Frenchman's Reef was purchased as part of a portfolio acquisition, promising significant upside potential. The resort encompasses 17 acres and is comprised of a main tower building (Frenchman's Reef) and cottage-style villas (Morning Star). During the due diligence process, it was clear that an opportunity existed to modify the resort's operating model to improve performance. Like most hotels operating in the Caribbean, the property generated more profit in the first four months of the year than it did on an annual basis, significantly impacted by the slow season. CHM formulated a strategy specifically targeted to minimize losses during the off-season. We were able to seasonally "shrink" the hotel to approximately one third of its size, close the laundry operation at Morning Star, and reduce the operating hours of several food and beverage outlets. These changes allowed us to increase revenue through rate compression while minimizing operating costs significantly between August and October, with little to no impact to overall guest satisfaction and/or compromising brand standards. Implementation of the off-season resort closure plan created an average savings over the three-month period of approximately $800,000 annually. Other examples of value enhancement through operational initiatives included a food and beverage profitability analysis by which CHM identified opportunities to improve departmental profitability by 20%, as well as capitalized on the opportunity to lease excess space. We also materially altered the sales strategy, including improving the fee/value relationship derived from the regional sales force, revamping the on-property sales team organizational structure, and retooled the approach in which wholesale business was managed. We oversaw several capital projects including installing complete hurricane suppression shutters, converting to island electrical power, developing a reverse osmosis water treatment plant, and outsourcing the resort's wastewater treatment plant. In total, incremental value created at Frenchman's Reef from operational initiatives was estimated to impact NOI by more than $5.5 million over the ownership period. Additional development value was created through establishing the guidelines for a working relationship with Marriott Vacation Club International (MVCI). While our client did not take an ownership position in proposed time share development, we identified potential incremental revenue and cost savings opportunities and negotiated an Integration Agreement that addressed a sales center lease, sharing of services, and costs and benefits, which generated an estimated $12 to $15 million in additional hotel value.