parameters . “ Buying existing hotels is going to be somewhat limited for us ,” he adds .
That said , Omni has an active development pipeline , having just topped off a property in Frisco , Texas . Tempe , Arizona , is under construction and Omni will also start construction next year on a mixeduse development in Punta Mita , Mexico , which will include an Omni and a soon-to-be named luxury brand property , as well as residential unit all within a gated complex that should open in 2025 .
Strebel also said Omni is in conversation with municipalities for public-private partnerships , a development road Omni has traveled before with success .
In addition , while Omni tends to acquire and develop on its own , it has been working on relationships with REIT to consider different investment partners .
With development and construction costs “ going through the roof ” in some cases , Strebel adds some projects that were borderline in terms of potential are more than likely not going to happen in the near term . “ We ’ re seeing anywhere from 7 % to 25 % cost increases for developments ,” he adds . “ So , we are really reinvesting in our own portfolio , making those hotels better .”
On the disposition front , Omni sold five hotels during the past two COVID years , especially in markets where there was no room to drive rates and with properties in need of major capital investments . But Strebel doesn ’ t foresee anything else being sold for the foreseeable future .
To further drive revenue and GOP , the plan is to do a better job at what Omni has been doing for more than 10 years – blend a lot of local color and flavor into their F & B-driven properties . “ We are driving RevPAR growth so dramatically over our competitive set because we really work on experiences ,” Strebel adds . “ The upgrades that we continue to put into our hotels – they ’ re all experiential .”
Bottom line , Strebel remains very bullish about business because travel is now being perceived as a necessity versus a luxury . “ And then the second most valuable thing about our business , which I think is good for investors , is that our rates are fluid – they ’ re dynamic and change every day … When times are good , we have the ability to make them really good .”
Omni recently topped off the development of the Omni PGA Frisco in Texas