NEW YORK CITY- Grace Bay Resorts, a multi-disciplined real estate firm with proprietary condo-hotel management and development divisions, is looking at each part of the business differently to navigate the effects of the coronavirus, also referred to as COVID-19, Mark Durliat, CEO at the firm, tells GlobeSt.com.
Some aspects of Grace Bay’s business pose greater threats than others. As it pertains to active construction projects underway, they are fully funded and pose no immediate threats. However, the condo-hotel division is facing the same challenges of all hotel companies with drastic or complete reductions in guest occupancy, which have resulted in a reduction in hours and pay for its employees. What has offset some of the current challenges the firm is facing is its condominium-hotel business model. “We benefit from a large group of committed owners who contribute to the ongoing costs of the condominium components of the properties,” Durliat said.
The firm is working around the clock to understand the capital needs of condo-hotels to develop a secure plan to ride out the unprecedented situation with its employees intact, according to Durliat. “Our main goal is to ensure some level of pay for all employees and we are working on additional lines of credit to do so. With this, we hope to emerge with a stronger spirit than when we began this very difficult journey,” he said.
In terms of the firm’s buyers, Durliat said the firm is recommending its buyers continue to fund their purchases to the extent they can. “Our buyers represent a very accomplished demographic, who we believe will be able to weather this situation better than some,” he said.
In regard to the $2 trillion stimulus package Congress has passed, Durliat believes it is likely to have an indirect benefit to the business. “The majority of our market will hopefully have access to this capital that might help them stabilize their own businesses and allow them to hopefully continue their investments with us,” he said.