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July 2009

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

   

SunStream Corporate Headquarters  ·  6231 Estero Boulevard  ·  Fort Myers Beach, Florida 33931  ·  Phone: 239-765-4111  ·  Fax: 239-765-5755
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