Wyndham is closing a handful of legacy resorts - dedicated chart/tracker located in the first post for this unfolding set of events

[chapjim]

I am just wondering if the Chapter 11 filing isn't a means for some other ends. Do we even know that the guidance of the law firm is that the chapter 11 is the sole method to be used to actually sell the underlying real estate? Have any of the communications to owners actually specified that? It does't seem like this method has been attempted yet and there is a small cottage industry set up around helping timeshares collapse the timeshare/condominium scheme. No one has tried this method before. There must be a reason.

No one ever suggested that Chapter 11 is the sole method of doing anything. We do not know specifics of what K&L Gates is advising Wyndham and the various HOAs. We will not know due to attorney-client privilege.

For real, no one has ever tried Chapter 11 to facilitate a sale? Source, please (and not AI).

Chapter 11 is just to reorganize (as other's here have put it). A sale would seem to indicate liquidation and they should be Chapter 7.

That would mean K&L Gates' attorneys don't know what they are doing, which I sincerely doubt is the case.

 

[dioxide45]

For real, no one has ever tried Chapter 11 to facilitate a sale? Source, please (and not AI).

Perhaps it would be better for you to find a source where it indicates someone has used Chapter 11 to facilitate the sale of a timeshare property. Finding one that has happened should be easier than proving that none has ever happened. I haven't found one yet. Perhaps you know of some?

Also, no one has yet to explain how they plan to circumvent state mandated requirements under real estate law to collapse the timeshare/condo regime to achieve a free and clear sale.

 

[bnoble]

Again, I'm pretty sure you're not the first to ask that question of this process, and if you're not, then K&L has what they believe is an answer. Their answer might be wrong, but good luck to anyone who wants to push that rock.

 

[dioxide45]

Again, I'm pretty sure you're not the first to ask that question of this process, and if you're not, then K&L has what they believe is an answer. Their answer might be wrong, but good luck to anyone who wants to push that rock.

I am not necessarily concerned if it is right or wrong, but just rather what the answer actually is.

 

[bnoble]

We will all find out in due course. I will have personal experience with how the process unfolds in Hawaii, once they start acting on the recently concluded vote.

 

[Greg G]

I own a non Wyndham HOA unit at Star Island (a fixed week at Vacation Break at Start Island 1, which was one of the first week owner bldgs developed at Star Island). Those units are not part of the Wyndham bankruptcy per following letter I received from Star Island. Not sure of the actual % of units at Star Island that are under the Wyndham HOA or underlying real estate Wyndham controls, as to whether that will possibly impact my maintenance fees in some manner. I do know that there are common areas of the resort (recreational facilities like pools, club house, tennis courts, etc) of which each week owner is a member of (Club of Star Island membership) and for which each week owner pays an operating fee for thru their maintenance fees.

​

5000 Avenue of the Stars, Kissimmee, FL 34746 9/29/2025 Dear xxxxxx Re: Contract: xxxxxx Star Island Resort is not only a multigenerational family-owned business, but it is also a place where generations of families, like yours, make memories together. We take great pride in Star Island, and our priority is to continue bringing you and your loved ones cherished vacation experiences for many years to come. Contrary to anything you may have recently heard or read, Star Island Resort is neither closing nor filing bankruptcy. Permit me to dispel any misinformation to the contrary. As you may know, there are ten different Condominium Associations at Star Island Resort. One of these ten Associations is a Wyndham Association. This Wyndham association, and this Wyndham association alone, has decided to seek chapter 11 bankruptcy . If you are an owner in Star Island 1 through 5 or an owner in Vacation Break 1 through 4, your timeshare is not a part of this bankruptcy because only the Wyndham Association is declaring bankruptcy. Rest assured, therefore, that the Developer, Management Company, and Club of Star Island together with the boards of all nine of our non-Wyndham Associations are more committed than ever to making Star Island your #1 choice among family-friendly resorts in Orlando. Sincerely, Matthew Meyers Executive Vice President Star Island Management Corp

 

[Floridaman76]

We might find out at some point before 12/31/2025 the way things are going. It's October tomorrow, so we have been at this 3 months now and really don't know much more than we did when this broke.

I mean as of last week we found out another resort (parts of it) were in scope that we didn't know about (2 sections of Pagosa).

 

[dioxide45]

I own a non Wyndham HOA unit at Star Island (a fixed week at Vacation Break at Start Island 1, which was one of the first week owner bldgs developed at Star Island). Those units are not part of the Wyndham bankruptcy per following letter I received from Star Island. Not sure of the actual % of units at Star Island that are under the Wyndham HOA or underlying real estate Wyndham controls, as to whether that will possibly impact my maintenance fees in some manner. I do know that there are common areas of the resort (recreational facilities like pools, club house, tennis courts, etc) of which each week owner is a member of (Club of Star Island membership) and for which each week owner pays an operating fee for thru their maintenance fees.

​

5000 Avenue of the Stars, Kissimmee, FL 34746 9/29/2025 Dear xxxxxx Re: Contract: xxxxxx Star Island Resort is not only a multigenerational family-owned business, but it is also a place where generations of families, like yours, make memories together. We take great pride in Star Island, and our priority is to continue bringing you and your loved ones cherished vacation experiences for many years to come. Contrary to anything you may have recently heard or read, Star Island Resort is neither closing nor filing bankruptcy. Permit me to dispel any misinformation to the contrary. As you may know, there are ten different Condominium Associations at Star Island Resort. One of these ten Associations is a Wyndham Association. This Wyndham association, and this Wyndham association alone, has decided to seek chapter 11 bankruptcy . If you are an owner in Star Island 1 through 5 or an owner in Vacation Break 1 through 4, your timeshare is not a part of this bankruptcy because only the Wyndham Association is declaring bankruptcy. Rest assured, therefore, that the Developer, Management Company, and Club of Star Island together with the boards of all nine of our non-Wyndham Associations are more committed than ever to making Star Island your #1 choice among family-friendly resorts in Orlando. Sincerely, Matthew Meyers Executive Vice President Star Island Management Corp

Thanks for posting this. Do you know how the property HOAs are segregated? Does each of the 10 HOAs control a different building or set of buildings at the property? Why in the world would they create a property with so many HOAs? How many buildings are there at Star Island? Are they all timeshare.

 

[dioxide45]

We might find out at some point before 12/31/2025 the way things are going. It's October tomorrow, so we have been at this 3 months now and really don't know much more than we did when this broke.

I mean as of last week we found out another resort (parts of it) were in scope that we didn't know about (2 sections of Pagosa).

The votes that are currently happening just seem to be around closing the resort to resort operations. Certainly since they also include stopping all further assessments it is to also protect assets given that no new money is coming in and I suspect it is to also protect against claims from individual owners. The big undanwered question that I see is how they plan to seek to actually sell the underlying real estate.

For those properties that may carry on as a timeshare property, how can they offer CWA swaps. What other timeshare company out there would want to acquire a property that really has no individual owners and they have to start selling old units like they are new again? Perhaps Capital Vacations is the only company that comes to mind, but usually even they move in on timeshares that have an already existing owner based with just a higher level of defaults they have to clean up.

 

[Floridaman76]

I've said before, Star Island is an odd duck and it's going to be interesting to see how that plays out.

Depending on how that property was developed, there may be limitations on re-use rights of the person who ends up buying the properties.

In Florida, we have the "old" style of zoning which zoned property based on use (agricultural, industrial, residential and different grades and densities inside of each one of those) and Planned Development or "PD's". PD's is how almost universally all development since the 90's has been done in Florida. I don't know when they started doing PD's or how Star Island was developed, but zoning may preclude certain use cases.

For instance, something planned and zoned for short term residential occupancy (think, a Hotel or timeshare) may not allow conversion to full time residential condos (and vice versa).

Consequently also, the master HOA covenants which all HOA's at Star Island are governed, may forbid certain types of re-use.

These are questions that linger for this property. I think some of this might come into play at Shawnee and Pagosa too as well as Edisto and the Glade. But I know Edisto and the Glade were developed as mixed timeshare/residential. Or at least ended up that way. I don't know the full history of either one of those.

But has been pointed out many times, i'm not a lawyer. And those people churn billable hours to think about these contingencies, right?

 

[dioxide45]

Consequently also, the master HOA covenants which all HOA's at Star Island are governed, may forbid certain types of re-use.

That is another wrinkle that needs to be addressed and one that I tried to ask about earlier regarding Star Island that got mostly poopoo'ed. These properties with multiple HOAs will almost always have a master HOA declaration. The actions of one HOA out will certainly impact the other HOAs. That master declaration may also have certain requirements as to what each HOA can and can't do. I suspect this is another reason they're attempting the Chapter 11 process. To limit claims by the other HOAs that are part of the larger development.

 

[Greg G]

Thanks for posting this. Do you know how the property HOAs are segregated? Does each of the 10 HOAs control a different building or set of buildings at the property? Why in the world would they create a property with so many HOAs? How many buildings are there at Star Island?

Not exactly sure of the segregation for the other HOAs but I do know that from my maintenance fee letter from Vacation Break Resorts at Star Island 1 Condominium Association, it shows it has 572 week intervals so (572/52) = 11 units and that is the number of units in the low rise 3 story bldg number 12 my unit is in (4 units ground floor, 4 units 2nd floor, 3 units 3rd floor). Also the documents of incorporation when I got my week showed it as that one bldg only as well for that Condominium Association (back in 1994) . There are 9 low rise buildings (3 story) and 8 6-story buidlings. I'm guessing most of the HOAs are for the low rise buildings.

 

[dioxide45]

Not exactly sure of the segregation for the other HOAs but I do know that from my maintenance fee letter from Vacation Break Resorts at Star Island 1 Condominium Association, it shows it has 572 week intervals so (572/52) = 11 units and that is the number of units in the low rise 3 story bldg number 12 my unit is in (4 units ground floor, 4 units 2nd floor, 3 units 3rd floor). Also the documents of incorporation when I got my week showed it as that one bldg only as well for that Condominium Association (back in 1994) . There are 9 low rise buildings (3 story) and 8 6-story buidlings. I'm guessing most of the HOAs are for the low rise buildings.

It would seem that if the Wyndham interval owners are going away, then their portion of the assessments that go to cover the shared amenities would ultimately result in fees going up for the other associations. Fewer owners covering the same costs. I guess it really depends on what happens to the Wyndham association units. Do they go away, does another timeshare developer take them over to sell them again to new timeshare buyers? Is Star Island in any kind of active sales?

 

[CO skier]

Perhaps it would be better for you to find a source where it indicates someone has used Chapter 11 to facilitate the sale of a timeshare property.

Found this in less than 2 minutes using Google:

 

[CO skier]

I mean as of last week we found out another resort (parts of it) were in scope that we didn't know about (2 sections of Pagosa).

Masters Place is one.

What is the second section?

 

[Greg G]

It would seem that if the Wyndham interval owners are going away, then their portion of the assessments that go to cover the shared amenities would ultimately result in fees going up for the other associations. Fewer owners covering the same costs. I guess it really depends on what happens to the Wyndham association units. Do they go away, does another timeshare developer take them over to sell them again to new timeshare buyers? Is Star Island in any kind of active sales?

Assuming someone takes them over finally , and still operates them as some form of condo , those new owners would eventually be paying those fees for those shared amenities.
Until that time, yes, the other non Wyndham owners would likely have an increase in their maintenance fees to cover that club membership. Right now it's $83/ week owner in my maintenance fee. I'm guessing some of the common amenities fees are based on how many people are using the amenity (possibly the more people using the pool, the more maintenance it requires possibly proportionally) , and others are not (like landscaping, grass mowing).