This information recently came in from O'Neill Hotels & Resorts Ltd.
A new 20-year management agreement has been implemented between the owners of The Westin Resort & Spa and OHR Whistler Management Ltd., a subsidiary of Vancouver-based O’Neill Hotels & Resorts Ltd. The new agreement has moved away from a revenue-based fee structure to a profit-sharing business plan which closely aligns the interests of the owners and management. The short term impact is expected to boost net income for the owners. The long term impact provides an opportunity for both the owners and OHR to achieve greater long term growth. The resulting increase in value has made owning a unit at this Four Diamond rated hotel that much more enviable.
“We recognized that changes needed to be made, but they had to be ones that truly made a difference for all stakeholders involved,” explained John O’Neill, president of O’Neill Hotels & Resorts Ltd. “We’ve spent many, many months candidly discussing what would work to make owning and/or buying a unit the right investment for all involved, so the changes that have been made to the terms of agreement are not just a collaboration of input between owners and ourselves, but also the franchise division of Westin Hotels.” O’Neill also stated that an investment partnership, of which they are a part, has also recently purchased a substantial number of hotel suites in the Westin, which will further align them with the other owners.
In addition to this new management agreement the interests of all stakeholders will be further enhanced with the planned multi-million hotel refurbishment program for the 8-year old resort hotel, which is to begin in spring 2009. Acknowledging the importance of this new management agreement and the need for the changes to be win-win for all, Starwood Hotels & Resorts, franchise operators of Westin Hotels & Resorts worldwide, will be contributing $1 million to the refurbishment program.
“We’re very pleased with the changes to the terms of the new agreement for current and prospective condo owners at the Westin,” said Colin Yip, president of the Strata Corporation at The Westin Resort & Spa. “For several years the owners have attempted to renegotiate several aspects of the hotel management agreement and it has finally come to fruition. The key to the new deal was changing the contract from a gross revenue focus to a shared net income focus which will result in more money in owners’ pockets. With the winter Olympic games just under two years away, the opportunities of a better bottom line can be more optimistically realized with these welcomed changes.”
Opened April 3, 2000 and twice-named the #1 ski resort hotel in North America by Condé Nast Traveler, The Westin Resort & Spa has just recently been awarded the Four Diamond-designate from AAA/CAA for the eighth consecutive year. As well, the Westin has been given the nod by AWARE with its Whistler Environment Business Award and the Hotel Association of Canada’s Three-Green Key eco-award, which recognizes the numerous green-friendly initiatives in place at the hotel.