EQSV Completes Multimillion-Dollar Renovation at Bergen Equestrian Center in New Jersey

Equestrian Services, LLC (planning and design), in conjunction with Equestrian Professionals, Inc. (our management division) has completed the multimillion-dollar renovation of the Bergen Equestrian Center.

Equestrian Services, LLC worked with RSC, a local architect firm, to plan and design the facility-wide renovation. The new facility has been redesigned for ease of use and better efficiency, while creating better ventilation for the horses. Natural light, better airflow, and an open, cheery feeling were obtained by adding Dutch doors to the outside walls of the stalls. Client circulation has been greatly improved with a reception area, and Managers and Admin staff will have privacy with new offices. The art room and visitor’s lounge has been updated with new cabinetry for better storage and new furniture. The groom’s quarters and General Manager’s quarters are now updated and remodeled, bringing the living standards to a high level.

Equestrian Professionals, Inc. took over the management of the Bergen Equestrian Center in June of 2008 and prepared the facility for the renovation. The facility was successfully closed and packed up, and all of the lesson horses were relocated to another farm during the year-plus renovation. Equestrian Professionals, Inc continued to look after and care for the horses during the renovation, assisted in problem-solving and construction oversight, and brought all of the lesson horses back prior to the end of the management contract, which ended successfully in June of 2010. All the unpacking and organizing was also completed. The horses and staff love their new facility – it is beautiful and complete, awaiting a new Manager.

Before Photos:	After Photos:

(top)

Resort Real Estate Developers in Search of New Ideas to Keep Up in a Dynamic Industry
by Luke Nolan

Francesco Frangiali, the Secretary General of the World Tourism Organization, announced in an interview with Le Figaro that, over the next 20 years, China will play an important role in the world tourism market, and by 2020, it will become the largest tourism market in the world.

With competition in the Chinese residential market intensifying, creating tighter profit margins and greater uncertainty, developers are increasingly giving serious thought to entering the resort market. Meanwhile, Chinese consumer preferences have matured, and the tourist market is evolving from catering primarily to tour groups on sightseeing trips, to a more sophisticated client in search of vacation and leisure traveling. This is putting more pressure on developers to offer a wider range of amenities and services at their destination resorts.

There are wide gaps among first-, second-, and third-tier cities in China. Most resorts are concentrated around the coastal cities, where sending power is greatest. China’s interior and western cities have far less resorts compared to the coast, and most resorts are located in and around the capital of the province. Another key difference is that first-tier cities rely mainly on the real estate element and typically develop resorts from scratch, with man-made scenic spots, views, and amenities, while second- and third-tier cities rely more on the indigenous resource of their location, whether it be a notable landscape, culture, or historical place.

China’s tropical island of Hainan is a location of particular focus and has benefited from recent government policy. A ten-year plan to turn Hainan into a tourism hub was announced on the eighth of June. The National Development and Reform Commission approved the government's ten-year plan to develop Hainan into a "global top-tier leisure island resort". The goals for 2020 include annual tourism revenue of RMB124 billion and an account of tourism for at least 12% of GDP. It is reported in the South China Morning Post that transactions of Hainan's commercial residential properties last month slumped 57.9% from April to 229,000 sq m, while the average transaction price slipped 29.7% month on month to RMB 8,483 per sq m. Interestingly, many Chinese people buying holiday apartments in Hainan have no intention of staying there, but rather are keeping them for investment purposes. In January, more than 30% of properties in the Hainan resort city of Sanya were vacant, according to China Daily. Hainan already has 45 five-star hotels, which is the highest concentration of any location in China.

Competition in the China resort market is becoming increasingly intense, and a focus on innovative operation is being added to the traditional model of pure price competitiveness. Continually improving operational and management capabilities, as well as developing new markets and creative business models, will be key to improving core-competitiveness. Resort projects with themes such as spa, fitness, wellness, ski, leisure, golf, and equestrian are being seen around the country. With lack of real experience on such themes, developers are looking at international experts to help them make the most of their developments.

Making a destination stand out among the seemingly endless travel options is a key concern for the resort developer. In terms of operation and management, the China resort industry is still very immature. Drawing on the experience of developed countries and bringing an efficient business model and a famous world-class brand is the clearest shortcut to becoming outstanding in the China market.

Sanya Marriott Resort & Spa
Ideally situated on the pristine, white-sand beaches of China's premier holiday destination, Yalong Bay on Hainan Island, Sanya Marriott Resort & Spa is a great choice for a relaxing tropical escape. The resort has a 450m private beach and offers a wide range of amenities, such as a swimming pool, clubhouse, kids’ pool, café, and restaurant. The management team has listed 81 things for the guests to do at the resort, including swimming, sailing, biking, hiking, jet-skiing, scuba diving, golf, fitness, spa, and tennis. The Marriott in Sanya has been operating since 2004 and is typical of Yalong Bay’s five-star hotel offering. With 45 five-star hotels in Hainan, it is becoming increasingly difficult for resorts like Marriott to differentiate themselves. Indeed, directly neighboring the Marriott are all of their closest competitors, which makes life difficult for the hotel operator. The better the quality of their management and the uniqueness of their amenities will decide on their eventual success.

Club Med Yabuli Ski Resort
Club Med in Yabuli, a satellite city of Harbin, the capital of Heilongjiang, will open in the winter of 2010. It will be the first high-end ski resort in China, located in the heart of a national park. It has an ideal domain for skiers of all levels, with the longest ski runs in Asia. Club Med offers its trademark carefree, all-inclusive vacation package. The guests here can participate a series of sports and activities, such as downhill skiing, fitness, a flying trapeze, swimming in an indoor pool, and snowboarding. In the wellness center, guests can enjoy a Canadian Bath, Jacuzzi, and sauna.

Le Meridien Sheshan Shanghai
Le Meridien Sheshan is typical of a resort set in the suburbs of a first-tier city and reliant on its real estate offering as the key driver of profitability for the developer. Set in the heart of China’s National Tourist Resort of Sheshan, Le Méridien Sheshan Shanghai provides guests breathtaking panoramas of Shanghai Sculpture Park and majestic mountain ranges. The hotel offers a very wide range of facilities, including a 1,900-person ballroom and a 500-person theater. However, like Marriott’s competition in Sanya, Le Meridien has stiff competition from neighboring developers, such as the highly-successful Sheshan Golf and Country Club, which hosts the HSBC World Golf Championships. This serves as an example of the lengths to which resort developers must go to sell real estate.

(top)

Selecting a Stable Designer
by Michele Schwartz

Most real estate developers are looking to provide a unique draw to their proposed communities. These developers often contact Equestrian Services, LLC when they decide to add an equestrian component to their community. These developers have made an excellent choice, because they now have experts in both barn design and management to guide their planning efforts.

What are the risks of using an equestrian design firm that does not have barn-management experience? One of the risks is that they will be providing the developer with a generic barn layout that may or may not be easily adapted to the types of programs the end-use managers will be running. If the community will be marketed to young families, many of the barn clients could be young children. This type of facility would be well-served to have a classroom space for teaching these children about horse care, playing board games, watching horse videos, and even eating lunches during summer camp. A large lesson tack room, situated near where horses will be groomed and tacked-up for lessons, would allow instructors constant supervision of their young charges. If the developer does not know what types of programs will be run, how is he to request these of his equestrian designer? A designer that understands how this particular facility will be managed will best be able to provide an efficient design solution.

Another pitfall is that few equestrian design firms can provide the client with an operations cost model comparing filling the barn with lesson horses versus boarded horses. These firms are designers and can design a beautiful barn, but they won’t be able to recommend a price point for lessons or suggest additional revenue-generating programs. At Equestrian Services, LLC, we have the ability to model projected revenues at various price points and account for a multitude of program offerings. This will give the developer a clearer sense of his carrying costs before the homeowner’s association takes over. We also have extensive experience in reviewing community covenants and restrictions, as well as other homeowner’s association documents, to ensure that in addition to preserving the community character the developer wishes to create, they also engender a horse-friendly community that draws equestrians to the development.

Several clients have contacted us after they started building their barns. When we suggest programming ideas they never knew were possible, they tend to suffer from ex post regret for the money they dumped into a barn that will be challenged to meet the higher revenue-generating ideas we present them with, or because the barn is located far from pastures and riding arenas, which will greatly increase labor hours. These clients were either working with non-equestrian architects, or with barn designers that could not help the client work through a highest- and best-use programming scenario.

Other equestrian design firms do not have the ability to create unique equestrian programs like we at Equestrian Services can. We are the first to develop a signature branded equestrian community - our O’Connor Signature facilities. Karen and David O’Connor did not simply lend their name to the facility, but instead participated at each one by presenting clinics at least once a year. To maintain the message that O’Connor Signature is welcoming to all riding disciplines, top clinicians from many other riding and training types are invited as well. For resort-oriented developments, we have the ability to offer equestrian entertainment that utilizes the talents of the world-famous Frederic Pignon and his wife, Magali Delgado. They create shows that will awe, amaze, and delight audiences of all ages. We also have the ability to offer Equi-Spa to resort and select community developers. What other equestrian design firm can deliver all of that?

If you are looking to develop an Equestrian Community, you may be wondering whether it is worth it to hire an equine specialist to design your barn. It is! Now, that may sound self-serving coming from an Equine Architect; however, I have seen many poorly-designed barn plans proposed by architects whom have no horse experience. Worse yet, I have seen a barn designed and built by one of the leading barn manufacturers in the U.S., which essentially put every horse in an isolation stall and created a layout that would increase horse-tending time for staff. Horses are social creatures, who receive comfort knowing that others are nearby. Isolating the horse would cause unnecessary stress on the horse, potentially causing injury to himself.

While all design projects have trade-offs and challenges, starting your equestrian community or resort planning with the right equestrian design and management firm can set your development up for greater success.

(top)

What Does Having a "Green" Equestrian Center Really Mean?

Developing a truly “green” equestrian amenity involves a comprehensive approach from beginning to end. Effective land-planning decisions guide where an equestrian facility might best be located; onsite design decisions work within the context of existing ecosystems, and LEED-certified design and construction supports sustainable facility operations and best-management practices for the amenity.

To begin with, a facility's location is the first step in developing a sustainable amenity. If an equestrian facility (and its associated community) is located far away from existing development, the environmental costs of transit, waste disposal, and access to resources outweigh the “green” benefits of developing an equestrian facility. Finding ways to balance a “new ruralist” lifestyle with current Smart Growth techniques is one way an equestrian community and its associated facility can become a steward of the environment.

Once a site has been chosen that meets sustainable land-use requirements, consideration should be given to regional issues, existing land cover, topography, and location of wetlands and sensitive natural areas when selecting the location of an equestrian facility onsite. Developing with respect to the existing landscape and ecosystems is one of the first steps in creating a sustainable equestrian facility. Where you choose to locate your barn and covered arena, ancillary structures, pasture, and circulation should always reflect the existing natural conditions onsite. A truly sustainable facility works with the existing landscape, not against it.

A truly “green” equestrian facility should also take into consideration stormwater management, onsite hay production, and manure compositing. Stormwater management techniques, such as pervious pavement options instead of asphalt or concrete, using bioswales to retain and filter stormwater before returning it to the ground, installing intensive green roofs to minimize runoff, or utilizing a graywater catchments system to collect water for pasture or arena application, are just a few ways to mitigate the environmental impacts of an equestrian facility. Conserving land for onsite hay production is yet another way that an equestrian center can operate sustainably, especially as weather extremities threaten existing hay supplies nationwide. Manure management continues to be a buzzword in the equestrian community, and onsite composting techniques are becoming more popular and easier for large-scale equestrian facilities to implement.

Audubon Lifestyles, in conjunction with the International Sustainability Council, have created a certification for equestrian centers. Based on the holistic approach to sustainability, this program is comprehensive and deals with people, planet, and profits. This model is unique in that it addresses all the considerations for real success. The basic objective of the Audubon Lifestyles Sustainable Equestrian Facility Program is to reduce the consumption of non-renewable resources, minimize waste, create healthy and productive environments, and inform the public, residents, guests, clients, and employees about the benefits of sustainably-managed equestrian facilities.

While standards for sustainable barn design currently do not exist, many of the United States Green Building Council (USGBC) LEED recommendations can be applied to barn design and construction. As stated previously, green roofs are highly beneficial for onsite mitigation of stormwater, and most barns consistently address natural lighting and ventilation concerns identified in the LEED for New Construction program. Utilizing existing standards in the design, construction, and material selection of an equestrian facility is imperative when aspiring to create a truly “green” amenity.

Equestrian facilities are at an advantage to promote sustainable land use and construction practices nationwide. To be truly “green”, however, no one item listed above is enough. Sustainability is a comprehensive process, beginning with land use, site development choices, natural systems, green building design, economics, the treatment of human resources, and sustainable site operations. While implementing any one of these measures is better than none, a truly “green” equestrian facility looks at how each step influences the next, and how a comprehensive approach produces superior results for horse, rider, and the environment both enjoy.

* The LEED Green Building Rating System™ is the nationally accepted benchmark for the design, construction, and operation of high-performance green buildings.

Audubon Lifestyles: www.audubonlifestyles.org

International Sustainability Council: www.thesustainabilitycouncil.org

(top)

The Equestrian Community Model
by Jennifer K. Donovan

Equestrian community living has been around for decades. California (always the trendsetter) began designing and planning for these types of communities back in the 1970s. Designed after successful golf-community living, the concept offered a community or resort a new anchor or theme for like-minded people to come and live and interact around a common element – the horse.

Today, as golf courses reach saturation levels, many developers are looking for a new angle, a new anchor for their developments. We are now seeing a resurgence of the equestrian community model at staggering rates. We are currently witnessing a phenomenon of large proportion. Internally, we track equestrian communities, as well as communities and resorts that are adding an equestrian amenity. So many are coming online, we are finding it difficult to keep up. At last count, we were close to 300 communities and steadily rising.

Here are the main obstacles that will need to be addressed by every community developer to ensure success:

• Developers have traditionally hired an “equestrian consultant” to help them with their project. Just because a person is an equestrian himself does not make them qualified to plan and deliver an equestrian amenity for a resort or community. If you were planning to include a golf course in your community – would you hire someone who has never played golf to do the feasibility, planning, design, and management? I would think not - you would turn to Jack Nicklaus or Tom Fazio. Why is the equestrian amenity model any different? Work with a firm that specializes in this field. The stakes are high, and the risk for failure can be great.
  
  
• What is the equestrian program that will best serve your community's residents? Providing services that do not serve your demographic is another potential area for risk of failure. You need to understand who you are serving, first and foremost. Active adults? Primary, second, third home? Weekends? Seasonally? Multi-generational? Lots of kids? Competitive or recreational? Entertainment? Think from the end here – who are we serving and what experience do we want them to have? Then reverse engineer the process to deliver that program.

• What are the facilities needed to meet that program? Every type of program needs their own specific facilities – there is no “one size fits all” model. The equestrian amenity is far more complicated than golf, in that there are many, many different needs and programs that can be delivered. In golf, there is just one, and for the most part, the demographic is the same.

• How much will the capital improvements cost? Are there enough residential units to spread the cost so this is feasible? Just like golf, you will need a critical mass of residential units to make it feasible. There is no magic number – the equestrian amenity can work many ways – enough units to spread the cost, the demographic to support it, the ability through a club structure to be open to the public.

• What will it cost to run this operation on a monthly basis? All equestrian amenities lose money and need to be subsidized, either through an HOA assessment or club membership structure. Is this feasible? How many residential units do I need to make this feasible? This needs to be done very early on and is paramount to the long-term sustainability of any equestrian amenity.

• Who will manage and/or operate this facility? Previously, there had been only two choices for operating and managing these facilities. The first option was the developer hiring employees to run the facility. The problem with this model is that very few developers are equestrians themselves, so they do not have the experience or knowledge to understand program needs, or if the person he has hired knows what he/she is doing. Because the staff was working with a developer who didn’t understand their needs from an equestrian standpoint, there has traditionally been tension in the relationship, and as a result, a fairly high turnover rate.
  
  The second option was to lease the facility to an outside operator – this model is also a failed model in that the operator will do what he/she needs to make ends meet – remember these amenities aren’t profitable. That means corners are being cut, and considerations for the long-term maintenance and care of the facility are not being met. In this scenario, the business is being run to meet the needs of the operator – not the needs of the community. Those cut corners equate to paying staff substandard wages, while working all of them for excessively long hours. Your business is only as good as your staff. Your residents should be delivered a hospitality-designed experience, with professionals who are at the top of their game. Hire a professional management company who can deliver a quality experience for years and years to come. Continuity of service is critical after so many of these models have failed in the past. Equestrian buyers are leery and need assurance, and many of these people have experienced failed models.

The good news is that there is pent-up demand for living the equestrian lifestyle in a shared community model. And now there is ample opportunity to deliver a high-quality experience that is sustainable for all. My best advice is to approach this amenity just like you would approach a golf amenity. Through proper planning, design, and management, there is an opportunity to set a standard that all others are measured against.

(top)

Why O'Connor Signature?
by Rhonda Gailey

So what is so great about the O’Connor Signature? I could easily describe why branding equestrian facilities in resorts and residential communities are quickly gaining popularity and maximizing return on investment for developers. I could go into detail about all the 100 million reasons why all visitors and homeowners alike will “ooh” and “aah” over the specified amenities and enjoy tailored programming and worry‐free management and operations. But at the end of the day, the real difference is in the revolutionary approach to customer service and how it relates to the equine industry.

Anyone and everyone who meet David and Karen O’Connor are immediate fans. It doesn’t matter what discipline you ride or enjoy, people relate to them because of their true horsemanship. Everyone will admit that we enjoy being around people who are successful at what they do, and no one can doubt that about the O’Connors. This offers brand charisma to create positive product differentiation. They are established as symbols of individual self-made success in pursuing the American dream. Combining that type of Olympic success and branding into a residential community, along with a highly-accomplished team of equestrian specialists, creates a formula for success. All of the O’Connor signature standards can be seen and are consistent at every development, in every staff member, and at each event. Any business can make promises of excellence, but what really counts is the consistency. Customers allow themselves to be seduced into becoming fans only when they know they can count on you time and time again. Exceeding expectations, but more importantly, consistently meeting expectations.

Before O’Connor Signature, equine facilities and horse owners were in the midst of a service crisis and had been disillusioned. Their expectations are very low, and because no one else is doing it better, they have not demanded more. Why? Don’t we deserve more? Don’t we want more for our equine partners? Since most service is awful, we are ripe for a revolution. Are we finally discovering that quality isn’t enough? Today, the customer service wave is swelling larger than the quality wave, and when it hits, those not prepared will be washed into history.

So how does O’Connor Signature exceed and consistently meet expectations?

• We focus on the customer! We have systems – not rules. Systems are predetermined ways to achieve results. We have systems focused specifically for delivering service, not goods! The purpose of systems is to ensure consistency. Systems give you a floor, not a ceiling.
  
  
• Time and time again, it is proven that the people interacting with the customers can make or break the experience. One of the major news channels recently aired a special where the CEOs of major corporations went down to work at their entry-level jobs incognito, in order to discover why particular locations had so much success. In every scenario, it was the staff member and the service they provided that made the difference. O’Connor Signature has proven systems that allow the staff members to get it right every time. They are rewarded for successful testimonials and ecstatic customers! We push for the "deliver plus one" method, and we surprise the customer with more than just the standard to equal satisfied buyer. Poor or mediocre service is such a widespread epidemic that we have come accustomed to expect it. For example; cold food in restaurants, dirty public restrooms, smelly barns, late deliveries, are lazy staff are all perceived as normal. O’Connor Signature is not normal. We go above and beyond in everything we do!
  
  
• Flexibility. O’Connor Signature’s vision is always changing and always developing! Visions do only two things: they expand, or they retract. We empower the staff and facilities to change direction when the vision changes. We listen to our customers and staff. Customers’ needs and wants change all the time, and we support that.

O’Connor signature is obsessed with looking after our customers and consistently delivering that "plus one" experience in our image, service, and quality, with international celebrities, experienced management, and a comprehensive worry‐free amenity.

(top)

In the News:
Bowden's Market Barometer – June 2010

EQSV was mentioned in the June issue of Bowden's Market Barometer!

Our recent expansion in China is discussed in the "Bulletin Board" section of the magazine. Read it here.

(top)

Projects:
EQSV Completes Yanbian Horse Resort Master Plan

Equestrian Services, LLC recently completed design principals, program elements, and a conceptual master plan for this 1800-acre resort. A dramatic entry concept utilizing water features and bridges has been incorporated for the optimum "wow" factor. There are eight exclusive private farms that wrap around a racetrack and grandstand. Dynamic and centrally-located, a mixed-use village includes a hotel, shopping, dining, and private villas, along with a sport horse-training facility, spa, and tennis center.

(top)