BGV Grand Lodge on Peak 7 - 2023 Maintenance Fees

[echino]

Breckenridge Grand Vacations - Grand Logde on Peak 7

Two bedroom lockoff, fees without cash discount:

2022: $1,874.13
2023: $2,066.51

+$192.38 (+10.3%) increase

The largest expense responsible for the increase is the Management Fee: it increased +47.8%. Actual expenses to run the resort did not increase significantly, and some expenses even decreased.

 

[gravityrules]

You are right about the Management Fee increase but this is not a surprise and these fees were set up on a 9 year schedule with earlier years heavily developer subsidized with the subsidy disappearing over that time. I don't own here but did download the PDF of the last board meeting where this is explained in detail. This document also showed a MF comparison to the other premium Breck resorts and the +2k MF actually looks quite competitive. The document also notes property taxes in Breck going up over 60% in this valuation year!

 

[echino]

You are right about the Management Fee increase but this is not a surprise and these fees were set up on a 9 year schedule with earlier years heavily developer subsidized with the subsidy disappearing over that time. I don't own here but did download the PDF of the last board meeting where this is explained in detail. This document also showed a MF comparison to the other premium Breck resorts and the +2k MF actually looks quite competitive. The document also notes property taxes in Breck going up over 60% in this valuation year!

I did not see a discussion of increasing management fee in any of the documents.

I received that comparison of fees to other Breckenridge resorts, it contained false information. For example, it said that Valdoro Mountain Lodge 2br fees were $3,366 in 2022. This is false. Those fees were $1,608.33 in 2022 and $1,735.20 in 2023. I know because I own there. Those are for every year weeks, not for even/odd.

 

[gravityrules]

Here is a snapshot from the relevant section

Strategic Budget Plan

As agreed upon last year, we have updated the GL7OA allocated General and Administrative expenses as well as the Illustrative Example of Management Fees for 2023. As you may recall, a multi-year strategy has been designed which includes a Memorandum of Understanding as well as the Illustrative 8-year Cover of G&A Expenses.