Rating Condominiums
Is the current AAA condo rating policy adequate? Is it fair to the operator, and to the travelers who depend on AAA ratings? If not, what can be done to improve the system and make it more responsive to the needs of both?
AAA currently uses such terminology as “extended stay”, “apartment style”, “varying décor and design”, “multi-bedroom”, and “off-site registration” to describe and define condominium properties, and has created a separate and distinct CONDOMINIUM classification. The AAA Diamond Ratings Guidelines apply the same criteria to condominiums as it does to other lodgings.
In other words, the same rating requirements and expectations apply to condominium operations and to non-condominiums alike. Therefore all lodgings compete equally on the proverbial level playing field, right? Sounds fair to me. After all, a condominium is just another lodging property with multiple owners; or is it more? Are there other differences; or are there just distinctions without a difference?
Should condos be given special treatment solely on the basis of ownership? I have never believed that a condominium should be either rewarded or penalized from the ratings perspective. This belief began during my AAA tenure when I dealt with condos from New England ski resorts to beach resorts in the south, and was subsequently involved in formulating and implementing AAA’s initial policy on condo rating.
Despite inspecting hundreds of condos, individual meetings with dozens of condo owners and managers, and participation at several lodging association meetings, I still believe that the only substantial difference between a condo and a non-condo is the style of ownership.
Since rating organizations and guests deal primarily with the on-site property management rather than the owners or investors, I have never been persuaded that ownership should be a rating factor. I am, however, still open to opposing argument, and we would welcome comments.
In our opinion, if a condominium property is clean, well maintained, well managed, and provides the atmosphere and quality of service expected at a particular diamond/star level, ownership should not impact the rating.
We regularly get questions from condominimum managers and homeowners associations asking why their property must meet the same rating standards as others, and how to get special treatment from AAA or MOBIL
We always advise them to focus on educating their homeowners on the value of a AAA or MOBIL rating. In our experience, most condo owners/investors do not have a lodging background, and usually need to be convinced that a major expenditure to meet certain ratings criteria is actually a very sound investment. We have found that owners are often more willing to invest in physical and service improvements when they better appreciate that a AAA or MOBIL rating can add to their revenue.
