Is Premier falling apart?
September 29, 2009
Managers at four properties formerly managed by Premier Resorts International confirmed this week that contracts were cancelled between the company and the local homeowner associations. Another property confirmed that the contract is up for renewal in October.
Last week The Park Record reported that Premier Resorts voluntarily announced it would cease operations in Sun Valley, Idaho Sept. 30. Management of hundreds of condos and dozens of associations would be handed over to Hawaii-based Aston Hotels and Resorts. Representatives from Aston have not responded to emails.
This week, managers at Hotel Telluride and Manor Vail in Colorado, Whalers Cove in Hawaii, and The Point Orlando Resort in Florida all confirmed that contracts between the associations and Premier were cancelled this month.
Marketing manager Michael Newberger at Lakeland Village Resort in South Lake Tahoe in California confirmed Premier’s contract was up in October, but could potentially be renewed by the association.
Bob McCleary, general manager at Manor Vail, said he and his staff were formerly employed by Premier. The association chose to go with a new company, based in Colorado, and his staff will stay on to work for the new property manager.
It is unclear in the other three situations if the cancellations were initiated by Premier (as in the case of Sun Valley) or by the associations.
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These four properties plus Sun Valley equate to a loss of one-third of Premier Resorts International’s 15 vacation-rental offerings in the United States (it also has offerings in Mexico).
Managers in Breckenridge, Colo., Bend, Ore., and six other Hawaii properties could not be reached by deadline for Wednesday’s edition.
The only offering contacted Monday who knew of no upcoming change was a single yacht available for charter out of Bellingham, Washington.
These four confirmed cancellations follow the cessation of a property management contract at Barefoot Resort in South Carolina earlier this month. A South Carolina bank is also currently pursuing payment on defaulted loans taken out by Premier worth $6.75 million.
The Utah division of Premier Resorts, Deer Valley Lodging, succumbed to demands for bankruptcy earlier this summer and is still in that process. The three principals of the company, director Bradley Goulding, director Barbara Zimonja, and controller Ariane Spicer will undergo questioning next week by attorneys for the trustee.
The troubles of Premier Resort International began last March when the company announced it could not pay Park City condominium owners their share of January and February rental revenues. Barefoot Resort owners were told they would not receive July and August portions of revenues there this month.