State of the Stadium Industry Report at ALSD International Cites $5 Billion+ Projects Underway and More Than 30 Major New Stadiums Predicted to Open in the 2020s
CHICAGO, Dec. 4, 2019 /PRNewswire/ -- Hunden Strategic Partners (HSP), a full-service global real estate development advisory practice, released its "State of the Industry" analysis for the worldwide major stadium market at the annual ALSD International Conference in Dublin. The report indicates a surge of development during the next decade with 30 or more major stadiums to be built, more than any previous decade.
With a focus on the European market at this year's ALSD conference, HSP, known for its stadium industry expertise and leadership in feasibility studies, was chosen to present a state of the industry report. The firm assessed more than 400 sports facilities worldwide, including football (soccer), rugby, cricket and Formula 1.
"The biggest trend is the development of new, first-class stadiums replacing sometimes 100-year-old venues. While new stadium development was minimal until 2000, since then, more than 20 new stadiums have opened in each decade," said Robin Hunden, President and CEO of HSP. "With 11 new stadia already underway to open in the 2020s, we project that 30 or more new major venues will open in the 2020s; in fact, many of these facilities will be more than €1 billion. Clearly, it is an exciting time to be in the stadium industry," he added.
On average, $750 million in stadium projects are completed each year for the four sports tracked. Analytics conducted by the firm reveal that €5 billion of Euro-centric sports facility projects were completed during the last two years and, currently, an additional €8 billion in major projects are underway.
Football stadia are the most expensive facility to develop, with the last three built facilities averaging €715 million, followed by rugby with an average cost of €500 million per facility. While not as expensive or large, cricket stadia are developing at an increasing clip. Major facilities in India and Australia dominate the new-build figures for cricket.
The firm continues to track increasing sports and entertainment district developments adjacent to U.S. stadiums and expects Europe to quickly follow this trend. Nearly 80 percent of MLB, NBA, and NHL facilities are part of such districts, and major international sports venues are quickly latching onto this successful strategy. The ability to drive pre- and post-game spending is an important ingredient in future stadia development. Hunden continued, "Teams and cities should capture the full value of their teams and facilities by acquiring the land surrounding the stadium. This strategy ensures the ability to develop the type of environment owners want for their fans, local workers, residents, and visitors. It is an economic strategy that creates a win-win for everyone."
HSP will be adding arenas to its international database in 2020 for the next ALSD International, as well as taking a deeper look at Olympic venues. For the North American market report, due out in June of 2020 at ALSD's Dallas conference, HSP will be presenting on the continued development of MLS stadia and districts, Esports facilities and other major development trends.
About Hunden Strategic Partners
Hunden Strategic Partners, headquartered in Chicago, completes feasibility studies and developer strategy processes for destination and mixed-use projects ranging from $5 million to $1.5 billion. HSP has worked on sports and mixed-use projects on three continents. For the last 25 years, Rob Hunden has been a sought-after expert on destination real estate advisory, especially when it comes to comprehensive mixed-use and public-private developments. For a complete download of this and other presentations given by the firm, please visit https://hundenpartners.com/.
About the Association of Luxury Suite Directors
The Association of Luxury Suite Directors (ALSD) was established in 1990 to provide a single platform for our member teams and venues with accurate and timely information from across all layers of the premium seat industry in stadiums and arenas throughout North America with a growing global reach. With its integrated marketing and advertising programs, the ALSD is also positioned to link buyers and sellers, including vendors, suppliers, and food and beverage concessionaires for the venue marketplace.
The ALSD is committed to organizing, supporting, and developing a network for suite directors and team/facility executives to share information, ideas, and values with one another in order to ensure profit and quality for all. The ALSD is passionate about assisting teams and venues in providing premium seat patrons with superior service, state-of-the-art amenities, and overall exceptional experience. The ALSD aims to be the ultimate voice and accredited resource for individuals and organizations involved in the premium seat industry.
Media Contact: Karolyn Raphael, email@example.com
Hunden Strategic Partners
Hunden Strategic Partners is a full-service global real estate development advisory practice.
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SOURCE Hunden Strategic Partners