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Dear GullWing Owner,
Greetings from Fort Myers Beach.
I hope this newsletter finds you
enjoying your summer. We have several ongoing projects
in the works, and are actively monitoring the rental
program’s financial situation as we weather the economic
storm.
Our Average Daily Rate (ADR) has
continued to be a challenge this summer. In May ADR was
down $46.91 or 20% from last year. We have been
monitoring rates carefully, but competition has forced
us to keep our rates lower than we have in the past. In
order to maintain rate integrity, we have focused on
promotional offers instead of deep discounting to sell
our rooms. For example, we have a promotion that allows
guests staying four nights or longer to receive every
fourth night free. The net rate received by the
property for a four night reservation is equal to a 25%
discount off of the nightly rate. However, this pricing
strategy should allow the property to return to our
higher rates more easily when demand starts to
increase. The cost containment measures mentioned in
earlier newsletters has minimized the impact of the
revenue shortfall.
Our forecast for August shows a
challenging month ahead. Occupancy remains high in the
early part of the month, but it drops off sharply midway
through as schools start and the summer vacation season
comes to an end. Also, the timing of Labor Day weekend
this year falls completely in September as opposed to
the whole weekend taking place in August like it did
last year.
September is currently pacing ahead
of last year due to an increase in group business,
including a family reunion, wedding and corporate
group. These three groups are generating almost 120
room nights and $20,000 worth of room revenue.
The Direct TV installation started
towards the end of June, but the switchover did not
occur until after the 1st of July. The racks and
distribution system are pictured to the right. Our
Comcast signal is still broadcasting in the background
for the month of July.
The new trash compactor that the
association decided to purchase was installed this
week. This should significantly reduce the number of
pickups required each week, which will not only save the
association a considerable amount of money, but it will
also help improve the appearance of the property.
In the coming weeks, we will be
scheduling our annual tree trimming project. This is
one of the many preparations taken before the busiest
part of the storm season. Recently a letter was
included with the monthly distribution advising owners
that property updates would be available on the owner’s
website in the event of a storm. As a test, this same
letter was sent to the email address we have on file for
each unit. If you did not receive this email, please
contact me directly to update your contact information.
The addendum to the Hurricane
Charley insurance claim continues to progress slowly.
The insurance company has now completed two separate
inspections of the windows and doors in every unit. The
public adjuster that was hired by the association has
worked with legal counsel to file a formal complaint
against the insurance company. This complaint should
force the insurance company to make an initial offer
within 60 days. The expectation is that this initial
offer will be very low, and the public adjuster will
have to start negotiating the claim from that point.
All units have now received the new
refrigerator and microwave. A meeting with the
refurbishment committee is scheduled to make the final
fabric selections for this year’s projects. These will
include carpeting, and new cushions and throw pillows
for the sofas. Tentatively these projects are scheduled
to start early September after the holiday weekend, and
should take about 6-8 weeks to complete.
As you can see, a lot of positive
things are happening around the property. Occupancy has
remained strong, and the marketing team has come up with
some creative solutions to help keep our ADR as high as
possible. I think the current refurbishment projects
will really help freshen up the appearance of the units,
and will be enjoyed by many guests and owners for years
to come.
I hope that you enjoy the rest of
your summer. If you have any questions regarding any of
this information, please feel free to contact me
directly by email at
CurtB@SunStream.com, or by phone at 239-765-4300.
Sincerely,
Curt Brenner
General Manager |
