skimble
TUG Member
Until yesterday, I thought Grand Pacific Resorts was the most fiscally responsible of all the management companies. This is not the case anymore.
Grand Pacific Resorts has a formulary that they pride themselves on. It's part of their sales pitch to potential owners, potential management clients (to which they are actively seeking to broaden their network of resorts to manage-- internationally), and they reassure current owners that their fees are being handled responsibly. They have a computer program that sets a schedule for roof repairs, carpet replacement and other large anticipated repairs. Fees are broken into two parts-- Maintenance and Reserves. The reserves are set aside so we are never hit with a special assessment or debt. It's a proactive way of anticipating future costs and saving up to pay for them. And, it explains our high maintenance fees: Maintenance fees for a 1 bd unit at the Seapointe are between $1097 and $1355, depending on size.
Grand Pacific Seapointe has broken away from their principled fiscal management program and chosen to take on debt. The debt will be secured by future reserve funds. Resort management would have you believe that using today's dollars to pay for a complete refurbishment and going into debt is wiser than doing pieces at a time. Given inflation, there may be some truth to this, it does not negate the fact that we have a reserve fund. And, that reserve fund is there to anticipate these "needs."
"Need" is a subjective word that is open for interpretation. The Seapointe is officially 20 years old (and there were three phases built over about a 5 years span-- not all built at once.) While salt water and wind can be harsh on coastal properties, the kitchen and bathroom are inside the units, fairly protected. The countertops were changed to granite about 7 years ago. Appliances have been regularly maintained or changed accordingly, and this has all been done responsibly using reserve funds. Is a quartz countertop really a need in light of the fact that we already have granite?
The plan is to put in new cabinets, new flooring... essentially replace most of the kitchen and bathroom. It's a huge renovation, and a huge cost.
The Seapointe is nearly the highest rated resort in all of Carlsbad on Tripadvisor. All dis-aggregated scores on RCI are between 4 and 5. Unit satisfaction is at about 4.4 out of 5. Thus, people are not dissatisfied when they stay at the resort. As part of our presentation, they told owners yesterday that we were trending down in unit satisfaction. If you've ever been to the Seapointe, you know, the units are nicely decorated, the kitchens are functional, well apportioned and feel modern, and the rooms are clean. And, after 15-20 years in service, maybe there is a case to be made for replacing all the cabinets, flooring and countertops, but why is Grand Pacific choosing debt? Why aren't the reserves in place for this? And, if they leverage future reserves for this, what will happen in 10 years when the roof needs to be replaced?
How can this decision be attributed to Grand Pacific management and not the individual board of directors for the Seapointe in and of itself? The board has not changed in 20 years. The same members get elected every year, and those board members are the same members who occupy seats on most of the other boards within Grand Pacific (true for the coastal CA area.) The board is comprised of people who have strong connections to Grand Pacific. They are engaging in a debt cycle that will likely be perpetuated. And, they are neglecting the Grand Pacific principled approach of fiscal responsibility. If it happens at one Grand Pacific Resort, you better believe it can happen at any of them.
Resale property values, as evidenced by Ebay, TUG, and Redweek, at Grand Pacific Seapointe, Grand Pacific Palisades and even Marbrisa (where they have new sales and incomplete development) are low. People are giving away weeks on Ebay and TUG. This can only be attributed to the high maintenance fees. A debt cycle will only make things worse.
tag
Grand Pacific Resorts
Hilton Grand Pacific Seapointe
Hilton Grand Pacific MarBrisa
Grand Pacific Resorts has a formulary that they pride themselves on. It's part of their sales pitch to potential owners, potential management clients (to which they are actively seeking to broaden their network of resorts to manage-- internationally), and they reassure current owners that their fees are being handled responsibly. They have a computer program that sets a schedule for roof repairs, carpet replacement and other large anticipated repairs. Fees are broken into two parts-- Maintenance and Reserves. The reserves are set aside so we are never hit with a special assessment or debt. It's a proactive way of anticipating future costs and saving up to pay for them. And, it explains our high maintenance fees: Maintenance fees for a 1 bd unit at the Seapointe are between $1097 and $1355, depending on size.
Grand Pacific Seapointe has broken away from their principled fiscal management program and chosen to take on debt. The debt will be secured by future reserve funds. Resort management would have you believe that using today's dollars to pay for a complete refurbishment and going into debt is wiser than doing pieces at a time. Given inflation, there may be some truth to this, it does not negate the fact that we have a reserve fund. And, that reserve fund is there to anticipate these "needs."
"Need" is a subjective word that is open for interpretation. The Seapointe is officially 20 years old (and there were three phases built over about a 5 years span-- not all built at once.) While salt water and wind can be harsh on coastal properties, the kitchen and bathroom are inside the units, fairly protected. The countertops were changed to granite about 7 years ago. Appliances have been regularly maintained or changed accordingly, and this has all been done responsibly using reserve funds. Is a quartz countertop really a need in light of the fact that we already have granite?
The plan is to put in new cabinets, new flooring... essentially replace most of the kitchen and bathroom. It's a huge renovation, and a huge cost.
The Seapointe is nearly the highest rated resort in all of Carlsbad on Tripadvisor. All dis-aggregated scores on RCI are between 4 and 5. Unit satisfaction is at about 4.4 out of 5. Thus, people are not dissatisfied when they stay at the resort. As part of our presentation, they told owners yesterday that we were trending down in unit satisfaction. If you've ever been to the Seapointe, you know, the units are nicely decorated, the kitchens are functional, well apportioned and feel modern, and the rooms are clean. And, after 15-20 years in service, maybe there is a case to be made for replacing all the cabinets, flooring and countertops, but why is Grand Pacific choosing debt? Why aren't the reserves in place for this? And, if they leverage future reserves for this, what will happen in 10 years when the roof needs to be replaced?
How can this decision be attributed to Grand Pacific management and not the individual board of directors for the Seapointe in and of itself? The board has not changed in 20 years. The same members get elected every year, and those board members are the same members who occupy seats on most of the other boards within Grand Pacific (true for the coastal CA area.) The board is comprised of people who have strong connections to Grand Pacific. They are engaging in a debt cycle that will likely be perpetuated. And, they are neglecting the Grand Pacific principled approach of fiscal responsibility. If it happens at one Grand Pacific Resort, you better believe it can happen at any of them.
Resale property values, as evidenced by Ebay, TUG, and Redweek, at Grand Pacific Seapointe, Grand Pacific Palisades and even Marbrisa (where they have new sales and incomplete development) are low. People are giving away weeks on Ebay and TUG. This can only be attributed to the high maintenance fees. A debt cycle will only make things worse.
tag
Grand Pacific Resorts
Hilton Grand Pacific Seapointe
Hilton Grand Pacific MarBrisa