"I love the city of New Orleans and am fortunate enough to be surrounded by great people that make us a great organization. I look forward to working with coach Monty Williams and producing a team to make the people of New Orleans proud to call their own," he said.
The Hornets were 46-36 during Demps' first full season but fell to 21-45 in his second season, which was shortened by a lockout.
"Dell has a bright future ahead as the GM of our team and Mr. Benson and I couldn't be more impressed with the track this team is on and are excited about the future," Loomis said in a statement. "He has helped shape this organization with the current team of young, talented players and we look forward to seeing the growth of the franchise during this exciting time for the franchise."