The island’s top dog is taking a big bite.
Developer Shawn Kaleta has purchased Anna Maria Vacations, a Holmes Beach rental property management company, and Anna Maria Beach Resort, bringing the total number of vacation rentals under a Kaleta-owned umbrella of businesses to more than 800 units.
Kaleta bought Anna Maria Vacations and the company’s annamaria.com URL from Joe Varner, a former business partner, for an undisclosed sum in November 2021.
But The Islander does know the price for Anna Maria Beach Resort, 6306 Gulf Drive, Holmes Beach. It cost the developer $46 million.
Varner purchased the 50-year-old resort in 2017 — then-Blue Water Beach Resort — and took it down to the studs and added a resort pool in an 18-month multimillion-dollar remodel.
The only other property included in the sale was the Anna Maria Vacations office building, 3108 Ave. C, Holmes Beach.
The sale was confirmed Jan. 24.
Kaleta did not respond to a Jan. 25 phone call and text messages from The Islander about the purchase.
He owns two other vacation rental property management companies — AMI Locals and Anna Maria Island Accommodations, also known as the Flip-Flop company for its colorful flip-flop logo.
He purchased the latter company sometime before Sept. 17, 2021.
Kaleta’s stable of rental units dwarfs that of the other leading companies on the island, including Vacasa, Mike Norman Realty and Island Vacation Properties, which offer about 160-200 rentals each.
The island has never experienced a rental property management company consolidation of this magnitude, Varner said Jan. 26.
“This is a whole new dynamic to Anna Maria Island, a whole different ballgame, and I guess time will tell if that business model is successful or not here,” Varner said.
Larry Chatt, the owner of Island Real Estate, which manages 87 vacation rental properties, said he didn’t believe the consolidation would worsen the rental market for property owners or renters.
“I think it’s still relatively healthy for customers, guests and owners alike. I think there are enough companies in place that there’s still healthy competition to make sure that we lean into property management as well as lean into helping guests with booking stays on the island,” he said.
However, Chatt said he has concerns about the legal pressure a larger outfit could put on the cities to change ordinances related to tourism.
“The worry is somebody getting big enough to litigate their way through to create a short-term gain and not respect the long-term character the island has created,” Chatt said.
Current ordinances ensure a healthy mix of permanent residents and tourists and, if a larger outfit were able to upset the balance, the character of the island would be in jeopardy, Chatt said.
Kaleta is embroiled in five circuit court cases and a $3.125 million federal lawsuit with the city of Holmes Beach related to the development of Bali Hai Beach Resort, which he purchased in 2019 for $20 million.
The resort is rented under the Anna Maria Vacations umbrella.
Anna Maria Beach Resort rates have appeared to rise since Kaleta took over in November.
Baleigh Mendez, a Kansas native, told The Islander Jan. 28 she stayed at the resort with her husband in June 2021 in an “Oceanview King Island Room” for four nights, paying $295 per night.
According to the resort’s website, booking that room for the same duration and number of guests in June 2022 will cost $895 per night.
This is not good news in any way. What makes AMI special is precisely the opposite of what this news entails. And yes, as repeat guests of Anna Maria Beach Resort we can confirm that prices have gone sky-high and the appetite to maximise revenues has already impacted on the quality of the stay with a growing presence of day passes that take over the site without being guests there. Very sad.