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— CH. 1 · INTRODUCTION —

Omni Hotels & Resorts

~5 min read · Ch. 1 of 7
7 sections
  • Omni Hotels & Resorts began not in a gleaming lobby, but in a roadside restaurant. In 1958, the Dunfey brothers attached a 32-room motel to Lamie's Tavern in Hampton, New Hampshire. From that modest addition to a family eatery, one of America's largest private hotel companies would eventually take shape. Today, Omni operates 51 properties across the United States and Canada. It employs more than 23,000 people and holds over 20,010 rooms. But the path from Hampton to Dallas passed through Boston, Atlanta, Dublin, and Hong Kong. How did a New Hampshire motel chain become the owner of iconic American resorts like The Homestead in Hot Springs and The Grove Park Inn in Asheville? And what role did an Irish national airline play in shaping a Texas-based hotel empire?

  • The Dunfey brothers built their hotel business one New England property at a time. By 1964, they had grown enough to take on 14 Sheraton Hotels franchises, extending their reach well beyond a single motel. In 1968, they made their most significant early move: acquiring the Parker House Hotel in Boston, a property that had been sliding toward insolvency. That acquisition brought a landmark address into a family portfolio that had started with a single motel wing. Three years later, in 1971, the brothers sold Dunfey Hotels to Aetna Life Insurance Company, which was based in Hartford. Aetna kept the Dunfeys on to manage their own properties. Then in 1976, the ownership changed hands again, this time to Aer Lingus, the national airline of Ireland. The pattern was already clear: the Dunfey name and the properties beneath it were moving through owners far larger than the founding family.

  • In 1983, Dunfey Hotels purchased a small Atlanta-based chain called Omni International Hotels from Cousins Properties. That chain had been formed in 1973 and consisted of just three hotels, located in Atlanta, Norfolk, and Miami. The purchase prompted a reorganization. Dunfey Hotels split into two operating divisions. The Omni Hotels name would carry the large, upscale modern properties. The smaller motels and remaining Sheraton franchises kept the Dunfey name while the company worked to divest them over the following three years. The Omni brand was not yet dominant; it was simply the label for the higher end of a transitional company. But within five years, the Dunfey name would disappear entirely from the corporate structure, and Omni would be the company's sole public identity. The sale price that changed everything came in 1988, when Aer Lingus sold Omni Hotels to World International Holdings and the Hong Kong-based conglomerate The Wharf (Holdings) Limited for $135 million.

  • In February 1996, those Hong Kong owners sold Omni to Robert Rowling of TRT Holdings, a Texas-based private equity investor. Rowling moved the company's headquarters from Hampton, New Hampshire, to Corpus Christi, his own base of operations. Within a year, the headquarters relocated again, this time to Dallas. That double move in rapid succession reflected both the new owner's priorities and Omni's shifting geographic center of gravity. Rowling's Texas connection would prove durable: Omni opened a hotel in Dallas in 2011 and another in Fort Worth in 2009. Corpus Christi itself received an Omni property in 1996. The year of the headquarters move was also the year Omni assumed ownership in Louisiana, with the Omni Riverfront Hotel in New Orleans joining the portfolio that same year.

  • The most expensive single acquisition in Omni's history came in June 2013. The company bought five properties from KSL Capital Partners for a sum that The Wall Street Journal valued at $900 million. The five properties were Barton Creek Resort and Spa in Austin, La Costa Resort and Spa in Carlsbad, Rancho Las Palmas Resort and Spa in Rancho Mirage, The Grove Park Inn in Asheville, and The Homestead in Hot Springs, Virginia. Each had a reputation that predated Omni's ownership by decades. The deal repositioned Omni as an owner and operator of what it described as iconic American golf resorts. Earlier that same year, in January, Omni had acquired ClubCorp's Montelucia Resort and Spa. In July 2013, the company added the King Edward Hotel in Toronto to its Canadian holdings. December 2015 brought the Omni Mount Washington Resort in New Hampshire, a property Omni had already been managing under its brand since 2009.

  • In 2000, Omni struck a deal with Turner Broadcasting to add a 600-room tower wing alongside its existing hotel at the CNN Center in Atlanta. That new wing opened in 2003. Nearly two decades later, in 2017, Omni bought Time Warner's share of the building outright. The Atlanta footprint extended further in 2018 with the opening of the Omni Hotel at The Battery Atlanta in Cumberland, Georgia. The original Atlanta property, the Omni Atlanta Hotel at Centennial Park, had been part of the portfolio since 1975, making Atlanta one of Omni's longest-standing markets. The $67.1 million purchase of the Amelia Island Plantation in Florida in 2010 followed a similar pattern: Omni buying full ownership of properties it had already been operating in its orbit.

  • In March 2018, Peter Strebel was named President of Omni Hotels and Resorts. His tenure overlapped with a significant public controversy. In December 2020, unions criticized Omni for using the Paycheck Protection Program to obtain a low-interest loan for business purposes rather than directing those funds to workers. Had the money gone to employees, the loan would have converted into a grant under the program's rules. Instead, Omni used the loan for other business purposes, drawing union scrutiny during an exceptionally difficult period for the hospitality industry. The following March, in 2021, Omni sold five aging properties, including hotels in Dallas, Houston, San Antonio, Jacksonville, and Austin. In 2022, Kurt Alexander was appointed the new President of Omni Hotels and Resorts. Omni's one franchised property, a hotel in Cancun, had operated under that arrangement from 1988 until it ended in 2022.

Common questions

When was Omni Hotels & Resorts founded?

Omni Hotels & Resorts traces its origins to 1958, when the Dunfey brothers opened a 32-room motel alongside their Lamie's Tavern restaurant in Hampton, New Hampshire. The company operated as Dunfey Hotels until 1983, when it acquired the Omni International Hotels chain and began transitioning to the Omni brand.

Who owns Omni Hotels & Resorts?

Omni Hotels & Resorts is owned by TRT Holdings, a Texas-based private equity firm controlled by Robert Rowling, who purchased the chain in February 1996. The company is privately held and headquartered in Dallas, Texas.

How many hotels does Omni Hotels & Resorts operate?

Omni Hotels & Resorts operates 51 properties in the United States and Canada, totaling over 20,010 rooms. The company employs more than 23,000 people across its portfolio.

What was Omni Hotels before it became Omni?

Before adopting the Omni name, the company operated as Dunfey Hotels, founded by the Dunfey brothers in 1958. In 1983, Dunfey Hotels acquired the Atlanta-based Omni International Hotels chain from Cousins Properties and reorganized, using the Omni brand for its large upscale properties.

What is the most expensive acquisition Omni Hotels & Resorts has made?

In June 2013, Omni Hotels acquired five resort properties from KSL Capital Partners in a deal valued at $900 million according to The Wall Street Journal. The properties included The Grove Park Inn in Asheville, The Homestead in Hot Springs, Virginia, Barton Creek Resort in Austin, La Costa Resort in Carlsbad, and Rancho Las Palmas in Rancho Mirage.

Why was Omni Hotels & Resorts criticized in 2020?

In December 2020, unions criticized Omni for using Paycheck Protection Program funds to obtain a low-interest loan for business purposes rather than paying workers. Under the program's rules, using the money to pay employees would have converted the loan into a grant.

All sources

52 references cited across the entry

  1. 5press releaseAfter a Half Billion - Omni Hotels Producing New LookOmni Hotels & Resorts — 5 November 1999
  2. 10newsRobert Rowling's Billion-Dollar Golf BetArt Stricklin — May 2014
  3. 11newsOmni buys Time Warner stake in downtown Atlanta hotelLeon Stafford — 27 April 2017
  4. 12press releaseOmni Hotels & Resorts to Acquire and Operate Five Iconic ResortsOmni Hotels & Resorts — 12 June 2013
  5. 13newsRowling the Dice on ResortsKris Hudson — 12 June 2013
  6. 15press releaseOmni Hotels & Resorts Announces Acquisition of The Omni Mount Washington ResortOmni Hotels & Resorts — 2 December 2015
  7. 18newsAsk Dr. Elia: Marriott Hotels to drop pornographic videosElia Gourgouris — February 1, 2011
  8. 34newsBerkshire Hotel SoldDecember 17, 1977
  9. 40webWestin William Penn SoldJanuary 18, 2001
  10. 43webOmni Nashville Hotel OpensSeptember 30, 2013
  11. 51webAt 40, Charlottesville's Downtown Mall has only gotten better with ageCHRIS SUAREZ and ALLISON WRABEL The Daily Progress — 4 July 2016