Lawai beach resort upped their resort fee to 40$/day then cancelled it entirely. Why?

[gggllm]

Was considering exchange into LBR due to owner managed reputation, but the previous resort fee hike seems too high and not sure why it was cancelled soon after?

Main concern is they might hike the resort fee again if booking to far in adance.

 

[magmue]

We own a week at Lawai, and have been impressed with their stewardship and management approach - challenging for an independent! If you do go, you might want to attend the weekly owner's meeting. Anyway, my understanding is that as budgets get tighter, it was one way to bring in a bit more revenue. But they decided to charge the resort fee whenever a unit was being occupied by a non-owner, even if the occupant was extended family. And some owners pushed back. Ultimately, the resort fee was cancelled altogether

 

[DeniseM]

Was considering exchange into LBR due to owner owned name

Do you mean: Since the resort is managed by the owners?

 

[gggllm]

Do you mean: Since the resort is managed by the owners?

yes

 

[gggllm]

We own a week at Lawai, and have been impressed with their stewardship and management approach - challenging for an independent! If you do go, you might want to attend the weekly owner's meeting. Anyway, my understanding is that as budgets get tighter, it was one way to bring in a bit more revenue. But they decided to charge the resort fee whenever a unit was being occupied by a non-owner, even if the occupant was extended family. And some owners pushed back. Ultimately, the resort fee was cancelled altogether

Definitely a good news for exchanger as well. But the budget issue in Hawaii is challenging. I also see your MF rise 20% in 2026

 

[magmue]

I also see your MF rise 20% in 2026

Yes - a big gulp for sure. If the board had kept the resort fees for exchangers, it would not have been as big.

 

[DeniseM]

Unfortunately, as an aging resort, LBR is due for some major repairs, and that is what the increase is for.

 

[magmue]

as an aging resort, LBR is due for some major repairs

LBR has been more proactive than most. From their spring 2020 newsletter on spalling:
"Spalling is the delamination of the concrete from damaged steel reinforcement (rebar) inside the concrete. Spalling occurs when the steel rebar is exposed to moisture causing rust, which expands and cracks the concrete around it. We discovered the first spalling issue in 2007 and to date completed approximately $1.5 Million in repairs without any special assessment to the owners. We continue to identify and repair any concrete spalling issues that arise as it is an issue that needs immediate attention for safety reasons. It is an issue affecting many resorts in the islands as we are exposed to moisture rich salt breeze. "

Just think if KBV had begun dealing with their spalling issues in 2007.