*** New Thread: KBV Vote for Chapter 11 Bankruptcy

[DeniseM]

I would see this as a golden opportunity to bail out and possibly even get some money back.

 

[ecwinch]

I just received this email..not decided what to do

Dear Owner,

Our records show that you own points and/or deeded week(s) at Club Wyndham Kauai Beach Villas. We have an important update that will impact the points or week(s) linked to your contract(s) at this resort.

As an owner at the Club Wyndham Kauai Beach Villas in Lihue, HI, please be advised that the Association of Apartment Owners of Kauai Beach Villas (“KBV Master Association”), has voted to file for Chapter 11 bankruptcy and proceed with a sale of the property. The Kauai Beach Villas Interval Owners Association (“KBV Timeshare Association”) has also voted to cease operations for their interest in the resort with the last check-ins for timeshare suites December 31, 2025 (Some portions of the resort not governed by the KBV Timeshare Association may have continued occupancy in some capacity, but this does not include any units within the KBV Timeshare Association.)   

As a result of the decision, you will experience a downgrade of VIP status after the Club Wyndham Kauai Beach Villas contract, and the associated points are removed from your Club Wyndham Plus membership. This change may influence your Club Wyndham Plus membership and upcoming travel arrangements. Please be assured that all current reservations made either with points affiliated with your Club Wyndham Kauai Beach Villas ownership or deeded week(s) will be honored through December 31, 2025.     

We are dedicated to providing you with alternatives to retain your ownership and ownership benefits. As such, if you are current with your maintenance fees, no loan balance, and in good standing with program rules and guidelines you may qualify to choose to swap your ownership interest for the equivalent Club Wyndham Access points at no additional cost, so the ownership remains whole, if desired. Maintenance fees and Club Wyndham Plus program fee will apply to all contracts under your membership. To indicate your interest for this contract swap, please fill out the form below and a representative from Club Wyndham will reach out via telephone or email. Please note: if you accept the offer to swap for Club Wyndham Access points, you will not receive any net proceeds from the sale of the property. If we do not hear from you about the Club Wyndham Access points within 30 days, we will assume you are not interested. 

To fill out the form, please click here: Kauai Beach Villas

For any questions about how this impacts your ownership ─ including maintenance fees, reservations, or other membership-related items — you can reach a dedicated team within Club Wyndham at CWAInquiries@wyn.com, or call them at 877-883-3640. 

Sincerely,   
Your Club Wyndham Management Team

Just received the same email. Everyone has to make to their own decision, but my read is that filling out the form is neither binding on you or CW .... simply based on the verbiage "you may qualify to choose to swap your ownership interest" and "To indicate your interest for this contract swap...".

Also if you click on the link, the page/form it takes you to has the following closing verbiage.

Thank you for selecting to learn more about your options. We are excited to learn of your desire to remain with the Club Wyndham family and to possibly swap your deeded ownership interest to Club Wyndham Access. We will contact you by email or phone within the next 5-7 business days to review your ownership eligibility and next steps. Please provide the best contact number below for us to reach you.

 

[bnoble]

Here are the considerations as I see them. The answer really depends on one's individual circumstances.

Reasons to decline the swap

• You do not need the vacation lodging you could book with the underlying points.
• You want to share in (a small part of) the proceeds of an eventual sale, and this is very likely to be more than the points are worth.
• You could use the vacation lodging, but would prefer to own points with a lower $/K MF ratio than CWA offers.
• This is your only Wyndham points ownership, and you'd prefer a clean(ish) exit from the system.

Reasons to accept the swap

• Your current KBV points are developer points, and
  • either swapping preserves a VIP level, or
  • you want to be able to use these points for Club Pass.
• You want to make use of CWA's very broad ARP rights.
• You do not want to wait for the eventual sale; the delay may depend in part on how feisty the whole owners are in the process.

Also a quesiton: did anyone who owns an unconverted week get this offer?

 

[jmdidion]

I got the same email and debating what to do. I assume the CWA offer is for their resort collection and no a specific property. Anyone know what happens when you want to exit? Will Wyndham take them back under their exit program?

 

[DeniseM]

Wyndham will not take them back, because the resort is closing Jan. 1st.

 

[ecwinch]

I got the same email and debating what to do. I assume the CWA offer is for their resort collection and no a specific property. Anyone know what happens when you want to exit? Will Wyndham take them back under their exit program?

Yes, the offer states that it will be for CWA points and there is no guarantee that they would take the CWA points they give you, under the certified exit program at a later date.

 

[jacknsara]

. . .
Also a quesiton: did anyone who owns an unconverted week get this offer?

Aloha,
We never converted our traditional PAHIO weeks to Wynham. We have heard nothing from reservations or resort. Our next reservations are/were for October 2026.
Other than reservations, I do not expect to hear from Wyndham.
I am a bit surprised to have received neither email nor snail mail from the resort (IOA).
Oh well - the year is not quite over yet.
Jack

 

[magmue]

We never converted our traditional PAHIO weeks to Wynham. We have heard nothing from reservations or resort.

Same here. It feels so disrespectful. I get that the legalities are complicated, but how hard would it be to send all the deeded owners an email saying something along the lines of "Sorry, we wish we could offer definitive news, but our lawyers say we're just not there yet"?

 

[bnoble]

Anyone know what happens when you want to exit? Will Wyndham take them back under their exit program?

there is no guarantee that they would take the CWA points they give you, under the certified exit program at a later date.

This is true, but one of the interesting things about the CWA "ownerships" is that they do not require a foreclosure to recover a non-performing contract, because there is no deed. So, there might be an easy way out if one decides to go that route---just stop paying the fees, and let them cancel it.

That said, I suspect it will usually be possible to offer CWA points up for "adoption" here at TUG.

 

[gps60255]

I would see this as a golden opportunity to bail out and possibly even get some money back.

I received my letter also and called the number and talked to them about switching to the CWA points that may be available. After a small wait the person came back and said that KBV was not eligible to switch to the CWA points. A few years ago I was looking at trading in my KBV resort and upgrade of course with additional monies. When the salesman came back they said that KBV was not one Wyndham would trade in. So they knew something back then. I will wait for the sale and take what ever it may be. One less timeshare to try and get rid of in the future. No one in the family wants them but 2 are using as guests this week. I am going to Kona Hawaian Village in January for a month. Don't think I will be going to any meeting for the 1st time in 28 years.

 

[bnoble]

It's entirely possible that those emails were sent erroneously. It's also possible that the phone rep had old informaiton---it was reported earlier on the master closure thread that KBV would not be eligible for the swap. So, either they changed their minds and decided to allow it and the change hasn't made it to everyone yet, or someone goofed sending out the messages.

Time will tell, I guess.

However, if you'd rather get out, there's no reason not to stay that course.

 

[jacknsara]

This is true, but one of the interesting things about the CWA "ownerships" is that they do not require a foreclosure to recover a non-performing contract, because there is no deed. So, there might be an easy way out if one decides to go that route---just stop paying the fees, and let them cancel it.

That said, I suspect it will usually be possible to offer CWA points up for "adoption" here at TUG.

Aloha,
I'm going on 7 year old memory so there is a pretty good chance I'm wrong.
KBV owners who converted their units to Wyndham in part by buying a developer unit at say Bali Hai technically still retained their KBV deeds. They had to pay MFs to Wyndham (monthly I think) for KBV. If they defaulted on those MF payments to Wyndham for a year or so, Wyndham would drop them and their ownership reverted to tradition PAHIO,
Jack

 

[M & D]

I just received this email..not decided what to do

Dear Owner,

Our records show that you own points and/or deeded week(s) at Club Wyndham Kauai Beach Villas. We have an important update that will impact the points or week(s) linked to your contract(s) at this resort.

As an owner at the Club Wyndham Kauai Beach Villas in Lihue, HI, please be advised that the Association of Apartment Owners of Kauai Beach Villas (“KBV Master Association”), has voted to file for Chapter 11 bankruptcy and proceed with a sale of the property. The Kauai Beach Villas Interval Owners Association (“KBV Timeshare Association”) has also voted to cease operations for their interest in the resort with the last check-ins for timeshare suites December 31, 2025 (Some portions of the resort not governed by the KBV Timeshare Association may have continued occupancy in some capacity, but this does not include any units within the KBV Timeshare Association.)   

As a result of the decision, you will experience a downgrade of VIP status after the Club Wyndham Kauai Beach Villas contract, and the associated points are removed from your Club Wyndham Plus membership. This change may influence your Club Wyndham Plus membership and upcoming travel arrangements. Please be assured that all current reservations made either with points affiliated with your Club Wyndham Kauai Beach Villas ownership or deeded week(s) will be honored through December 31, 2025.     

We are dedicated to providing you with alternatives to retain your ownership and ownership benefits. As such, if you are current with your maintenance fees, no loan balance, and in good standing with program rules and guidelines you may qualify to choose to swap your ownership interest for the equivalent Club Wyndham Access points at no additional cost, so the ownership remains whole, if desired. Maintenance fees and Club Wyndham Plus program fee will apply to all contracts under your membership. To indicate your interest for this contract swap, please fill out the form below and a representative from Club Wyndham will reach out via telephone or email. Please note: if you accept the offer to swap for Club Wyndham Access points, you will not receive any net proceeds from the sale of the property. If we do not hear from you about the Club Wyndham Access points within 30 days, we will assume you are not interested. 

To fill out the form, please click here: Kauai Beach Villas

For any questions about how this impacts your ownership ─ including maintenance fees, reservations, or other membership-related items — you can reach a dedicated team within Club Wyndham at CWAInquiries@wyn.com, or call them at 877-883-3640. 

Sincerely,   
Your Club Wyndham Management Team

Yes I received this email too. I am not going to respond as I want my Timeshare interest to end.

 

[bnoble]

Aloha,
I'm going on 7 year old memory so there is a pretty good chance I'm wrong.
KBV owners who converted their units to Wyndham in part by buying a developer unit at say Bali Hai technically still retained their KBV deeds. They had to pay MFs to Wyndham (monthly I think) for KBV. If they defaulted on those MF payments to Wyndham for a year or so, Wyndham would drop them and their ownership reverted to tradition PAHIO,
Jack

I’m talking about what the situation would be if an owner of an already-converted week (a) is eligible for the swap and (b) takes the offer. In that case the owner would exchange their KBV deed for a CWA contract b

 

[gps60255]

I’m talking about what the situation would be if an owner of an already-converted week (a) is eligible for the swap and (b) takes the offer. In that case the owner would exchange their KBV deed for a CWA contract b

I do have a deed bought back in about 2007, as I said before when I reached out to Wyndham on the resort closure line, they said KBV deeds are not eligible to convert to the CWA. I received my 2026 future maintenance fee monthly payment auto pay and KBV was not listed anymore or charged for any fees toward the resort as in the past. I am waiting to look at the 2027 future points to see if they go down 203,000 points. it was an every other year deed. But I paid every month every year before on the fees before now. I also deeded my PIC resort to my sister and am in the process of getting the PIC points off my points list. It costs 71 cents per thousand to have it on there which I didn't pay enough attention to so it was costing me $110 which all I could see helped on your VIP status. Not worth it. Thanks for all the info you all put out!
Gayle

 

[slabeaume]

I do have a deed bought back in about 2007, as I said before when I reached out to Wyndham on the resort closure line, they said KBV deeds are not eligible to convert to the CWA. I received my 2026 future maintenance fee monthly payment auto pay and KBV was not listed anymore or charged for any fees toward the resort as in the past. I am waiting to look at the 2027 future points to see if they go down 203,000 points. it was an every other year deed. But I paid every month every year before on the fees before now. I also deeded my PIC resort to my sister and am in the process of getting the PIC points off my points list. It costs 71 cents per thousand to have it on there which I didn't pay enough attention to so it was costing me $110 which all I could see helped on your VIP status. Not worth it. Thanks for all the info you all put out!
Gayle

How long ago did you talk to Wyndham. I just got the email a couple days ago with the offer to swap the KBV points to Club Access. I called a month or so ago and Wyndham said at that time it wasn't offered to us and that KBV had to be the ones to determine the choices. I don't know how that works, but now I guess I have a decision to be made. With it putting us in Gold VIP, I hate to give it up, but we're getting old. The person I talked to with Wyndham a month or so ago did say the EOY week we bought from Bali Hai to convert the weeks would remain VIP Gold even if we lost the KBV points, but I haven't tried to verify that.