As I'm reading the various threads, especially the DRI/P@P threads, I see a lot of assertions about the massive amounts of overhead and "pure profit" Diamond and the like build into their management fees.
That made me curious. What does the typical management company charge owners over and above the maintenance cost of a resort?
I only have access to Diamond's Hawaii Trust records. This is what is in the 2012 budget...
Maintenance fees $22,499,917
Management fees $ 2,860,413
Accounting $ 608,850
General & admin $ 352,444
So, that's ~17% total for management fees. Of course, I expect they charge the HOAs for each property a management fee also. Obviously the full 17% never makes it to Diamond's bottom line as they have their own sizeable expenses.
Anyway, this would be an interesting table to see for each of the major companies and a handful of major owner managed resorts. Anyone willing to share? I'm quite curious to know if this number is more or less than say, Marriott, Disney, Worldmark, etc. I'm sure it's higher than owner managed resorts. However, I personally don't want the headache of managing a vacation property. I'm willing to pay more to have professionals do it for me. It would be good to understand how much more I'm actually paying.
That made me curious. What does the typical management company charge owners over and above the maintenance cost of a resort?
I only have access to Diamond's Hawaii Trust records. This is what is in the 2012 budget...
Maintenance fees $22,499,917
Management fees $ 2,860,413
Accounting $ 608,850
General & admin $ 352,444
So, that's ~17% total for management fees. Of course, I expect they charge the HOAs for each property a management fee also. Obviously the full 17% never makes it to Diamond's bottom line as they have their own sizeable expenses.
Anyway, this would be an interesting table to see for each of the major companies and a handful of major owner managed resorts. Anyone willing to share? I'm quite curious to know if this number is more or less than say, Marriott, Disney, Worldmark, etc. I'm sure it's higher than owner managed resorts. However, I personally don't want the headache of managing a vacation property. I'm willing to pay more to have professionals do it for me. It would be good to understand how much more I'm actually paying.