Michael Sneyd is the current Chief Operating Officer of Rosseau Developments. Fox Harbour Resort that comes under his purview is now ranked #7 out of the top 20 resorts in Canada by Condé Nast (the only resort east of Alberta), and has been included in the top 10 in this list for three consecutive years. Michael has over 30 years of experience in resorts, master-planned communities, hotels and mixed-use projects. His expertise extends to all aspects of hospitality, real estate development and asset management.

 

You’ve had a great many years in the hospitality, property management and tourism industries.  Talk to us about your achievements, and more importantly man management and turnaround times

 

I’ve been in the industry for three decades. In the 1980s, my first development was 1 Toronto Street, a 500,000 square-foot commercial/office building with retail and 212 condominium units. We accomplished something that couldn’t happen today – we got rezoning in six months to meet our tight timeline. I was the Project Director responsible for design, planning, legal, negotiating leases, and handing it all over to tenants and owners.

 

During the 1990s, I was on the team that developed Four Seasons Resort on Nevis Island – the Caribbean’s first modern 5-Star resort. The island wasn’t the easiest to get to, but remoteness was part of its appeal. From there, Four Seasons Resort Estates was created to link the hotel and condominium concepts with services such as housekeeping, child care and a rental program. We imported materials and worked with local labor – a practice that has been applied at many Four Seasons Resorts since.

 

In 1998, I rejoined the 1 Toronto Street team. We acquired three failed golf course communities in the United States Sunbelt and turned them into prestigious properties. Rich oil executives lived in our Oklahoma resort, and those who wanted an elevated experience in Florida came to Harbour Hills. The JW Marriott Tucson Starr Pass Resort had hosted the PGA many times, and the 575 rooms we developed there became the template for the JW Marriott brand, which took Marriott accommodations up a notch in the level of luxury.

 

In 2010, I joined Skyline. Through it all, working with and managing people has been the key to success. Many of the professionals I work with are third-party consultants. Motivating and collaborating with them produces a first-class product.

 

Give us a heads-up about Skyline, and about the organization being recognized as Canada’s Best Managed companies under your leadership

 

At Skyline, I got to lead a team of exceptional people and work with the shareholders and visionaries who are merging real estate development and hospitality. We bought properties we felt would generate a 10 per cent return on investment after a quick turnaround. Land acquisition was the icing on the cake. Among the properties we bought for incredible prices were the Pantages Skyline Hotel, Cosmopolitan Skyline Hotel, Omni King Edward Hotel (with partners), Blue Mountain Village, plus the Hyatt Regency and Arcade in Cleveland. We were recognized for our proactive employee engagement and team-building programs. Skyline involves approximately 1,400 people who understand service and the importance of taking care of guests and homeowners. For me, the time was right earlier this year to move on and apply everything I’ve learned to new projects.

 

How was the stint on ‘Undercover Boss Canada’?  Did you get any new insights, or was it a scripted exaggeration like any other reality show?

 

My episode was as real as you can get for reality TV. I worked alongside the staff, waiting tables, hauling hay, etc. My disguise was so convincing that my son, who was about five at time, was terrified when I walked downstairs. The producers developed the story that they were doing a documentary on retraining middle-aged workers, and said I was an ex-ski bum, ex-waiter, ex-salesman looking to retrain for a job. This resonated well with staff members, none of whom recognized me as their CEO.

 

I had previously worked from the ground up as a bus boy, waiter, ski instructor … and I knew that stellar employees can show executives a lot about improving operations. The star of our show was a wonderful man who went so far as to approach HR to see if there might be a job for me. We gave him a sailboat to celebrate his dedication, and when I go to Deerhurst, he still gives me a hug.

 

I gained insights into the commitment, professionalism and excellence in our employees. I learned executives need to promote the sharing of their ideas, and mentorship among them and newer employees. Once the show came out, they were impressed that their CEO cared so much about them. Part of SkyLine’s ranking as Canada’s best-managed company has to do with listening to their ideas.

 

You and a partner created the Property Valuation Program that became the Canadian standard for computerized valuation of commercial property investments. Can you elaborate?

 

I obtained a Master’s Degree in urban land valuation in the early 1980s, when the personal computer was making its debut. I did my thesis on how to use this new technology to analyze income-producing properties using probability theory on uncertain events. Where an office or commercial building is essentially a collection of leases that can be added up to determine cash flow, hospitality is more complex, with rentals of ballrooms, catering, restaurants, etc. making up the overall operations. Our program asked questions about start/end times, terms, growth factors, etc. and added them together. It was the first program of its kind, and we sold upwards of 500 copies at $3,500 each. If I’d stuck with it, the program might still be an industry leader; however, I wanted to be a developer of real estate, not software.

 

 

You are currently in a new role at Rosseau Developments.  Tell us what has been invested into the making of this new ‘condo’ hotel, and is this term new?

 

I am very proud to be Chief Operating Officer at Rosseau Developments. The existing hotel was completed in 2009, and the interiors were designed by the esteemed Frank Nicholson. Its construction materials, features and finishes are of such high quality, they look as good today as they did when the hotel opened. After the bank took back the resort from the original owner, Rosseau Developments purchased it in 2011 for substantially lower than its original development costs. The firm has been working for five years to turn around the operation and solidify its position as a top resort in Canada.  Rosseau Developments has also been successful in reaching an agreement with third-party condo unit owners. It will be my job to sell the units owned by Rosseau and use the profits toward enhancing the resort with additional units. The “Condo hotel” concept has been around for some time. Deerhurst Resort, the Pantages and Cosmopolitan are all condo hotels. So are the residences at Blue Mountain Village.

 

Is this a kind of time-share property?  If not what are the benefits of investing in it.  What’s in it for the owners?

 

The Rosseau Residences do not come under the time-share umbrella. With a time share, you own a specified amount of time in a unit in a hotel or condominium. In a condo hotel, you own your unit as you would a typical condominium, but it is run as a hotel. At JW Marriott, all units are entered into the rental pool, and owners receive a proportionate share of the rooms’ revenues. Maintenance and attracting and administering renters are taken care of, so when owners arrive, they simply enjoy their stay (at least nine guaranteed weeks). What makes JW Marriott unique is that owners also get to participate in the income generated from the shared amenities. Their ownership generates a return on investment in a resort with a proven history of success. This is a flexible investment with benefits: you own a piece of cottage country you can stay in and make a positive ROI with no muss or fuss.

 

Do you personally believe that because of our restrictive weather, where nearly six months of the year comprises of winter, this new project will have the USP’s to succeed?

 

The resort is already successful on a 12-month basis, producing a strong, positive net income. Summer weekends are continually sold out, and in the fall, people come from all over world to enjoy the breathtaking colors. In Canada, you either endure or embrace winter, and if it’s “embrace,” Muskoka offers some of the best outdoor opportunities in the country. My favorite season is spring before the leaves are on the trees. Walking through the forest affords incredible views of wildlife.

 

The Rosseau is built on the massive Canadian Shield about 100 feet above lake level. Its expansive southern view over Lake Rosseau is beyond compare. Canadian business, sports and entertainment leaders choose cottages on the big three lakes (Muskoka, Joseph and Rosseau) because you can star gaze at night without city lights interfering, and “star gaze” during the day when the celebrities come out.

 

Who are the target audience, and how many condos will be sold here?

 

Our target market includes anyone who wants to own a vacation home on the best lake in Muskoka without the hassle of maintenance and dealing with renters. These perfect clients may be families new to Canada who do not own family cottages already, busy young parents who want to relax in luxury and spend quality time with their children, and empty-nesters looking for a place where their kids and grandkids can visit them in a wonderful environment. The JW Marriott Rosseau Muskoka Resort and Spa encompasses 221 units, of which 89 belong to third-party owners. Rosseau Developments purchased 132 of the units in the first phase, with more to come in the future.

 

Since you started out, you’ve been involved in world-class projects.  What’s special about this luxury project?

 

Here are 3 key indicators:

1. Location is critical to success in all facets of the real estate industry, but especially for a resort, which has to be in a naturally beautiful spot easily accessible by major highways (JW Marriott, The Rosseau Muskoka Resort & Spa is less than a two-hour drive from Highways 400 and 407).
2. Remember that hospitality management can make or break a project; with the Muskoka resort industry undergoing consolidation among major destinations, JW Marriott is at the epicenter because of its stringent standards and Marriott’s wide appeal.
3. Hire the best team possible, and guide and encourage them to achieve excellence in their fields as we are doing at JW Marriott in Muskoka, including general manager Tony Tamburo, who has helped to attract leading industry professionals.