Texas Makes $7 Billion Investment in its Convention Centers

Texas convention center expansion plans include a $1 billion new convention district in Houston; a $3.7 billion expansion of the Kay Bailey Hutchison Convention Center in Dallas; a new $1.6 billion convention center in Austin; and a $701 million upgrade to the Fort Worth Convention Center. 

“To compete for large-scale business in-state, as well as out of state, these cities need to have flexible space, upgrades and be sustainable,” said Trevor Mitchell, president and CEO of the International Association of Venue Managers (IAVM). “If convention centers don’t stay up-to-date with today’s planner expectations, they will start losing business.” 

Houston Embarks on Convention Center Redevelopment

On March 6, Houston became the latest Texas city to announce an expansion of the city’s main convention center. The 700,000-square-foot expansion of the George R. Brown Convention Center is Houston’s largest development project in over 50 years, according to Michael Heckman, president and CEO of Houston First, the city’s destination management organization.

Plans include a 100,000-square-foot pedestrian plaza that will connect the convention center to the Toyota Center, the indoor arena that is home to the NBA Houston Rockets.

Scheduled for completion in May 2028, the project also includes two new exhibition halls totaling 150,000 square feet, an 80,000-square-foot ballroom, and a 50,000-square-foot multipurpose hall. 

The project will be funded by a portion of the hotel occupancy tax, which was approved by the state in 2023. It applies to hotels within a three-mile radius of the convention center for the next 30 years, bringing in an estimated total of nearly $2 billion. 

“Our convention center is 37 years old. Planners are looking for different things today, and we need to be modern and flexible,” said Heckman.

As work is underway on the new south building, no business will be interrupted in the existing center. The cost of the multi-phase project is expected to exceed $2 billion.

Dallas Expansion to Open in 2029

Dallas expects to inaugurate its $3.7 billion expansion of the Kay Bailey Hutchison Convention Center in April of 2029.

Over 60 events have been booked for 2029 and later, said Craig Davis, the president and CEO of Visit Dallas.

Construction has begun and will add 76,000 square feet to the exhibition halls, double the ballroom space to 170,000 square feet, and nearly triple the meeting room space to 260,000 square feet.

The existing part of the convention center will be the official broadcast center for the FIFA World Cup. From January until the end of July 2028, it will be the headquarters of FIFA television, radio, and media operations.

A project-financing zone has been set up in a three-mile radius around the convention center. The additional hotel taxes will raise an estimated $2.2 billion over the next 30 years.

In addition, Dallas voters approved a room rate increase last November to raise another $1.5 billion for the convention center and Fair Park, one of Dallas' most historic venues. As a result, hotel occupancy taxes will increase from 13% to 15%.

Austin Convention Center to Close for Four Years 

Unlike Houston and Dallas, the Austin Convention Center will go dark for four years, starting on April 1. 

That is a long time for a city to be without its main convention center, but Austin had little choice. Tom Noonan, president and CEO of Visit Austin, said the city was losing 50% of the leads it received due to a lack of space.

“Austin is the 11th largest city in the U.S., but currently, we have the 59th largest convention center,” said Noonan. “This new center will allow us to be more competitive within the state and with our major national competitors.”

The new center will include 620,000 square feet of meeting space, twice as much as the existing center. 

Fort Worth is Creating an Entertainment and Meeting Hub

The Fort Worth Convention Center is also undergoing a phased expansion and renovation project. Its aim is to transform the area into an entertainment and meeting hub.

Construction began in August 2024. Completion is set for spring 2026. The $95 million project includes new food and beverage outlets, additional loading docks, and an expansion and renovation to the southeast entrance. 

The second phase will cost $606 million. It remove the existing arena to add exhibit, meeting, and ballroom space.