Seems like you should not have to but showing they broke house rules leading to damage may help. 

They seem to be having an issue with the theory of having a "hotel" with no onsite management.

We had success in summerlin with insurance company paying .. over a 24 month period we had 3 tenants   fair market rent at the time was about 2200 or so non furnished.. we got 4100.00I did not like the turnover so I put it up as furnished rental and got 3500 and its going into its second year with a superb tenant. so seems like a happy medium for us.. 

It also seemed like an appropriate name since GSP’s are energetic, aggressive hunting dogs just like us when it comes to hunting for great deals and aggressive asset management.

I use standard market PM rates in my underwriting, but I also would not work for those rates but it is fair compensation for the work.I typically use vacancy of 5% not because I have ever had a unit that had that high vacancy but I do not have a no payment category and I want the underwriting to be conservativeon the opposite, your rate is a bit high and your appreciation rate and rent growth are modest.overall, seems like a decent attempt at an analysis.  

Most investors seem to want to use leverage to boost returns. 

-Your current STR seems seasonal, so even without a mortgage, you may not achieve year-round cash flow.

Doesn't seem like that's how it should work. 

Seems like a pretty fair recommendation to me.

Seems doable, depending on a few factors will determine what the right product is for you.