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Shell Hospitality: Managing to Make a Difference

by Susan Kelley, CHA
Senior Vice President
Shell Hospitality, LLC

Consistently rated in the nation's Top 50 Management companies, Shell Hospitality Inc. is the management arm for Shell Vacations and handles Resort management responsibilities for more than 60,000 owners at Shell's resorts and hotels. The company also offers management services for non-Shell properties.

According to Shell Hospitality President, Steven Hicks, CHA, RRP, "With over 1,500 employees working at various properties, our primary concern is to provide the kind of exemplary service necessary to ensure that each guest's visit exceeds their vacation expectations."

Founded in 1986, the company is recognized in the resort and hotel industry as a premier hospitality services provider and has received many awards for their expertise and industry dedication. With corporate offices located in the Chicago suburb of Northbrook, the senior management team of Shell Hospitality brings over 70 years of experience in the vacation ownership industry. Shell's housekeeping and maintenance teams continue to win national awards for service excellence.

Other top company officials include Susan Kelley, CHA – Senior Vice President; Sandra G. M. Esparza – Western Regional Vice President; Gary Hyde – Regional Vice President & Business Development; and Michael Miller – Hawaiian Regional Vice President.

For the third consecutive year, Shell Hospitality Group has been named To the listing of Top 100 U.S. management companies, ranking #44 for 2001 with revenues of $92 million.

Shell Hospitality's parent company is Shell Vacations, initially named The Shell Group when it was formed in 1963 and also headquartered in Northbrook. Today, Shell Vacations is respected as one of the largest independent developers in the industry, having successfully developed, marketed, and sold vacation ownership resorts in several states and Canada. The company currently employs more than 2,000 professionals operating 14 resorts in Canada, California, Arizona and Hawaii.

Facilities Management. What does it take to run a resort? It's almost like managing a small city! For starters, most front desks operate round the clock with reservation services provided via various toll-free numbers.

Activities/Concierge staff provide fun activities and advice on area activities. Maintenance teams work with the same diligence to ensure that everything is in proper order and tip-top shape with an on-going preventive maintenance programs helping to meet guests expectations.

Personnel Management. After selecting only those individuals who understand their role in providing optimum service, Shell Hospitality provides continuous training, also conducting employee surveys to measure the level of our employee satisfaction. Shell Hospitality also employs professional Human Resource experts who ensure compliance with all employment legal requirements and who provide support to every Shell Hospitality team member.

Quality Assurance Inspections. The senior members of Shell Hospitality's management group inspect their resorts on a regular basis to ensure that quality expectations are met and exceeded.

Insurance and Risk Management Administration. Shell Hospitality works with some of the finest insurance companies available to provide the best possible insurance coverage at the lowest possible prices. Because they manage multiple properties, they are able to purchase insurance at reasonable costs while providing top coverage.

Replacement Reserve Analysis. Like most vacation ownership properties, Shell Hospitality annually values all major equipment, furnishings and facilities to ensure the proper amount of money is set aside for long-term replacements.


Financial Services Provided

Budgets. Shell Hospitality spends months preparing budgets for presentation to the Association Boards of Directors for approval. Each item required to properly operate a resort is analyzed and recalculated on an annual basis with the objective to keep association fees to a minimum while ensuring adequate dollars to operate and maintain resorts in first-class condition.

Assessment Billing and Collection. Shell Hospitality ensures that the Association fee billing is sent to all owners/members on a timely basis each year. A payment policy is established to ensure that fees are collected from every owner/member. Shell Hospitality also provides collection services on behalf of its Associations and works in conjunction with professional collection agencies when required.

Monthly and Fiscal Reporting. Shell Hospitality prepares monthly financial statements for presentation to the Board of Directors. These statements are reviewed and analyzed to ensure that resorts are operated in a fiscally sound and cost effective manner. Shell Hospitality works with a professional audit firm who produces an annual independent audit.

Investment Management. At many Shell-managed resorts, association fees are collected at the beginning of each year with funds invested to earn interest on behalf of managed Associations.

Association Management. In each vacation ownership resort, there is generally an Association Board of Directors. The Board members work diligently to make the best possible decisions on behalf of all the owners/members. Shell Hospitality Inc. works very closely with all Boards to provide professional advice and counsel. In addition to the important role of providing Association Board members with operational expertise, Shell Hospitality also: