Tag Archive for performing arts center development

The Omni Dallas Hotel Revenue Equals Savings for Taxpayers

The Omni Dallas Convention Center Hotel

The Omni Dallas Convention Center Hotel

What if your city could develop a hotel like the Omni Dallas Hotel at no cost to taxpayers and help transform your city into a place where investors, developers and new businesses come to create new jobs, new revenue and a variety of new and improved amenities that ultimately equate to financial security for the city and for those who live in it? It so happens that cities everywhere are doing this successfully with the construction of large developments such as Hotel and Conference Centers, Performing Arts Centers and other large mixed-use developments that attract tourists and visitors from other cities and promote growth and tourism.

As a very current example, the Omni Dallas Hotel, owned by the city of Dallas, reports that it is thriving to the degree that hotel officials project that it will bring in enough net revenue to meet its first-year debt obligations, not requiring Dallas taxpayers to contribute to the mortgage payment. Furthermore, financial projections also show that taxpayer support may continue to be unnecessary in years to come.

The Omni Dallas hotel was built with $477 million in city-backed bonds, and with the current performance, the Omni Dallas Hotel Manager Ed Netzhammer sates that he is confident that every penny of the city’s financing will be accounted for by the hotel’s revenue, indicating an excellent outlook for Dallas taxpayers.

According to the 2012 forecast displayed in The Dallas Morning News, the following was reported for the Omni Dallas Hotel.

The Omni Dallas Hotel 2012 Financial Forecast

  2011 2012
Occupancy Rate 58.5% 57%
Daily Room Rate $121.97 $169.34
Revenue Per Room $71.39 $96.52

The above numbers are steadily rising, and the Omni Dallas Hotel officials noted that in January, paid occupancy was a remarkable 65 percent, or 11 percentage points above projections. These 2012 numbers put the Omni Dallas Hotel on the same level as the Hilton Anatole. The combination of November – January numbers alone exceeded projections by 34%.

The most important information from the reports comes from the fact that in 2012, the Omni Dallas hotel expects to get 70 percent of sales from groups and conventions alone. “The inclusion of headquarters hotels is crucial for convention centers,” says Steve Moffett President of the Hospitality Division of Dallas-based development company Garfield Traub Development. “The numbers show that headquarters hotels enhance the performance of their convention centers, allowing them to meet and often exceed expectations.”

In the The Dallas Morning News article titled, “Omni’s 2012 sales expected to cover first-year debt payment,” the Omni Dallas Hotel manager Mr. Netzhammer expects his hotel to be the headquarters hotel or co-headquarters hotel in 16 citywide conventions. The 16 conventions are expected to fill up most downtown hotels, meaning not only great news for the Omni Dallas Hotel, but also for other hotels, restaurants, departments stores and other various businesses located in close proximity to the Dallas Convention Center.

Another great example of this type of success is not a hotel, but a Performing Arts Center. The Durham Performing Arts Center (DPAC) in downtown Durham, NC, had its skeptics before it was built, but now the development is very successful generating revenue to not only operate profitability, but enhance the numerous businesses surrounding it in downtown Durham. In addition, it now ranks among the top 10 in attendance of touring Broadway theaters nationally, and generated multiples of its originally-estimated net revenue. Since opening, the DPAC created new demand for restaurants, hotels and shops surrounding it.

To discuss how your city can achieve similar success like the Omni Dallas hotel and the Durham Performing Arts Center by building facilities which create new economic development for the community, contact Garfield Traub Development.

Durham Performing Arts Center – Reference

Durham Performing Arts Center

Durham Performing Arts Center, Durham, NC

Assistant City Manager of Economic and Workforce Development
Alan DeLisle

October 22, 2007

To Whom It May Concern:

I serve as Assistant City Manager for Economic and Workforce Development for the City of Durham, and in that capacity have been responsible for the planning of the City’s new 2,800-seat Durham Performing Arts Center. The theater will accommodate Broadway performances, music, family shows, and other events. The theater “tops out” on October 30th with a ceremony marking the midpoint of construction, which is proceeding within budget and schedule toward a November 2008 Grand Opening.

Garfield Traub, and particularly its principals Greg Garfield and Tony Traub, were instrumental in the planning for the project, including financial and ownership structuring, facility programming, design, value-engineering, pricing, scheduling, helping the City to select the theater operator and negotiate the terms of the operating agreement, and to negotiate various other agreements with City contractors.

The City of Durham has benefited greatly from Garfield Traub’s leadership and expertise in this process. I have no doubt that they will continue to provide this exceptional level of service throughout the completion of the theater and turnover thereof to the City and the operator.

I highly recommend Garfield Traub Development to you for the development of your essential facilities. Should you have any questions regarding the above, I would be pleased to discuss with you. I can be reached at 919-560-4965 or by email at Alan.DeLisle@durhamnc.gov.

Sincerely,

Alan DeLisle
Assistant City Manager
Economic and Workforce Development

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