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Paula

Beach Fanatic
Jan 25, 2005
3,747
442
Michigan but someday in SoWal as well
I'm curious about what decision making team at the hotel head office decided it was a good idea to build a 90 room hotel on 30A anyway. As someone who has owned and rented two 3 bedroom, 2 bath cottages on 30A, I can't see how they'll stay in business. After a few years, they may need to sell or leave the place empty because I'm honestly not sure they will be able to stay in business. How much research did they do before making this decision, and was there a critical thinker in the team? Sounds like they may have been overly optimistic in the first place, and the cost can be big, not only for 30A, but for the chain as well.

People working in teams are notoriously bad decision makers. Nobel Prize winning behavioral economists say it's human nature to be "lazy decision-makers", and the team who made the decision to put a large hotel on 30A may want to ask themselves if they used a thoughtful and systematic decision making process because it will be a costly mistake if sloppy or overly-optimistic decision-making was involved. People like making decisions without having all the facts. It's easier that way, but overly optimistic decision-making sure explains why organizations make so many bad decisions, often affecting communities as well as their shareholders, employees, etc. I hope the people from the chain hotel who are making the decision to put a large hotel in this area will have their pay, bonuses, and jobs on the line if the hotel doesn't make it. Unfortunately, too often people who make bad decisions don't have to live with the consequences of their decisions - that's why we have so many bad decisions in organizations and we say "what were they thinking?".

I hope the overly optimistic decision makers have considered the following:

The peak season on 30A lasts 2.5 months, and there's a LOT of competition with very nice family friendly places along 30A during that time, though they probably could get some business in the summer,maybe do pretty well for 2.5 months. Will 2.5 months of maybe good rentals keep them in business?

The rest of the year, they're likely to be pretty empty because:

(1) the fall and spring shoulder seasons don't bring in a lot of business and renters can easily find fully furnished cottages and homes that will cost the same or less than renting a hotel room. Who wants to put a family in a hotel room when you can get your family a nice place for the same or less money? Who wants to have a romantic get-away or girls-get-away or fishing get-away in small hotel rooms when you can rent beautiful cottages and condos for the same or less? Who wants to get a hotel room and eat out every meal when you can rent a place with a fully equipped kitchen?

(2) the winter season is pretty much empty except for the snowbirds and they'll opt for fully furnished cottages or condos and they'll definitely get those for less money than staying at a hotel. 30A is one of the best kept secrets for amazingly affordable places to stay in the winter (though our community is full of wonderful and wonderfully happy snowbirds every winter). Who can beat a 3 bedroom/2 bath for one month for the same amount (or less) than it costs to rent one week in the summer? This area should be focused on bringing in more wonderful snowbirds for the off-season months than adding hotels that will be empty most of the year.

(3) a hotel may be able to get spring breakers who haven't found VRBO, rental companies, or other alternatives to hotels yet, so they default to staying a hotels where they can be relatively anonymous and carefree. But the spring break season lasts about 3-4 (I may be wrong here) weeks. I won't even go into the problems hotels can have with spring breakers - can you say damage deposit?. Many, most spring breakers are wonderful but there are enough bad apples who can make a mess of a hotel in one alcohol driven night. That's why many/most rentals require a 25 year old minimum age limit. The owners and neighbors are very thankful for these age restrictions.

Does anyone have any other ideas the decision-makers at the hotel chain haven't considered. I believe there would be data to support my comments above? I'm speaking from my experience as an owner of two rentals who has weathered the ups and downs of the rental seasons.
 

jodiFL

Beach Fanatic
Jul 28, 2007
2,477
735
SOWAL,FL
@paula... I am sure that the broker and/or developer told them (Hampton) what a "naked" market the area was for a hotel...they probably left out the part that people come here to be within walking distance from our great beaches (that they WONT have),the part about our very seasonal market (the infamous 100 days of summer) and the fact that Walton Co. actually does listen to the neighbors of said hotel.They have proven that by rescheduling the meeting and basically given us a meeting just for THIS issue.We just need to continue to let our commissioners know how we feel about the incompatibility of this project. We need to stick with it and dont let the "elected" forget who elected them. The Hampton/Hilton brand hasnt got where they are by being oblivious to facts and relying solely on what someone that is in a profit making situation is telling them. I am pretty sure they have people reading every comment regarding this and are having their own discussions about the viability/profitability of this venture.
 

30A Skunkape

Skunky
Jan 18, 2006
10,286
2,312
53
Backatown Seagrove
I'm curious about what decision making team at the hotel head office decided it was a good idea to build a 90 room hotel on 30A anyway. As someone who has owned and rented two 3 bedroom, 2 bath cottages on 30A, I can't see how they'll stay in business. After a few years, they may need to sell or leave the place empty because I'm honestly not sure they will be able to stay in business. How much research did they do before making this decision, and was there a critical thinker in the team? Sounds like they may have been overly optimistic in the first place, and the cost can be big, not only for 30A, but for the chain as well.

People working in teams are notoriously bad decision makers. Nobel Prize winning behavioral economists say it's human nature to be "lazy decision-makers", and the team who made the decision to put a large hotel on 30A may want to ask themselves if they used a thoughtful and systematic decision making process because it will be a costly mistake if sloppy or overly-optimistic decision-making was involved. People like making decisions without having all the facts. It's easier that way, but overly optimistic decision-making sure explains why organizations make so many bad decisions, often affecting communities as well as their shareholders, employees, etc. I hope the people from the chain hotel who are making the decision to put a large hotel in this area will have their pay, bonuses, and jobs on the line if the hotel doesn't make it. Unfortunately, too often people who make bad decisions don't have to live with the consequences of their decisions - that's why we have so many bad decisions in organizations and we say "what were they thinking?".

I hope the overly optimistic decision makers have considered the following:

The peak season on 30A lasts 2.5 months, and there's a LOT of competition with very nice family friendly places along 30A during that time, though they probably could get some business in the summer,maybe do pretty well for 2.5 months. Will 2.5 months of maybe good rentals keep them in business?

The rest of the year, they're likely to be pretty empty because:

(1) the fall and spring shoulder seasons don't bring in a lot of business and renters can easily find fully furnished cottages and homes that will cost the same or less than renting a hotel room. Who wants to put a family in a hotel room when you can get your family a nice place for the same or less money? Who wants to have a romantic get-away or girls-get-away or fishing get-away in small hotel rooms when you can rent beautiful cottages and condos for the same or less? Who wants to get a hotel room and eat out every meal when you can rent a place with a fully equipped kitchen?

(2) the winter season is pretty much empty except for the snowbirds and they'll opt for fully furnished cottages or condos and they'll definitely get those for less money than staying at a hotel. 30A is one of the best kept secrets for amazingly affordable places to stay in the winter (though our community is full of wonderful and wonderfully happy snowbirds every winter). Who can beat a 3 bedroom/2 bath for one month for the same amount (or less) than it costs to rent one week in the summer? This area should be focused on bringing in more wonderful snowbirds for the off-season months than adding hotels that will be empty most of the year.

(3) a hotel may be able to get spring breakers who haven't found VRBO, rental companies, or other alternatives to hotels yet, so they default to staying a hotels where they can be relatively anonymous and carefree. But the spring break season lasts about 3-4 (I may be wrong here) weeks. I won't even go into the problems hotels can have with spring breakers - can you say damage deposit?. Many, most spring breakers are wonderful but there are enough bad apples who can make a mess of a hotel in one alcohol driven night. That's why many/most rentals require a 25 year old minimum age limit. The owners and neighbors are very thankful for these age restrictions.

Does anyone have any other ideas the decision-makers at the hotel chain haven't considered. I believe there would be data to support my comments above? I'm speaking from my experience as an owner of two rentals who has weathered the ups and downs of the rental seasons.

Great points!

Perhaps we should wag the dog and fill the heads of the Bible thumping types that run the show around here who WOULD rent rooms there December through March. Like swingers, adulterers, sodomites, Furries and amateur pornographers. :rotfl:
 

Paula

Beach Fanatic
Jan 25, 2005
3,747
442
Michigan but someday in SoWal as well
@paula... I am sure that the broker and/or developer told them (Hampton) what a "naked" market the area was for a hotel...they probably left out the part that people come here to be within walking distance from our great beaches (that they WONT have),the part about our very seasonal market (the infamous 100 days of summer) and the fact that Walton Co. actually does listen to the neighbors of said hotel.They have proven that by rescheduling the meeting and basically given us a meeting just for THIS issue.We just need to continue to let our commissioners know how we feel about the incompatibility of this project. We need to stick with it and dont let the "elected" forget who elected them. The Hampton/Hilton brand hasnt got where they are by being oblivious to facts and relying solely on what someone that is in a profit making situation is telling them. I am pretty sure they have people reading every comment regarding this and are having their own discussions about the viability/profitability of this venture.

Yes, I'm figuring relevant parties may be reading these posts as well (I hope so). It's strange but what seems obvious (the limited renting season here, the types of people who come here who rather rent homes/cottages/condos and have the opportunity to do so at prices that are competitive with hotel, especially if they don't have to eat out three meals a day, especially with a family - not to mention how crowded and how long the lines in restaurants are in the summer), honestly may not have been discussed at a meeting by the Hilton team and whoever it is in SoWal who helps people make these decisions. It may not have been anything unethical or otherwise - people are just lazy decision makers. Who knows who was at the meetings in which this decision was being made, what their biases and agendas are, how invested they are in their jobs and this particular decision (sometimes, not much), what was distracting them at the time, who dominated the meeting and who didn't speak up -- there are so many dysfunctional dynamics in teams and rarely do people do anything to overcome these dynamics, it's no surprise so many decisions backfire. (I teach MBAs decision making and we spend half the course discussing all the dysfunctional dynamics in teams and how to overcome them... Someone has to warn them...) This situation sounds like the decision making process may have had a lot of flaws at many levels... It's just human nature to miss important signals when making decisions, but it's good to realize there may have been flaws before any final decision is made. There's a good proverb that says something like "no matter how far down the road you've gone, if it's the wrong direction, it's not too late to turn back." The academic term for this is "escalating commitment to a failing course of action" and "the sunk cost fallacy (throwing good money after bad)." Remember how many people and big businesses and contractors lost everything during the market downturn (oh, and hurricanes and BP didn't help - those were some lean lean years and many people - even big businesses couldn't stay afloat). Even big St. Joe took a big hit and I don't think they ever bounced back (though I realize someone else on this board may have more information - I just remember how their stocks tanked and I don't think their stock ever really bounced back - but, again, someone else on this board may have more information on St. Joe. The point is that no one is too big to fail or just sputter along hoping for better days.
 

poppy

Banned
Sep 10, 2008
2,854
928
Miramar Beach
If the Watercolor Inn and The Pearl can stay in business year round at their rates, why would anyone believe a Hampton couldn't survive offering free breakfast and charging half as much? My wife once worked at the worldwide headquarters of Hilton and it is a huge company with over one hundred fifty thousand employees who all enjoy the perk of employee rates at any of the twelve Hilton brand locations when rooms are available. The Destin Hampton that isn't on the beach did so well over the years they spent spent millions stripping it to the bare bones and then completely rebuilt it much larger than before. They even added another floor to the existing structure. These guys know their business.
 

Leader of the Banned

Beach Fanatic
Apr 23, 2013
4,095
6,092
I don't see any reason why it wouldn't do well. An inexpensive hotel with a bar and happy hour. It's kind of a no-brainer. Build it and they will come.
 

meggiemom

Beach Lover
Jun 24, 2012
222
22
Walton
I just love the "quaint, old Florida look" of Beachcrest and One Seagrove Place. (Yes I know they were grandfathered in before the 4 story restriction was put in).
 
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