Houston is like New York City with its

“Houston is like New York City with its density of mom and pop ethnic restaurants. It has huge areas of sprawl with malls and strip centers where no English is spoken and you can find kumquat trees, bootlegged electronics and food carts selling fried chicken, crawfish and noodles. ” —Esquire Magazine “With robust international influences from a diverse population, the sprawling metropolis offers plenty of diverse neighborhoods to explore, along with exotic cuisines, of-themoment boutiques, and innovative art offerings. ” —Vogue

“The host city of Super Bowl 51 has a bustling arts scene and a slew of international restaurants. We found plenty of reasons to visit right now— or any time. ” —Food Network Magazine “Houston, is, in fact, about as multicultural a city as exists in the country. Houston has been, from what I experienced, particularly if not more welcoming to immigrants and refugees from all over the world than most other cities I know. ” —CNN’s Anthony Bourdain

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HOUSTON FIRST OUR MISSION The mission of Houston First Corporation (Houston First) is to enhance quality of life, advance economic prosperity and promote the Houston region by inspiring: The world to think Houston first; Houstonians to believe in Houston first; and, Houston to deliver first-class hospitality. OUR VISION In 2015, Houston First established a new vision for our region with a statement that illustrates how the world should see Houston in the next 10 years: Houston is one of the world’s premier destinations – it’s the place to be. With the accomplishments detailed on the following pages and with this outlook for the future, Houston First is well positioned to strengthen Houston’s image and further enrich the quality of life for the city in years to come. 5

WHAT IS HOUSTON FIRST CORPORATION? Houston First is a local-government corporation that was created to operate the city’s convention and performing arts facilities, as well as promote Houston as a world-class destination for tourism and conventions. The organization also works to attract film production to the area and operates theaters where world-class performances take center stage, all while managing outdoor spaces where festivals and other activities thrive. The organization keeps things running smoothly while the George R. Brown Convention Center (GRB) and Hilton Americas-Houston play host to the world. It provides more than 10, 000 parking spaces for evening theater-goers, conventioneers and downtown’s daytime office workers. Houston First also partners with like-minded organizations that share a passion in making Houston a better place to live, work and visit—all of which stimulates the local economy and improves overall quality of life. Houston First’s establishment by the City of Houston in 2011 was the result of more than 10 years of study. In forming the organization, the City consolidated its Convention & Entertainment Facilities Department and the Houston Convention Center Hotel Corporation (created by the City in 2000). This consolidation was enhanced in 2014 when Houston First and the Greater Houston Convention & Visitors Bureau (GHCVB) aligned to create a single, unified voice that speaks for the Houston product in all sales and marketing efforts. The restructuring streamlined the organization, improved accountability and inspired innovation while providing Houston First with the flexibility to adjust sales and marketing expenditures based on market conditions. 6

OUR DUTIES Houston First operations include day-to-day management of its properties as the sites of conventions and trade shows (35 major events and 175 smaller events, per year), concerts and theatrical performances (more than 600, per year), and civic events. The organization also acts as the City of Houston’s agent for collection of hotel occupancy tax revenue. A Board of Directors sets policy for the corporation and approves its major initiatives and expenditures. The City of Houston maintains an oversight role through the City Council’s approval of board appointments and the corporation’s annual budget. Two City Council members also sit on the Board of Directors, in ex-officio roles. 7

THE IMPORTANCE OF HOT REVENUE The use of hotel occupancy tax (HOT) is restricted by state statute. HOT may only be used for certain designated purposes and must be used to directly enhance and promote the tourism and the convention industries. In fact, Texas statutes explicitly prohibit the use of HOT for general governmental purposes of a municipality. Bond covenants further specify restrictions on the use of the HOT revenues and establishes strict record-keeping requirements. • A single entity focused on the longterm sustainability of the operation as a whole 8 • Long-term maintenance of all facilities to a gold standard

WHAT BENEFITS DOES THE CITY RECEIVE FROM HOUSTON FIRST? The City receives an annual lease payment from Houston First for the facilities the corporation manages. Since its formation, Houston First has paid approximately $35 million per year, either directly to the City or on its behalf. At inception, Houston First also made a payment of $10 million to the City. Houston also benefits from Houston First’s focus on encouraging economic growth. This is evident in tangible ways, through its regular payments in support of the operations of Discovery Green, the Hobby Center for the Performing Arts, the Midtown Arts and Theater Center Houston (MATCH), plus its operating subsidy to the arts facilities. The City is also afforded the use of all managed facilities which has a value of approximately $400, 000 per year. For the long term, Houston First has established the 2025 Master Plan for the GRB, which will be updated in 2017 -18. The plan called for more convention center hotel rooms, the redesign of the GRB, a walkable outdoor destination in front of its exhibit halls and a new parking garage—all finished in January 2017, just prior to Super Bowl LI, held in Houston in February. In addition, similar master plans were adopted in 2015 for the Theater District, Miller Outdoor Theatre and the Hilton Americas-Houston First also interacts with partners such as the Greater Houston Partnership, GHCVB, Hotel Lodging Association of Greater Houston, Theater District Association, Houston Arts Alliance, Houston Downtown Management District, Discovery Green Conservancy, Hobby Center for the Performing Arts, Bayou Place, Buffalo Bayou Partnership and the Downtown Aquarium. The corporation also sponsors numerous events that benefit local organizations. • Financial support for facilities and organizations that enhance Houston’s quality of life 9 • A unified sales and marketing voice

HOUSTON FIRST MILESTONES & ACCOMPLISHMENTS 2011 2014 Houston First created by City Council and Houston First assumes responsibility for the collection of hotel occupancy tax revenue Concluded a convention services agreement for Hotel Alessandra, but for which the hotel would not have been built Adopted a master plan for the GRB Partnered with Downtown District to create and operate Greenlink, a free circulator service 2012 Concluded a convention services agreement for JW Marriott Downtown, but for which the hotel would not have been built Houston First and GHCVB established partnership with a third party to create the Medical World Americas Conference and Expo to be held at the GRB Concluded an agreement with the Buffalo Bayou Partnership to own and operate the Sunset Coffee Building upon completion Opened Pappasito’s Cantina in Hilton Americas-Houston Unveiled a Tourism Development Plan with strategies to increase tourism in the region Adopted a Diversity policy that resulted in 41% diversity participation in 2016 and $158 million investment since the inception of the policy 2013 Concluded an agreement with RIDA Development to build the Marriott Marquis Houston which opened in December 2016 Concluded a convention services agreement with Embassy Suites, but for which the hotel would not have been built 10

HOUSTON FIRST MILESTONES & ACCOMPLISHMENTS 2015 2016 Assumed ownership and operational responsibility of the Tundra Garage Concluded a convention services agreement for Aloft, but for which the hotel would not have been built Concluded an agreement to provide operations support for the MATCH on behalf of the City Provided $750, 000 grant to the Houston Museum of African American Culture to build its programming Opened the South Transit Center in the Avenida South Parking Garage Concluded an agreement to provide capital funding to Levitt Pavilion in Willow Waterhole Issued a master plan for the Theater District Hosted a successful NCAA Final Four by providing major financial and operational support Concluded a convention services agreement for Le Meridien, but for which the hotel would not have been built Closed the Houston Visitors Center at City Hall and re-opened a visitors center in the Hilton Americas-Houston Strategically aligned with the GHCVB, streamlining operations and creating one unified voice to sell Houston Contributed $125, 000 to Space Center Houston toward the development of an ambitious and imaginative tourism attraction Adopted a Tourism Matching Grant program to build tourism packages for Houston Opened Avenida North Parking Garage Completed Partnership Tower, relocated staff and welcomed tenants including Greater Houston Partnership, Harris County/Houston Sports Authority and the Hotel Lodging Association of Greater Houston Issued a master plan for Miller Outdoor Theatre Unveiled Soaring in the Clouds and Wings Over Water sculptures at GRB and Avenida Plaza Houston First hosted the first Tourism Summit for the Houston region, welcoming more than 600 attendees in its inaugural year Achieved a record 7. 3 million annual visitors to the Houston First network of websites Concluded a convention services agreement with Hampton Inn/Homewood Suites, but for which the dual hotel property would not have been built Houston First network of websites grows to 14 sites with the launch of Avenida. Houston. com and Sunset. Coffee. Building. com Houston First and GHCVB established partnership with a third party to create the annual Space. Com Conference to be held at the GRB Houston is awarded the 2020 World Petroleum Conference, last held in the U. S. in 1987 11

2017 Opened Mc. Alister’s Deli, Grotto Downtown and Pappadeaux on Avenida Houston Opened LAUNCH on the ground floor of Partnership Tower as a pop-up retail boutique that showcases locally made merchandise Announced that Houston First had broken another record by booking 762, 000 future room nights in 2016 (up from 550, 000 in 2014) Hosted the “greatest ever” Super Bowl by providing major financial and operational support Announced that Houston First had achieved its goal of 20 million annual tourists in 2016 – two years ahead of target 12

HOUSTON FIRST GEORGE R. BROWN CONVENTION CENTER In September 2017, the GRB will mark its 30 th birthday with a youthful countenance that signals Houston’s downtown meeting place has aged very well indeed. In December 2016, the GRB completed a facelift resulting in a grand entrance with a new façade. Inside, five exhibit halls are now interconnected by a concourse that runs the length of the ground floor. Outside, the original eightlane roadway has taken a new shape as a two-lane, one-way route. Now named Avenida Plaza, as part of the walkable Avenida Houston district, the project connects the GRB with Discovery Green park and the Hilton Americas-Houston and Marriott Marquis convention headquarters hotels. The GRB was opened on the east side of downtown Houston amid great civic celebration on September 26, 1987. It was named for George R. Brown, the Houston entrepreneur, civic leader and philanthropist whose Texas Eastern Corporation donated six of the 11 blocks required to build the red-white-andblue convention center. The first convention held in the GRB was the American Society of Travel Agents beginning on October 11, 1987. On July 28, 2001, ground was broken to expand the convention center and build the adjacent 1, 200 -room Hilton Americas-Houston, the city’s largest hotel. When the dust settled after 27 months, the GRB added three exhibit halls and 62 meeting rooms, and nearly doubled its exhibition space. In 2011, Houston First began the process of developing a master plan to guide the future development and success of Houston’s convention center. In January 2012, the George R. Brown Convention Center 2025 Master Plan was officially released. Because success cannot be fully realized without a broader commitment to the long-term growth of the entire convention district, the scope of the 2025 Master Plan extended beyond the walls of the GRB and includes the businesses, residents, public agencies and other stakeholders of Houston’s Downtown East End. The plan illustrated a best-case scenario for the public/private development of the Convention District, improvements to existing infrastructure (including the Avenida Houston project in front of the GRB) and eventually the future expansion of the GRB. 13

HOUSTON FIRST The GRB serves multiple users, including conventions, trade and consumer shows and a variety of local public events. Professional organizations representing convention planners and meeting planners select locations based on the total package available within a community. Indeed, cities are usually chosen on a total “destination basis, ” rather than merely a “facility basis. ” Meeting industry surveys consistently identify the same top five factors in selecting a destination city: § § § The 2025 Master Plan analyzed Houston’s current package, as well as that of its competitor cities. The plan identified the key areas in need of improvement for Houston to be more competitive in today’s market, which were: § § Additional 2, 000 -plus hotel rooms within the area Create a vibrant, appealing neighborhood So what did we do? Read on. Attractions and activities Convention facilities Safety and security Transportation Hotels 14

AVENIDA HOUSTON Realities of the hospitality industry dictate that convention centers, especially those in large cities, must remain ahead of the curve. Convention attendees have certain expectations when traveling out of town. Interest in a new destination is a key driver in an organization’s decision on where to meet. Attendees expect a variety of food and beverage offerings, as do local residents. They want variety in pricing and they prefer local restaurants and food options over chain restaurants that they could find at home. New retail, restaurant and sidewalk cafes, along with entertainment venues, have been added to the front of the GRB and Avenida Houston as part of the bold street-scape makeover. This facelift, combined with the three new street-level retail spaces at the Marriott Marquis, is designed to breathe new life into the area. Avenida Plaza was a concept to create a unified district with a collective experience, not merely a collection of individually run facilities. The sum is, ambitiously, intended to be greater than the parts. The plaza certainly draws together the GRB, Discovery Green and the city’s two largest hotels, but it also creates a walkable experience that beckons pedestrians. In a city characterized as auto-centric, this change has been welcomed with open arms in Houston. Further indicative of the all-for-one cooperative spirit, the events team at Discovery Green partnered to create the daily programming on the plaza. In addition to the 700 annual events they produce in the park, they also book events, big and small, on the plaza on a regular basis. 15

THE HILTON AMERICAS–HOUSTON The Hilton Americas-Houston opened in December 2003 as Houston’s largest hotel with 1, 200 rooms. It is owned by Houston First and since opening, the hotel has generated more than 1 million new group room nights and enabled other Downtown hotels to experience a rising average daily rate and revenue per available room. Hilton Americas-Houston features 30 meeting rooms, two ballrooms and prefunction space totalling to 91, 500 square feet of meeting space. The appreciation in value of the Hilton Americas-Houston has made it possible to offer the incentives necessary to attract a developer for a second 1, 000 -room headquarters hotel. After paying debt service, the hotel has consistently generated a profit, including more than $21 million funded over the past 8 years to foster other economic development and municipal projects. The hotel’s original incentive rebates expired in 2013, but the property continues to generate more than $11 million, per year, in state and local tax receipts. In 2014, the Hilton Americas-Houston opened Pappasito’s Cantina on the ground floor of the hotel. The following year, in 2015, the property debuted the largest Starbucks in Texas and made room for a retail shop and visitors center. In 10 years, the hotel helped Houston land marquee events and spurred other development on the east side of downtown, including Discovery Green, One Park Place, Embassy Suites and Hess Tower. 16

THE MARRIOTT MARQUIS Acting on the critical need for a second convention headquarters hotel, Houston First recommended the selection of RIDA Development Corporation to develop the Marriott Marquis Houston in December 2012. Based in Houston, RIDA remains one of the nation’s most active convention hotel developers and has a reputation as one of the industry’s most creative developers. The 1, 000 -room property opened in December 2016, bookending the Hilton Americas-Houston, on 2. 6 acres across from the north end of Discovery Green. It is connected by sky bridge to the north side of the GRB. The hotel is a brand extension of Marriott Hotels, which are located in gateway cities, featuring iconic architecture and multiple food and beverage venues. Marriott Marquis properties are also known for their expertise in hosting large conventions and meetings, as well as serving business and leisure travelers. Marriott Marquis Houston features more than 150, 000 square feet of meeting, banquet and exhibition space; a resort-style deck and Texas-shaped “lazy river” for outdoor activities; and street-level retail. These features are designed to extend a pedestrian-friendly environment Downtown. Inside, the property introduced six more area restaurants to Downtown’s Avenida Houston, including Biggio’s Sports Bar, Cueva wine and tapas bar and Xochi by Hugo Ortega. At the latter, conventioneers and visitors find a celebration of the food, indigenous flavors and drinks of the Mexican state of Oaxaca. 17

DOWNTOWN’S EXPANDED ROOM COUNT Including the Marriott Marquis, 10 new hotels have been added —or will soon open— to the Downtown landscape in recent years. Most with incentives provided by Houston First. 1. Hotel Alessandra - 223 rooms 2. Aloft Houston Downtown- 168 rooms 3. Embassy Suites Downtown - 262 suites 4. Hampton Inn - 173 rooms 5. Holiday Inn - 213 rooms 6. Homewood Suites - 127 rooms 7. JW Marriott - 328 rooms 8. Le Meridien - 255 rooms 9. Marriott Marquis - 1, 000 rooms 10. Spring. Hill Suites - 167 rooms These new Downtown hotels represent more than 2, 900 additional rooms, bringing the area total to more than 8, 000 rooms. “Houston wants to have you over. The city has built more hotel rooms in the past year than anywhere in America not called New York. ” –Thrillist 18

PARTNERSHIP TOWER The Partnership Tower includes approximately 1, 900 parking spaces and 115, 500 square feet of office space and is connected to the GRB via sky bridge. The Greater Houston Partnership occupies the top two floors of the office building. Houston First, Hotel & Lodging Association of Greater Houston and the Harris County-Houston Sports Authority occupy the rest of the 10 -story building. It is the first time that the organizations that promote Houston are operating under the same roof. Partnership Tower is directly connected to the Avenida North Garage, which offers parking for 1, 900 cars as well as a drop-off area for buses. Additionally, METRORail stations are located on either side of the building. The office tower and parking garage are also built with a foundation designed to accommodate a 300 - to 400 -room hotel in the future. 19

THEATER DISTRICT Houston First operates two of the major performing arts venues in the Downtown Theater District – Wortham Theater Center and Jones Hall for the Performing Arts. Wortham is the principal venue for Houston Ballet and Houston Grand Opera, while Jones Hall is the site for most Houston Symphony concerts and Society for the Performing Arts billings. A 17 -block area in the heart of the central business zone, the Theater District is home to Houston’s nine professional performing arts organizations. More than two million people visit the district annually. With 12, 948 seats for live performances and 1, 580 movie seats, Houston ranks second in the United States for the number of theater seats in a concentrated downtown area, and is one of only five cities with permanent professional resident companies in all of the major performing arts disciplines. Another attraction in the district is Bayou Place, the former Albert Thomas Convention Center that is home to restaurants, bars, live music, multiple theaters and art house films. In 2015, Houston First completed and issued the Theater District Master Plan, establishing a vision for the future of the performing arts experience in Downtown Houston. The plan sets the stage for an “immersive arts and culture environment, where the vitality of the performing arts will spill into the streets, sidewalks and public spaces. Expressions of artistic activity will be complemented by interventions and innovations adding interactivity, connectivity, energy and life into the district. This will create a thriving district where Houstonians from all walks of life will come to enjoy and engage in creative collaboration. ” 20

At the core of the plan are three major areas of activity: 1. Center Stage, with a re-designed Jones Plaza and Fish Plaza, transforming the public realm. 2. Bagby Boulevard, in which Bagby Street becomes a pedestrian-oriented boulevard, flanked by new high-rise and mixed-use development that may result from the redevelopment of Bayou Place as three distinct buildings. 3. Livable Streets, a re-imagining of the public realm as a place that is pedestrian- friendly, fun, inviting, safe and comfortable year-round all times of day. As recommended in the Master Plan, Houston First has started work on re-imagining Jones Plaza within the context of the vision set forth in the Master Plan. THEATER DISTRICT PARKING Theater District Parking is a vital, hidden asset that serves Houston’s central business district around the clock. Spanning 18 blocks underground, the three interconnected garages total 3, 369 parking spaces. The facility is convenient for both daytime office workers and evening theater-goers. Theater District Parking features seven entrances, 17 stairwells and three elevators that provide access to the streets above and the tunnels that provide links to the nearby office towers. At street level, the complex is covered by Jones Plaza, Bayou Place, Tranquillity Park and Small Tranquillity Park. 21

WORTHAM THEATER CENTER Bold and beautiful, Wortham Theater Center is a facility like no other. And in May, the Theater District centerpiece marked its 30 th anniversary without a wrinkle on its soaring glass facade. The Wortham is a masterful, creative playground for performing artists and offers an array of public spaces, both monumental and intimate. It features two performance stages, the Alice and George Brown Theater and the Lillie and Roy Cullen Theater, and is home to Houston Ballet and Houston Grand Opera. Wortham has opened its doors to more than 8 million people since its unveiling in 1987. At 2, 405 seats, the Brown is the larger theater with a 17, 000 -square foot stage used primarily for major performances by the resident ballet and opera companies. The 1, 100 -seat Cullen Theater hosts smaller opera and ballet productions and serves other arts groups, such as Da Camera of Houston, Mercury, and Society for the Performing Arts. Its intimate size is ideal for solo artists, chamber music, small touring shows and recitals. Wortham also manages Ray C. Fish Plaza, the public space of brick pavers and shade trees outside the front doors. Fish Plaza has hosted many tent-based charity galas and receptions as well as high-profile events such Houston Grand Opera’s “plazacast” and the Houston Texans’ team name announcement. It has been the site for concerts, Girl Scout outings and even accommodated the Theater District’s downtown ice rink for a number of years. 22

JONES HALL FOR THE PERFORMING ARTS Jesse H. Jones Hall for the Performing Arts is 50 years old and stands prominently on the corner of Louisiana and Capital as beacon in the Theater District. Jones Hall is home to Houston Symphony, Society for the Performing Arts and a season of Broadway musicals. More than 400, 000 visitors attend some 250 events annually. Since its was opened in 1966, millions of arts patrons have enjoyed its stage and musical performances. Dominating an entire city block, Jones Hall is stunning in curving travertine marble and brilliantly lit grand entrance. The marble façade was painstakingly restored in 2004 with all 1, 021 panels replaced. In theater, a brilliant architectural plan enables Jones Hall to accommodate multiple art forms. Overhead, 800 hexagons create a moveable marvel that can be raised or lowered to regroup volumes, manipulate acoustics and alter the physical seating area. The auditorium can literally shrink from 3, 000 seats to 1, 800. The Jones Hall team also manages Jesse H. Jones Plaza across the street. Jones Plaza is the site of countless outdoor events in the heart of the Theater District. The plaza underwent a full-scale Renovation in 2001 to make the property more inviting to the general public. 23

MILLER OUTDOOR THEATRE Since 1923, Miller Outdoor Theatre has offered free, highquality programming at its outdoor space in Hermann Park. It is the only proscenium theatre in the United States to offer professional, culturally-diverse performances eight months of the year, completely free of charge to the public. On any given night, guests can enjoy jazz, ballet, films, Shakespeare and more, presented by the Houston Symphony, Houston Ballet, Theatre Under the Stars and Houston Grand Opera. The theatre is located on approximately 7. 5 acres with fixed seating provided for 1, 725 patrons, plus a sloping lawn that accommodates approximately 4, 500 more on blankets or lawn chairs. Approximately 400, 000 people attended performances each year. In January 2014, Houston First and key stakeholders worked in a year-long effort to create a Master Plan for Miller Outdoor Theatre. The new plan provides a clear and practical vision for theater and its surroundings. 24

SUNSET COFFEE BUILDING The Sunset Coffee Building at Allen’s Landing is a 105 -year-old structure located where brothers August Chapman Allen and John Kirby Allen came ashore and established the town of Houston in 1836. The total cost of renovations is $5. 3 million, with Houston First committing to provide the final $2. 5 million in order to bring the project to life. The renovated building includes a ground-level outdoor plaza with facilities for runners, canoeists, kayakers and bikers. Other uses will include food and beverage, office and event space. Upon completion in 2017, Houston First will operate the facility. TALENTO BILINGÜE DE HOUSTON Talento Bilingüe de Houston (TBH) is a 16, 000 -square-foot facility near Downtown. Houston First leases the facility to TBH. It has a 300 seat theater, rehearsal room, art exhibit and gallery space, gift shop, video and film editing suite, photograph and darkroom space. Founded in 1977 as “Teatro Bilingüe de Houston” (Bilingual Theater of Houston), this non-profit organization has evolved into a Latino Cultural Arts Center that has offered programs and activities such as mariachi, ballet folklorico, video and film production, professional theater, art exhibitions, festivals and photography. 25

HOUSTON, A PREMIER DESTINATION TOURISM RESEARCH + FINDINGS Houston First has prepared a comprehensive tourism development plan for Houston and the surrounding region—a blueprint showing a strong hospitality base from which to grow and several opportunities for improvement in the future. Specifically, the report found that the Houston region has: § § § § A significant number and variety of quality attractions Abundant shopping and dining A strong airport service An expanding cruise market Growth in the number of overseas visitors A high level of visitor spending Enhanced improvements to the quality of life, as evident from Discovery Green, Buffalo Bayou Park and other similar projects To reach its potential as a tourism destination, however, Houston must address its challenges, which are: § § § § § A low total number of visitors Transportation and signage The need for more partnerships The need for the hospitality industry to become more fully engaged in leisure promotion Limited regional cooperation A lack of “visitor domains” A lack of an iconic and compelling attraction A better located visitors center Attractions that are focused on local promotion A small staff for tourism promotion 26

HOUSTON, A PREMIER DESTINATION TOURISM: WHERE ARE WE TODAY? REGIONAL PRODUCT DEVELOPMENT The total number of visitors to the Houston Metropolitan Statistical Area, or MSA, was 20. 5 million in 2016, which was the program goal and was achieved two years before the target, but that remains considerably below the level found in New York (60 million), Chicago (54 million) and San Antonio (32 million). Houston First has created a new division that in time will make the city a more attractive place for both visitors and residents. Research shows that most Houston leisure visitors come from within Texas and while here, enjoy visiting friends and family, dining, shopping and visiting cultural attractions. Tourism in the Houston MSA carries a total economic impact of $17. 2 billion, generating $1. 4 billion in local and state tax revenue and employing about 135, 400 people. Tourism ranks 10 th as an industry contribution to Houston’s Gross Domestic Product. The Regional Product Development Department is working to implement new strategies that will help facilitate often-complex projects designed to improve Houston’s appeal as a destination. Chief on the list of tasks is creating more attractive freeway corridors and more engaging green spaces. The team is also working to identify new attractions, that, if built, would generate interest among both locals and out-of-town visitors. 27

§ Tourism also oversees an annual Matching Grants Program. The program fosters tourism-related initiatives developed by local and regional organizations by allowing hospitality partners to apply for funding for initiatives that directly increase travel to Houston. § The Tourism Department continues leading the Visit Houston and Beyond cooperative marketing initiative, which brings regional destination marketing organizations under the Visit Houston umbrella. Visit Houston and Beyond includes Alvin, Beaumont, Conroe, The Woodlands, Galveston, Baytown, Deer Park, Sugar Land, Huntsville, Bay Area Houston, Tomball, Pearland, Port Arthur and Brazosport. § Tourism is in the process of creating new Visitors Centers that will be strategically located in high-traffic visitor areas of the city. § Efforts of the Tourism Department are strategically aligned to support the goal of reaching 25 million visitors by 2020. 28

§ Partner with the Public Affairs staff to enhance cooperation from all levels of government to effectively facilitate film projects shooting in the region § Develop marketing and advertising strategies with strategic print and online advertisement placement § Staff members will also attend, exhibit or sponsor national and regional film industry events including the Houston Cinema Arts Festival, Sundance Film Festival, SXSW Film Festival, the Tribeca Film Festival and numerous others. Long-term goals include increasing production in the Houston area, establishing partnerships that will lead to development of a dedicated soundstage, securing a network television series based in Houston and aligning with local colleges and universities to expand accredited film curriculum and degree programs. 29

PARTNERED SHOWS Houston First and the GHCVB have partnered in a variety of ways to launch new events in our facilities. These events have been selected for their ability to promote travel to Houston, fill need dates and to promote select business sectors. The partnership with Comicpalooza continues to grow, year after year. In May 2016, nearly 45, 000 attendees descended on the GRB for the three-day event. The goal for 2018 will be to surpass 50, 000 attendees. In 2016, Comicpalooza also generated nearly 30, 000 hotel room nights. Space. Com will celebrate its third year in 2017, establishing its position as the premier space commerce conference in the world. In November 2016, the event drew more than 2, 300 attendees and generated national press coverage. It is the only Spaceport Summit that brings together leaders of licensed spaceports from around the globe. The event continues to grow with the goal of becoming the premier marketplace for announcements, partnerships and supply chain in the commercial space industry. The third Medical World Americas conference was held in May 2016, in partnership with the Texas Medical Center, and included a medical device startup pitch competition, student poster sessions and a keynote presentation from world-renowned inventor and innovator Dean Kamen. The Partnerships and Event Development team is also reviewing new opportunities for other annual event partnerships in other B 2 B conferences as well as consumer event opportunities in entertainment, food and wine and sports. 30

SALES The strategic alignment between Houston First and the GHCVB strengthened our sales efforts, which seek to drive business across the community through citywide, non-citywide, domestic and international conventions and meetings (citywide business refers to groups that use at least 1, 500 rooms per night). Sales has hit record bookings annually since 2014. In 2016, Sales booked 479 meetings and conventions, representing 765, 401 room nights. This is a 4. 4% increase from the previous 2015 record of 732, 967 room nights. Sales strategies include: § § § § Consistent and frequent collaboration with hotels to create engagement in citywide business efforts Quarterly telemarketing blitzes to smaller and short-term business prospects Continued focus on weekend and holiday business Enhanced interaction with customers at tradeshows and travel events Hosting industry conferences to expose others to the newly-improved convention campus Improved visibility at trade shows with enhanced branding and sales tools A program to assist with international attendance out of Mexico and Latin America for U. S. associations booking in Houston 31

CLIENT SERVICES EVENT SERVICES The Client Services Department manages the overall client experience, from planning assistance for the meeting to welcoming attendees to Houston. Upon selection of Houston as a destination, the Department works with meeting planners in planning and providing service support to identify venues, resources and additional services, helping facilitate a successful and positive Houston event experience. The Event Services team provides logistical support across the entire organization and works in collaboration with each department to strategically plan, support and deliver events that achieve the mutual goals and objectives of the organization. The services provided result in increased productivity across the organization and superior customer experiences, as well as ensuring consistency of brand, messaging and output. Longer term plans by the team include: § Developing a working client services core group of hoteliers and other key partners to establish strategies for an exceptional client experience § Hosting the signature industry conference — Event Services Professionals Association. § Support transition and growth of Certified Tourism Ambassadors Program (CTA) as a front-line management program. The CTA program will be realigned under the Tourism Department. 32

MARKETING The Marketing Department is a full-service in-house agency supporting the various Houston First departments and is responsible for promoting the greater Houston area as a convention, business and tourism destination. These efforts include advertising, public relations, campaign development, promotions, website, collateral development and retail operations. The more people the organization is able to reach, the greater its influence. In 2016, just over 7. 3 million people visited the Houston First network of websites representing a 21. 6% increase from the previous year. Advertising efforts include a national print campaign in the Wall Street Journal and digital placement in New York Times’ news, lifestyle and dining sections. Local TV and cable broadcast ads featuring the My Houston campaign air in the Texas and Louisiana markets. Marketing’s domestic public relations efforts placed Houston in the national spotlight with more than 300 media placements generated by pitches and media visits. These placements contributed to $17. 75 million in positive publicity for the city in 2016. High-profile placements included pieces in the Washington Post, Forbes Travel, USA Today, the Wall Street Journal and Travel + Leisure. 33

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Houston First Corporation 701 Avenida de las Americas, Ste 200 Houston TX 77010