Six years ago, the global economic crisis hit the luxury hotel and resort industry hard, like a ton of 14 carat bricks. Even the most resilient of destinations and properties were not immune to the fallout and many owners, operators and their agents sought proactive measures to protect the brand, status and investment value during uncertain times.
Current economic indicators suggest that the luxury hotel and resort industry has turned a significant corner and predict a favorable forecast for the current year. However, if there was a lesson to be learned, and there were many, the industry found operating in a financially efficient and cost-effective manner led the way in weathering the storm. Flood risk management is an often overlooked but important tool for controlling costs and increasing value of the real estate investment. Luxury Resorts & Hotels (LXR), owner of a dynamic collection of upscale hotels and resorts throughout the United States, did just that with an extensive evaluation of structures on seven resort properties. This is their story.
Working with Flood Insurance Solutions, LXR reviewed the flood risk profile of 34 structures to study the potential impact a 100-year flood event would have upon the parcels of land. The evaluation examined a number of factors and found a substantially lower flood risk than that reflected on the flood map. This resulted in an 84 percent decrease in annual flood insurance premiums and a $19 million increase in property value.
If you own, manage or represent commercial property interests classified in high-risk flood zones, take advantage of Flood Insurance Solution’s complimentary flood risk evaluation. The evaluation will verify the accuracy of your flood zone classification, whether or not the property’s actual risk is commensurate with the level of coverage, and if the property qualifies for premium reduction. Submit your property details here.