Alchemy Hospitality Group is named the new operator and manager of the Telluride Conference Center

Alchemy Hospitality Group is named the new operator and manager of the Telluride Conference Center; the town still owns the facility and its assetsThe Town of Mountain Village has signed a five-year contract with Alchemy Hospitality Group (Alchemy) to run the Telluride Conference Center in Mountain Village. For the past 10 years, this responsibility has been that of the town’s. As of November 2, 2009, Alchemy has taken over as the Conference Center’s exclusive manager and operator and is responsible for most of the facility’s associated costs while the town remains the owner of the facility and its assets. The agreement between the two parties will result in a reduced town subsidy and a higher level of future cost controls.

The Conference Center, with 16,000-square-feet of rentable space, has historically experienced financial losses due to fixed operating costs that were not covered by sufficient revenues. If the town were to continue to operate the Conference Center in the coming years, the subsidy is projected at $470,000 for 2010 and escalating to as much as $500,000 for 2011. With this new agreement, the town will realize significant savings now and into the future. “We hope for a much smaller subsidy over the next five years,” said Sparks. “The more events Alchemy books, the closer the town’s subsidy gets to zero.”

Under the agreement, Alchemy will keep 100% of all gross revenue derived from its operations of the Conference Center but is obligated to pay the town up to a maximum of 5% from revenues. The town will continue to pay all Franz Klammer HOA dues and any major capital repairs and replacements. Further, all utilities will be paid by the town through December 31, 2011, when Alchemy will take over those responsibilities.

According to Spark’s, the town’s long-term goal for the Conference Center is threefold: for it to be an intricate part of the town's economic engine; to drive conference and group sales to Mountain Village; and to help the community become a sought after tourist destination. Sparks added that a vital part of the community includes its nonprofit organizations, many of which have utilized the Conference Center over the years for events. Under the agreement with the town, Alchemy will honor all contracts currently on the books and with current Conference Center pricing as quoted by the Center’s staff. For any new bookings, Alchemy is entitled to set its own pricing and fee schedules for usage of the Conference Center with a separate fee schedule for nonprofit organizations.

Major Selling Point:

Tthe ability to flex staff Over the past 10 years the town has managed the Conference Center, it has employed full-time staff members and additional part-time and on-call staff members as-needed. Established in 2003, Alchemy’s principal owners are Jake Linzinmeir and Tony Kalyk, no strangers to the Telluride region. Linzinmeir and Kalyk run The Bluepoint Grill & Noir Bar, The Excelsior Café and Chair 8/X Café. With locally established businesses, Alchemy is able to save money and time by flexing staffing levels and multitasking its labor dollars as they relate to the facility’s bookings – a major selling point for the town. As for Conference Center employees, Alchemy has been encouraged, but not obligated, to offer full and part-time staff members positions within its company.

In addition to Linzinmeir and Kalyk, the Alchemy Hospitality Group’s Conference Center Team includes other principals of companies who have experience in the ski resort market and in the hospitality, restaurant, group marketing and conference related fields. Those team members include Jeffrey Zogg and Doug Leiber of Azul Group and Meehan Fee, owner of Alpenglow Event Management.

Checks & Balances:
Since the town will continue to invest in the Conference Center, a Telluride Conference Center Oversight Board will be formed. Alchemy is required to meet with this board a minimum of twice a year. The board will be comprised of the mayor, a town councilmember, the town manager and a representative from both Marketing Telluride Inc. (MTI) and the Telluride Mountain Village Owners Association. In addition, Alchemy is required to provide the Mountain Village Town Council with information regarding the Conference Center’s usage, total gross revenues per event, number of attendees, and the following year’s calendar of events and revenue projections. Alchemy also is responsible for the development and delivery of a customer satisfaction survey to all groups utilizing the Conference Center with the survey results presented to the town on a quarterly basis. If Alchemy meets these and other town requirements, it will have the option of extending its contract with the town for two additional five-year terms.

To meet specific town marketing requirements, Alchemy is responsible for maintaining the Conference Center brand while working with MTI and Telluride Ski & Golf on marketing the facility. Moreover, MTI will continue to act as the primary group booking agent for the Conference Center with Alchemy directing all group bookings through them. In turn, Mountain Village will, as budget amounts provide, continue to make an annual contribution to MTI for group sales marketing.

For further Telluride Conference Center inquiries or to book an event, contact Alchemy’s General Manager Meehan Fee at meehan@tellurideconference.com, (970) 369-4760 or (970) 369-6400.

For other Telluride area information or real estate inquiries, contact Buzz Fedorka at buzz@fedorka.com.