lilemorandum

CITY OF DALI.AS DArE February 24,2A12 ,,.' Honorable Mayorand Members the CityCouncil of

s(iBrF{1 Omni Dallas Hotel

Attachedpleasefind the DallasOmni HotelStatement Activity the periodof of for November 1,2A11through Jan 31,2A1?.The firstthreemonths operations of at the Omni DaflasHotel have exceededexpectations. The hotef has generated a $554Kin profitwhichrepresents $1,130,000 1g6%exce$$ or overplan. T 7 ,' r

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RyanS. Evans Assistant City Manager C; MarySuhm,CityManager RoseRios,ActingCity Secretary CraigD. Kinton,CityAuditor C. VictorLander,Administrative Judge A.C. Gonzalez, FirstAssistant City Manager JillA. Jordan, P,E.,Assistant Manager City ForestE. Turner,Assistant City Manager JoeyZapata,Assistant Cify Manager JeanneChipperfield, ChiefFinancial Officer FrankLibrio,Publiclnfarmation CIfficer $t*BhanieCo*per,A*si*tantt* the fity &4*nager

5l$ i53-.036{18

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f,i" Olorc +,I-{*TELs Rgs*nrs'

l0' Date: February 2012 To: ForestTurner ccrporaticn President,Dallar conventlon cent*r flotel Fvetopment

From: Ed Netzhammer OmnlDallasHotel RegionalVic*Pre*ident, RE: OrnniDallasHotsl Updats

in expectations all areas' The The first threenronthsat the Omni OailasHotelhave exceeded January period November ?011through 11, of fisGtwasopen82 d*ys du*ngthe three-month Themajorityofthis-periodfellbeforethecontractedgubstantialcompletiondate'lt-is Si,:Ofg. fcr window the was thedecision madeta openon i1111111, bocking nctetirat'irnen had longpas$ed, b*th rooms -"F;;ito andevsnts and tc slowtimegaveu* theability dolelop procedures linishthe onearlyin a relatively Opening handlemuchhigher us enabling tc besk and properly oi 6r!-ioU-"po*iin training6ur associats, in thanexpected January. levels business Hightlghtscf our flret three manths: (January 2g'22,?912tto utilize (ALA)was the firstconvention Ass6ciation Thi Ailerican Library told Dellas for the Cily, One of theirkeystaff.members and ihe Hotet.The resulisweretha Omni the somebugsbecause hotelwas so new, and whilethey expected ttotetwas fabulous, ur tttu aboutthe food,and morespecifix willfsllow *n*ryiningwas perfect, $he madegreatcomments and framihirstraff attendees, geiieedback as we was and lhe staff, and evarything ihe This gioup represented flrst real test sf the b'uilding to irccotUlng plan. W1h a groupsuchas the ALA,all 900 roomsget readyfor meetings execuied test" Thegr6atnelqs getsthe maxirnurn systern itr*t ee* at the safte tirne,so the witer delivery problem' performed without systems very is we experienced few lssues.All sthermechanical form: !'fittl K.T.Harning ALAhad this to say aboutthe h*tel on hiscomrnent "T*is !a.asabeut ihe b*st c*riferencef:clei experi**ce I hsve euer had" l've $il$,bui the (}iTl*i*ailas was -qs nev*r **en a big f*rr *f **ila* as & ce.:ventisil *pifiis,n*f t;1e*!ty *veraii, aneii wa*id thxt il i*mpiet*iy ex*ngaSy;1y *mazing at i*tra*frc*it f**vxr*i l* r*turnlngtt':*r+-- if t c*r:ld Ntay ihe Claxi. i t*vedil1e $*vrfig*"" ta pubiic ti:*ir aridt!'l* h*t*i'* s*mtnitrnefii energy a* S**tryn*r Serviccl indueiry tr* * *mni ft*iels & R*sorts u**s tul*ciailia, systen v;ideiyus*d acros*the ll**pit*iity gri*si with a* erisil hs* th6 *ppcrt*nityi* rates*r n$sl *i'l a **nitor g**sl sati*faction.E"ery fcl h*i ii tactors. The f',r*tef fuceive*2.36?*spc*ses $i*r* +p*ningand in saiisfsc-ti*n rated8.80{*n a scal* ef 1 warstt0 10excelien!}" l^r*tet ',,u**u, fxperie*c* cstegsry, the the Ovarall

i :rtr?;:! i].ii:,!,. ia{:{i:ri i:* lr:;i: ":.!'-.lrr L;111:i " ::;ti::il, ' .i::.'j" . ;r;,i-ili:; 4.::.1i, t,:t -'. a -.j,r"i'.i*:,4 r.t.jrt; it.lt:i a: r, r.i._i:.1

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llf;*diaCoveraga: The to havebeenvery strong,helping buildmamenturn. and mediacoverage Loc*l cornmenis ho* the hotei has exceeded regarding hotetis r*ceivingnotes,calls and ccmmen8con$tantly the he expectaticns.Fu*hr,duringthe 10-dayperiodsurrounding opening, holel everyone'$ of the cavering opening the hotel,andwe stillhavea very high stories alrnsst200 rnedia rec*ived and stsrieson tlrehotalon a national iacalbasis. for levelsf interest continued wherei*sues Frat FlnanclalPgrformanca: lt is customary openinghotelshavea soft opening prepares be to and the staffis trained. lt is a tirnewherethe facilityand operation are conected traditionally revenul at capacityon a mor constantbasis. Ouringthis time pedod,incoming a the and ihe with doesnol meetthe cost associatsd oparating business, therefore, hotelrecords yet 60 loss. TheOmniDallasHatelopened daysearlyduringa verysl*w timein cur indusby, the planwas to lo$e projections. on Tbe expectation the operating the hotelstill exceeded financial plan. over or in made$554,000 profit $1,130,S00 theoperating the $5?7,0S0; hotlac-tually $ales Performancs: rffas also strong.During2011, the sales leam contracted in $32,815,323 $ales performance by our exceedEd projections $5,712,0S0. for groupr6ornrbvenue futureyeare.Thisarnount staternsntof Actlvlty {Attached} 31, 11,2011to January the will comments address time periodfrom November The fsllowing 2012. As notedabove,initialprojections {p}an)for this three'rrcnthperiodwere to recorda* in made$554,000 profitor 91.130,00$ the loss operating of $i577.000).Hovrever, hotelactually overthe plan. Kay atatlstlcsto plan: r Grog$ revanue $3,508,000 up operating . Rooms salesup $995,000 operation . Food& Beverage salesup $1,971,000 37,699 duringthisperiod. Prajected r The hotelhad 82,6S6 roomsand occupied avaifable was the roomswere27,699; increase 36%over. cccupied . Occupancy Daily Raleat $13?.67. the finishad 45.9o1s. Average at All expenseswere favorableto the forecastwhen adjustedto meet the increased ' level$ and salesbookings business in in In clcsing,2A12is off to a greatstartwith 51,975,000 ESITDA e mcnthwherethe hotelwas floiel ara on at bockings the OrnniDalfas to only planned be open partof the rnonth.Advanced for connpleted the bsnd tarjat to mest the city's*bligatisnior the yearbasedon the projsctions
is$uanc.

fiire*irr aild Re$is$si Vlce prs$idnt.*p*rations f,fianaging Gmrri Sallas Hotel A$achrnent;$tatement of Attivi$, January ?012

OF STATEMENT ACTIVITY TO COMPARED ACTUALS DAY FORECAST HOTEL9O

Itdv 1.201'l*lar31.t0t? ot{t'1l o*Lr*A$ r}oTEL t$# f?i00t8 ol-fgi-tl t7:4it:35
COMPASY.DATL {O#II* 9ALLAS HOTEI.

ltw-:tl1
XCOTU$ AV*ILASLE 'OTAL RgOl'$ OCf1JPIEF TCTAL TOTAL *CCUPATICY % IOTALP*:D 9CCUPAiICY % i0.G30 81.?o 27.4Q 95.?3 221 94

oEg-:{tlr
31,C 31 11,C47 35.80 34.?O 1?S.32 44,21 3:8.C3

J{$-?ttz 3:,031 ?s.4gc s5.7S $4,?8 153.61 *9.46 3C$!*

icTUALS
62,08? 3?,Ss? 45.4C 44.1Q 137.e7 o-s9 :*5.1 5

FoRECASI 82,632 ??,s80 33.70 3t.so 148.S4 48.57 ?75.04

v*f, fc$f J0,g*0 I2.?0 11.36 {10,3r} 12.11 2C,09

% vAR

PAtt tvEgA&E nool$ nAls AL REVPAR AL T*EVPSR{&aol9l(0

OFERAflttI REVF&'$

RoO#l$ REVSl,lUeS FOOOREVEI{UE ;EVER}SE REVEI{I'E RFVEI,'UE IOT{L FCOO& SEVERAG RETAILREYTNUE REVNUE TELEPHOI.TE $pa REvltlug OTHER CFERAIT} DSPTS RE!|TALSlt OI}|ER lt{SO!,lE TOTALgNO38 APfAAfi*G REIIEI.IUF
PRSFIT$ ROCMS PRSFIT FT}OS PRORT BEVERTEE PEOFIT TOTAL fOO! Ii 5EVEFAGE PRCF|I

52\,942 s20,433 19S.936

1,373,27* 1,2s8.838 fi5.3??

3,088.?14 r"s47,672 474844 2,420,72A

30 10E,1 37,648 54,158 1S0,483 ?3S,210

4,9$1,440 3,78{,94t 1,?15,195

3.S!8,t74 ?.460,221 54s,146

S94,S0A 1.304,72't 888,000

1,970,738
"i.ll..i.!',..<

711,1$2 31,423 l{,5se 20.359

qt ,zIz

1,811,011
7429s 24,4X 48,288 142,21S 96,S58
3,601,67.1
@ M@

4,s80,99?
z,J4,t6t 76,&1S 122,AC? $9.911 370,905

s,009,3s7
'190,O99 4S,SS5 12,$23 271,?35 78.e8?

34.737 1,347.5&4 14s,334 {n52,07e1 78'l1f

84,84? 28,8?3 s8,279 r08,17s ?9?.316

::#

65% g4% 16'A 373""r

A,10Z,5S6 2.444,374 419,184 ?40,504

65B,e6B 20,s47

11,iae,e?5
3,4{&,690 222,64'r **f?1,48{s"t4, I 30

T,81A.EF ?.75,SO4 s4,1S7 r08,0!8 3tt.e15

{35,$!o}

3,907,$33

854,98? t$5,541

r/?,8s0
128.450 4t3,468 541 . S 1 5

""-**

. , .191'!T.
{s,688) i1a,7a8l 5,4*6 {3s,1?o} fs,76? 1,3*s,783

_E75lg;{20,723\ {17,583) 3,4?O 1"2I3 54.5_13

RSTAIL PFOFIT TLEPHOiIE F*OF|r

$PAF&Orn
TilEE OFERATTS OEPTS FROFIT REI{?{Ls * OT}ti FROflr TL'E"ARTGilEI{T P8*FI?9
@ @ @ !ffi

74,210 t3s,?4*

ts.4e4) {35,C44i 15,5S5 4S,E53 3?AO?0 4,71$,14q

@jtw

(3e,2s{} {.t5,664 171,73n 7*,7nt

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30,048 3,?48
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5S4.t3? 1S*,3'r7 5*.6S9 t',64i: 27?.,44'i 75.FtA !*s.35* 9{t3.8Sl a&.9?6 83,3,f* *.84C 4X?.$33 514.49e J!,6?S
c{- 1 lF

'i,*69,i$1 47.7,754 '18*,347 24,4?t I,t3{,s3 t

g.+4i, 433.4t* a28,3/$ 'i5$,*0s 1,441,*C3

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3,*41.r$* :1i4,?s5 s53,865

&s?.i89 {e,t04 tg?,es3 ?48f.* i.6is.-1*$ 385.aAS l!,34?.*4e i?43,5*i *3a?$5 {$'"*,714i
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{r.r*6,55} {,t.335 i1,1s?.csil)

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