HOA board members often give up their vision when they bring in a new management company. But in the case of Resort Y in Kauai, partnering with Grand Pacific Resorts enhanced its unique appeal and met its needs in a highly personal way.
Brand Standards at the Expense of Personality
Resort Y has experienced the ups and downs of numerous management transitions as it has attempted to define itself in a crowded market. This boutique resort is located on a beautiful hillside in Kauai, adjacent to a championship golf course. For a property like this, finding the right management approach is no easy task.
Several years ago, the HOA contracted with a large, publicly held management company in an effort to improve its owner experience. This large company oversaw a tumultuous renovation project and introduced new brand standards to the resort. The board complained about a number of problems in the process:
- The resort was forced to adopt the management company’s brand standards. As a result, visitors described the resort as “a shell with no excitement and nothing in the way of an experience.”
- The resort was treated like just another cog in the machine. As one board member said, “It was like pulling teeth getting anything done.”
- The resort had to share staff with three other properties. The property was often understaffed, and employees did not feel a sense of ownership in the resort.
- The HOA did not have enough reserves to fund deferred maintenance, in spite of paying substantial fees to the management company.
The board wasn’t sure of the solution, but they were determined to find it, even if it meant switching management companies. The board invited Grand Pacific Resorts to submit a proposal based on a member’s exchange experience with the company.
Grand Pacific Resorts Turns the Resort Management Model on Its Head
As the board evaluated Grand Pacific Resorts, it became clear that they wanted and needed to make the switch. A few months later, Grand Pacific Resorts was awarded the management contract, and a beautiful partnership began to unfold.
Resort Y has undergone a major transformation, improving owner satisfaction significantly without management fee increases:
- Grand Pacific Resorts found the funding for a dedicated staff within the resort’s existing budget. The resort now has associates onsite 24/7, significantly increasing owner and guest satisfaction. According to the board president, “This was a major accomplishment for our resort. Owners have noticed a big improvement in service.”
- The resort commissioned a new reserve study and is now putting aside the proper funds for deferred maintenance and long-term renovations.
- The resort has started to enhance its overall ambiance through recommendations of Grand Pacific Resorts. For example, pool upgrades visible upon entering give owners and guests the sense that they have arrived at a resort, not an apartment complex.
- Grand Pacific Resorts introduced new activities, personalized to showcase the island culture and bring more life to the resort.
- The resort has moved up on TripAdvisor and is now the best rated specialty lodging in the area. One guest raved that the resort “is the best deal for the location and quality of any property we visited.”
- The HOA doubled its projected rental revenue for 2014 through a proactive inventory management strategy, which captured new revenue and enhanced the resort’s value in the eyes of consumers.
- The delinquency rate is down as more owners are using their weeks thanks to the proven owner engagement strategy the resort adopted from Grand Pacific Resorts.
The effects of these changes are rippling throughout the resort. The associates are finding new ways to enhance the owner experience, like creating a program to celebrate birthdays, anniversaries, and honeymoons with special in-room amenities, and the board is receiving tons of positive feedback from owners and guests alike. The board president stated, “We are no longer treated like a stepchild. Our management company now gives us the level of service and attention our unique resort deserves.”
Now It’s Your Turn!
The beautiful thing about Resort Y is that it’s not an isolated story. Grand Pacific Resorts specializes in helping resorts improve their fiscal well-being and owner experience through its heartfelt service culture and decades of industry experience.
For a complimentary consultation and more information about our management services, contact Jay Anderson, Vice President of Business Development and Operations, at firstname.lastname@example.org or (760) 431-8500 , or visit www.grandpacificresorts.com/roadmap.