# [2012] Pono Kai to Get New Management Company



## slip (Nov 2, 2012)

Here's the post from the Pono Kai Website. More information to come.
Online reservations would be good.


Pono Kai Interval Owners Association
Special Notices

Dear Pono Kai Interval Owner,


As part of our ongoing due diligence to always try and look out for the best interest of all owners within the Pono Kai Interval Owners Association, including maintaining a fiscally responsible
approach to the management of the Pono Kai Resort, your Board of Directors recently solicited management proposals since the current agreement with Bluegreen was up for renewal. We did this for many reasons and were very diligent in our approach to this process. We heard from many management companies and received proposals from five (5) companies. Each one of these companies presented their proposals and the board had the opportunity to interview representatives of each company and to ask questions and look at the overall strengths that
each company would bring.


Based on the outcome of this process we have given notice to terminate our existing agreement with Bluegreen effective on December 31, 2012. This was a unanimous decision by your Board
of Directors. We selected a new management company based upon many factors that we believe brings the best fit for our Association at this time by bringing a wealth of experience,
new system capabilities, owner benefits, and a clear plan to assist us in controlling our maintenance fees and expenses going forward. We are finalizing the terms with our new
management company and will communicate specific information shortly. Bluegreen will still be managing the Association until December 31, 2012. Our new Management Company will take
over providing services on January 1, 2013. This will include maintaining the existing staff and full management services including; Reservations, Owner Services, Billings & Collections, Financial Services, new PMS Computer Systems, and oversight of operations at the Resort.


We know that you may have questions as to how this may impact you and your ownership at the Pono Kai. Throughout and at the end of this transition there should be no change to your
ownership, use rights, and or on-going enjoyment of what you purchased. Our intention is to have this process be seamless for all of us. We will be providing another correspondence shortly that will provide details including a Q&A section that should answer most of your questions, such as new phone numbers, etc.


We are very excited about this upcoming change and believe this will be very beneficial to our Association for years to come. We believe that there will be some new benefits for all owners such as on-line reservations and bill payments to name a couple. Bluegreen has been a good management partner for many years but we believe that it is time to make this change going forward.


As mentioned above, we will be working with Bluegreen and our new management company to make this transition as smooth as possible as we move forward. Please look for another communication shortly with more details.


Thank you very much!
Sincerely,


Your Pono Kai Interval Owners Association Board Of Directors


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## DaveNV (Nov 2, 2012)

So Jeff, who is the management company with "a wealth of experience?" Wyndham?

Dave


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## slip (Nov 2, 2012)

Should we start a pool? I really have no idea. It would be interesting to hear
Which five they got proposals from. I know when Bluegreen Came in, after a few
Years, they bought a few hundred delinquent weeks. Everyone was worried that
The board would be over run by Bluegreen. This seems strange that they would
Be able to get a unanomous vote to leave them as the management company.
I was happy with Bluegreen but we'll just have to wait and see now.


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## T_R_Oglodyte (Nov 2, 2012)

I would imagine that Trading Places would, at the least, be a pretty significant competitor for the contract.


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## slip (Nov 2, 2012)

What resorts does Trading Places manage?


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## csalter2 (Nov 2, 2012)

slip said:


> Should we start a pool? I really have no idea. It would be interesting to hear
> Which five they got proposals from. I know when Bluegreen Came in, after a few
> Years, they bought a few hundred delinquent weeks. Everyone was worried that
> The board would be over run by Bluegreen. This seems strange that they would
> ...



If this is the same Pono Kai, Diamond Resorts International has units there and they may be in the running.


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## slip (Nov 3, 2012)

I don't know how much Diamond owns but I'm sure it's a possibility. I know
Vacation Internationale owns some units too. I would think they own more than
Diamond but I could be wrong.

The post from the board did say they wanted to keep maintenance fees under control so that
Might eliminate Diamond.


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## Eagle7304 (Nov 3, 2012)

I hope this is a good change. My parent love this resort and are looking forward to their two weeks in 2013.


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## T_R_Oglodyte (Nov 3, 2012)

csalter2 said:


> If this is the same Pono Kai, Diamond Resorts International has units there and they may be in the running.





slip said:


> I don't know how much Diamond owns but I'm sure it's a possibility. I know
> Vacation Internationale owns some units too. I would think they own more than
> Diamond but I could be wrong.
> 
> ...



Diamond does not own any units at Pono Kai.  Diamond gets access to a limited amount of Pono Kai only because Diamond gets access to a certain amount of Vacation Internationale inventory.  But those units are owned by VI, not by DRI.  

****

You can see a list of TPI managed resorts at the TPI website.


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## csalter2 (Nov 3, 2012)

T_R_Oglodyte said:


> Diamond does not own any units at Pono Kai.  Diamond gets access to a limited amount of Pono Kai only because Diamond gets access to a certain amount of Vacation Internationale inventory.  But those units are owned by VI, not by DRI.
> 
> ****
> 
> You can see a list of TPI managed resorts at the TPI website.



I noticed that on the DRI website it does not state that Pono Kai was an affiliate.  However, when you read the Club Disclosure Guide and rules, it does say that Pono Kai is an affiliate and that DRI has 1-5 units accessible there for Club members..


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## Maple_Leaf (Nov 3, 2012)

*I don't have a dog in this fight...*



csalter2 said:


> If this is the same Pono Kai, Diamond Resorts International has units there and they may be in the running.



... but I personally hold the opinion that engaging a management company that currently controls the voting interest of a significant number of units would be introducing a potential conflict of interest.  If a management company has enough votes to influence the Board they should be prohibited from bidding on the management contract.


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## slip (Nov 3, 2012)

Maple_Leaf said:


> ... but I personally hold the opinion that engaging a management company that currently controls the voting interest of a significant number of units would be introducing a potential conflict of interest.  If a management company has enough votes to influence the Board they should be prohibited from bidding on the management contract.



That's why I was really surprised by this. Bluegreen has been managing the 
resort for years and it was a really big deal when they bought all those past
due weeks. I believe they have about 500 weeks now. I really thought they
were firmly entrenched in the resort. I don't know if this will be good or not but
it does show that Bluegreen didn't have the muscle in the board that some people thought.

Like I said I was happy with Bluegreen but that doesn't mean I can't be just as happy 
or better off with other management. We'll see and I'll post the big 
winner as soon as I hear.


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## slip (Nov 3, 2012)

T_R_Oglodyte said:


> I would imagine that Trading Places would, at the least, be a pretty significant competitor for the contract.



After checking the website, I would agree. I'd bet they were one of the five
they got a proposal from. I don't know how long they have managed Maui
Schooner, Kahana Falls or Hanalei Bay but all these would give them the experience
they said in the announcement, at least in Hawaii.

I would think I would be hearing soon. Maintenance fees will be coming soon
and I would think they would be paid through the management company.


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## T_R_Oglodyte (Nov 3, 2012)

csalter2 said:


> I noticed that on the DRI website it does not state that Pono Kai was an affiliate.  However, when you read the Club Disclosure Guide and rules, it does say that Pono Kai is an affiliate and that DRI has 1-5 units accessible there for Club members..



Which is exactly what I said.  "Affiliate" means "no ownership but units are available".  And Pono Kai does show up on the website among the available resorts in the DRI system.

In any case I think it is extremely unlikely that Pono Kai would be considering DRI as a management company for Pono Kai.


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## csalter2 (Nov 3, 2012)

T_R_Oglodyte said:


> Which is exactly what I said.  "Affiliate" means "no ownership but units are available".  And Pono Kai does show up on the website among the available resorts in the DRI system.
> 
> In any case I think it is extremely unlikely that Pono Kai would be considering DRI as a management company for Pono Kai.



I understood you Steve. It's just that DRI usually states which properties are affiliates on their website and Pono Kai did not. I agree with so few units, I don't they would have a chance with their reputation for high maintenance fees.


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## T_R_Oglodyte (Nov 3, 2012)

csalter2 said:


> *I agree with so few units,* I don't they would have a chance with their reputation for high maintenance fees.



No "so few units",  but *zero* units. DRI does not control a single unit, or even week, at Pono Kai, whether by direct ownership or via one of the DRI trusts. Zip. Nada. Nil. Naught.


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## northpole (Nov 9, 2012)

*wow*

Wow... This is definitely a big development...

We just purchased two Pono Kai weeks this past year... I was quite happy with everything that I heard about Bluegreen. (I haven't yet stayed there, we have three weeks reserved in May 2013)/

I used to own at a resort in California that Trading Places managed, I was very happy with them... I'd much prefer Trading Places over Wyndham.

However, the letter states that they are expecting some improvement such as on-line reservation capabilities.  I don't believe that Trading Places has this capability.

My guess is that this is a financial transaction that is benefiting Bluegreen.  Whoever is taking over is probably buying Bluegreen's 500-600 weeks as part of the agreement.  I don't imagine that Bluegreen has been making much profit managing Pono Kai.  They probably decided that it was time to back out, find a buyer for their weeks and leave at the end of their contract... Though it sounds very "caring" that they decided to be "responsible" and look for a new management company for us.  As Jeff stated, they control the board, they could do whatever they want.  I don't really think that controlling our maintenance fees was one of their reasons for looking for another management company.

Wyndham is all over Kauai, it would be quite easy for them to manage Pono Kai.  They could also turn the hundreds of weeks into Wyndham points and sell them...  Diamond seems to also be expanding quite quickly, they could add these hundreds of newly acquired weeks into their Hawaii Club Trust... Both companies would try their best to have us all convert to points and make a tidy profit from existing owners.

It'll be interesting to see what happens... I'd love for Trading Places to take over (though I think that it's unlikely).  I'd prefer DRI over Wyndham... I can't think anyone else that would be interested and that could offer an online reservation system and the other benefits that are being presented (Shell Vacations was recently purchased by Wyndham, I don't think that Marriott, HGVC or Starwood would be at all interested)

It'll be interesting to see what happens...


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## slip (Nov 9, 2012)

Losing the Pono Kai for Bluegreen wouldn't be a good thing for them though.
I know it's very popular with Bluegreen owners. Losing that has them leaving 
Hawaii altogether but like you said maybe it will save them some money.
Does VRI have online reservations? Unless "controlling our maintenance fees"
was just a line, I don't think Wyndham or DRI make sense, but yes either one
could easily take over because they both already resorts on the island.


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## csxjohn (Nov 9, 2012)

slip said:


> ...Does VRI have online reservations? ...



Yes, VRI has an online reservation system for exchanging and if you own at a  VRI resort, you become a member in their exchange company for no annual fee.

You can also pay MFs online.


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## northpole (Nov 9, 2012)

I'd be happy with VRI, I think that they'd do a good job.


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## northpole (Nov 12, 2012)

I called the Pono Kai front desk and asked them who was taking over from Bluegreen, they told me that a company called "Elevation Resort Solution" will be taking over management of Pono Kai.  Apparently they are a new company headed by somebody that used to work with Bluegreen...

I can't find them anywhere on the net?  

I'm not sure what I think, hopefully they will do a good job - I'm glad that it's not Wyndham...

I know that some smaller management companies (at resorts like Hanalei Bay Resort prior to TPI taking over) have done a terrible job, have skimmed money off the top and haven't maintained the property adequately. I hope that this won't be the case....


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## slip (Nov 12, 2012)

So the wealth of experience must have come from working for Bluegreen.
I don't mind trying something new and innovative but I hope they don't have
Too long of an initial commitment. I'll keep an open mind and I'm glad it's
Not Wyndham also.

I do wonder if there is still some Bluegreen connection. I just find it hard to 
Believe that the board decided to leave Bluegreen when the board has Bluegreen
Influence.


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## northpole (Nov 13, 2012)

When I called the front desk, the nice lady who answered the phone with a friendly "Aloha" told me that the company was called Elevation Resort Solution.  I even repeated it back to her to be sure.

Since then, I received an email response from somebody who is very involved with Pono Kai and they've told me that the company is actually called Innovative Resort Solutions - and it's headed by a person named Shawn Ericson.  Apparently, he used to work with RCIM (managed the resort before Bluegreen), then he also worked with Bluegreen and may have been instrumental in Bluegreen getting the original contract to manage Pono Kai.

Coincidentally, there is a VP at Diamond with the same name. Could it be the same person?  

I'm still anxious to get the official notification from Pono Kai, but if the above is all true, then I'm feeling a bit more at ease.  It sounds like this person knows our resort well and has a lot of experience....


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## northpole (Nov 13, 2012)

Here's some information I found on Shawn Ericson.  Of course, I'm sure that there are many Shawn Ericsons out there, but this description seems to fit the person that we've heard about...

http://tipsrich.com/articles/u84042905c/


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## slip (Nov 13, 2012)

There's no date on that Bio but it sounds pretty current. If that is him I wonder
if he still has any affiliation with DRI. I don't think I would care for DRI 
involvement. Thanks for all the info, we'll just have to wait now and see what we
here from the board.


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## northpole (Nov 13, 2012)

I'm quite impressed by Shawn's bio and I hope that his new company lives up to his reputation.

This could be very good for Pono Kai.  Since we're his first contract, everything will be completely customized for us (though there may be a few glitches along the way).  He has past experience with Pono Kai, so I hope that the transition runs smoothly.  I'm sure that his plan is to expand and manage other resorts, which means that Pono Kai will be his showcase/portfolio.  Any other resort considering awarding him a management contract will look at Pono Kai to see what kind of job he's doing - hopefully this will encourage him to do a top notch job for us.

I'm still curious why the Bluegreen controlled board was so fast to change management companies?  Is this a favour that they're doing for an old friend?  Did Shawn stage a "coup", maybe he knows all the board members and convinced them to leave Bluegreen?  In my experience, owning several timeshares, the boards never vote to leave the present management companies!  I can't imagine the WorldMark board of directors deciding to have Diamond take over management...

As for his association with Diamond resorts, it doesn't bother me much.  I'm presently staying at a Diamond resort in Scottsdale, Arizona and I'm very impressed.  From what I've seen, Diamond resorts are very well run and actually quite luxurious (though the maintenance fees reflect it).  I wouldn't mind a bit more luxury at Pono Kai...

I'm assuming that we'll be paying our maintenance fees to Innovative Resort Solutions (ironically it's IRS for short).  I'm wondering if/when/how we'll be billed for it?


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## slip (Nov 13, 2012)

I'm still curious why the Bluegreen controlled board was so fast to change management companies?  Is this a favour that they're doing for an old friend?  Did Shawn stage a "coup", maybe he knows all the board members and convinced them to leave Bluegreen?  In my experience, owning several timeshares, the boards never vote to leave the present management companies!  I can't imagine the WorldMark board of directors deciding to have Diamond take over management...





This is what I don't understand either. Seems very strange but like you said, if
It's a start up, he'll want it to be a success. I'm not against giving him a chance
At all and I think it can be a positive too.

As far as DRI and the luxury, I just think that would be a change for Pono Kai 
And it's not what I was looking for with my purchases. Don't get me wrong, I
Like luxury and nice finishes as much as the next person but I was going with
Longer stays in a clean comfortable unit. I like up to date but being dated for
A few years to get our money's worth out of and update is alright with me.

We 'll see what happens but I'm thinking it will be a positive especially after
Reading his bio. If they do as good a job with reservations as Bluegreen, I'll
Be happy and if they add online reservations that would even be better.
I already pay my dues online so that wouldn't be an upgrade but I hope they
Have that.

I have two more deeds I looking to post in my account so I hope they don't
Get Lost in the shuffle.


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## northpole (Nov 13, 2012)

RE: the luxury factor.

My wife and I were discussing what felt more luxurious here at a DRI resort compared to our other resorts (Worldmark, Lawai Beach, Pono Kai).  

The resort itself is about the same, the only real difference is that they provide nice linens here (fancy white sheets and duvet with fancier pillows), they have large thick luxurious pool towels, and the pool loungers have elegant pillow/pads on them. 

I can't see these luxuries costing very much $$$, but they really do give a good first impression.  It'd be nice to get a some better internet reviews of Pono Kai on the internet.  At Pono Kai I think that some nicer linens, towels and 40 new pool loungers might cost an extra $30 per year in maintenance fees?  It would also make give us better reviews, higher ratings with the exchange companies and might make it easier to re-sell our units (for those who are interested in selling).

I'm also happy if Pono Kai stays like it is - I just REALLY don't want it to get worse in any way.


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## slip (Nov 13, 2012)

I'm with you there. I certainly don't want it to get worse and I do want them
To keep it up. I thought Bluegreen did a good job and they kept MF's under
Control. Rumor has it we're looking at about a 6% increase for this year though.

The online reviews are tough because of the whole owned units there that are 
Rented out. Plus I don't want it to get too crowded.


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## iceeu2 (Nov 16, 2012)

I definitely agree that upgraded linens would be a welcomed asset.


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## northpole (Dec 19, 2012)

Pono Kai's new management company is now called Ericson Resort Management (better name than "IRS").

Here is their website:

http://www.ericsonresortmanagement.com/Default.aspx

I'm hoping that they provide us with online reservations at some point in the future.  On their website there is a "Alliance Partners" tab and they mention a software system called "Triton" timeshare software which they plan to use.  I'm hoping that this software will allow online reservations...

Hopefully this will be a smooth transition...


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## slip (Dec 19, 2012)

I did set up all my accounts on the equiant website to pay my maintenance
fees. I'm going to pay those this weekend. We'll see how that end goes.
I do have two weeks left to book for 2013 so I'll see how that is when I need
to make a reservation. After the first of the year I will verify all my reservations
for 2013. Hope it will go smooth.


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## valbo97 (Jan 3, 2013)

*New Old manager for Pono Kai*

As I understand the owner of the new Management company left RCI and went to Bluegreen. As soon as he left RCI the current Board Majority moved management to them. He left Bluegreen for Diamond then went out on his own. The Board then moved management to him again. I would like others to verify this.
As Bluegreen owns the vast majority of voting ownership interests it will be an interesting Board election next time. Hopefully they (Bluegreen) will put in some of their own people and get a balance on the Board. All the Board members have been there for a long time and have a great allegiance to the new owner of the Management company they chose.
A new company with only one resort is sure to be the "best available" to the current Board who will soon be replaced by Bluegreen representatives.
 Does anyone know when the loan for the purchase of the Real Estate will be completed and when that loan will be paid off? When that mortgage is paid off the maintanence fees should drop.
.


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## slip (Jan 3, 2013)

valbo97 said:


> As I understand the owner of the new Management company left RCI and went to Bluegreen. As soon as he left RCI the current Board Majority moved management to them. He left Bluegreen for Diamond then went out on his own. The Board then moved management to him again. I would like others to verify this.
> As Bluegreen owns the vast majority of voting ownership interests it will be an interesting Board election next time. Hopefully they (Bluegreen) will put in some of their own people and get a balance on the Board. All the Board members have been there for a long time and have a great allegiance to the new owner of the Management company they chose.
> A new company with only one resort is sure to be the "best available" to the current Board who will soon be replaced by Bluegreen representatives.
> Does anyone know when the loan for the purchase of the Real Estate will be completed and when that loan will be paid off? When that mortgage is paid off the maintanence fees should drop.
> .




The way I understand it, the real estate was paid off about 5 years ago.

What I didn't understand was like you said, the board has been around a long
Time and they still voted BlueGreen out. So far so good as far as I see it.
The new system for paying maintenance fees was fine and making reservations
Is the same. Just have to remember a different phone number. We'll see if we
Get online reservations and how things go in the future.


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## northpole (Jan 14, 2013)

Pono Kai has a new website!

Same address as before, but completely redesigned.

Interval Owners website
http://ponokai.com/ 

AOAO website
http://ponokairesort.com/


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## iceeu2 (Feb 23, 2013)

When does Erickson actually send reservations to Pono Kai?  I called the resort yesterday to make certain my reservation was in the system for March 9th and they couldn't find it.  Yikes!!!  The person I spoke with said that they only had reservations thru the 7th of March.  Huh?

After the change from Bluegreen to Erickson, I called Erickson and they finally found my reservation(and sent me a new confirmation) by me telling them the unit # I had reserved. 

I always like to verify with the resort that they have my reservation and I certainly don't want to get to Kauai for 2 weeks and have to pitch a tent!!


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## slip (Feb 23, 2013)

I haven't had that problem yet. I did have three reservations made through
Bluegreen that didn't flow over to Ericson but they straightened it out right
Away. I always make a reservation tied to a specific unit and write it down.
They are able to search much quicker by unit. They still don't guarentee the
Unit but I haven't had anyone moved either. That's pretty much just like before.
I always tell my renters and I always call a week before checkin to confirm the
Room assignment. Sometimes they confirm it and sometimes they say it's done
At checkin but mostly they confirm it.


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## iceeu2 (Feb 27, 2013)

They are able to search much quicker by unit

Thanks, slip!  It worked!  I called and when I gave them the unit #, wala....the reservation appeared!!  Whew, now I can quit worrying about a place to rest my head!

Yippee, Big Island in 3 days and Kauai in 10 day!!


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## slip (Feb 27, 2013)

Glad it worked. It seems the new system is a little slower but so far I think 
They have been much more helpful in reserving specific units. I've had seven
Renters since the start of the year and they always get the unit we reserved.
They've been very helpful to me and even let me make a reservation while one 
Of my new deeds was being processed.

Enjoy your time there, I only have 273 days but whose counting. we just had
Six inches of snow here today and it made me crave an Ono Shave Ice.
There's some great snorkeling on the Big Island, enjoy.


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## mmamot (Apr 10, 2013)

*Concerns about Panaku*

On January 1, 2013, Pohaku took over the management of the Pono Kai from Blue-Green.  I have some serious concerns about their competency and professionalism.  

Owning two weeks of a two bedroom timeshare, I have enjoyed coming to Kapa'a for many years.  My wife and I are particular as to what unit we want to stay in.  In fact, we will pick the time of year when we are to visit Kauai based upon the availability of the type of unit we want. When we checked in this year there was first an issue even finding our reservations.   When it was found the unit we were to be assign to had been changed.  This never happened with Blue-Green.

Eventually, the professional staff at the Pono Kai were able to accommodate us and found a suitable unit after spending a couple of days in an undesirable unit, although it did necessitate moving.   

I called Pohaku to express my concerns and to ensure this does not happen in the future.  I was told they do not guarantee units.  Furthermore, it was Blue-Green's error, even though they had in their records that we were to be assigned the wrong unit.  When I asked to speak to the supervisor, I was told that a "request would be put into her box."   I guess I was not very important because nobody called me back.  So, I called the next day and finally got a call back, but it was more of the same of blaming Blue-Green and no guarantees of assigned units.  All I was looking for was for someone to apologize about the inconvenience and some assurance this would not happen again.  Instead what I was left with was they had no responsibility in the matter and the sinking feeling it will indeed happen again.  The lack of the availability of an on-duty supervisor is astonishing! 

My experience is one of frustration due to the callous and indifferent attitude of personnel at Pohanku.   I am sorry that the change has been made from Blue-Green to an inferior management company.  

Michael Mamot
mmamot@optionfs.org


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