Capital Resorts Vacation Club

[harveyhaddixfan]

I have a friend that said they bought into a vacation club with Capital Resorts. First thing I thought was "Oh No". Word on here is that "Vacation Clubs" are a bad idea and that's what I told them. They said that they were told that they had over 8000 resorts to choose from including Disney. (I'm already thinking LIE LIE LIE). They go on that if you can't book a week, they will pay for you to stay at a competitors place :hysterical: (LIE LIE LIE). Am I missing something here? This company http://www.capitalresortsgroup.com/ "appears" to actually have some resorts, but I'm not buying it. I'm guessing it's just another scam to get your money and you can never book anything you want when you want it. Someone please fill me in if you know otherwise.

 

[theo]

Never even heard of 'em before, but a quick glance at the web site provided clearly indicates that they utilize their own internal "Capital Points" (...whatever on earth they might be).
The web site makes obvious, continuous and repeated use of the word "ownership", but rest assured that in this (and in any other such) club, one actually owns absolutely nothing.

 

[harveyhaddixfan]

Looking at some of the resorts listed it appears they are using SPM managed resorts as their own. They don't show the one in Kitty Hawk NC but it's pro Sea Scape. They said they paid $6k upfront and $499 a year. I'm with you. They probably don't own anything.

 

[harveyhaddixfan]

Also, I can't find ANYTHING online about them except for articles that look like paid advertising.

 

[TUGBrian]

waste of 6000 dollars, convince them to rescind. heres some ammo for you

http://tug2.net/timeshare_advice/timeshare-vacation-club-warning-information.html

 

[Maple_Leaf]

Speculation: Capital Resorts and SPM

It's not a coincidence that Capital Resorts and SPM Resorts are starting to show up at the same properties along the East Coast. It's by design. I would appreciate someone who owns at La Costa Beach Club in Pompano Beach to confirm or dismiss my following speculation:

SPM Resorts is hired by the HOA to conduct a management turnaround at the resort. SPM finds that the maintenance fees are too low, the last renovation at the resort was done during the Disco Era and the capital reserves are zero. The HOA declares a big special assessment and panicky owners flee for the exits. Capital Resorts is brought in by SPM as a marketing agent to convert the multitude of defaulted units into "Capital Points." With the voting power of the defaulted units Capital Resorts subsequently takes control of the HOA to preserve their financial position at the resort. Once the renovations are complete the resort looks nice and shiny and the "Capital Points" are now marginally more marketable with a new beachfront South Florida resort in the portfolio.

 

[crowmg]

We are owners at Tropic Sun Towers in Ormand Beach, FL which was managed by SPM. We got a letter in the mail from SPM saying that they and several other companies related to the timeshare industry was acquired by National Hospitality Group in 2016. One of these companies, Capital Resorts Group can provide additional opportunities to our resort owners. CRG was offering appointments and courtesy complimentary dinner to owners to do a presentation about the changes. They never contacted me for any presentations in my area so I called to find out if there were changes we needed to know about. They sent me to the Marketing Dept and I left a message to have someone call me. Haven't heard a word yet. BBB has lots of complaints about CRG. I did call the resort first and they gave me a different number to call and when I call that number the welcome greeting says Interval International but the person who answered the phone says they are CRG. This should be interesting...

 

[pedro47]

I found their web site with Google search and the BBB gave them a "D" Rating.

 

[Maple_Leaf]

We are owners at Tropic Sun Towers in Ormand Beach, FL which was managed by SPM. We got a letter in the mail from SPM saying that they and several other companies related to the timeshare industry was acquired by National Hospitality Group in 2016.

Yes, it appears that SPM Resorts, Defender Resorts and Capital Resorts have become the National Hospitality Group. I know Defender and SPM manage resorts and Capital buys up cheap timeshare inventory and puts it through their sausage maker to produce "Capital Points." It will be interesting to see what the National Hospitality Group has in store for owners at resorts they claim as "our destinations."

 

[Panina]

Yes, it appears that SPM Resorts, Defender Resorts and Capital Resorts have become the National Hospitality Group. I know Defender and SPM manage resorts and Capital buys up cheap timeshare inventory and puts it through their sausage maker to produce "Capital Points." It will be interesting to see what the National Hospitality Group has in store for owners at resorts they claim as "our destinations."

I own at a SPM managed resort in myrtle beach and have heard nothing. Being SPM is a management company and Capital actually own, sells and manages I can't see how they mix except to participate in internal trades between the system or maybe a merge of the management divisions.

 

[Maple_Leaf]

I own at a SPM managed resort in myrtle beach and have heard nothing. Being SPM is a management company and Capital actually own, sells and manages I can't see how they mix except to participate in internal trades between the system or maybe a merge of the management divisions.

I have heard several reports about SPM and Defender taking over the management at troubled legacy resorts and disposing of the HOA-owned inventory through Capital Resorts points-o-matic machine. That may be the synergy management was looking for in the creation of this National Hospitality Group (NHG).

 

[Panina]

I have heard several reports about SPM and Defender taking over the management at troubled legacy resorts and disposing of the HOA-owned inventory through Capital Resorts points-o-matic machine. That may be the synergy management was looking for in the creation of this National Hospitality Group (NHG).

That is troubling, for a HOA run by a board who hires SPM to manage, there can ultimately be a conflict of interest, as SPM has a Real Estate subsidiary to help HOA and owners sell their units. If they sell them to Capital at some point the association can lose control. Hope this stays as theory and isn't true.

 

[Maple_Leaf]

That is troubling, for a HOA run by a board who hires SPM to manage, there can ultimately be a conflict of interest, as SPM has a Real Estate subsidiary to help HOA and owners sell their units. If they sell them to Capital at some point the association can lose control. Hope this stays as theory and isn't true.

Yes, I know. Here's another one, this time involving Defender Resorts and Capital on August 25, 2017:

Capital Resorts Group, a wholly owned subsidiary of National Hospitality Group, is a leading vacation ownership company headquartered in Myrtle Beach, South Carolina, announces the addition of The Links Golf & Racquet Club to their growing list of luxury vacation destinations...Capital Resorts Group entered into an affiliation agreement with The Links Golf & Racquet Club – a Defender Resorts professionally managed property – in order to expand its luxury vacation offerings to its Capital Club members.

http://www.prnewswire.com/news-rele...h-the-links-golf--racquet-club-300509486.html

Oops, I forgot this one from August 16, 2017:

Capital Resorts Group, a wholly owned subsidiary of National Hospitality Group, is a leading vacation ownership company headquartered in Myrtle Beach, South Carolina, proudly announces the addition of Beach House Resort to their list of premier vacation destinations. Beach House Golf & Racquet Club is an oceanfront luxury destination located in Myrtle Beach, South Carolina...Capital Resorts Group entered into an affiliation agreement with Beach House Golf & Racquet Club – a Defender Resorts professionally managed property – in order to expand its luxury vacation offerings to its Capital Club members.

http://www.crossroadstoday.com/stor...ffiliation-with-beach-house-golf-racquet-club

A lot of "affiliation agreement" action going on in Myrtle Beach with NHG.

 

[Maple_Leaf]

I found the genesis of this NHG in a series of 2016 financial transactions by Pelagic Advisors:

04/18/2016 – Pelagic structures and invests $1,500,000 in a 10% cash pay redeemable convertible preferred capital return security (“CRG Preferred I”) in Capital Resorts Group LLC to finance the equity portion of the acquisition of Defender Resorts LLC.

05/01/2016 – Capital Resorts Group LLC changes name to National Hospitality Group (“NHG”) post close of the Defender Resorts LLC acquisition. The resort footprint of NHG expands to 37 resorts.

08/08/2016 – Pelagic structures, organizes and invests $1,500,000 of Class C common equity into NHG as equity capital financing to further expand the sales center footprint of NHG throughout the south eastern United States.

12/01/2016 – NHG closes the acquisition of SPM Resorts LLC (“SPM”). In conjunction with the acquisition of SPM, Pelagic assists NHG in the recapitalization of the current balance sheet through a consolidated bank debt financing, repayment and conversion of existing Pelagic securities. The resort footprint of NHG expands to 69 resorts.

12/01/2016 – Pelagic converts CRG Pref I for Class C common equity in NHG in conjunction with the SPM acquisition to close the CRG Pref I.

12/01/2016 – NHG fully repays $5,109,744.46 in 17 months plus accrued interest to Pelagic for a 19.23% IRR to close CRG Term Loan I.

http://www.pelagicadvisors.com/category/2016/

 

[Panina]

I found the genesis of this NHG in a series of 2016 financial transactions by Pelagic Advisors:



http://www.pelagicadvisors.com/category/2016/

Definitely will be a conflict of interest. Most HOA's won't see it coming.

 

[crowmg]

Update: In September I wrote that we had received a letter but was unable to secure a meeting. On Thursday, December 7 we attended their meeting to talk about the "changes" occuring at our SPM managed resort, Tropic Sun Towers in Ormand Beach, FL. Was told that they would be the new owners as of January 1. It was a sales presentation and they wanted us to switch to their points. All my timeshares (4) are weeks because we bought for specific dates for events that we attend in their areas (race week, bike week, etc). They tried their darndest and out and out lied to me about how I could not put my deeded weeks in a revocable trust. Sorry, all my deeds are in our family revocable trust. I'm sure the sales weasels told all kind of lies but I think they knew I was educated on timesharing. Was told that we would be sorry that we hadn't switched over that resort for only $9500 and all the extra points we could have that were thrown into the deal. Also said we could keep the specific weeks we wanted and I'm sure that's not possible. I'm sure the maintenance fees will go up but we'll have to see what that brings.

I do have one question for anyone who might have legal knowledge. My original contract is with the resort, as Capital Resorts is the new "owners" are we grandfathered in with the original contract or can they run all over us with new rules and regulations. What are our rights as owners who are owners of weeks.

 

[tschwa2]

They can't exactly run all over you but every time an owner converts plus any unsold inventory that they bought along with developer rights gets deposited into their trust and they then get voting rights for those weeks. They vote as a block. Even if 85% of the weeks are still owned by deeded owners most deeded owners don't vote or if they do don't know what/who to vote for. It is very easy for a developer with 10-15% of the voting weeks to take over an HOA an enact rules that are beneficial to themselves. The fact that your week is fixed means that other than MF and transfer fees their isn't that much they can do to you. They will raise MF's somewhat to to updates but they won't want to make them go too high because those fees are passed along to their points owners and if the MF's are too high it makes it harder to sell the points.

If you like the fixed weeks you have and don't want to exchange regularly in their network there is no reason to change. I own a fixed week at one of their resorts and the old management company made it very easy to exchange internally for other weeks which we could then deposit with an exchange company. Capital did do away with that so now I am stuck with a fixed week that I don't want. I bought it for $1 and with the flexible internal exchange it was great now it is worth a lot less than the $1 and I would probably have to pony up 1 or more years and then be lucky to find a new owner. Still not worth converting when you can buy already converted packages for less than $50.

 

[crowmg]

Where do you own and what fixed week. We just went through their "sales pitch" for our Ormand Beach Resort. We were told it was a meeting to let us know what the new owners were planning as far as upgrades, changes to processes, etc. Thanks to TUG we know better than to believe their lies. They got rid of us quickly once we started talking about TUG but not before we asked for our prizes for listening to their lying drivel.

 

[tschwa2]

My deeded week is a fixed week at Seaside in Myrtle Beach its a spring week. The Capital converted weeks are in Branson and Hollywood Beach.

 

[Maple_Leaf]

I do have one question for anyone who might have legal knowledge. My original contract is with the resort, as Capital Resorts is the new "owners" are we grandfathered in with the original contract or can they run all over us with new rules and regulations. What are our rights as owners who are owners of weeks.

If your unit is deeded property YOU are the owner, not Capital Resorts.
Does Capital have control of the board?
Does SPM still manage the resort?

 

[WayneFromMaine]

So we just signed up for Capital Resorts ... a 40,000 point package w/12 Getaway (GOLD) weeks. Now I find this site and am quite scared. It seems all the warnings are conceptual and forecasts of doom, rather than actual experiences.
Any good advice while I'm in my 10-day cancellation window?

 

[tschwa2]

Hi Wayne, I have been an owner for over 2 years. I like the system but I stumbled onto the first contract and bought the 2nd one resale.
I think your biggest problem is going to be that you can't get much for 40,000 points. You won't get a full week in prime time and other than Branson the discounted last minute inventory can be hit or miss. The MF and club dues for 40,000 is very high per 1000 points as well. You will be paying about $470 in MF and you also have to pay $294 in club dues annually. The Getaways are through Interval and while they may start at $199 they probably average closer to $400-$500 for off season and shoulder time and closer to $600-$800 and even higher for more prime time inventory.

Personally I think that if you don't have a minimum of 120,000-150,000 points you won't be happy with it.
You also have to like the locations offered in the network.

What was the biggest selling point for you and if I haven't addressed it yet, I can tell you if what they told you (or how you understood it) was the truth, an exaggeration or pretty much a flat out lie.

 

[Panina]

This is what the site says...
National Hospitality Group ("NHG") is one of the largest managers and developers of North American vacation interval resorts. NHG provides its customers with tailored hospitality and vacation offerings. NHG is comprised of three renowned resort brands, Capital Resorts Group, Defender Resorts and SPM Resorts. NHG currently operates seventy resorts throughout the United States and Caribbean.

Defender and SPM are management companies. Capital is an ownership program. Within Capital you see some Defender Resorts and some SPM Resorts.

I own at a SPM resort I love that is not yet in the Capital program. My previous concerns are still valid. If Capital gets control I am afraid my lovely beachfront well maintained resort will see huge increase in maintenance fees.

The only positive thing I can say about the Capital program is I love the Main 84 Resort. I would probably have a more favorable opinion if I didn’t feel they were having a conflict by managing and acquiring. Hope I am wrong.

 

[WayneFromMaine]

This is what the site says...
National Hospitality Group ("NHG") is one of the largest managers and developers of North American vacation interval resorts. NHG provides its customers with tailored hospitality and vacation offerings. NHG is comprised of three renowned resort brands, Capital Resorts Group, Defender Resorts and SPM Resorts. NHG currently operates seventy resorts throughout the United States and Caribbean.

Defender and SPM are management companies. Capital is an ownership program. Within Capital you see some Defender Resorts and some SPM Resorts.

I own at a SPM resort I love that is not yet in the Capital program. My previous concerns are still valid. If Capital gets control I am afraid my lovely beachfront well maintained resort will see huge increase in maintenance fees.

The only positive thing I can say about the Capital program is I love the Main 84 Resort. I would probably have a more favorable opinion if I didn’t feel they were having a conflict by managing and acquiring. Hope I am wrong.

Yes, the Main 84 is nice, though quite limited in rooms. It's not that far from us, so not a draw at all

 

[WayneFromMaine]

Hi Wayne, I have been an owner for over 2 years. I like the system but I stumbled onto the first contract and bought the 2nd one resale.
I think your biggest problem is going to be that you can't get much for 40,000 points. You won't get a full week in prime time and other than Branson the discounted last minute inventory can be hit or miss. The MF and club dues for 40,000 is very high per 1000 points as well. You will be paying about $470 in MF and you also have to pay $294 in club dues annually. The Getaways are through Interval and while they may start at $199 they probably average closer to $400-$500 for off season and shoulder time and closer to $600-$800 and even higher for more prime time inventory.

Personally I think that if you don't have a minimum of 120,000-150,000 points you won't be happy with it.
You also have to like the locations offered in the network.

What was the biggest selling point for you and if I haven't addressed it yet, I can tell you if what they told you (or how you understood it) was the truth, an exaggeration or pretty much a flat out lie.

The selling point was the lower price $8000 + yearly ..... and their Getaways. We only planned to take 1 vacation with points (they suggested for short stays) and then use the Getaways for week-long trips. We also have the Gold status, which they 'oohed & aahed' about how fortunate I was ..... because Maine was a charter resort.