In the Condo-Hotel Business? Avoid 'Bad' PR with Proper Reserve Management
By Georgi Bohrod Principal, GBG & Associates | October 28, 2008
Are you in the condo-hotel business? There are already reports surfacing regarding legal issues stemming from poor asset management. Although condo-hotels are sexy, popular and full of promise, they come with their own set of challenges.
Jeff Yamaguchi, EVP, Global Resorts Inc. (Las Vegas) cautions that there are sure fire ways to ensure a good reputation for your Condo-Hotel:
Not only can your PR "people" ensure that the message is transmitted accurately, but there are nuts and bolts procedures that can preserve the reputation of your property.
Whether a Condo-Hotel, Private Residence Club, Timeshare or Fractional Property, shared ownership has become a luxury commodity; lifestyle experiences have replaced budget vacations; and reserves are not just for replacing the roof any more. Unless resort and hotel managers have the proper financial tools to manage the assets, they could be faced with a rude awakening in the coming years.
In the past, establishing reserve budget costs was little more than estimating a fixed percentage of the operating fees at the start of a project and then crossing your fingers. The time of the traditional "WAG" (loosely translated as wild ass guessing) is long gone. Welcome to the world of Association reserve shortfalls, special assessments and even law suits.
In the world of shared ownership and mixed-use development, the introduction of brands has substantially changed the playing field. Customers' trust in traditional hospitality brands such as Marriott, Starwood, and Four Seasons along (in the timeshare world) of brands such as Bluegreen, Vistana, and Sunterra has propelled shared ownership into a multi-billion dollar industry. But along with that added credibility comes added responsibility; both brands and independents are charged with living up to a series of higher standards.