential business impact of such an enormous draw of people, investment, TV time, hospitality and security is already being felt in Houston, and will likely continue to do so for some time.
Businesses, consumers and local and state officials have been prepping for the postseason finale for months (even years), ensuring that the event goes off without a hitch and that the community is able to capitalize on such an influx of spending.
Let's look at some of the ways the big game is taking over Houston - in a good way!
The cash is pouring in
Securing a Super Bowl bid is no easy task, and the final selection of a host is completed years in advance. CBS affiliate KHOU in Houston estimated more than $350 million will flow in the the city as a result of the Super Bowl. This figure will increase tax revenues astronomically and provide a solid foundation from which businesses are sure to profit.
The total economic impact of 2015's big game in Phoenix was $719 million for the host city, according to Hospitality Net. Houston is primed to exceed that number, owing to the fact that the city is larger, growing rapidly and is hosting a high-draw team in the Patriots.
This impact will be in the form of those flocking to the city requiring local lodging, parking, dining, shopping and viewing options for the entire duration of their stays. All of this adds up to big money for Houston.
Kevin Cooper, spokesman for the Super Bowl Host Committee, stated 140,000 celebrants will swarm to the city in the coming days, according to CNBC. The amount of foot traffic and sales opportunities for businesses will be a once-in-a-lifetime chance for owners to capitalize on high volumes of potential customers.
Fans who aren't satisfied sitting at home, or even at a bar, and watching the game, can still pay a pretty penny to get a ticket. CNBC reported the average resale price of a single ticket is close to $6,000. Or, for roughly a tenth of the cost, fans can purchase tickets to a tailgate event that will have a host of other NFL players and even Guy Fieri in attendance.
Real estate being overhauled to accommodate new arrivals
It's not just bars and restaurants that will see a dramatic uptick in patrons - the luxury and rental real estate markets will also be impacted in a big way.
Forbes contributor Omri Barzilay noted Houston made a huge effort to revamp and revitalize its downtown area in advance of the Super Bowl. This can be seen in the $175 million renovation of the George R. Brown Convention Center as well as makeovers of several structures along busy downtown streets.
The city is hoping to cater to a high-wealth crowd by offering great deals on luxury apartments and temporary rentals, stated Nancy Almodovar, CEO Nan & Company Properties, according to Forbes.
"As of 2016, nearly 30,000 new units were being constructed across the city, including plans of doubling the rental market in the Downtown area by the end of this year ," said Almodovar. "Furthermore, the downtown market has the highest average rental rates in the entire city. Close to 20 percent of these new constructions will cater to the luxury apartment market, and allowances like three months of free rent, gift cards and electronics have been given to help."
Realtors have also been receiving a lot more calls than usual due to the arrival of the Super Bowl. This has allowed landlords and realtors to increase per-night costs of units to accommodate such high demand.
Likewise, existing Houston homeowners may find it advantageous to offer their residences for nightly rental through services such as Airbnb. The massive stream of visitors are pining for affordable lodging that is still located relatively closely to the downtown area. But with hotels already at max occupancy and traffic likely to be less than optimal, guests may have to expand their searches to beyond the immediate borders of the city.
With just a few days before the Patriots and the Falcons square off, Houston is raking in profits in nearly every business sector - and homeowners can obtain a piece of that pie as well.
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