Evaluating the Financial Case for Participation

The guest room renovation at Everline Resort & Spa isn’t just about upgraded finishes; it’s a financial decision with clear implications for both income and asset value. This analysis compares two scenarios to help owners understand the return potential:

The table below summarizes key results over a 10-year period, including annual revenue, net cash flow, payback period, IRR, and Net Present Value (NPV). These projections are based on CoralTree’s financial model and reflect conservative assumptions grounded in current market trends.

10-Year ROI Scenario Comparison

This table shows the compounding benefits of participating in the renovation and making the unit available during peak demand months. With a modest $55,000 investment, owners who enroll in the Seasonal Availability Bonus program recoup their costs in just 3.5 years, achieve a 20.07% internal rate of return (IRR), and see a 10-year NPV exceeding $54,893.

Why We Used a 6% Discount Rate

Some analyses, like the one prepared for the HOA by an external consultant, use a 10% discount rate. That figure is closer to a venture capital-style hurdle rate, which makes sense for early-stage startups or speculative assets. Most owners here aren’t making that kind of bet. They’re upgrading a real-world asset, a second home in a stabilized, income-producing resort.

A 6% discount rate is a more grounded benchmark. It reflects the type of stable, long-term return many owners would reasonably expect from a hybrid investment with both financial and lifestyle upside.

And regardless of the rate used, the relative advantage of renovating (especially with the bonus) remains overwhelming.

Projected Revenue Performance

This chart compares projected revenue between:

Renovated units see a clear and sustained lift thanks to Four Diamond positioning, improved guest satisfaction, and peak-month availability. Non-renovated units steadily lose ground, and that’s just the visible revenue side.

What’s not shown on the graph is the additional cost burden non-renovated units are expected to face:

These expenses are simply to stay in place; they don’t boost performance or reposition the unit.

Owner Usage Has Value

This model focuses on owners who maximize rental income, but personal use matters too.

Everline is not a traditional condo building. It’s a condo-hotel designed for short-term stays, and the periods that earn the most income, ski season and summer, are also the most meaningful times for family memories.

If you’re using your unit during those months, you’re still getting a return, just not in dollars. You’re getting connection, experience, and joy. The Seasonal Availability Bonus simply rewards those who opt for income over use. It’s not the only “right” path.

Model Assumptions

These forecasts are based on CoralTree’s 10-year financial modeling:

The Bottom Line

Renovating your unit and enrolling in the Seasonal Availability Bonus program delivers meaningful financial benefits, faster payback, higher IRR, stronger resale value, and improved guest satisfaction.

And while not every owner will prioritize rental income, doing nothing is no longer neutral. Non-renovated units will fall behind on both revenue and cost, with outdated interiors, rising maintenance needs, and limited booking appeal.

Whether you’re focused on maximizing returns or protecting your investment, this program offers a clear and credible path forward.

Disclaimer

This analysis is based on projections and assumptions provided by CoralTree Hospitality. It does not guarantee future results. Actual financial outcomes may vary depending on market conditions, renovation timing, and owner usage. Please consult a financial advisor before making investment decisions.