People often ask me how many stars my park has. I always tell them that I've got a five-star cash flow. That totally confuses them, and allows me to change the subject.
I'm not shy about talking about the "mysterious" star system, only I'm confused as much as everyone else as to how to truly rank you park in such a subjective system, and why the heck anyone would care anyway.
I've found that most of the people who ask me this question are total beginners. They think that the system really means something, and that a five star park is worth more (like a five star hotel room). Now I defiantly rank a Ritz Carlton over a Ramada Inn, but it's not that easy in the park business.
The star system revolves around basic structural differences and amenities between parks. However, it leaves off the three most important comparison points: LOCATION, LOCATION AND LOCATION. I would rather have a one star park in a great location than a five star in a desert. I have seen five star parks in location only accessible by a burro, and I don't see much pride of ownership in such a property. Some of these parks have more amenities than customers.
I propose that we re-think the star system to something tangible and objective- CAP RATE. In that event, most of the old, 10 unit per acre parks will be fives all day long, and the empty five stars will plummet down to ones. Until that time, I suggest you answer the "how many stars is your park?" question with "mines got five star cash flow!"