share sale letter april 2024

Dear Owners and Friends of the Suites,

I would love to invite your friends or family members for a complimentary stay, to have an opportunity to experience a night at San Francisco Suites if they are considering owning or adopting a share.

At this time, we have:

Master Suite one bedroom with a kitchen for sale for $3,500 (includes the assessment)

  • Special offer includes 14 days to use during the first year.

Parlor Suite studio with a pulldown bed and kitchen for $100 + $1,727 assessment

  • Special Offer includes 14 days use during the first year.

Adopt A Parlor

  • Adopt a parlor for cost of $1,757 7 days available for a year.

Here is your chance to own a little part of San Francisco!

Please give me a call and I will arrange a stay at the iconic San Francisco Suites, but caution is advised, since once you step into the lobby and experience true hospitality, you will fall in love with the Suites and will want to become an owner.

Warmest wishes,

Cynthia

Cynthia Reid
General Manager
San Francisco Suites
creidgm@sfsuitescsa.com
415 433-9700
CC: Geoffrey Bellah, President

Board of Directors’ Open Meeting Jan. 6th 2024

San Francisco Suites
Board of Directors Open Meeting
January 6, 2024

 

DRAFT

San Francisco Suites Board of Directors Open Meeting

January 6, 2024

1. President Chuck Meibeyer called the Zoom meeting to order at 11:05 AM. The Board Directors present via Zoom were:

Chuck Meibeyer, President
Fred Munroe, Vice-President
Dwight Walker, Treasurer
Geoffrey Bellah, Secretary
Jeff Reichel, Director-at-Large

Others present: Cynthia Reid, General Manager

2. Owners’ Forum: No owners were in attendance.

3. President’s Report: President Meibeyer announced that with the completion of this term in March 2024 he will be leaving the Board, after nine years of service, five as President. He thanked General Manager Cynthia Reid for her support and advice and complimented the other Board Directors for their seriousness of purpose, for their diligence, and for the various skills and experience they brought to the Board’s work. He mentioned that he will shortly be sending out a President’s Letter to the membership announcing his retirement and urging members to run for the upcoming two positions on the Board. He also listed what qualities he felt best serve Directors who serve on the Suites’ Board: expertise, knowledge of the Suites, energy, and passion, and an avoidance of promoting a single personal issue.

4. Approval of Minutes: Vice-President Munroe moved, and Treasurer Walker seconded the approval of Minutes from the November 4, 2023, meeting. The motion passed unanimously.

5. Treasurer’s Report: Treasurer Walker reported that the Association’s cash position is currently good with 2024’s assessments now being collected. The budgeted reserve contribution portion of the assessment of $122,000 will be transferred into the Fidelity account for the Reserve Fund by March 2024. The low-interest Axos account will be closed, and its balance of $36,768 will be transferred to Wells Fargo to pay reserve expenditures. A discussion was held about putting incoming assessment revenue into the higher interest-producing Fidelity account, moving funds from Fidelity into Wells Fargo as needed, and reinvesting in Treasury notes by March 2024.

Secretary Bellah moved and Walker seconded that the Board form a subcommittee consisting of the President and Treasurer to move funds between accounts in the most advantageous manner, and to purchase or lock in interest rates on Treasury notes, all before March 2024. The motion passed unanimously.

Although 2023 revenues are slightly up, operation expenses are as well, mostly due to the insurance premium increase and staff overtime. Walker projects a $42,000 operating deficit by December 2024.

At this point, there will remain approximately $28,000 in uncommitted reserves for 2024, so Walker strongly recommends that reserve expenditures beyond existing commitments be used only for emergencies.

6. General Manager’s Report: Manager Reid reported that the Association currently owns 17 Shares, and that of those, 16 have been adopted. We currently have one deeded back Parlor share for sale on RedWeek. Unfortunately, although there were healthy sales of both Master and Parlor shares in 2023, there has been a large increase in the number of deed backs, mostly due to the aging population of our original owners who find themselves unable to use their share time. These deed backs, which to be accepted by the Association must be clear of liens with their property taxes fully paid, are then adopted or sold by the Association. Even so, the increasing number of deed backs puts a financial strain on the Association because of the potential immediate loss of assessment revenue. Interestingly, many owners hoping to deed back their shares, change their minds when they are informed of the possibility of depositing those shares with one of our Exchange services, thereby giving them the opportunity to travel to other locations, domestic and international. As for the owners who wish to list their shares for sale at the front desk or on the website, those shares must have their assessments and taxes paid. Reid however maintains that she has had much interest and subsequent success in adopting and/or subsequently selling shares, and foresees that success continuing into the coming year.

Reid is happy to report that we have received more of the 2024 annual assessments at this time than at the same time last year, a sign that the owners have confidence in the Suites in spite of the continuing problems in the city and the significant assessment increase. Owners realize the uniqueness of the Suites and the value it represents when compared to other accommodations in the city, especially on Nob Hill. That appreciation showed itself in the high occupancy rates in 2023, especially in December, which was fully booked.

The Employees of the Quarter are Erick Tedeev at the Front Desk and Gloria Soto, Head Housekeeper. And the Employee of the Year 2023 is the Suites’ handyman, Israel Garcia.

Reid ended her report by praising the hard work of the front desk and housekeeping staff who helped move furniture during the installation of new wallpaper in the lobbies and carpeting in individual suites.

Old Business: A. At the January 9th VOTA delinquent assessment foreclosure auction, there will be 8 Master and 5 Parlor shares offered. B. Three major projects are being completed at the Suites this January: new wallpaper for the lobbies, new carpeting in all suites (except the “4” parlors which were re-carpeted when they were remodeled several years ago), and the city-mandated digital fire alarm system. There is a need for more rolls of wallpaper at an added expense of $1700. Munroe moved to approve the additional costs, Walker seconded, and the Board unanimously approved the motion. All projects should be completed in time for the re-opening of the Suites to guests on February 1. C. Reid reported on the ongoing Parlor sale by which an Association-owned Parlor share can be purchased and transferred to a new owner for $100, and the upfront payment of the annual assessment. So far four Parlor shares and one Master share have been sold in this manner. D. One Parlor share is to be posted on RedWeek for $1000, plus the annual assessment and Reid will report in March as to its status.

New Business:
A. The company The Inspector of Elections, who has well served us in the past, will conduct our March 2024 Board election. Meibeyer urged that the election announcement sent to the membership be very clear and explicit about the date and time that all candidate applications be received.

B. There was a general discussion about how to sell or market shares owned by the Association that are not revenue-producing. One idea was to approach several of the private clubs in the neighborhood that lack overnight accommodations (e.g., The Family Club, The Bohemian Club) to see if they might be interested in purchasing shares for their members’ use. Another suggestion was to place a sign-out front indicating the availability of “Suites for Sale.” Reid brought up the possibility of offering potential new owners a complimentary one or two-night stay at the Suites, without inconveniencing or displacing owners.

C. Bonus Time revenue is down, and the Board discussed strategies for increasing the use of Bonus Time and the revenue Bonus Time produces. By raising Bonus Time rates? By offering different rates for weekdays and weekends? By changing the reservation lead time? All agreed that the front desk should remind owners when they are confirming a reservation, the number of nights still available to them. Munroe moved that the rates remain the same, but that the lead time be extended from one week to two – as a one-year trial. Bellah seconded, and the motion passed with one dissension from Walker. D. Finally, the Board discussed the suggestion from some owners that soap/shampoo/conditioner dispensers be installed in the baths. Since there was general approval (with few reservations) for this proposal, Reid promised to bring to the Board at the March 2024 meeting a sample of the kind of dispenser she would prefer and a cost analysis.

Forward Planning: The carpeting in the hallways and staircase is showing wear, and probably will need replacement soon, for aesthetic and safety reasons. Given the limited reserve funds available for this type of project in 2024, the Board recommended that its consideration be moved to 2025.

Adjournment: Walker moved and Munroe seconded that the open meeting adjourn. With unanimous passage of the motion, the meeting adjourned at 1:17 PM.

Respectfully Submitted by
Geoffrey Bellah
Secretary