Sea Island Slowdown

Thanks to reader Eric for this Tony Adams story on layoffs at Sea Island, as well as the resignation of CEO Bill Jones from the Synovus board.

Columbus-based Synovus declined Tuesday to discuss Sea Island Co. and its decision to lay off between 300 to 400 employees, as well as any impact the upscale hotel and development firm's business might have on the regional bankholding company.

"Basically we're in a position, as we would always be with a customer, and we just cannot provide any additional information on a customer relationship," said Synovus spokeswoman Alison Dowe.

Sea Island Co., which dates to 1928, is headquartered on the Georgia coast near Brunswick. The firm has developed several ritzy resorts in the area, most notably The Cloister on Sea Island and The Lodge on St. Simons Island. A late-July check of the rates at The Cloister showed rooms averaging between $750 and $1,700 per night.

Monday's announcement by Sea Island Co. that it is eliminating jobs follows the July 7 resignation of Bill Jones, Sea Island Co. chairman and chief executive officer, from the Synovus board of directors.

In a recent interview with the Ledger-Enquirer, Richard Anthony, Synovus chairman and CEO, commented on Jones and his resignation from the board.

"Bill, he has been, and continues to be, a very good customer and friend," Anthony said. "He just felt like he needed to spend time on his business, and we can probably serve him better without his being an insider."

Well at least he doesn't want to spend more time with his family.

Meanwhile, this could explain why Tadd Fujikawa picked the Quality Inn over The Lodge or The Cloister.

Comments

[John Dortmunder]

reminds me of Palmer blowing 7-shot lead at turn to lose US Open at Olympic...

...Jones III got greedy, plain and simple - now it may cost him the family business.

JD

[Bilbo]

Sea Island was a lot more charming when it was affordable (relatively speaking).

[Terry]

The long-time members have been grumbling for years. Problem is, Sea Island Co. has a strangle-hold on development in SSI.

Luckily, Linger Longer (of Reynolds Plantation fame) may be redeveloping nearby Jekyll Island; which will create real competition; which should mean BJ3 should quit acting like the Sultan of Dubai.

[Ky Laffoon's Ghost]

Grew up in the area, albeit on the other side for the marsh from Bill Jones III. There was a time when Sea Island was special. No more. As I noted here several months ago, young Mr. Jones has done his best to turn the place into a Ritz Carlton, which is something the world does not need. JB, Terry, and Bilbo are right. Seems that we are seeing the old adage acted out: From shirtsleeves to shirtsleeves in three generations. Figuratively speaking, of course.

As for redevelopment of Jekyll Island, if that means more expensive, then another big failure is in the cards, not to mention a faithless act of economic aggression. The State of Georgia, in the form of the then vilified governor M.E. Thompson, showed tremendous foresight in 1947 by buying Jekyll Island for less than a million dollars. A little refurbishment is in order, but Reynolds Plantation? As the locals might say, "Not hardly." Unfortunately, given the troglodytes in political power in my native state, we can expect the worst.

[John Dortmunder]

my Mom and her friends refer to the new Cloister as...

..."Las Vegas East".

that's a bad thing.

JD

[Sea Island Resident]

These are all thoughtful comments. I have known the Jones's for my entire life inlcuding the grandfather, father and son. They all had very different characters and personalities. What this one lacks that the other two had is empathy, character and humility. Bill's ego knows no bounds and his lack of concern for his employees is legendary. He has wiped out almost all of the good will his father and grandfather worked a lifetime creating and it is a sad thing to see. I wish he would change and realize his business is all about building long term, appropriate relationships that create sustainable value.

[Long Time Sea Island Visitor]

Given the state of Sea Island when Bill Jones III took over in about 1992, it would be helpful to remember that The Cloister was falling in, the "new" meeting center was poorly designed and most of the other facilities were on the back end of their useful life. Bill's imagination and the force of personality figured out the competing interests, environmental, economic and traffic to mention a few to add to Sea Island's appeal, not dilute it by trying to operate out of tired facilities. The Lodge was a purposeful effort/investment to make a viable reputation for St Simons..Had anyone stayed at the King & Prince?? It was worn down and then had poor service. For all the criticism and current economic problems, my guess is that history will vindicate Bill III for his vision and courage. For those who think he is arrogant, too bad you have missed knowing someone who really puts his legacy first, and wisely has moved the Sea Island franchise up in status, rather that let it continue to fall as it was when he took over the reins.

[Resident]

Vindicated? Not much vindication when you're 800 Million in the hole, your total revenues only hit 275 Million, you can't afford to finish anythng that was started within the last year, your occupancy rates are only 30%, and you can't even "host" your own PGA tournament. The Sea island Company is headed for dissolution and fire sale purchase of all the individual resort & real estate property. Bill will be lucky to keep his Black Banks house.

[Frederica]

I laugh at the people that vacation on Sea Island--with all of their money, don't they know any better way to spend it? Sure, it is a safe place to take your children, but look who they are playing with--sheltered brats and good old boys. This resort teaches intolerance, egomania and greed by example. Those gates did more than keep the middle classes out, they locked some of Georgia's worst citizens inside.

[Eric Stratton]

Resident = Pass Go, Collect $200!!

Long Time Visitor = Straight to Jail, you have no f'g idea what you are talking about.

SB

PS...I speak from 4 generations of property owners on Sea Island.

[Diplomat]

Does anyone think it is possible summer rentals decline in price.

As to the number of homes for sale, it does not mean much. credit is much tighter this year than last and sales volume in every region is, how do you say, getting slower.

[John Dortmunder]

Diplomat, summer rental rates have to decline...period.

as for the number of homes for sale on Sea Island, it means a lot. the core demographic on Sea Island are a group that are typically insulated from economic swings, most have owned these houses outright for years and "credit" is not a factor.

something is amiss. take a look at cottage 69 listed on the website...this has been owned by one of the largest Coca-Cola heirs for decades and decades. "credit" is not forcing a sale. the hunch locally is that the family just does not like the "new" Sea Island which is targeted to the "day bed" crowd like Paris Hilton. same story for cottage 46.

JD

[Diplomat]

What is the DAY BED crowd. My observation is that buyers ,who may in fact have the cash, are just being prudent. Real Estate may drop 50% in the next 3 years. After all, it was not that long ago you colud pick up a cottage for $400,000.
The credit crunch is only just beginning.

[John Dortmunder]

So you've made an observation -- what is your point/conclusion?

[diplomat]

The increase in homes for sale is directly related to the credit crunch in
that folks are wary of buying expensive assets if they think such assets might fall in value.No neighborhood is immune.

[John Dortmunder]

dip,

agreed that your comment explains the lack of BUYERS...

...but it in no way explains the extraordinary and unprecedented number of SELLERS on Sea Island, especially the homes that have been owned by the same family for many decades.