(Partnership with a Public Entity)
After an extensive expansion and renovation of the Fort Worth Convention Center, the city of Fort Worth struggled to meet a large increase in demand for hotel space downtown. The city spent 10 years investigating ways to develop a hotel that would complement the convention center.
Seeing this need, Omni worked with city leaders to craft a plan that would benefit all parties. Following the completion of several milestones, the city of Fort Worth awarded Omni approval to build a 600-room hotel, and in March 2007, Omni broke ground on the downtown Fort Worth hotel.
Opened in January 2009, the Omni Fort Worth Hotel features 614 guest rooms and suites, Wi-Fi access throughout the hotel, a state-of-the-art fitness center, an expansive pool deck, a summer kids’ program and 84 luxury residences. Culinary offerings include the award-winning Bob’s Steak & Chop House, Whisky & Rye sports bar, Wine Thief wine bar and Cast Iron casual dining restaurant as well as a full-service Starbucks. A Kimbell Art Museum Shop and full-service Mokara Spa are included among the features of the hotel. Meeting space abounds with more than 68,000 square feet of flexible space that includes two ballrooms, breakouts and board rooms.
Designed to showcase Fort Worth, the hotel is authentic, genuine and consistent with Omni’s luxurious standards. The “Western Chic“ décor draws upon the cultural roots of Fort Worth and bold Texas themes that epitomize “the City of Cowboys and Culture.“
Even during a challenging economic period, this award-winning hotel began leading the market in rate, and sales for convention business soared. Prior to the Omni Fort Worth Hotel’s opening, the city of Fort Worth and the Fort Worth Convention & Visitors Bureau averaged 150,000 room nights per year. During the Omni’s first year of business, room night bookings increased to 258,000 and lead night volume increased by 52 percent. The Omni Fort Worth Hotel also achieved 123 percent of RevPAR index penetration during that time.
(Mezzanine Debt)
In 2008, the 216-room Bedford Springs Resort, built circa 1796, reopened after a three-year, $120 million transformation that rehabilitated the historic buildings, golf course and spa with meticulous attention to detail.
The property’s developer required capital in order to refinance its existing mezzanine loan and to obtain additional working capital while maintaining the integrity of syndicated tax structures used to fund the project. However, the debt market for assets still in their “ramp-up” period was virtually dormant at the time. Omni Hotels & Resorts acquired and restructured the outstanding mezzanine debt in a manner that allowed the special purpose tax entities and agreements to remain intact until the project was clear of mandated IRS review periods.
The 2009 agreement for the Bedford Springs Resort by Omni represents the creativity necessitated by both the buyers and the sellers to complete the transaction. Omni’s strategic association with the historic resort produced immediate benefits to the top line. Under the Omni flag, the Bedford Springs Resort improved its RevPAR index from 66.7 to 84.1 during the first 12 months of operation. Despite unprecedented challenges facing the region’s resort market, the Bedford Springs Resort limited its RevPAR declines to 3.5 percent through October 2009, compared with a 22.5 percent decrease in the comparative set.
For more than 200 years, the eight mineral springs located on the resort’s property have served as a mecca of relaxation and rejuvenation. Today, this legacy continues at the world-class Springs Eternal Spa, where treatments incorporate the natural mineral waters, and a magnificently restored golf course. From luxurious guest room accommodations to historic dining venues to state-of-the-art conference rooms, Omni preserved all the original historic charm of the resort while adding modern creature comforts. The Omni Bedford Springs Resort has a rich history and has hosted 11 presidents including Thomas Jefferson, Andrew Jackson, Dwight Eisenhower and Ronald Reagan. Recently, the resort was awarded the 2009 National Preservation Honor from the National Trust for Historic Preservation.
The Omni Bedford Springs Resort raked in savings of $500,000 over the prior year while achieving AAA Four Diamond standards. For 2009, earnings before interest, taxes, depreciation and amortization (EBITDA) growth are undefined as the prior year resulted in a loss; however, the resort improved over $218,000.
(Management Assignment of Historic Hotel)
A grand masterpiece of Spanish Renaissance architecture, the Mount Washington Hotel in New Hampshire was originally a two-year labor of love for 250 master craftsmen. Conceived by industrialist Joseph Stickney, this National Historic Landmark opened in 1902 and has been attracting thousands of families each year ever since. Site of the famous 1944 Bretton Woods International Monetary Conference and host to dozens of political, business and artistic gatherings, the historic Mount Washington in Bretton Woods, New Hampshire, is set to truly redefine itself as a leading location for meetings, events and convention groups of all sizes.
January 2009 marked the opening of the Mount Washington Resort Presidential Wing, one of the largest meeting spaces in northern New Hampshire. The wing has a total of 30,000 square feet of meeting space, as well as a 25,000-square-foot spa and salon.
Omni Hotels & Resorts was selected to manage Mount Washington because of our extensive experience in managing historic assets as well as having a brand that would not overshadow, but complement, the historic nature of the hotel. Ownership concluded that Omni provided sufficient infrastructure to deliver occupancy without compromising room rates.
Omni took over operations in September 2009 and is currently coordinating a $10 million property improvement plan including enhancing guest rooms, meeting space and food and beverage outlets. During the first six months of operation, Mount Washington Resort RevPAR increased 14.7 percent, achieving the highest Occupancy and RevPAR growth in property history.