Timeshare redevelopment ?

[timeinvegas]

I am hoping to hear from someone who has first hand experience but of course all input is of interest. This is something I have often wondered about and have some ideas about but was curious if there are any real world examples that I haven’t found online.
I own a time share in a very popular place and have for a long time. It was handed down to me from my grandfather. Everything around the resort has grown to enormous proportions and my place is a tiny little oasis in the jungle. I have wondered if the property would ever see an offer from a developer and be sold and redeveloped into a monster resort. I believe ALL the owners would have to agree to sell. If that were to happen because the offer was good enough what would be the outcome ? Would the owners be offered cash ? Would you be offered a place in the new resort ? Would you have the option to sell and get out ? We have enjoyed our resort for a long time but we may have come to the end of our need for a place in that location. I sometimes wonder if there is a reason to hold onto it for a while longer. I would continue to exchange with RCI but they just aren’t what they used to be.

 

[theo]

There is no simple or straightforward "one size fits all" answer to your various questions. For starters, most independent (i.e., not "chain" associated) timeshare properties have within their (officially recorded) CC&R's (Condominium Covenants & Restrictions), a specific section regarding "Termination". As a very general rule (...again, there are no "one size fits all" or universal answers) a supermajority of owners must first vote and agree to termination of the timeshare before the property could possibly be sold. This exact situation occurred relatively recently at Lahaina Inn (a timeshare property) in Fort Myers Beach, FL, for one specific example. In the aftermath of Hurricane Ian's damage, owners there overwhelmingly voted to terminate the timeshare plan and sell the property. Upon successful completion of sale of the property sale (which has not yet occurred afaik since September, 2022) and after the lawyers take their chunks and any and all other debts and taxes are fully satisfied), any net proceeds remaining will be divided among those former interval owners with accounts not in arrears.

I cannot imagine a scenario in which you would be "offered a place in the new resort" (which, btw, might never become a "new resort" at all anyhow, but might perhaps instead become privately owned condominiums, or a hotel, or something else entirely). In any event, once the timeshare plan is terminated and the property is sold, former timeshare owners are permanently out of the picture and have absolutely no stake or claim or involvement of any sort in whatever enterprise may come next there.

I know nothing about your (unidentified) resort or its' unidentified location or its' (unspecified) buildable lot size and / or current zoning constraints, or whether or not the unidentified timeshare is "chain" associated (in which case it's all a very different kettle of fish entirely). However, I personally would not encourage you to "hang on" to a timeshare ownership now solely for the prospect of a "pot of gold at the end of the rainbow" later. There may very well be no such rainbow and the "pot of gold" after termination and sale and settlement of debts, taxes and lawyers might ultimately prove to be peanuts and not worth waiting for. It's your call whether to consider trying to sell your ownership now if you are no longer seeing sufficient value in it, or instead hanging in there for whatever may happen next.

Only you can decide the best course of action for you and you frankly may need to acquire considerably more information and details about your resort's current financial picture, debts, intentions, property value (not to mention the sentiments of other owners) in order to make a well informed decision. What has occurred at other resorts elsewhere frankly has very little to do with whatever situation and picture and future exists at your particular unidentified resort. In any event, good luck!

 

[timeinvegas]

Yes I understand those responses. That makes a lot of sense I will look into my specific agreement. I will still love to hear from someone this happened to.

 

[moonstone]

There have been timeshare resorts sold and redeveloped either because of dwindling membership and very few paying ever increasing maintenance fees or their sunset clause came up and the owners voted to let it go. Our weeks resort in St. Augustine FL just had it's sunset clause come up last year but the overwhelming majority of owners voted to keep it going as a timeshare. I can think of 3 resorts in Ontario Canada, all near my home, that are no longer timeshares. Two different ones were at a popular ski resort. One, at the base of the hill was sold many years ago and turned into condos. The other larger complex at the back/top of the hill had poor management, ever increasing maintenance fees and many owners walking away. The remaining owners were faced with huge maintenance fees to cover the delinquent owners' and they finally gave up. It was eventually bought by a hotel consortium and half was sold as condos (after renos) and the other side is being rented out long and short term. I believe Tugger @Dori was an owner who can tell you about the 3rd one that seemed like a nice resort on a lake north of Toronto and a popular summer destination. I'm not sure what happened there.

~Diane

 

[Dori]

Hi Diane! Our resort was called Harbour Inn resort Club, on Lake Simcoe, about 90 minutes from Toronto. It was a small, independent resort, and I believe it was one of the first Canadian timeshares.

We bought 2 very inexpensive weeks in 1990 and got fabulous trades for 20 years. As the resort aged and older owners were in arrears, we voted as a group to sell the resort to Knight’s Inn.

When all was said and done, we wound up receiving about 60% of our initial outlay of $2000. We loved our years of timesharing!

Dori

 

[timeinvegas]

Thanks for the responses. That helps give me an idea of what might happen at the end of a timeshares life span.