Premier Resorts | Deer Valley Lodging delays owner payments

by Staff Writer

Brad Goulding can't pay owners

Deer Valley Lodging can't pay owners

Premier Resorts dba Deer Valley Lodging recently issued a letter to property owners participating in their rental program which outlined recent developments in the company’s financial strength.  The letter details Deer Valley Lodging’s temporary inability to distribute owner payments due under Rental Agency Agreements.  Deer Valley Lodging’s management describes various steps the organization has taken to immediately reduce operating costs and hopefully return the company to a strong operating position.  Deer Valley Lodging Blog obtained a copy of the letter sent to owners:

March 25, 2009

VIA FIRST CLASS MAIL

[Name of owner]

[Address of owner]

Re: Premier Resorts of Utah d/b/a Deer Valley Lodging

Dear [First name of owner]:

As the owners of Premier Resorts, this is a very difficult letter for us to write, and one that we never thought would become necessary. As you are no doubt aware, the U.S. economy is struggling under the pressure of a credit crisis, the magnitude of which is unprecedented in modern financial times. This has been particularly difficult for companies in the hospitality industry that rely upon business lines of credit to even out the inconsistencies of their seasonal business operations. Added to this pressure is the fact that a broader economic recession/depression has also resulted in far fewer vacation travelers. In fact, lodging reservations in Park City this winter have been approximately 30% lower than what we have been experiencing over the past several years.

In response to all of this, Premier Resorts has tried to be fiscally responsible by reducing the compensation and benefits of our entire workforce, by eliminating all bonuses, by resorting to personnel layoffs, and by otherwise eliminating or reducing company expenses wherever possible. Although our traditional sources of business financing have suddenly become unavailable to us, we are working diligently to replace those lenders in order to secure other lines of business credit. Eventually, we feel confident that Premier Resorts will be successful in these efforts and that the pressures on our economy and on the travel industry will start to subside. In the meantime, however, Premier Resorts is currently unable to pay its owners the full amounts owed to them under our Rental Agency Agreement. Please be assured, however, that we will be doing everything in our power to bring your account current just as quickly as possible. To accomplish that, we are enclosing your current statement and will shortly be sending you additional information outlining our proposed payments of your full account balance based upon our best business projections. As we move forward, we will also communicate with you monthly with information on the status of your account and with updates on the progress we are making.

For over 20 years, we have worked to build Premier Resorts into one of the oldest and most stable condominium-resort management companies in the nation, which makes our current situation that much more difficult to announce. Despite our current situation, the company maintains as its principal assets its rental contracts and its experienced employees. The relationships we have with our customers and staff is of the upmost importance to us, and our greatest fear is that these temporary financial challenges may damage those long-term relationships. Having said all of that, Premier Resorts remains a wonderful company and we are pleased to report to you that our employees have been willing to work through this with us. We sincerely hope that you will also allow us the opportunity to pay your account balance as described in this letter, and that you will continue to allow us the opportunity of serving as your rental property manager. Our company’s marketing, reservations, lodging, housekeeping, and maintenance professionals all remain eager to serve the interests of you and your property.

Finally, Premier Resorts has worked for many years to earn a reputation for business integrity and we again want you to know that we will be working tirelessly to demonstrate to you the sincerity of this letter and of our commitment to you. We also understand that this news is troubling and that you may have specific questions that need to be answered. As the company’s owners, and so that we can answer those questions to your satisfaction, we would be happy to speak with you personally. Please feel free to contact either one of us at your convenience. Our direct contact information is:

Barbara Zimonja, President Brad Goulding, CFO

Direct Tel. (435) 655-4801 Direct Tel. (435) 655-655-4802

We are indebted to you for your patience and business loyalty and we deeply regret any temporary problems this may cause to you in your financial planning.

Sincerely,

Barbara Zimonja Bradley T. Goulding

Premier Resorts dba Deer Valley Lodging is one of the premier property management companies in Park City, Utah.  The company is currently the largest property management company in the area, with 568 rentals under management as of the date of this posting, and manages primarily high end accommodations in close proximity to Deer Valley Resort®.

Read a related article about Deer Valley Lodging.

{ 1 comment… read it below or add one }

R English July 28, 2010 at 12:30 am

Found out BRAD GOULDING CFO EMBEZZELD over a MIL and that he was really the one that brought down PREMIER RESORTS. Everyone else at Premier Resorts was as shocked as we the owners. SOB

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