2016 Annual Report_FIN

Intro 2 Mission, Vision, Promise 5 Iconic Achievements 6Visit Newport Beach, Inc. 8 Visitor Information 10 Leisure Marketing 14 Group Sales 18Newport Beach & Company 22 Celebrate Newport Beach 24 Dine Newport Beach 25 Enterprise Newport Beach 26 Newport Beach TV 27 Financials 28Governance & Staff 302015-2016 Highlights 34 Visit Newport Beach, Inc. 36 Newport Beach & Company 38

Newport Beach & Company

2016Annual Report

2016 Annual Report_R7.indd 1 10/14/16 1:04 PM

2 | 2016 ANNUAL REPORT

ICONIC

ICONIC LOS ANGELES LAKERS KOBE BRYANTBasketball legend Kobe Bryant and his family are residents of Newport Beach.

1


NEWPORTBEACHANDCO.COM | 3

IntroductionMission/Vision/Promise 5Iconic Acheivements 6



Newport Beach & Company strives to be an industry icon, serving as a model for the next generation of destination-marketing organizations (DMOs). The accomplishments of the past year prove that with innovation and determination, Newport Beach can make a global impact.

Visit Newport Beach, Inc. influenced a record number of leisure travelers and meeting attendees, sharing the Newport Beach story with a wider audience than ever before. DMOs around the world from Madison, Wisconsin to Queensland, Australia are emulating the Newport Beach & Company model, marketing the entire community from tourism to economic development to everything in between. The group sales team surpassed its highest room-night goal in the organization’s history, generating 89,062 room nights in Tourism Business Improvement District hotels and $57.4 million in economic impact for the Newport Beach community. Leisure marketing advertising campaigns resulted in 78,100 incremental room nights and $38.6 million in incremental spending

in Newport Beach supporting accommodation properties during off-peak seasons. The combined 160,862 rooms represent nearly one of every five hotel rooms sold in Newport Beach.

The Newport Beach & Company business units continued breaking ground within the progressive DMO model, giving Newport Beach & Company the opportunity to further support the local community. Dine Newport Beach grew as a local and visitor resource, sharing incredible dining options in the city and running another successful Restaurant Week. Celebrate Newport Beach advanced the beloved Newport Beach Christmas Boat Parade and provided marketing support to other signature Newport Beach events. Enterprise Newport Beach continued its partnership with Balboa Village Merchants Association and Balboa Island Marketing Inc. to support our local merchants in these treasured neighborhoods. Expanded studio space afforded Newport Beach Television the opportunity to grow.

As we celebrate the great accomplishments of the last year, we look forward to the iconic achievements awaiting us next year as we continue elevating the Newport Beach brand.

Gary C. Sherwin, CDMEPresident & CEO Newport Beach & Company

Andy TheodorouChairpersonNewport Beach & Company

Each day, we have the immense fortune to promote, market and sell a destination that is truly iconic— Newport Beach, California. In 2016, Newport Beach & Company cemented its status as an industry leader, taking destination marketing to new heights.


DINE NEWPORT BEACH

VISIT NEWPORT BEACH, INC.

CELEBRATENEWPORT BEACH

NEWPORT BEACH TV

ENTERPRISENEWPORT BEACH

GROUP SALES & MARKETING

LEISURE MARKETING

President & CEO

Brand Marketing Team

Financial/ Administrative Team

Newport Beach Foundation

501(c)3 BOD

Community-Leadership Development

Board of Directors501(c) 6


MISSIONNewport Beach & Company is a creative and focused community-marketing agency that is singularly committed to telling the integrated Newport Beach brand story. By embracing a variety of neighborhoods, businesses and individual, unique voices into a complementary story, Newport Beach & Company strengthens all of its partners, drives new revenue to the city and enhances its overall vibrancy.

VISIONNewport Beach & Company aspires to be the national model for outstanding integrated community marketing and brand leadership. As an entrepreneurial leadership organization, Newport Beach & Company is creative, innovative and professional in building destination awareness both locally and nationally which drives business and economic growth. It strives to do for its partners and stakeholders what they cannot do individually.

DESTINATION BRAND PROMISENewport Beach is an opulent Orange County coastal fantasyland that represents a “taste of the perfect life,” a place where visitors can experience a friendly, sophisticated, aspirational lifestyle that permits them to escape from daily reality. Comprised of a collection of unique islands and neighborhoods that form their own distinct character, the destination offers a combination of affluence, quaintness, casual glamour and attention to detail. Coupled with the manmade and natural beauty of the destination, this is the place that allows the visitor to relax and recreate and dream of what can be.

Who We Are and What We Believe



MEASURING OUR VALUENewport Beach & Company and Visit Newport Beach, Inc. work tirelessly to be a valuable resource for the City of Newport Beach. Though the partners directly influenced by the organization’s efforts know the benefits, new initiatives have been incorporated among traditional tracking methods used to measure the organization’s performance. The Group Sales team tracks each booking and room night the National Account Directors facilitate. The team also measures the economic impact of bookings by using the Event Impact Calculator, created by Destination Marketing Association International

Visit Newport Beach- Group Sales

Visit Newport Beach Leisure MarketingLeisure Marketing has a unique challenge when measuring the impact of marketing efforts on visitation; how can the efforts of specific marketing campaigns be measured? Newport Beach & Company utilized the industry-standard method of measuring incremental room-nights or the difference between the number of visitors who stayed in Newport Beach and saw advertising versus those who did not.

Total Newport Beach & Company:

89,062 Room Nights

160,862 Room Nights

78,100 Room Nights

$57.4 Million Economic Impact



$22.6 Million Hotel Revenue

1 in 5 Approximate Rooms Sold

2016 Iconic Achievements



GOING GLOBALNewport Beach is a premiere global destination, and Newport Beach & Company is committed to bringing lucrative international travelers to the destination. With representation in the United Kingdom, China and the Middle East, Newport Beach is able to achieve a global footprint.

Presence in the United Kingdom was elevated with the launch of the UK Promotion in collaboration with the Newport Beach Film Festival.

To connect directly to Chinese visitors, VisitNewportBeach.cn was launched, providing first party information in Mandarin to potential Chinese travelers. Group Sales joined leisure marketing’s China efforts with their inclusion in the Orange County Visitors Association Meetings, Incentives, Conferences and Events (MICE) initiative, with the intention of bringing the high-spending groups into Newport Beach.

COMMUNITY ENGAGEMENTThe Newport Beach & Company business units give the organization the opportunity to enhance the destination through marketing and economic development initiatives.

Enterprise Newport BeachEnterprise Newport Beach continued working with Balboa Village and crafted the Balboa Island Centennial Celebration brand identity.

Celebrate Newport BeachNewport Beach & Company has the immense fortune to market the beloved Newport Beach Christmas Boat Parade and once again added new enhancements to the century-old tradition.

Newport Beach TVLocal resources have also benefitted from the Newport Beach & Company team. The in-house video production team supports Newport Beach TV, filming city council meeting and local events to air on the Newport Beach Government Access Channel.

Dine Newport BeachDine Newport Beach continues to be a resource for both the restaurant community and local diners.

Working with community establishments benefits local businesses and residents while maintaining the destination visitors from around the world long to visit.

NEWPORT BEACH TAKES OVER PICCADILLY CIRCUS

NEWPORT BEACH CHRISTMAS BOAT PARADE DELIGHTS COMMUNITY VIEWERS


8 |

ICONIC JOHN WAYNE ABOARD HIS YACHT, THE WILD GOOSEFormer resident and local hero, John Wayne had a home in the harbor for many years. His boat “The Wild Goose” can still be seen and hosts many events, while his name lives on at John Wayne Airport.

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ICONIC



Visit NewportBeach, Inc.Visitor Information 10Leisure Marketing 14Group Sales 18


10 |

Newport Beach Visitor Impact

7MILLION

Total Visitation

$1BILLION

Visitor Spending

$31MILLION

Taxes Generated by Visitors



9,500JOBS SUPPORTED

95.7%SATISFACTIONWith Their Experience

$991.31ADDITIONAL

TAXESEach Newport Beach

household would have to pay this amount to maintain current levels of government services.

$36,628ADDITIONAL SPENDING

Additional annual spending for each household to keep

the Newport Beach economy churning at the same levels.

Source: 2015 Newport Beach Visitor Profile, Destination Analysts, Inc.

FEELING THE IMPACT:LIFE WITHOUT

TOURISM


2016 Newport Beach Hotel and Airport Metrics

$238.89AVERAGE ANNUAL

DAILY RATE

77.2%AVERAGE ANNUAL

OCCUPANCYSource: STR Inc., Tourism Economics, PFK/CBRE Hotels

$300

$200

$100

$-

AVERAGE DAILY RATE NEWPORT BEACH HOTELS V. ORANGE COUNTY HOTELS

2010 2011 2012 2013 2014 2015 2016F 2017F 2018F

$163.56$177.92

$193.38 $207.62$222.28 $226.10

$244.00 $252.00 $261.00

Source: STR, Inc.; Tourism Economics

90

80

70

60

50

40

30

NEWPORT BEACH HOTEL OCCUPANCY FORECAST (%)

2010 2011 2012 2013 2014 2015 2016F 2017F 2018F

797876737371

67

81 82



36%ABOVE

Orange County Average Daily Rate

45%INCREASE

Hotel Average Daily Rate Increase from 2010 -2018

Source: John Wayne Airport, Orange County

5,500,000

5,000,000

4,500,000

4,000,000

3,500,000

3,000,000

JOHN WAYNE AIRPORT, ORANGE COUNTY ARRIVALS

2009 2010 2011 2012 2013 2014 2015

4,369,031

4,353,282

4,321,053

4,440,345

4,632,597

4,704,741

5,097,797

Source: STR Inc., Tourism Economics, PFK/CBRE Hotels

$300

$200

$100

$-

AVERAGE DAILY RATE NEWPORT BEACH HOTELS V. ORANGE COUNTY HOTELS

2010 2011 2012 2013 2014 2015 2016F

$163.56

$116.66

$177.92

$124.45 $130.99 $138.86 $147.73 $156.74 $164.80

$193.38 $207.62$222.28 $226.10

$244.00 Newport Beach

Orange County




DIGITAL MARKETING

Website Views 1,211,491 14% over goal

Social Followers 153,000 10% over goal

Social Reach 4,361,829 6% over goal

WEBSITE ROI

40,908 Trips Generated by Website

$40,927,025 Total Economic Impact

$50.14 Economic Impact Per Visitor

PUBLIC RELATIONS

Visit Newport Beach, Inc. Leisure Marketing

Notable Placements

24% Increased Campaign Value

832 Media Placements 31% over goal

Source: Destination Analysts, Inc.



INTERNATIONAL TRAVEL TRADE

195 Wholesalers/Trade Reps Trained 13% over goal

Fashion Island Concierge

1,100+ Visitor Assistance Requests

245 Million Impressions

$8,832,640 PR Value

UK Promotion

Partnerships

24% Increased Campaign Value

VISIT NEWPORT BEACH FASHION ISLAND CONCIERGE DESK AND INTERACTIVE KIOSK

VISITNEWPORTBEACH.CN

BROOKLYN HONOREES NICK HORNBY AND JOHN CROWLEY WITH NEWPORT BEACH FILM FESTIVAL AMBASSADOR JARED HARRIS



INTEGRATED CAMPAIGNSTop Media MarketsLos Angeles, San Diego, PhoenixLas Vegas, Palm Springs

159,586,254 Total Advertising Impressions 4% over goal

47.7 Million Advertising Impressions

32,000 Incremental Room Nights

$18 Million Incremental Revenue

$66 ROI



$9.2 Million Incremental Revenue

$84 ROI


SENSE THE SEASON November- December 2015

DIVE INTO SPRING March-April 2016


THE ICONIC CANNERY RESTAURANTThis warehouse that used to function as an actual tuna canning company now offers some of the best harborside alfresco dining in Newport Beach.

ICONIC


ADVERTISING EFFECTIVENESS


310% Over Goal

114,600 Incremental Trips

$38.6 Million Incremental Spending

$81:1 ROI

Source: H2R Market Research


89,062ACTUAL ROOM

Nights Booked

8.6% over goal

338DEFINITE

Bookings

$57.4MILLION

Economic Impact

AVER

AGE

DAI

LY R

ATE

($)

Source: STR, Inc.; Tourism Economics

280

230

180

130

80

30

NEWPORT BEACH GROUP AVERAGE DAILY RATE (ADR) FORECAST

2010 2011 2012 2013 2014 2015 2016 2017 2018

216211201190183174170

223 230

18 |

Visit Newport Beach, Inc. Group Sales


290,000

270,000

250,000

230,000

210,000

190,000

170,000

150,000

NEWPORT BEACH GROUP ROOM-NIGHT DEMAND (ROOMS SOLD) FORECAST

2010 2011 2012 2013 2014 2015 2016 2017 2018

258,485255,393251,137255,458

248,352230,707

223,466

262,180 266,375

DEM

AND

(RO

OM

S SO

LD)

100,000

90,000

80,000

70,000

60,000

50,000

40,000

30,000

20,000

10,000

NEWPORT BEACH GROUP SALES DEFINITE ROOM-NIGHT PRODUCTION

2009

10,115 12,063 13,031

28,901 30,348

56,919

79,375

89,062

2010 2011 2012 2013 2014 2015 2016

Goal Actual


THE ICONIC DUFFY BOATA Newport Beach invention created by Marshal Duffield, this electric boat is prominently seen throughout the harbor, used by both residents and guests for recreation and transportation.

ICONIC


THE ICONIC “BEACHES” MOVIE COTTAGEKey scenes from the 1988 film “Beaches” were filmed at Crystal Cove, using the historic cottages that have now been remodeled for visitor rentals.

ICONIC


195 Client Events

468 Hosted Industry Events

102 Trade Shows

$22.6 Million Estimated Hotel Revenue

130 Site Inspections 42% definite conversion

OUTREACH & ENGAGEMENT




TRADESHOW SPONSORSHIPSCDX TorontoBronze

Inter Action (AMEX) TorontoGold

Global Pharmaceutical & Medical Summit PhiladelphiaGold

Meetings Industry Council DenverPlatinum

CBI Pharma Forum New York“Wellness”

CalSAE’s Elevate San Diego Sapphire

GROUP SALES EXPERIENTIAL TRADESHOW BOOTH


22 |

ICONIC HUMPHREY BOGART AND LAUREN BACALL The Newport Harbor is where legendary actors Humphrey Bogart and Lauren Bacall fell in love and spent most their time together. Bogart, an avid sailor, spent most his time away from Hollywood in the harbor and introduced Bacall to Newport Beach.

ICONIC

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Newport Beach & CompanyCelebrate Newport Beach 24Dine Newport Beach 25Enterprise Newport Beach 26Newport Beach TV 27Financials 28



Newport Beach & Company Marketing

WEDNESDAYMedia Kick-OffWith Grand Marshal Arte Moreno and NBTV Parade Coverage

Hyatt Regency Newport Beach Summer Concert Series

Newport Beach Wine and Food Festival

Newport Beach Film Festival

Newport Beach Jazz Festival

Polar Paradise at the Dunes

Wooden Boat Festival

THURSDAYMeet & Greet with Grand Marshal- U.S. Women’s Soccer Team members

FRIDAYGrand Marshals- Contestants from the Voice performing on the Grand Marshal Boat

SATURDAYGrand Marshals- the 2016 Tournament of Roses Royal Court

SUNDAYFireworks Finale and Economic Impact Study conclusion

ADDITIONAL COMMUNITY EVENTS SUPPORTED:

Celebrate Newport Beach

176,000 Website Visits


229 Million PR Impressions

$7 Million Incremental Revenue

$85,285 Sponsorships Secured

131 Media Placements 31% over goal

5.6 Million Advertising Impressions 442% over goal



Dine Newport Beach

172,367 Website Visits 52% over goal

8,483 Social Followers 10% over goal

$4.4 Million Incremental Diner Spending


169.8 Million PR Impressions

NEWPORT BEACH RESTAURANT WEEK

176.5 Million Total Impressions

DINENB.COM RESTAURANT WEEK CONTEST RESTAURANT WEEK MEDIA EVENT



Enterprise Newport Beach- Balboa Village & Balboa Island

54,800 Website Visits 8% under goal

12,258 Social Followers 23% over goal

115 PR Placements 53% over goal

EXPLOREBALBOAISLAND.COM ENTERPRISE NEWPORT BEACH SOCIAL MEDIA BALBOAVILLAGE.COM



Newport Beach Television

42,000 YouTube Views 460% over goal

1,000,000+ Social Impressions 220,591 Total Video Views

NBTV YOUTUBE PAGE NBTV ONLINE LIFESTYLE CHANNEL NBTV NEIGHBORHOOD SERIES


THE ICONIC LIDO THEATREThe historic Lido Theatre on Balboa Peninsula opened in 1938, premiering Bette Davis’s film “Jezebel” because she was a resident of Corona del Mar and insisted that the theatre open with her picture.

ICONIC

Newport Beach & Company

Revenue $2,820,080

Operating Expenses $2,527,381

Advertising $47,000

Community Relations $145,500

Digital Marketing $88,700

Public Relations $11,500

50%

30%

4%

16%


2016 Financials




Revenue $4,690,306

Operating Expenses $121,225

Advertising $1,045,206

Community Relations $287,500

Collateral $122,600

International Marketing $373,090

Digital Marketing $305,601

Public Relations $188,959

Fees and Contributions to NB&Co.

$2,226,975

Revenue $4,094,082

Operating Expenses $1,518,913

Advertising $350,000

Trade Shows $550,500

Sponsorships/Incentives $626,000

Customized Destination Support $615,000

Other Direct Sales Initiatives $314,500

Marketing $126,586

5%14%

21%

24%

24%

12%

45%

5%

16%

13%

8%

13%

AdvertisingTradeshowsSponsorships/Incentives

Customized Destination SupportOther Direct Sales InitiativesMarketing



30 |

4



ICONIC NO DOUBT PERFORMANCE AT CLEAN & SOBER BEACH PARTYOrange County native band No Doubt, led by Gwen Stefani, performed at the Clean & Sober Beach Party at the Newport Dunes Waterfront Resort and Marina, a premiere location for outdoor events, concerts and festivals in Newport Beach.

ICONIC

Governance& StaffGovernance 24Staff 25


VICE CHAIR Dennis O’Neil City of Newport Beach Appointee

PAST CHAIR Debbie Snavely Marriott Newport Beach Hotel & Spa

TREASURER Candace Bisconte ACCESS Destination Services

SECRETARY Linda Beimfohr Hornblower Cruises & Events

MEMBER AT LARGE Homer Bludau Former City Manager Newport Beach

CHAIR Andy Theodorou Newport Dunes Waterfront Resort & Marina

MEMBER AT LARGE Karl Kruger Fairmont Newport Beach

Executive Committee Board of DirectorsBrion Amendt Newport Channel Inn

Craig Batley Burr White Realty

Ruth BenjaminHyatt Regency Newport Beach

Annika ChaseDisneyland® Resorts

Sam El-RabaaBalboa Bay Resort

Russ KlineAmerican Express

Giuseppe Lama The Resort at Pelican Hill

Chief Jon Lewis Newport Beach Police Department

Dan MatusiewiczCity of Newport Beach

Carol McDermott Entitlement Advisors

Rhanda RichardsonNewport Beach Marriott Bayview

Nina RobinsonHoag Hospital

Gregg SchwenkNewport Beach Film Festival

Tanya ThomasFashion Island

Jim WalkerBungalow Restaurant

Gerard WidderIsland Hotel Newport Beach


Governance


Gary C. Sherwin CDME President & CEO

Michelle Donahue CDME Senior Vice President of Group Sales

Doug McClain CDME Senior Vice President & Chief Marketing Officer

Lesley Swain CDME Chief Financial Officer

Executive Team

Newport Beach & Company TeamAdministrationCatherine Kennedy Director of Administration/ Assistant to the CEO

Dina Alleluia-Carr Accounting Assistant

Group SalesAmanda Kliem Director of Sales

Enrique Paulo National Account Director

Hillary Burton National Account Director

Lori Hoy National Account Director

Michelle Devine National Account Director

Jenifer Brannon Conference Service Manager

Erin Stapley Sales & Research Coordinator

Newport Beach FoundationHomer Bludau Chairman

Fashion Island Visitor CenterCher Shepard, CTA Karen Fleming Leon Rodgers Visitor Concierges

Marketing Robert Deuel Senior Director of Media Relations & Brand Management

Katy Dennis Senior Director of Marketing & Strategic Partnerships

Mark Rudyk Senior Director of Digital Marketing & New Media

Jane Dryden Director of Group Marketing

Brianna Grimaldi Digital Marketing Manager

Reilly Wilson Content Marketing Manager

Colleen Costello Marketing Manager

Brett Erskine Video & Multimedia Manager

Haly Haigh Communications Coordinator

Polly Peak NBRA BID Administrator

Michelle St. Amour Business Development Manager/Dine Newport Beach Marketing Manager

Kim Thompson Manager of Special Events

Gordon Spencer NBTV Executive Producer

Dominic Dimare Luis Herrera Ed Olen Newport Beach TV Camera Crew



34 |

ICONIC ACTRESS SHIRLEY TEMPLEAmerica’s Little Darling’s own residence was a cottage on Balboa Peninsula. Shirley cut the ribbon at the dedication of the Newport Harbor in 1936 and was even crowned the first Miss Newport Beach when she was 13 years old!

ICONIC

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2015-2016HighlightsVisit Newport Beach, Inc. 38Newport Beach & Company 40Accomplishments 42



Visit Newport Beach, Inc. Highlights

114,600 Incremental Trips$ 38.6 Million incremental spending78,100 Incremental room nights$ 81:1 ROI

Leisure Traveler Marketing

Two major regional marketing campaigns deployed in top visitor markets to bolster business during key shoulder seasons:

Continued contract with the City of Newport Beach for 2016 with updated marketing plan and budgets

Launched VisitNewportBeach.cn to expand influence in lucrative Chinese market and continue marketing efforts in the Middle East and China through OCVA

Influenced travelers and generated media coverage for Newport Beach through United Kingdom Promotion in partnership with the Newport Beach Film Festival

Custom leisure video content integrated onto Visit Newport Beach digital platforms


195 Client Events468 Hosted Industry Events 102 Tradeshows attended

Group Sales

Elevated presence at major conferences to gain heightened exposure among captive meeting-planner audiences

Gained valuable face-to-face interaction with meeting planners through events and outreach

Participated at industry tradeshows in the experiential Visit Newport Beach booth


$ 89,062 Actual room-nights booked

$ 57.4 Million conomic Impact

Surpassed highest room-night goal in Visit Newport Beach’s history:



Newport Beach & Company HighlightsCelebrate Newport Beach

Dine Newport Beach

Partnered with the Newport Beach Chamber of Commerce to create integrated marketing campaign for the 107th Newport Beach Christmas Boat Parade

Marketed Newport Beach as a premiere dining destination via year-round, seasonal marketing campaigns on behalf of the Newport Beach Restaurant Association

Developed integrated marketing plan for Newport Beach Restaurant Week’s 10th anniversary including successful media preview event

Hyatt Regency Summer Concert SeriesHyatt Regency Newport Beach Jazz FestivalNewport Beach Wine and Food Festival Newport Beach Film Festival

Provided marketing support for Newport Beach signature events, including:



Newport Beach TVOpened the Newport Beach Digital Media Center and Studio 1600, giving Newport Beach & Company full in-house video production capabilities

Continued coverage of key city activities including city council meetings and local events

Produced videos showcasing Newport Beach neighborhoods and activities for digital platforms including social media

Enterprise Newport BeachLaunched the first semiannual Balboa Village Craft Beer Fest to a sell-out crowd

Designed brand identity for the Balboa Island Centennial Celebration

Created ExploreBalboaIsland.com and redesigned BalboaVillage.com

Continued partnership with the Balboa Village Merchants Association and Balboa Island Marketing, Inc.



Visit Newport Beach, Inc. and Newport Beach & Company Accomplishments

INTEGRATED CAMPAIGNS

832PR PLACEMENTS

82.5MILLION

Advertising Impressions

Newport Beach Restaurant Week

Dive Into Spring

Christmas Boat Parade

United Kingdom Promotion


Documents

2016 Annual Report_FIN