Happy 2009 to everyone!  I hope this newsletter finds you enjoying the New Year.  The beginning of a New Year is often a time for reflecting upon the year that has come to completion, and is commonly accompanied with a renewed feeling of hope for what the New Year will bring.  I believe with the current economic situation throughout the world these feelings are probably more prevalent for most then they have been in prior years. Looking back at 2008 and the accomplishments that have taken place, we remain optimistic for what the New Year will bring. 

 Throughout the year the association has had several special or reoccurring projects completed to enhance the property’s image.  Among these projects include the following: New monument sign at the entrance, having cables replaced on the elevators, refinishing the stainless steel on each elevator and elevator landing, refinishing the spa, new BBQ grills installed by the gazebo, annual tree trimming, and window washing.  In addition, the resort staff prepared the building multiple times for tropical storms or hurricanes that fortunately never came to fruition.

The Annual Meeting for the association that took place in December also brought some good news to look forward to in 2009.  The association has hired a consulting company to submit and manage an insurance claim for the association in relation to damages caused by Hurricane Charley.  The consulting company has hired experts to come in and examine all of the building’s exterior windows and doors.  Due to documentation from the experts, the consulting company is confident that they will be able to recover funds for the association.  At this point they have not been able to gather all of their data, so specific numbers are not available.  However, they do feel the claim will be significant.  More than likely it will take a time for this claim to settle, but I will be sure to update you as it progresses.

A change that the association will be making in 2009 is the television service for the building.  The board has approved changing providers from Comcast to Direct TV.  The change will provide a better quality picture at a much lower price, while enhancing our current channel lineup.  The total number of channels will be reduced slightly, but some new and more popular channels will also be added.  This change will save the association a considerable amount of money on an annual basis. 

In 2008 the refurbishment process also wrapped up three very important projects for the units.  All units have now had in-room safes installed, new hot water heaters, and any necessary dining room chairs reupholstered.  I have also been working with the refurbishment committee on replacements for the refrigerators and microwaves, as well as flat screen televisions for the living rooms.  Other projects that will be up for consideration very soon are guest bedroom mattresses and televisions as well as unit carpeting and painting.  I thank all of the committee members and the owners for their participation in this very important program. 

I am sure it is obvious to everyone that the weakening economy has had an impact on GullWing’s resort operations throughout the year.  Taking that into consideration, I am pleased with the final results from 2008.  Room revenue was down 3% for the year due to a 3.6 percentage point drop in occupancy.  However, our average daily rate (ADR) was up 2.7% for the year.  Throughout early 2008 our focus was to drive revenue with an increased ADR.  As the economy worsened and demand dropped, our focus switched to maintaining our volume (occupancy).  As we enter 2009 we will be focusing more on volume and increasing our occupancy than on rate. 

November and December ended 2008 on a good note with increased revenues in both months.  A large amount of this increase was obtained by achieving a higher than normal ADR during the holiday weeks when demand is at its strongest during the 4th quarter. 

As we look forward into the 1st quarter of 2009, we are seeing mixed signals at this point.  January and March are currently pacing behind last year while February is pacing slightly ahead.  It is typical of March to be pacing behind this year since Easter was in March last year.  Although March is pacing slightly behind last year, high demands periods are filling up fast.  I strongly suggest that you book any owner time now while it is available if you haven’t booked it already.  The other good news is that experts are predicting a shorter booking window since consumer confidence is still low, and many travelers are waiting to see what airlines are going to offer in the way of specials on flights. 

Another encouraging indicator was a recent internet promotion that featured GullWing on a discounted travel website called Travel Zoo.  This promotion focused on the month of January and early February.  After being listed on the website for several weeks, GullWing received over 140 room nights generating over $21,000 worth of revenue. 

Aside from revenue, guest satisfaction is always a key focus of ours.  Throughout the year the property saw an overall increase in guest satisfaction from our comment card tracking system. 

Another key accomplishment that started in 2008 and will continue for years to come is GullWing’s Green initiative.  In 2008 we started working with Florida’s Green lodging program, and anticipate obtaining Green Lodging certification in 2009.  The property has already switched over to green-rated cleaning and laundry chemicals.  In addition, energy efficient light bulbs have been installed throughout the units and common areas.  Low flow sink faucets and shower heads are also currently being tested in several units. These changes will both save money in operating costs as well as attract visitors who are looking for Green Hotels. 

As you can see a lot has been accomplished throughout 2008 that is worthy of remembering, and other good news to show positive trends for the year to come.  On behalf of the entire GullWing team, I would like to wish you and your families the very best this New Year.  I look forward to seeing you on your future trips to GullWing.  As always, please feel free to contact me directly with any questions or concerns. 

Sincerely, 

Curt Brenner
General Manager