State of the Business

Last Updated: May 20, 2020

For information on our newly implemented “Omni Safe & Clean” initiative, click the banner below.


May 20, 2020

We are beginning to see signs that indicate people are interested in resuming travel. Over the past 14 days, web traffic on OmniHotels.com has increased significantly across our portfolio of properties. Resorts, in particular, have seen a 99% increase in web traffic during this time. The #OmniAtHome email marketing campaign shows a 26% open rate and has resulted in a strong number of bookings. Email subscribers are taking the time to scroll to the bottom of the email to see the status of Omni’s open properties, which further tells us the sentiment of travel is shifting.

Last week, we began our phased approach to reopening properties and by Friday, May 22, we will have 22 hotels and resorts officially open. We have implemented extensive new health and safety standards with the new Omni Safe & Clean program to ensure our hotels are safe for our guests and associates in a post-COVID-19 world. You can learn more here: https://www.omnihotels.com/omni-safe-and-clean.

To further support properties as they reopen, Omni has launched its new Stay A Part Of campaign to encourage guests and associates to Stay A Part Of what matters most during this unprecedented time. The campaign has launched on brand channels including social media, email, digital and print marketing, and can easily be tailored to support each property.

As we reopen, we continue to monitor federal and state guidelines and updates from the CDC to ensure we move forward in a strategic way to ensure long-term success. Navigating the effects of this global crisis has been a learning process for all of us – and Omni is committed to adapting to this new normal.

Sincerely,

Andrew Rubinacci
Chief Commercial Officer
Omni Hotels & Resorts


April 28, 2020

As we gain a better understanding of the true impact COVID-19 has had on the hospitality and travel industries, we are preparing for a U-shaped recovery process. Across the hotel industry, STR is predicting a 37.9% average annual occupancy in 2020. ADR is currently holding up, forecasting down about 13%, and the cancelation curve continues to flatten. It will take some time for business levels to get back to normal, and Omni is working diligently to get there as soon as possible.

Air travel is down 50% in cities where Omni operates hotels and resorts; however, as parts of the country plan to reopen in phases, we’ve seen our call center conversion rise up to 20% and an increase in web traffic of 9% over the last seven days. We’ve seen the highest increase in bookings in the Atlanta market at both ATLCNN and ATLBRV since Georgia has lifted shelter-in-place restrictions.  

Our team continues to prepare for recovery and reopening, including several new marketing campaigns to reengage with Select Guest members, leisure guests, business travelers and small groups. We are working to ensure Omni is top of mind and ready to embrace the new normal when it is time to reopen our doors.

Sincerely,

Andrew Rubinacci
Chief Commercial Officer
Omni Hotels & Resorts


April 14, 2020

As we are all adjusting to the new normal, our commercial team has worked hard to pivot our focus on recovering from the extraordinary impact caused by the global crisis. The team is pushing forward every day in all areas to help increase business levels to ensure long-term success for our company. Here is a breakdown of how the commercial department is tackling the current challenges and preparing for a strong reopening.  

Marketing

  • We recently launched the “Omni at Home” campaign, which has garnered positive results:
    • The Select Guest campaign had a 35% engagement rate compared to last year’s rate of 19%.
    • We’ve received 223 bookings with an average length of stay at 3.6 days compared to last year’s stay length of 2.3.
    • ADR is at $251 compared to last year’s ADR of $239.

OH.com

  • This week we experienced the highest property page traffic level in two weeks.
  • Website traffic curb is bending back up, which is good for us since our average booking window is 30 – 33 days.

Revenue Management

  • There’s no comparison for what the world has experienced over the past few weeks, so the holidays and large events that would usually affect our business are being noted, so that the changes from this year don’t skew the data.

Omni Reservation Center

  • Our general reservations call volume is averaging between 1,600-2,000 calls per day.
  • In addition to general reservations calls, our team in Omaha has been working tirelessly to field an average of 500 – 800 incoming calls diverted from closed hotels daily in addition to emails of furloughed on-property associates.
  • Conversion is down about 9% currently.
  • The team made 13,000 personal calls to inform guests of cancelations, which truly sets us apart from our competitors. We’ve received positive feedback for this personal touch.

Occupancy

  • Transient bookings are increasing for Memorial Day Weekend with Omni Nashville Hotel, Omni Tucson National Resort and Omni Barton Creek Resort & Spa in the lead.
  • We’ve seen a decrease in cancelations for June.
  • Occupancy across all hotels for the month of June is 27% (as of April 9, 2020).

Since the start of the year, the commercial team has been working towards honing in on who Omni is as a brand. We’ve identified a strong, niche branding agency that understands Omni’s fundamental values and together we will work to determine a brand statement that will serve as the North Star and guide us to where we want to go as a company in all aspects. When it’s time to reopen our doors, we will emerge with a strong sense of the Omni brand.

Sincerely,

Andrew Rubinacci
Chief Commercial Officer
Omni Hotels & Resorts


U.S. Travel Association

Economic Impact of Coronavirus 

A new analysis by Oxford Economics models the economic impacts of the travel industry from expected downturns in terms of GDP, unemployment and taxes. View the full analysis from April 15.

  • The U.S. economy is projected to lose 8 million jobs by the end of April
  • Travel industry losses will result in a GDP impact of $1.2 trillion in 2020
  • Travel declines in 2020 will result in a loss of $80 billion in taxes this year

Weekly Analysis
New analysis by Tourism Economics shows a week-by-week outlook on travel spending in the U.S. including a look at regional and state-by-state breakdown. Findings from the May 14 report:

  • National weekly travel spending rose modestly to $2.9 billion last week (returning to levels experienced the week ending April 11) as the benefits of easing lockdown measures began to take hold
    • In the week ending May 9, the travel economy witnessed its second-consecutive week of expansion since the start of the pandemic but still registered 87% below last year’s levels (a $19 billion loss)
    • Since the beginning of March, the COVID-19 pandemic has resulted in over $157 billion in cumulative losses for the U.S. travel economy
    • Four states witnessed losses of over 90%, and Hawaii and Washington, D.C. endured yet another week of declines exceeding 95%
    • Notably, the number of states enduring weekly losses of less than 80% increased again last week from six to nine states
      • Kentucky, Nebraska, Montana, and Alabama saw their percentage decline improve by more than 5%
    • Declines in travel spending have caused a loss of $20.3 billion in federal, state and local tax revenue since March 1

Construction Updates

Omni Viking Lakes Hotel

Omni Oklahoma City Hotel

Omni Mandalay Hotel at Las Colinas

Omni Atlanta Hotel at CNN Center

Top Draft

Omni La Costa Resort & Spa

Costa De La Luna Ballroom

For further details, visit our Travel Advisory