Despite serious questions in the media over poor financial figures of late, Harrogate Convention Centre (HCC) has responded with details of a £7m investment in the grand old venue.
HCC’s response to media criticism
In recent months, a Harrogate local paper, The Stray Ferret, made claims that HCC operates at a loss but generates an estimated £45m annually. It highlighted that HCC’s auditorium (capacity: 2,000) was ‘only’ used 76 days a year and a total of 382 times in the last five years, causing controversy over the survival and future of the venue, particularly after a £57.2m redevelopment plan was scrapped in April 2024.
Setting the record straight
However, the lettings income for Harrogate Convention Centre (HCC) for the year ending March 2024 was the highest recorded since 2014, reflecting a 19% increase compared to 2022/23 and a 14% rise from pre-Covid levels in 2019/20. This marks the second consecutive year of significant growth.
On 17 December, the North Yorkshire Council meeting unveiled the following options for the future of HCC, ultimately settling on option three:
- Option 1 – Do nothing
- Option 2 – Redevelopment (£57m)
- Option 3 – Studio Two (£7m)
- Option 4 – Improve conference facilities and change the use of exhibition halls
- Option 5 – Freehold sale or lease agreement
Studio Two: The £7m game-changer
The proposed £7m investment in Studio Two is designed to attract larger conferences that require additional breakout spaces, with the expectation that the expenditure will be repaid through increased income, making it a clear invest-to-save opportunity.
Studio Two provides a spacious and versatile venue, ideal for a range of events including exhibitions, conferences, catering, product or car launches, and gala dinners. Accommodating large exhibition stands and vehicles, the space is further enhanced by direct vehicle access for unloading equipment and goods. Spanning a total area of 1,436 sqm, offering a flexible space with a length of 41 metres and a variable width ranging from 27 to 41 metres. The ceiling height varies between 4.35 and 5 metres, providing ample vertical space for larger setups. The venue also features a maximum access height of 4.35 metres and a width of 5.9 metres, ensuring easy entry for vehicles and equipment.
A visual representation of Studio Two breakout space, set to go into tender in January 2025 with construction work to finish by summer 2026 and a tentative launch date around September 2026.
HCC director Paula Lorimer says: “The investment in Studio Two will allow us to attract conferences of up to 1,800 delegates by providing much-needed breakout space. This development fills a gap in our offering and will allow us to increase economic impact while using the auditorium more effectively. The flexibility of demountable rooms means we can adapt seamlessly between exhibitions and conferences. It’s a game-changer, enabling us to bring in more business, drive higher revenues, and reinvest in the venue.”
Moving towards a commercially driven operating model
As a council-owned venue, HCC’s operations and development are intrinsically tied to public sector funding and strategic planning. This structure means HCC’s financial performance directly impacts local public services, making its success vital to the community.
Lorimer comments: “There are competing priorities for funding in local government, so if we are in a more commercial model, we’ll be able to employ casual staff at less cost and fix the venue more immediately. What I am trying to do now is part of the recommendations to look at a more commercial model.”
Exploring a commercially driven operating model for HCC could bring it in line with other successful council-owned convention centres, offering greater flexibility and improved oversight, strengthening HCC’s financial sustainability and setting it up for long-term success.
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