Dean Linnell

For everyone who's been interested in these two Hilton Whistler Resort foreclosure listings I have on the market right now (VIDEO TOURS are posted below), here's how it all works:

It's a commercially zoned hotel which means technically that you can use your suite as much as you want. This is different than many of the other hotels in Whistler such as the Four Seasons, The Westin, or the Holiday Inn where you can only use your suite 28 days in the winter and 28 days in the summer (this is called Phase 2 ownership). Ownership of these suites is 100% freehold.

The one caveat is that when you are using your suite you pay a Hilton franchise fee of 10% of the average rate for that particular night for suites of the same type within the building. For example, if the average room rate for tonight for suites like #476 is $150 then you would pay $15 to stay in your suite tonight. If the rate is $600 per night at Christmas or at March Break then you'd pay $60 and so on. At the end of your stay you pay a simple suite cleaning charge of $51.

Now, as far as the revenues go, overwhelmingly the suites in Whistler don't break even. At best, the revenue coming in from this or any other suite will cover your monthly owner strata fees, your property taxes and your Tourism Whistler fees. If you're really lucky, in a really good year there might be some left over which you can call profit or put toward a mortgage if you choose to carry one.

This is where a lot of potential Whistler purchasers get hung up. Why would you buy a suite in Whistler if it doesn't bring in any cashflow to offset a mortgage? Well, for many people a purchase here revolves around two important things for them. Personal use and capital appreciation. The people that are buying suites like these or any nightly rental property in Whistler for that matter are looking for a place where they and their family can hang their hats while they're here in a familiar environment instead of going from hotel to hotel each time they come up. Also, with Whistler at 8 to 10 years lows in property values the capital appreciation scenario looks a lot more rosy than it used to compared to where prices were in 2007. It's simple buy low and sell high math at work here.
That being said, my rough math on these two suites combined pencils out as follows:

Approximately $12,000 in combined expenses for the two suites per year (property taxes, strata fees, Tourism Whistler fees).
Approximately $22,000 in net revenues from both suites per year (based on 2008 year end figures after management fees and all other related fees).

Drop me a line if you have any other questions. It's probably best to discuss by phone so call me on my cell at 604-935-9313.

Also, the bank process is similar to any other purchase. You will submit an offer with any subjects in it you desire (subject to financing, reviewing the strata minutes, etc.) and the bank will negotiate a price with you. They will not set a court date for you to come to Vancouver for the foreclosure until your purchase is subject free. Once it's subject free they will set the court date (usually a week or two out) and you can come with me to Vancouver to the court. If the owner doesn't show up to rectify his situation by paying off his mortgage or if no other buyers show up with other higher offers, then it's yours. There aren't any comps to go by other than what other suites in the complex are listed at right now since there hasn't been a resale in the complex for over 2 years.  Click here for the currently listed properties in there right now.