RSL Luxury Condominiums

Transcription

1 RSL Luxury 588 San Lorenzo, Palm Springs Twelve Distinctive Units Total Eleven - 2 BDR-2 BA (1,150 to 1,300 SF) One - 3BDR-3BA (2,100 SF) Prepared For: Luca Volpe Real Estate & Property Management - Realty Trust

2 Dear Luca, Thank you for inviting ACME House Company to submit a proposal for Full Service Professional Property Management Services for RSL Luxury 588 San Lorenzo, Palm Springs, California. Since 2009 ACME House Company has been specializing in property management and innovative marketing. Our dedicated team of professionals can offer RSL Luxury Condominiums a high level of professional and personalized service that yields 5-Star Guest Experiences and Reviews. Our team focuses on providing our property owner partners with timely communication, easy to understand financial statements, and reservations tracking in real-time. Our Reservations Team has extensive experience in yield management that utilizes a Smart Pricing System to establish the right rate adjustments to drive higher annual revenue. We use a combination of our data-driven platform and staff expertise to adjust each night's price to adapt for market demand. This proposal will serve as a guiding point for further discussion and can be modified at any time. We look forward to discussing this opportunity with you in more detail. Best Regards, John-Patrick Flynn Branding & Marketing Specialist Debra Comer Sales & Marketing Manager

3 About ACME House Company Acme House Company has experienced yet another banner year. Despite major changes in the global, national and local Hospitality Industry, we have achieved many of our goals for our company and the properties we manage. This has been a year of accomplishments. We increased our average nightly rates by 9% - 24%. We met or exceeded the income projections for more than 84% of the properties we manage. Guest satisfaction rate is at an all time high, and our return stay ratio is up more than 18%. We have staffed up sufficiently. We are now at a 1:4 ratio of staff to properties. Our data base of loyal opt-in followers has grown by more than 9,400 travelers. We ve been recognized as the Best of the Best in Vacation Rental Management by both the Palm Springs Life Reader Poll and The Palm Springs Tourism Bureau. Conde Nast named us among the Top 10 Vacation Rental Manager to Trust Worldwide Four Golden Palm Hospitality Awards Rave 5-Star Reviews on Google Our Acme Executive Team Has Had Our Finger On The Pulse Of The Market Our Executive Team attends the key industry summits and planning sessions. We belong to nearly a dozen Hospitality think-tanks. And we retain industry consultants who have helped us cultivate relationships with people on the inside at the major Online Travel Agencies. We are informed, educated and ready to adapt our marketing practices to keep up with the times. We know what the major Online Travel Agencies are doing and how their strategies affect the vacation rental industry and the marketing of your property. As a result, we are rolling out some changes that will keep you ahead of the curve. This Is What You Can Look Forward To In The Coming Months More Online Travel Agencies. More Focus On the International Business. And, Oh Yeah, The Millennials. Currently, about 40% of our bookings come directly through our Acme House Company website. We use social media, blasts, advertising, public relations, pay per click campaigns and search engine optimization to drive traffic to our website and build our loyal guest following. About 60% of our bookings currently come to us through Online Travel Agencies. We will feature your property on AirBnB, HomeAway, VRBO and many of the other sites we have been including in our marketing mix over the past few years. Now we are aggressively adding more sites to our distribution list every day.

4 Recently Added To Our Distribution Channel Expedia Expedia Affiliate Network VacayStayConnect.com Villas.com Venere.com We Are Currently In Negotiations To Add The Following Sites To Our Distribution Channel Hotels.com OwnerDirect.com RedAwning.com RentalSpot.com RentalSource.com Tripping.com Roomorama.com Alltherooms.com CastleCave.com Vaystays.com VacayHero.com VacationRentalSupermarket.com VRGuest.com New Alliances With The Tourism Bureaus Here and Abroad We are reaching beyond the online travel model to open new markets, develop additional sources for bookings, and establish new relationships that will keep feeding us guest referrals. We have forged a valuable relationship with the Palm Springs Tourism Bureau. They are now referring celebrities, travel writers, adventure bloggers and other tastemakers to stay at Acme managed properties. This helps us raise brand awareness, generate press coverage, increase search engine optimization, obtain more positive reviews and drive more traffic to our website. Our colleagues at the Palm Springs Tourism Bureau have introduced us to Tourism Officials, Travel Agents, and Tour Operators from all over Europe. In the past few months we have hosted travel planners from England, Germany and France who specialize in family and small group travel. We are now working with these professionals to create packages for their client base that will include your property.

5 Millennials are 25% of the population, but over 35% of travelers belong to this generation Millennials spend money on travel, and they consider it far more essential to their lifestyle than the older population. They take more last minute trips than Boomers or Gen-Xers, and they place a high emphasis on traveling with friends in small groups. While we will still maintain our policy of requiring that the primary lease signer will be of proper age (21 in some cities and 25 in others), we are tapping into the thirty year old set that is just now discovering Vacation Rentals as an alternative in the Coachella Valley. We have aligned ourselves with tastemakers like artists, writers, young up and coming celebrities, fashion experts and bloggers who have a tendency (and sometimes vested interest) in spreading the word about their travel experiences. We have been creating special promotions and offers to attract these well-connected Millennials to stay at Acme Properties in exchange for them promoting our Vacation Homes. Our Navis system is able to report on website traffic generated through their social media and published writings. So far the results have been very encouraging. We Have Invested In Marketing To Our Own Followers Across the board, our guest reviews rave about staying at Acme Managed Properties. We represent great properties. We manage them well. And we provide great guest experiences. It is a fruitful and successful partnership. Now we are reinvesting in that partnership. Earlier this year we invested a sizable amount of money in Navis, the Vacation Rental Industry s leading sales and marketing software system. This is an intricate, high- performance sales and marketing solution that helps us stay in contact with our followers, track our referral sources, and record our guests travel habits and preferences. In the six months since retooling our operation to follow the Navis Way, we have become more efficient and cost effective. Our Reservations Team is spending less time on recording keeping and paper pushing and more time building relationships, selling and closing. Our well- oiled machine just became a powerhouse - and we can see the results already. We re Shifting The Balance So We Can Help You Increase Your Bottom Line We are projecting that Online Travel Agencies will always be a part of our marketing mix. However, all of the Vacation Rental Gurus, Industry Consultants and Hospitality Experts agree: Smart Property Owners and Management Companies need to shift the balance so we rely less on the Corporate-owned Travel Sites and more on the leads we generate ourselves. When the OTAs hold all the cards - they control the purse strings. We have always known this. That is why our self generated bookings are at 40% rather than the standard industry rate of 20-25%. We are now ready to protect your profits by taking it to the next level. By 2019 we hope to realize a direct booking ratio of 65%. That will help us contain the cost of doing business and maximize your profit yield.

6 Do All The Different Online Travel Agents Charge The Same Fee? What About Rate Parity? The simple answer is no. Each Online Travel Agent has their own fee schedule. But we have used our Brand Name, standing in the Vacation Rental Management Community and insider information provided to us through our Industry Events and Consultants, to negotiate a cap on fees. If they want our business (and they do) then they have to make some concessions. What we refuse to pay in excess fees, the Online Agents will pass along to the guests. That means that there won t necessarily be rate parity across platforms. But that is okay with us, because ultimately, consumers will figure out that they can get the best price by booking directly through our Acme House Company website. A Day To Day Approach To Reaching Your Financial Goals and Projections. We have overhauled our approach to rate management. We have built a Smart Pricing System that establishes the right rate adjustments to drive higher annual revenue. We use a combination of our data-driven platform and staff expertise to adjust each night's price to adapt for market demand. We use your projected daily rate for each season as a benchmark. Similar to Five-Star Resorts, we then employ our flexible and constantly adjusting rate management approach to achieve, and in many instances, exceed our monthly and annual income projections for your property. By comparing your rates against the competition, we capture the highest rate possible for any given stay. This also gives us the flexibility to attract the more lucrative longer 30+ day stays. Marketing & Branding Specialists Development of Marketing Programs Direction of Press Relations and Social Media Development of Brand Identity As your Full Service Property Management Company & Marketing & Advertising Partners, we offer the most comprehensive and aggressive marketing program, putting our properties before millions of qualified travelers worldwide. In addition to promoting our listings on our proprietary website, we use dozens of the top partner marketing websites, social media outlets, blogging, and online remarketing. Financial & Accounting We provide a detailed Monthly Owners Statement for each unit and ACH fund transfer to checking or savings account, along with backup detail. Property Care & Housekeeping Management We continually invest in the heart of our company with improved technology and staff training to deliver a 5-Star guest experience every time.

7 PRELIMINARY RENTAL RATES, OCCUPANCY & GROSS REVENUE PROJECTIONS Proposed Mixed Rental Use: 3 Bedrooms / 3 Bathrooms Proposed Weekly Short Term Vacation Base Rental Rates $1,800 Peak 5+ night minimum 75% - 85% occupancy $1,500 Shoulder 4 night minimum 40% - 60% occupancy $1,000 Summer 2-3 night minimum 30% - 50% occupancy Monthly Rentals $3,000+ (Shoulder and Summer) and $3,500+ (Peak) 2 Bedrooms / 2 Bathroom x 11 Units Proposed Weekly Short Term Vacation Base Rental Rates $1,500 Peak 5+ night minimum 75% - 85% occupancy $1,300 Shoulder 4 night minimum 40% - 60% occupancy $ 900 Summer 2-3 night minimum 30% - 50% occupancy Monthly Rentals $2,000 (Shoulder and Summer) and $2,500+ (Peak) Complex Buyouts 2-7+ night minimum stays yearly defined buyout periods Average Gross Base Rental Ranges $11,750 - $36,000+ Projected Gross Annual Rental Income Estimates: High Range = 75% occupancy Low Range = $ 55% occupancy