Deer Valley Lodging–Not “Too Big To Fail”
May 13th, 2009 Categories: Deer Valley®, Park City, Real Estate
Deer Valley Lodging Delays Payments to Deer Valley Condo & Deer Valley Home Owners
Deer Valley lodging, a management company owned & operated by Premier Resorts International, sent a letter in late March 2009 to hundreds of property owners warning them that the company would be unable to make rental revenue payments to property owners for rentals in February & March, 2009.
According to the letter, “This extraordinary situation necessitates that we delay payment of current amounts owed to condominium unit owners under our Rental Agency Agreements. DVL plans to pay all owners the full amounts owed as soon as possible.”
The astonishing demise of one of Park City’s most influential property-management firms is being felt in many sectors of the Park City business community.
Because of the enormous range of services property managers offer, the line of unpaid creditors includes everyone from florists to plumbers.
Deer Valley Lodging Terminates Over 100 Employees
Since the announcement, Deer Valley Lodging–Deer Valley Utah’s largest property management firm–has been searching for solutions to its cash-flow challenges.
During the first week of May, Premier Resorts laid off over 100 employees, and announced a cancellation of accrued, unused vacation pay, sick leave, and personal time.
And the news hasn’t gotten any better for Premiere Resorts since the initial announcement…
Premier Resorts (DBA Deer Valley Lodging) Headed Into Bankruptcy?
Park City attorney Joseph Tesch filed a petition for involuntary Chapter 7 bankruptcy in federal court on behalf of a handful of condominium owners at The Lodges at Deer Valley, most of whom are also board members of the homeowners’ association.
According to Premier Resorts International, the parent company of Deer Valley Lodging , the filing “complicated” the company’s search for a solution to pay the 500 plus owners who have not received past-due rental revenues for February and March rentals.
The letter also said the filing “will likely affect our ability to attract financial assistance.”
It was hoped, briefly, that an investor would step in to assume the company’s financial obligations, but it appears now that will not happen. Deer Valley Resort is forming its own property-management arm.
Deer Valley Resort Steps Up, Forms New Lodging & Reservations Division
Premier Resorts, DBA Deer Valley Lodging, had use of the Deer Valley® name through a licensing agreement with Deer Valley Resort. Based on the recent turn of events, Deer Valley decided to revoke the licensing agreement and form a new company to handle the property management needs of the Deer Valley community.
The new company will provide property management services for Deer Valley condo and home owners, and community HOA’s (Homeowner’s Associations).
Kim McClelland will head the new company as Director of Lodging Operations for Deer Valley Resort Lodging and Reservations. Mr. McClelland is a longtime local lodging veteran who has also served as president of the Park City Area Lodging Association, the Park City Rotary Club and the Park City Chamber/Bureau. He is also involved with the Utah Office of Tourism and the Utah Ski Association.
We hope the new company will hire many of Deer Valley Lodging’s other key staff as well!
Related Park City & Deer Valley Property Management Articles:
Top 15 Questions to Ask Your Park City Property Manager
Park City Rental Agency David Hollands Delays Rental Payments to Owners
[...] Deer Valley Lodging Delays Rent Payments to Owners [...]
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I was just talking with my friend about this last week at lunch . Don’t know how in the world we landed on the subject really, they brought it up. I do recall having a excellent chicken salad with ranch on it. I digress…