Why Owner Compensation Differs From Guest Compensation

As a Fractional Owner, you contribute to the resort's operating costs. These fees cover everything necessary to keep the property running at a high, luxury standard while keeping costs as low as possible for every owner. When a paying guest experiences an issue (e.g., a maintenance problem), the resort can offer compensation because the nightly rental rate already includes a margin that covers unplanned expenses and potential compensation.

However,  owners do not pay the same type of nightly rate. Any compensation you receive as an owner effectively comes out of the shared budget—the same pot of money you contribute to along with your fellow owners. Therefore, awarding compensation to an owner is essentially the owners paying themselves. This is why compensation for owners is generally kept to a minimum.

It is similar to owning a condo outright: if your property floods, you do not compensate yourself out of pocket; you simply cover the repair costs. With fractional ownership,  if your suite requires compensation for an unexpected incident, you and all the other owners collectively end up footing that bill, which can result in less of a budget to fix/maintain the actual underlying issues.

Hence, while we strive to mitigate all issues for everyone’s comfort, compensation policies for owners and paying guests must remain different to ensure the long-term financial stability and affordability of your shared asset.

Important Note on Frequent Compensation Requests

Over the past few years, we have noticed that a handful of owners regularly request compensation for various issues during their stays. Meanwhile, the majority of owners may experience occasional inconveniences but do not seek financial restitution each time. This discrepancy is unfair to other owners, as it creates a skew in how compensation funds are used. We have become more stringent about approving compensation requests to maintain fairness and keep costs equitable.

By adhering to these guidelines, we can uphold the long-term financial stability of the resort, ensure fairness among all owners, and keep operating costs as low as possible for everyone.