How do you define success? Fred Vogel

cover
story
Success Magazine: How do you define success?
Fred Vogel: I can measure success in this way… A guest arrives at the resort, all stressed out
from work and life, then I see that same guest the next morning fully relaxed and in prime
vacation mode. If we can deliver a vacation paradise for someone …that’s success.
SM: Has your family always been
successful?
FV: I don‘t believe that anyone can have
success without experiencing failure. I
remember our early days in this business.
We had old rental units and had many
guests that refused to even stay with us.
We struggled to pay our bills and meet
24 SUCCESS
SUCCESS july
july 2008
2008
24
payroll. It was physically and emotionally
draining and we found very little financial
reward for a lot of difficult work. But,
those are the days that give you the drive
for success and the perspective to enjoy it.
SM: Your father came from Queens, NYC.
What made him come to upstate NY and
purchase this property?
FV: As a child, my father spent his
summers in Schroon Lake. I believe it was
the memories of those days that gave him
a life long desire to live in the Adirondacks.
When my parents purchased Cresthaven,
it was a common dream of theirs to own a
Lake George motel into retirement. Little
did they know…
cover
SM: How did your family business get
started?
FV: My father was always looking ahead
to the next goal, and trying to figure
out how to get there. I think the family
business started with my father trying to
instill in his sons a good work ethic as we
grew up. As kids, we worked because we
were told to. After going to Union College
I was given the choice to come back and
work for the business, an opportunity
that I could not turn down. After my
brother Scott finished school he did the
same. Mike, my youngest brother, came
back to work with us when I was facing
cancer and we needed his help. Now, my
father recruits his grandchildren to help
with property maintenance. We call them
“Grandpa’s Crew.” I think he is training
the next generation.
guests, we started exploring our options.
We traveled to resorts throughout the
country, attended industry conventions
and listened to many resort development
professionals. The resort that you see
today is a collaboration. It is mostly a
creation from a labor of love. My entire
family had input in designing a resort that
gives our lodge owners everything that
they could want in a vacation home on
SM: When was the Boat House
constructed?
FV: Approximately 1860.
SM: Who had the vision to create this
resort that we see today?
FV: When confronted with a beautiful
lakefront property and buildings that were
not meeting the vacation needs of our
of landscape screening. One of the first
issues was dealing with the waste water
generated by the resort. Lake George
does not have a public sewer. All of the
resort’s waste water had to be processed
on site. We installed a state of the art
waste water treatment facility which turns
waste water into clean water. Storm water
management was another concern. A
substantial amount of engineering created
a system to retain the storm water and
protect the lake from “run off.’ Another
environmental benefit we have been able to
realize from the rebuilding of the resort, is
that the new building codes allow for more
efficient energy use and less waste.
SM: I am sure that you grew up and just
fished and played water sports, right?
FV: Growing up in Lake George definitely
has its benefits. If I was not playing
sports, I would always be on the lake. As
I grew older, the demands of the business
consumed more of my time. Today, I look
to the lake for relaxation on my day off.
We take our kids on our boat and explore
islands, and go tubing. My son is anxious
to use the new fishing pole my brother
gave him for his birthday.
SM: When your father purchased this
property it was not the beautiful resort that
you have today. What was it like watching
the resort convert from the old to the new?
FV: I always like to say “the more things
change the more they stay the same.” As
the older buildings were replaced with the
new lodges the obvious changes can be
seen. However, while the faces
may have changed throughout
the years, the vacationing
families still arrive every week
to soak up the Lake George
vacation experience.
SM: The Lodges at
Cresthaven and the Boat
House Restaurant have a lot
of history. Who was the first
owner?
FV: There is a great deal
of history here. Our deed
goes back to King George
of England. Most famously,
George Foster Peabody had
purchased the great estate
Abenia from Walter Price.
He later sold the property
to Adolph Ochs, the famous
owner and publisher of the
New York Times, who built the boathouse.
The estate has been divided over the
years, and the property we own includes
his original boathouse and his secretary’s
house.
story
SM: Being an
entrepreneur is a lot of
hard work. What have
you learned from your
parents about being a
business owner?
FV: I have learned from
my parents that every
day is a new day. Start
off on the right foot and
push forward each and
every day.
Lake George. Whether it is the structural
make up of ownership, the site plan design
or the type of sheets that we use on the
beds, everyone has contributed in making
The Lodges a modern Adirondack resort.
SM: Your resort is located in the
Adirondack Park, a very sensitive
environmental area. How did this
influence the rebuilding of your resort?
FV: We knew that it was not possible
to build the resort without addressing
all of the environmental concerns. We
modernized wastewater, storm water
systems, and aggressively confronted issues
SM: You could have
just built a deluxe
motel or cabins or
townhouses like the
rest of the builders in
the area. What made
you construct this
“Adirondack cottage
colony”?
FV: While the resort was part of the former
Abenia Estate, one of the only significant
pieces of architecture left on this parcel
was the Boathouse. We had cottages, a
large carriage house, and log cabins on the
property --a real mix. The log cabins were
a favorite, and of course it fits the area.
However, building vacation log homes
without any green space around them
didn’t make sense either, so we planned
the building and design to preserve a sense
of privacy and quiet as well. Landscaping
plays a large factor in that and it is nice to
Continued...
july 2008
2008 SUCCESS
SUCCESS 25
25
july
Cover
Story
continued
see it filling in, screening the buildings and
defining the recreational spaces.
SM: How does your resort differ from
other resorts in the Lake George region?
FV: There are a lot of nice places to stay in
Lake George. It is a vacation paradise; the
lake and mountains in conjunction with
an abundance of activities, restaurants,
shopping, and a great nightlife. At The
Lodges we set ourselves apart by having
all the amenities of a large resort while
providing the hospitality of a small inn.
We have tried to preserve a sense of
family here. From the start, we met families
who had been coming to Cresthaven for
10 years before we bought it, now 25
years ago. It is their family vacation--often
with multiple generations. We have built
something families can be proud to own
and share with their future generations.
We offer many amenities, including a full
service restaurant over the lake, a large flat
sandy beach, an indoor/outdoor heated
pool, playground, putting green and game
courts, an exercise room, and video arcade.
Planned activities like musicians and
bonfires also add to the resort’s appeal.
We are small compared to some, and since
owners return the same weeks every year,
there is a sense of community as neighbors
reunite, kids grow up together and the
26
26 SUCCESS
SUCCESS july
july 2008
2008
BBQs light up while wiffle ball games
are played. We have a focused goal of
providing awesome vacations.
SM: Why did you choose to construct
the cabins as a “fractional ownership”
concept?
FV: Fractional ownership was the best
fit for our resort. We knew that there
was a lot of extra work in designing a
successful fractional ownership program.
However, being able to sell lakefront
property at such a low price, and being
able to maintain the resort atmosphere
were benefits that we could not overlook.
Additionally, the owners that now call The
Lodges their vacation home are able to
have deeded lakefront property and only
pay for the time they use. Their vacation
home doesn’t sit empty 300 days each year.
SM: What are the benefits of becoming a
“Fractional Owner” in Lake George?
FV: Our ownership program can be
achieved by the everyday person. Not just
those who inherit property, or those who
have millions of dollars to purchase a new
home on the lake. Ownership at a fraction
of the cost, vacations when you can use
them, and your home is maintenance free.
The lawn is mowed, your home is cleaned,
the groceries are in the refrigerator, the
pool is warm, and you can park your car
and never have to leave.
SM: How does that differ from the “timeshare” concept?
FV: This is like time-share’s bigger brother.
You are buying a multi-week package,
therefore a unit only has a few owners
purchasing all of the shares. A time-share
will have up to 52 owners; one for each
week of the year, and the use can be quite
different. Time-shares also rely heavily
on resort exchange programs, while the
fractional ownership program uses the
exchange as an added benefit.
SM: How can someone invest in your
property?
FV: It is important for someone to figure
out how often they want to vacation in
Lake George. Once they have answered
that question, they can buy as little as
3 weeks or as many as 30 weeks. With
just 10% down, and our in house
financing, we will set their family up
for generations of vacations.
SM: What does a buyer get when
purchasing this fractional share?
FV: The buyer receives deed and title to
their share of the building and land. Each
Cover
share consists of three weeks of vacation,
each year, forever.
SM: How can someone get financed?
FV: Financing can be achieved through
an outside lending institution such as a
bank, or through our in-house financing
program.
SM: Is the ownership transferable?
FV: Yes, the deed is transferable through
sale and inheritance.
SM: Does your family intend to build
another resort in Lake George?
FV: We are always entertaining our
options. However, I’m not sure this is the
right location for our next resort. The
difficulties in seeking approvals make Lake
George a very difficult market to operate
in. That being said, I love Lake George
and would be happy to create another
resort here.
SM: What was it like growing up on this
beautiful lake and working at the resort?
FV: Growing up here was paradise. We
worked a lot, but enjoyed our days off.
We had a lot of freedom on the lake. Once
I started working I enjoyed it from another
perspective: parents teaching their kids to
water ski, stories of the first catch of the
season while I tended bar, watching the
kids eat s’mores at the bonfire, and families
playing catch while the BBQs heat up for
dinner.
SM: Would you change any part of your
life?
FV: I don’t think I would change a
thing. You are the sum of your life’s
experiences. The good and the bad things
that have happened to me have given me
an appreciation for life. I have tried to
educate my head, my heart, and my hands
along the way. Changing something in my
life would only short change me.
SM: What family investments or ventures
do you see in the future?
FV: We would like to use our expertise in
the creation and management of resort and
residential communities.
SM: How will the economic “recession”
impact your resort business?
FV: I hope little if any. I believe Memorial
Day weekend will be a good indicator
of the summer. The resort was full and
the restaurant was rocking. Millions of
story
people live within a 4 hour drive from
here. Despite the rise in gas costs to make
that trip, it is still vastly lower than buying
airline tickets.
SM: Will the rise in gas prices help you to
attract new buyers?
FV: I believe that the increase in fuel costs
will affect us in two ways. In the short
term, I think that new buyers will want
to stay closer to home for their vacations.
In the long term, I feel that people would
like to know that they have their place at
the lake but will know they can always
exchange it to go somewhere else when
they want. I think if the prices do not go
totally out of control we will probably see
a benefit from the high fuel costs.
SM: Since you provide your own financing,
does that benefit your buyers?
FV: The benefit is that they are dealing
with us, people they can put a name and
face to. We also only require a 10% down
payment and will not require any collateral
for the loan.
SM: If you had to describe your family in
one word, what would that be?
FV: Dynamic.
july
july 2008
2008 SUCCESS
SUCCESS 27
27