1997 Marks Year of Growth, Reinvestment for Omni Hotels

IRVING, Texas /Omni Hotels experienced a banner year in 1997.

Company RevPAR (revenue per available room) and EBITDA (earnings before interest, tax, depreciation and amortization) were up, a $300 million capital improvements program was put into place, new hotels were added to the company's portfolio, extensive renovations began on several existing properties, new company-wide technology systems were developed and a new national advertising campaign was launched.

According to Smith Travel Research, Omni Hotels' RevPAR was more than 20 percent higher than the upscale industry competition. Significantly contributing to Omni Hotels' strong performance, the company's eight national sales offices booked more than half a million room nights for the 44 property chain in 1997 and contributions from Omni Hotels' central reservation center for the year accounted for 35 percent of total rooms revenue -- surpassing the national average of 30 percent. In addition, the company's EBITDA for owned and managed hotels was 35 percent higher than the competition.

Omni Hotels received a financial boost in 1997 of more than $300 million in profits earned from the sale of Teco Pipeline Co., a subsidiary of TRT Holdings, Inc., Omni Hotels' parent company.

"The additional capital from TRT Holdings will provide Omni Hotels the opportunity for continued growth," said Jim Caldwell, president of Omni Hotels. "With $300 million in new capital available, we can further expand and improve Omni Hotels."

New property developments for the year included the Omni San Francisco Hotel, the Omni Interlocken Hotel and Conference Resort located outside of Denver and the Omni New Haven Hotel at Yale in Connecticut. Omni Hotels also acquired the Omni Majestic Hotel in St. Louis, as well as the franchise property Omni Puerto Aventuras Beach Resort.

The company also began major restorations of the Omni Parker House in Boston ($46 million), the Omni Shoreham Hotel in Washington, D.C. ($70 million) and the Omni Ambassador East in Chicago ($14 million). Major renovations were initiated to almost every other owned/managed property, as well as several franchised properties.

In 1997, the company began making major improvements to its technology base, upgrading the central reservation and property management systems and developing a state-of-the-art revenue management system.

Omni Hotels also launched a new national advertising campaign in 1997. The "You can see the city from here" ad campaign aired on several national cable networks and appeared in major market newspapers across the country. The ad campaign was also incorporated into the company's national direct mail effort.

To further improve quality of service, the company instituted new operating standards and training programs in 1997.

J.D. Power & Associates and Frequent Flyer Magazing rated Omni Hotels among the top five hotel chains for customer satisfaction among upscale hotel chains in 1997.

Headquartered in Irving, Texas, Omni Hotels is a privately-owned chain of 44 first-class and luxury hotels and resorts located throughout the United States and Mexico. Omni Hotels properties offer four-star services ranging from gourmet dining, fitness facilities, tennis, golf, wine tastings, tours of local attractions, music festivals and children's activities. Omni Hotels will continue an aggressive agenda for expansion in first-tier markets and key secondary cities, with an emphasis on the Midwest and West Coast. For more information on Omni Hotels, call 1-800-THE-OMNI.