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Moda Management - Case Study 5 Header Image
Case Study Five – Resort Turnaround

The Client - The board of directors of a privately held company developing a Residential Villa and Golf Resort.

Background - A 500 acre development consisting of a final build target of 300 luxury villas. The estate overlooks the Caribbean and is built around an internationally acclaimed golf course. The properties are freehold, of high value and when not in use by owners, form the inventory of the resort villa rental programme. Amenities such as tennis courts, swimming pools, gym and spa facilities, croquet, children’s club, bars and restaurant are provided within a pleasant central clubhouse facility.
The resort rental programme was under performing, real estate sales declining and the property owners unhappy with the operation of the resort facilities, rental programme, golf and property management services.

Objective - To improve the performance of the resort both rental programme and property management aspects and the consequent turnaround of the prevailing climate of owner dissatisfaction.

Project Scope and Implementation
  • An operational review was conducted the outcome of which revealed
    - Low levels of customer satisfaction;
    - An absence of effective planning and asset management;
    - Other serious fundamental flaws in the structure and operation of the business.
  • A detailed plan was produced to address these shortfalls, following structured consultation with owners, members and all employees within the operating departments.
  • Clarity was established in the structure of the core disciplines of the resort including golf and leisure and property management alongside a real estate and construction operation.
  • The plan improved employee morale, in part through the creation and inputting of effective management systems and the consequent improvement of the financial health of the business.
  • This consultation and planning exercise was completed within the first three months; its findings were implemented immediately.
  • Key processes and technologies were reviewed and upgraded as necessary.
  • Databases, sales reports, sales and marketing plan were reviewed into market segments and by country.
  • The web site was reviewed and updated.
  • A sales action plan was created and a Marketing and Sales Manager hired to implement the agreed plan.
  • The property management function was reorganised and a property manager hired to manage this key function, together with an enhanced level of communication with owners, using a quick and guaranteed response time to their queries, clear, understandable monthly statements.
Results
The outcome of these action steps included an improved resort and golf operation, enhanced food and beverage standards and implementation of systems and controls for increased profitability. An action review of the marketing and sales strategies resulted in an 80% increase in villa rentals.

Options for the contracting out of selected services were explored and implemented in areas such as landscaping, security and certain aspects of property management.

The continuing analysis focused the shareholders’ understanding on their primary commercial interest – an accelerated real estate programme.
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Moda Hotel & Resort Management Ltd. Registered in England and Wales. Reg No. 6848306
Registered Office: The Moda House, 1 High Street, Chipping Sodbury, Bristol BS37 6BA
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