March Corona Update

News From The Ground: A Corona Virus Update
March 27th, 2020

New Arrival Quarantine is Now in Effect

Starting last night at 4:00 pm all visitors who arrive to the island now face a mandatory 14 day quarantine. Considering our average length of stay of 8 days, this produces a problem for nearly 100% of our guests. This mandatory quarantine is currently slated to end on 4/30/2020, however, it may be extended.

The effects of this Quarantine, along with the mandatory shelter in place edict, and closing of all state parks, the majority of restaurants and all non-essential stores pretty much puts an end to new arrivals during the months of April, May and possible into June and July.

Currently, 80% of all hotels are now closed with the most others expected to close or highly reduce operations during the next week.

Operational Changes at Koko Resorts

Koko Resorts has made the hard determination that we must do the same during April and possible longer depending on the situation.

We are technically still open, our advertisements are still running, and we will be answering calls and emails (albeit at a reduced rate). For safety and social distancing, our main office doors are closed, and we are available via telephone. Our after-hours line will remain operable at all times for real emergencies (like fire, flood, lockout etc), but other non-time critical issues will be answered as soon as possible. Please expect a delay in response time during this period.

Guests who are scheduled to arrive, will still have their rooms made available and will be cleaned upon departure. Hopefully, we will still get some of these new arrivals (primarily in the medical and government field).

We are going through all empty rooms this week to provide pest control services, to bring lanai furniture inside and to reset all locks as a safety and security precaution. As I mentioned above, accounting and marketing operations will continue in order to make the quickest recover possible.

Most of our staff will be placed on furlough starting on April first in order to ensure that they receive social benefits during this tough time of limited guests and revenue. I am including a link at the bottom of this email that you can follow to schedule an appointment with myself to go over any questions or concerns that you may have.

What other options do you have?

According to our best informed guess (which unfortunately, is all that available), you really have two options.

Option 1: Leave your room available to be booked as guests arrive, understanding that April, May and possible June to August may have limited reservations. During this time, you may feel like taking an extended trip to Hawaii and stay in your unit at relatively low cost to yourself.

Option 2: Have us advertise and rent your condo on a mid-term basis. We would recommend not more than 6 months at the initial lease, but preferable on a month-to-month basis. The upside to this approach is that you will receive a monthly revenue (assuming that there are eligible renters in the market). We offer standard 10% commissions on all long-term management contracts.

The downside to the medium to long-term tenant is that Governor Ige has put a moratorium on evictions due to non-payment. This means that even after a careful review of the potential tenants income, they may decide to stop paying and ride out the storm in your condo.

The option is yours. By default, we are assuming that you would prefer to leave your room available to vacation rentals. However, if you would like us to rent out your condo in the mid-term please let us know by sending an email to owners@kokoresorts.com.

Conclusion

We want to take a moment to thank you for the trust that you have placed in us to manage and care for your home. It is an honor to work with you. We believe that we will get through this difficult time and hopefully return to normal as soon as possible.

In the meantime, please take care of yourselves. Please continue to maintain safe social contact norms and limited exposure to possible sources of infection. We care about you and we want you to be safe.

Mahalo Nui Loa,

Steve, Matt and Chris

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Please select the time that works best for you.

Event: Owner Consultation

Timezone: Hawaii Time Change