Unfortunately, no, the renovation design must remain consistent across all participating units in the rental management program. Here’s why:

1. Consistency Is Required to Regain Four Diamond Status

• Resorts flagged under global brands like World of Hyatt are built on a core promise: a consistent, high-quality guest experience in every room.
• Guests choose these properties because they know what to expect, not a mix of styles or varying room quality.
• The new model unit design has already been reviewed and approved by AAA as meeting the Four Diamond standard.
• To regain that designation, all rooms in the rental management program must reflect the same approved experience. Allowing even small customizations could compromise eligibility and dilute the overall guest experience.

2. Cost Savings Depend on Bulk Purchasing

• The renovation is priced based on volume discounts; buying the same fixtures, furnishings, and materials helps achieve this pricing.
• Customizing individual units disrupts those savings and introduces complexity into procurement, scheduling, and installation - driving up costs for everyone and adding time and inefficiency to the project.

3. Standardization Supports Efficient Maintenance

• A consistent design ensures that if something breaks, like a light fixture, chair, or table, it can be quickly and affordably replaced.
• Custom items make maintenance slower and more expensive, potentially impacting both guest experience and unit availability.
• Standardization also simplifies inventory management and supports long-term operational efficiency.

4. The Goal Is a Unified Resort Experience, Not Personalization

• The renovation is designed to elevate the brand, support high guest expectations, and ensure Everline competes effectively in the luxury resort space.
• The focus is on long-term value and broad appeal, not individual design preferences.
• This ensures everyone in the rental program benefits from increased desirability, higher occupancy, and stronger overall performance.

5. The Design Is Led by Industry Experts

• Looney & Associates, https://www.looney-associates.com/ one of North America’s premier hospitality interior design firms, created the renovation plan based on extensive experience with luxury hotels and resorts. Their design balances style, durability, and the evolving expectations of today’s destination traveler.
• H-CPM, https://h-cpm.com/ our construction manager, brings deep expertise in hospitality renovations, ensuring the project is practical, efficient, and built to last.
• These professionals were selected because they understand the unique needs of resort operations and owner communities like ours.

The renovation has been designed to accommodate the variety of unit types and configurations found in the resort. While the finishes, materials, and overall design aesthetic are consistent to support our Four Diamond rating goals, certain elements, like layout and fixtures, will be adjusted to fit each unit’s size, shape, and existing features. It’s not a one-size-fits-all approach; the team has worked closely with design and construction experts to maintain both flexibility and consistency.

Yes, the renovation reflects a strong commitment to sustainability, environmental responsibility, and the unique ecological values of the Lake Tahoe region. Key features include:

• Low-VOC Materials: All paints and custom carpets used in the renovation are low-VOC, which supports better indoor air quality and reduces environmental impact. Carpets are off-gassed prior to occupancy to ensure a healthier guest experience.
• Energy-Efficient Lighting: The updated design incorporates energy-efficient lighting systems, including motion-activated cabinet lighting that turns on only when doors are opened. Bulbs and fixtures have been selected for efficiency and durability.
• Water Conservation Plumbing: Low-flow plumbing fixtures are being installed throughout the renovated units. These upgrades reduce water use while maintaining high performance and guest comfort, a critical priority in a sensitive watershed region like Lake Tahoe.
• Smart Controls for Energy Management: Fireplaces in applicable rooms will include timer switches to help minimize unnecessary energy use, contributing to a more efficient overall operation.
• Advanced Air Filtration: Eco-friendly air filters have been selected to support healthier indoor air quality, ensuring a clean, comfortable environment for guests while aligning with environmental goals.

These elements not only enhance the guest experience but also reinforce Everline’s long-term commitment to responsible stewardship of this extraordinary alpine environment.

[MORE INFO NEEDED, WILL FOLLOW UP WITH JENNIFER MOOTS DIRECTLY]

Current pricing is based on detailed estimates developed by H-CPM, the resort’s construction project manager. These estimates reflect the cost of renovating the model unit, along with conservative assumptions to account for inflation, labor availability, and delivery logistics. The pricing also includes a built-in contingency buffer to help protect against unforeseen cost overruns.

The final scope of the project depends on both owner participation and minor design refinements still underway; therefore, these numbers represent the current best estimates, not guaranteed final prices. Once participation is confirmed and the scope is locked, H-CPM will secure competitive contractor bids, and owners will be notified of any adjustments.

Estimated pricing by unit type (from Schedule C):

• Queen/King Studio: $40,000–$45,000
• 1-Bedroom Suite: $57,000–$62,000
• 2-Bedroom Suite: $88,000–$93,000
• 2-Bedroom Penthouse: $115,000–$127,000
• 3-Bedroom Suite: $127,000–$135,000
• 3-Bedroom Penthouse: $128,000–$138,000

These costs include all new furniture, fixtures, equipment (FF&E), finishes, and appliances required to meet Four Diamond hospitality standards. By coordinating the renovation as a unified project, the resort can achieve economies of scale and deliver significantly better value than if owners attempted to renovate their units individually.

Yes. CoralTree has developed an ROI model to help owners evaluate the long-term financial value of participating in the renovation. The analysis explores three scenarios based on how often an owner uses their unit during peak months and whether they take advantage of the Seasonal Availability Bonus.

Across all scenarios, renovated units are projected to outperform non-renovated units over time in terms of revenue, occupancy, and resale value. Owners who prioritize rental income may see faster returns, while those who use their units more frequently still benefit from upgraded quality, reduced maintenance costs, and a stronger long-term asset.

A full explanation of the CoralTree ROI analysis, including assumptions, usage scenarios, and how personal use fits into the return calculation, is available here: [View Full ROI Analysis]

The current pricing includes a built-in contingency designed to absorb cost fluctuations and unexpected conditions. H-CPM, the resort’s experienced construction project manager, developed these estimates using conservative assumptions based on real-world hospitality renovations. Their goal is to deliver the project on time and on budget. Once participation and design scope are finalized, the project will go out for competitive contractor bids, and any necessary adjustments will be shared transparently with owners. The renovation team’s top priority is protecting owners from surprises while maintaining quality and value.

Absolutely. One of the key roles of H-CPM, our construction manager, is to conduct value engineering reviews to identify ways to optimize costs while preserving quality and the guest experience. H-CPM is working with our design team at Looney & Associates to review the as-built design in the model unit and suggest alternate materials, fixtures, and finishing options to optimize the budget without compromising design integrity. The Architectural Review Committee, made up of unit owners, is participating in the review.

Each guest room is a privately owned real estate asset. As with any condo-hotel model, capital improvements to individual units, like furniture, fixtures, and finishes, are the responsibility of the owner, not the resort.

That said, Everline does share in the revenue and has made significant investments in the shared resort experience that benefits all owners. This includes upgrades to meeting spaces, lobby areas, the golf course, restaurants like Six Peaks Grille, and year-round marketing to attract group and leisure guests. These improvements support higher occupancy and stronger brand value, and they were funded entirely by Everline, with no owner contributions.

Everline has also invested more than $1 million in this renovation effort, covering design fees, construction management, model-unit development, and staff time over the past 2 years. Everline absorbed these upfront costs to move the project forward and ensure quality, consistency, and value for participating owners.

This is a shared investment model. Owners invest in their own units. Everline invests in the resort experience that surrounds them, and both sides benefit when the resort thrives. Participating owners also stand to personally gain from increased rental revenue and long-term appreciation in the value of their real estate asset.

The Seasonal Availability Bonus is applied per Unit, not per key. Each unit is eligible for up to $2,000 per month during the peak months of January, February, March, June, July, and August, for a maximum of $12,000 annually, provided the unit is fully available for guest bookings and not occupied by the owner or their guests.

However, if your unit has multiple keys (such as a 2- or 3-bedroom lock-off), and you choose to occupy just one part of it while leaving another key available to the rental pool, you can still receive $1,000 per month for that partial availability.

The distinction is that the bonus is earned per unit, based on how much of the unit is made available to the rental program during peak months. Full availability earns the full $2,000/month; partial availability earns $1,000/month.

Yes. To remain in the Rental Management Program, participation in the renovation is required. This ensures that all rental units meet a consistent design and quality standard, which is critical to regaining Four Diamond status and delivering a unified guest experience. Without alignment across units, the resort cannot meet brand or guest expectations, and the program as a whole would suffer.

The requirement will take effect once the renovation is complete and the program officially re-launches. That’s currently projected for January 2027, assuming the project stays on schedule. Until then, current participants may continue operating under the existing agreement.

Absolutely, any owner is welcome to join the Rental Management Program by opting into the renovation. There is no penalty or additional fee for joining now, even if your unit wasn’t in the program previously. This is a great opportunity for owners who want to generate rental income and be part of the refreshed, upgraded experience.

If your unit is sold during the 3-year post-renovation term, the early termination fee will be waived as long as the new owner agrees to remain in the Rental Management Program through the end of the agreement. The goal is to maintain fairness and protect the value of participation by ensuring renovated units stay within the program and continue meeting guest expectations.

This is a common question, and it’s essential to break down how the numbers work:

• First, a fixed 13% is deducted from gross revenue to cover essential, non- negotiable expenses, including World of Hyatt participation, franchise fees, and a portion of resort marketing. These costs help drive occupancy and premium rates. They are not profit centers, and they don’t cover all of Everline’s marketing expenses; the resort covers a significant portion beyond this.
• The remaining 87% is split evenly:
  • 50% to the Owner (43.5% of the gross)
  • 50% to Everline (43.5% of the gross)

From Everline’s share, the resort pays for the full range of guest-facing services, including daily housekeeping, reservation systems, credit card fees, maintenance, on- site staffing, and management oversight. These expenses add up: the average cost per stay is about $78 per key, per night, with housekeeping as one of the largest components.

Once these costs are covered, Everline typically operates the program at a modest profit or a loss, depending on the season. In fact, the resort has consistently absorbed losses in areas such as the golf course and other amenities, and nearly all program profits over the past decade have been reinvested in the property. The goal is not to maximize margin; it’s to maintain long-term performance and quality for everyone.

This structure is standard in full-service condo-hotels. Unlike Airbnb or Vacasa, Everline offers true hospitality: 24/7 check-in, concierge, daily cleaning, and on-site support for guests and owners alike. The split reflects the higher level of service and consistency that’s expected from a Four Diamond destination.

Inconsistent units, especially those rented independently, can dilute the Everline brand and create confusion for guests. If someone books “Everline” on Airbnb but ends up in a unit with different furniture, amenities, or cleanliness standards, they often leave poor reviews that affect the entire resort’s reputation. As well, units that rent through platforms like AirBNB and Vacasa, benefit from our investments in marketing and the Everline Brand without contributing to these efforts.

Our ability to market Everline as a luxury four-diamond resort relies on consistency. The more units enrolled in the rental program and the greater the uniformity across all guest rooms, the stronger the brand becomes.

The rental program uses a rotation system based on a points model to help ensure fairness and balanced usage across all participating units. Here’s how it works:

• Each unit accumulates points based on two main factors:
  • Rental nights (how often the unit has been rented to guests)
  • Owner stays (when the owner uses the unit themselves)
• When a reservation is made, the system filters all available units that meet the guest’s needs (such as room type, dates, and any specific preferences).
• Among the eligible units, the system then ranks them by point total, with the lowest-point unit placed at the top of the queue. This means units that have been used less recently are more likely to be rented next, helping to maintain equitable distribution over time.
• The exact point calculation formula is managed in the reservation software and isn’t accessible to staff, but the priority logic is consistently followed.

This system ensures that no single unit is favored and that usage is shared fairly among participating owners, while still meeting guest requirements.

The AAA Four Diamond designation is one of the most respected independent standards in the hospitality industry. Think of it as the hotel world’s version of a Michelin Guide, a rigorous, objective review process that assesses service, design, amenities, and consistency across the entire guest experience.

Unlike online star ratings (which are often based on guest reviews or subjective impressions), the AAA Diamond program uses trained, anonymous inspectors who apply consistent criteria across thousands of properties in North America.

To qualify for Four Diamond status, a property must demonstrate:

• Refined, stylish accommodations
• High-quality finishes and attention to detail
• A strong sense of place and design cohesion
• A broad range of guest services delivered with professionalism and hospitality

For guests, Four Diamond means they can expect a premium stay with elevated amenities, thoughtful design, and dependable service. Many business travelers and group booking agencies filter for Four Diamond properties exclusively, and luxury travelers recognize and trust the designation.

For owners, Four Diamond status brings:

• Higher visibility in global travel networks (especially through World of Hyatt)
• Access to group bookings and corporate travel that require a 4-Diamond minimum
• Increased Average Daily Rate (ADR) and occupancy, especially during shoulder seasons
• A stronger brand and asset value

Everline held Four Diamond status in the past but lost it due to the outdated condition of the guest rooms. This renovation, along with recent resort-wide upgrades, is designed to restore that status and the competitive edge it brings.

Yes. The AAA inspector has already toured the renovated model unit and confirmed that the guest rooms, upon completion, will meet Four Diamond standards. Once the guest tower renovation is complete, the property will once again qualify for full re- designation.

No. AAA only inspects rooms that are part of the official Rental Management Program. However, guest perception doesn’t stop at inspections. A poor stay in a non- renovated, independently listed unit can still result in negative reviews that affect the resort’s reputation. That’s why maintaining consistent quality across as many rooms as possible is so important; it protects the brand and supports overall value for everyone.

They cause confusion and disappointment. Guests booking “Everline” expect a premium resort experience. When those expectations aren't met because of outdated furnishings or inconsistent service, such as housekeeping, towel, and linen access, it often results in negative reviews and lower guest satisfaction scores. Even if the unit isn’t part of the resort’s official rental program, the damage impacts the brand overall.

There have been major recent investments in service training, menu development, and guest experience initiatives. For example:

• Six Peaks Grille has been redesigned and elevated to award-winning status.
• Guest services staff have undergone AAA and Forbes training.
• Sandy’s Café will see a full menu refresh in early 2026.
• Guest touchpoints, including the front desk, valet, and concierge, are being redesigned to provide a seamless, four-diamond experience.

This is a long-term, ongoing effort, and the renovated rooms are a key piece of the overall strategy.

While we don’t aim to copy other properties, we do benchmark against them. The goal is to surpass guest expectations by offering a unique, elevated experience rooted in the resort's location, natural beauty, and legacy, supported by Four Diamond accommodations, premium service, and strong amenities. With consistency across rooms, high guest satisfaction, and strong brand alignment, Everline can compete confidently with the best in the region.

Everline’s mission is to deliver a high-quality, consistent guest experience that honors the natural beauty and legacy of Lake Tahoe while meeting the expectations of today’s luxury traveler. A key part of that mission is restoring and maintaining AAA Four Diamond status, not simply for prestige, but as a strategic cornerstone of the resort’s future.

Several years ago, the Everline brand and visual identity were created as part of a broader transformation that aligned with the region’s shift in identity. As the ski mountain reintroduced itself as Palisades Tahoe and moved away from its legacy naming, the resort followed suit, adopting the Everline Resort & Spa name and a new brand identity that reflects elevated design, inclusivity, and environmental consciousness.

This renovation is the culmination of that vision. It aligns the guest rooms’ interiors with Everline’s updated look, feel, and service promise, creating the kind of modern, cohesive experience that both leisure travelers and group organizers now expect.

The Four Diamond standard is the objective benchmark used across the hospitality industry to assess that level of quality. Achieving it opens the door to premium visibility, stronger group bookings, and higher occupancy and rates, especially in competitive mountain resort markets. Simply put: when the resort thrives, owners benefit.

Current Rental Management Program Participants just need to sign the Renovation Addendum. Owners who are new to the Rental Management Program will also need to sign a Rental Management Agreement. These documents outline the terms of participation, cost, scope of work, and the commitment period. The addendum is on the Hub. If you have any questions or need more information,

please reach out to Janet Krautstrunk at jkrautstrunk@everlineresort.com , and she’ll assist you directly.

For any questions about pricing, unit-specific estimates, or legal documents, please contact Janet Krautstrunk at jkrautstrunk@everlineresort.com. She’s the main point of contact for all renovation and rental program participation logistics and can walk you through anything you need.

Yes. We’re committed to open communication. Additional town halls, both virtual and in-person, will be scheduled as we move through the renovation timeline and decision windows. We also welcome questions anytime by email. If a recurring theme or area of concern emerges, we’ll address it proactively in future updates.

Owner feedback has already led to meaningful changes. For example:

• Closet doors were adjusted to address layout issues noted by the owners.
• Microwave and appliance specs are being refined based on functionality requests.
• Finishes, fixtures, and lighting are all being reviewed through the lens of feedback received during the open house and tours.

One of the purposes of building the model so early was to refine and finalize the design and identify potential cost savings within the existing design. Feedback from owners, the Architectural Review Committee, and our design team is being incorporated as we move through this process.

The resort’s financial data comes from a combination of sources:

• Moss Adams (https://www.mossadams.com/), a respected third-party accounting firm, audits Everline’s annual financial statements.
• The HOA also has its own independent auditors

The resulting documents ensure accuracy, transparency, and consistency across all financial communications and reporting. If you’d like more details about where a specific number comes from, please let us know.

The JUED (Joint Use and Easement Declaration) is a governing document that specifies the easement and allocation of expenses for shared amenities and services.

The HOA board and Everline have had differing interpretations of the document over time.

The HOA Board filed a legal action against Everline over JUED-related issues, particularly cost allocations and perceived imbalances in governance and financial obligations. Everline welcomed arbitration as a means to clarify some JUED items. However, arbitration would have been limited to JUED items, whereas mediation could develop a more collaborative path forward.

Mediation allows both parties to step back from an adversarial posture and work toward common ground. It is faster, less expensive, and more likely to produce lasting solutions that benefit the whole community, rather than a ruling that favors one side. Mediation supports a healthier long-term relationship between Everline and the HOA.

The goal is to clarify language in the JUED, and establish a framework for collaboration. A successful mediation could eliminate years of future conflict, reduce legal costs, and ensure a more transparent and functional relationship going forward. This benefits everyone: owners, staff, guests, and the property as a whole.

Mediation is scheduled for late November 2025. Both parties have expressed a desire to conclude the process sooner if possible. Once an outcome is reached, whether partial or full, a summary will be shared with owners. Until then, we are limited in what we can share publicly to respect the integrity of the mediation.

Yes, while the mediation process is focused on JUED-related issues and not directly about the renovation, it has created a temporary pause in renovation activities. At the HOA Board's request, Everline agreed to hold off on executing new addendum agreements during the mediation period. While we already have enough owner commitments to proceed, not all have been able to formally sign, and we know some additional owners would like to participate but are waiting for the pause to be lifted.

We’re actively working with our construction team at H-CPM to protect the project timeline; however, at this point, the pause will almost certainly push the renovation past the original completion target of mid-December 2026. As a result, we now expect some work to extend into January 2027, meaning some rooms or floors will be unavailable for use or rental during the 2026 holiday season. We understand how important that time of year is for owners and guests, and we’re doing everything we can to minimize the impact. The goal remains the same: to deliver a high-quality, on-brand renovation that supports long-term value for everyone.

We remain fully committed to completing the renovation and bringing the guest rooms back to AAA Four Diamond standards. The timeline may shift, but the goal and the outcome remain the same.