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Omni Dallas Convention Center Hotel

Omni Dallas Convention Hotel Update

Economic Development Committee

December 6, 2010

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Vision for Overall Development

• Make the Dallas Convention Center (DCC) more competitive

• Build another destination for Dallas• Increase the economic impact of the DCC• Enhance convention attendee experience• Develop hotel, restaurant, retail, cultural and

entertainment elements• Create a Lamar entertainment corridor by

– Improving connectivity from the DCC through downtown to Victory

– Extending the DCC’s influence into the Cedars

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Highlights

• Project status• Safety • Number of jobs created

• DCC City Wide Bookings

• Omni Dallas Bookings• M/WBE utilization/capacity

building for local companies• Commitments and interest in

ancillary development• Positive profile creation

On time/On budgetNo major injuries/low accident ratio3000+ project jobs created800 permanent jobs projectedDoubled after Hotel announcement; best year of city wides in DCVB historyBooked over $60M in salesSuccessful and achieving goals

Growing interest and pending lease

388 articles; 53 TV news stories; 441 hits: 357,655,462 impressions

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Dallas Convention Center

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Dallas Convention Center• $1B asset of the city• 2.1 million square feet • More than 1M square feet of exhibit space

– Largest column-free hall in the U.S.– 96 meeting rooms– 2 ballrooms: 26,992 and 19,134 square feet– 1,750 seat theater with state-of-the-art sound and lighting– 9,816 seat arena

• Generates over $306M annually of economic impact; spend on business that comes through the door; non polluting industry

• Overall impact; supports convention center & hospitality industry

• LEED Existing Building Silver Certification

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Dallas Convention Center

LEED Silver (Leadership in Energy and Environmental Design) Projected to reduce 35% of electrical usage through equipment replacement and retrofitting

– Reduced water usage 18%, or 7 million gallons per year, by replacing installing low-flush plumbing fixtures & a more efficient cooling tower

– Uses solar energy, from 54 rooftop solar panels, to heat water

– Maintains temperatures in exhibit halls with high-speed dock doors that close automatically when there is no movement

– Revamped heating and air conditioning design to enhance efficiency

– Part of city-wide commitment to 40% of energy from renewable sources

– Uses green, environmentally safe cleaning supplies

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Dallas Convention Center

For clients, expansion of recycling program all events

– We have greatly reduced the Center’s landfill usage

– Clients not charged to remove recycling dumpsters, unlike trash dumpsters

– We provide recycling collection containers for any event

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Dallas Convention Center 2009

• Total events 117 • Attendance 961,287 • Peak room 51,815 • Total room night blocked 217,183 • Direct dollars over $103M• Economic impact over $306M

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Dallas Convention Center• The DCC has initiated a capital

improvement program that will better serve its customers and compliment the hotel development by improving and upgrading the existing facility.

• Preserving the City's convention center physical investment: – Roofing/Waterproofing– Vertical transportation – Life Safety Systems - Fire Alarms,

Security – MEP systems renovations

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Dallas Convention Center– Renovating existing space

• Public spaces • Meeting and exhibition• Directional Signage• Service and Support • Expand meeting room and assembly space• Upper D meeting • Convert existing space into meetings, service & support areas

– Projects underway to be completed in conjunction with the opening of the CC Hotel

• Skybridge between DCC and the Omni Dallas• Chilled Water Loop Repairs• Upper Level D Meeting space

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Skybridge

• Strategically placed connection between DCC and Hotel– Moving crowds from Hotel ball rooms quickly and comfortably– Connecting in the middle of the DCC– Creating outstanding views

Omni Dallas Hotel

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Omni Dallas Hotel

• Ideal headquarters hotel location

• 1.1M square feet• Accessible• Addition to the skyline• Contemporary design

celebrating Dallas• Opening early 2012

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Guest Rooms

• 1,001 luxurious rooms• 363 King and 586

Queen/Queen• 3 Presidential Suites• 19 Luxury Suites• 19 Stately Suites• 15 Grand Suites• 11 Executive Suites• In-room technology will include

flat screen TVs as well as TV monitors embedded within the bathroom mirrors.

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Meeting Space

• 110,000+ square feet of total usable function and meeting space

• 24 meeting rooms • Grand and junior ballrooms,

encompassing 32,000 and 15,000 square feet respectively

• The hotel will comfortably accommodate groups of 3,300+

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Dallas Themed

• Luxurious, warm and sophisticated design which reflects the essence of Dallas with a contemporary, reflective glass exterior and native textures, art and other materials enriching the interior.

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Restaurants

• The legendary Bob’s Steak & Chop House

• The Owner’s Box—a state-of-the-art interactive sports bar

• Texas Spice—an innovative farm-to- market restaurant

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Amenities

• Omni’s signature Mokara Spa

• Terrace Rooftop Pool Deck

• State of the Art Fitness Center

Construction Update

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Results/Update• On time and on budget

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Results/Update• Safety Record

o 863,827 hours work hours to dateo Lost Time Incident Rate (LTIR) is .46o Recordable Incident Rate (RIR) is 4.17 o Both are well below the national average

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Results/Update

• To date 2,366 workers have been part of the construction—will exceed 3,000 jobs by completion

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LEED Silver New Design and Construction

• High reflective roof material (reflects heat; cooler in summer)

• Highly efficient mechanical systems with at least 14% reduced energy usage

• High performance insulated Low E glass systems

• Enhanced Commissioning of mechanical systems

• Indoor Air Quality Management plan during construction

• Use of recycled materials• Irrigation supplied by recycled water;

water-saving fixtures• Guest room energy management

systems

Sales Projections

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Convention Sales

• In the 15 months after the Hotel announcement doubled city wide bookings from the 15 months prior

• 2012: – Dallas has already confirmed 18 city-wide conventions—

historic average 14• 2013:

– Dallas has already confirmed 19 city-wide conventions

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Convention Sales

• In 2010:– Bookings for 1,020,603 room nights for future years– Economic Impact of $1,500,898,773– No. 1 in Texas for room night bookings for the sixth

straight year

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Hotel Sales TimingGroup Business:• 75% of annual business• Conventions/large meetings-typically books 2-5 years before arrival• Small meetings - under 400 rooms book 3-24 months before arrival

Transient Business:• 22% of annual business• Leisure Guest - 90% book less then 21 days before arrival• Managed Corporate Travel – booked 4th quarter for next year• Rack rate travel - typically books over high demand periods and/or short term

Contract Business:• 3% of annual business• Airline Crews - contracts short term for 1 to 2 years, set number of rooms 7

days per week but get the lowest rates• Training - corporations that have training needs sign long term agreements to

get a favorable rate (usually weekday business)

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Omni Sales Effort

• Sales effort for the Omni Convention Center Hotel started September 2009

• The sales effort matches the locations of large association conventions, corporate hubs and is aligned with the DCVB and Omni Global Sales

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Omni Sales Summary

• Selling since September 2009:– 2012 will require more short term group bookings and transient

rooms due to meeting planners not willing to book shortly after hotel opens

– 2013 with 12 more months to book group already has more contracted group revenue then 2012

– 2014 also looks very strong with 87% of the 2012 revenue with 24 additional months to book groups

• Booked from 2009 through November 30, 2010:– Total definite group room nights: 174,295– Total definite group room revenue: $31,788,713– Total hotel room revenue $60,000,000

• Inclusive of Food & Beverage Revenue

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Omni Sales Effort

• Omni Dallas is projected at 75% of its room revenue in group sales (20% of the group is projected to book in the year for the year)

– 2012: Lagging slightly behind projections– 2013: Exactly on projections at 30% – 2014: Exceeding projections at 22%

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Omni Dallas 2012 Total Projected Room Revenue

• Booked Group Revenue as of 11/30/10 $ 10,000,000– Contracts Executed $9,148,788

• Group Revenue to be booked in 2011 $ 11,000,000 • Group Revenue to be booked in 2012 $ 5,000,000• Transient Revenue booked in 2012 $ 10,000,000

• Total Projected Room Revenue $ 36,000,000

DCCH M/WBE Program

Utilization and Building Capacity

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M/WBE Highlights

• Exceeding City’s Good Faith goal of 25% participation– Currently 29.53% – Outstanding outreach with over 2,000

companies contacted• Outstanding collaborations with successful

partnerships and mentoring relationships• Outstanding capacity building with

informative programs and workshops

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Utilization and Building Capacity

• M/WBE utilization is an important goal, but Building Capacity is the

differentiator • Hotel project provides an exciting

opportunity • Successful results will have far

reaching impacts

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DCCH M/WBE Program Goals

• Outreach: – Increase local M/WBE awareness and participation

• Collaboration:– Create meaningful M/WBE joint ventures and

partnerships• Training:

– Implement capacity building programs for local M/WBE firms

• Utilization: – Exceed the City’s goals for M/WBE participation

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Outreach: Strategies

• Provide M/WBE certification assistance, conduct orientation on bid process, and coordinate collaboration between primes and subcontractors

• Communicate with local agencies to increase access to project information and bid process

• Provide easy access to potential M/WBE firms• Conduct and participate in networking events to

expand M/WBE participation

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Outreach: Results

• M/WBE Certification and Technical Assistance– One-on-one meetings between M/WBE firms and the

Project Team representatives on weekly basis to learn about M/WBE certification assistance, project opportunities and the bidding process

– To date, have met with over 500 firms to provide assistance about project opportunities

– To date, have met with over 100 to assist in obtaining M/WBE Certification

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Outreach: Results• Utilized online bidding specifications and bidding information via

www.ISQFT.com• Executed project update website: www.dallascchotel.com• Published a quarterly electronic newsletter sent to over 2,000 M/WBE firms

and professionals per distribution• Made available Bid Plans for review at the following locations:

– Black Contractor Association (BCA)– Dallas Black Chamber of Commerce (DBCC)– Greater Dallas Asian Chamber of Commerce (GDACC)– Greater Dallas Hispanic Chamber of Commerce (GDHCC)– DFW Minority Supplier Development Council (MSDC)– Regional Hispanic Contractors Association (RHCA)

• Solicited inclusion of project information in advocacy groups newsletters and websites

• Established an online vendor registration to do business with Omni Hotels• Advertised in local minority press to increase awareness and information

regarding project opportunities

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Outreach: Results

• Coordinated major Networking events to increase awareness and distribute information for all MWBEs interested in working on project

• Developed a list of vendor opportunities for the new Omni Dallas Hotel

• Conducted over 500 meetings with MWBE firms to encourage participation in bidding process;

• Have participated in over 80 workshops, seminars and events to date

• Produced a large diversity vendor fair for M/WBE firms to meet with Omni senior management, corporate buyers, hotel buyers, procurement staff, hotel managers and hotel facility engineers

• Conducted the first of four M/WBE supplier fairs with Omni• Established an Omni Diversity Partners Program with local

chambers of commerce

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Collaboration: Strategies

• Promote team-based relationships between prime contractors and M/WBE contractors

• Promote creation of meaningful M/WBE joint ventures and strategic partnerships

• Develop mentor-protégé relationships to encourage one- on-one capacity building training

• Encourage long-term strategic partnerships for future projects

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Collaboration Results: Partner Program

• Implemented a joint venture between Balfour Beatty and two M/WBE firms: Pegasus Texas and H.J. Russell Co. (BRP JV)

• Instituted Partner Program to align primes/subcontractors and provide project management credentials: – LAZO Technologies & Walker Engineering – Low Voltage

Construction Management– TinMan Enterprises & Irwin Steel Erectors – Structural Steel

Supplier and Fabricator– Lawrence Engineering & Henley/Johnston & Associates –

Materials Testing– Trainor Glass Company & and Ventura Enterprises - Glass and

Glazing

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Collaboration Results: Mentor/Protégé Program

• BRP JV promoted mentoring opportunities in the area of project management to:– Vendigm Construction

• Brandt promoted mentoring opportunities on a wide range of technical areas in the mechanical and plumbing field to:– Barbosa Construction– Beard Integrated Systems– Concepts Facilities Services– Echols & Sons Plumbing– Momentum Mechanical

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Collaboration Results: Strategic Partnerships Going Forward

– Balfour and H.J. Russell (Parkland)– Balfour and Azteca Enterprises (Parkland) – Balfour and K Strategies Group (Parkland) – Balfour and H.J. Russell (DFW)– Balfour and Azteca Enterprises (DFW) – Balfour and K Strategies Group (DFW) – Balfour and Azteca Enterprises (Irving

Convention Center)

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Training/Capacity Building: Strategies

• Expand opportunities for M/WBE involvement by alleviating bonding requirements

• Provide capacity building workshops to aid in development of strong business practices in the areas of: – Accounting– Business Development– Cost Control & Cash Flow Management– Estimating & Bidding– Safety

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Training/Capacity Building: Results

• Instituted Subguard program helping small companies by– alleviating bonding and insurance barriers – providing access without requiring Payment &

Performance Bond– providing financial protection to the project

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Training/Capacity Building: Results

• Focused 2010 workshops on a wide range of topics including:– iSqFt Preconstruction Software Utilization– Leadership Skills – Project Managers and

Superintendents (TWICE)– Estimating 101– Mentor-Protégé / Strategic Partnerships– Marketing / Business Development

• Will focus 2011 workshops on the financial stability of M/WBE firms

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Training/Capacity Building: Results

• Partnered with the Regional Hispanic Contractors Association (RHCA), Occupational Safety and Health Administration (OSHA), and the Construction Association (TEXO) to provide a 10-hour OSHA Safety Training for contractors working on the DCCH– Offers 10-hour English and Spanish OSHA classes and 30-hour

safety training classes for its contractors on a monthly basis• Partnered with Hartford Financial Services to provide

leadership skills training for project managers and superintendents

• Developed internal supplier diversity training documents for annual training through Omni

• Held Omni supplier diversity training for hotel managers, facility engineers, buyers and other pertinent staff

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M/WBE Utilization: Specific Goals

• Exceed City’s Good Faith goal of 25% • Achieve a Hotel operations M/WBE

overall spending goal 25%

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M/WBE Utilization: Strategies

• Increase local M/WBE awareness and participation throughout the project

• Create meaningful M/WBE joint ventures and partnerships

• Implement capacity building programs for local M/WBE firms

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M/WBE Utilization: Results

• As of October 31, 2010– 98 MWBEs on the DCCH Project Team– Awarded 116 contracts to M/WBEs totaling $68 million– Contracts range in size from $10,000.00 to $7,729,000.00– This accounts for 29.53% of the project value for contracts

issued to date • Omni developed and published supplier diversity

commitment statement• Omni created corporate supplier diversity program

including written policies and procedures

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Program Results— Goals are being achieved

• Outreach: – Enhanced communications and increased participation

• Collaboration:– Promoted meaningful M/WBE joint ventures & partnerships

• Training: – Provided capacity building programs for M/WBE firms

• Increase Utilization: – Exceeding City’s goals for M/WBE participation

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Ancillary Development Update

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Ancillary Development Update

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Ancillary Development Update

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Ancillary Development Background

• Hotel is serving as a catalyst for adjacent development:– Goal is to add additional restaurant, retail,

entertainment and commercial tenants– Sites have been identified and conceptual

plans created– Improve the surrounding areas with enhanced

connectivity and pedestrian enhancements– All resulting in developing a destination for

year-round activities

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Ancillary Development Update

• Preliminary marketing package distributed to hundreds of retail tenants

• In final negotiations with a 30,000 sqft office tenant to occupy the top two floors of new four story building beside the Hotel

• Currently drafting a LOI for a 5,000 sqft restaurant/bar tenant for a portion for first floor of new building

• In discussions with a well know chef looking to expand to the Dallas area requiring approximately 4,000 sqft

• In discussions with a Business Center to locate adjacent to the Convention Center

• Currently undergoing a Demographic Study to include in marketing materials

• Continue to see interest from many local restaurant/bar operators looking to locate next to the Convention Center Hotel

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Ancillary Development Update• Existing conditions:

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Enhance S. Lamar Tunnel

• Create of pedestrian friendly environment• Enhance of existing DART Station—

eventual connectivity to Love Field/DFW• Establish store front activities along both

sides including retail, restaurant and entertainment

• Initial funding from NCTCOG Sustainable Development Grant ($2.695M)

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S. Lamar Tunnel: Conceptual Designs

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Build on Existing Connectivity

• Explore Skybridge to Reunion Parking

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Future Development

Discussion