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

[shawneefairwayfull]

No idea where the speculation comes from on date for Shawnee’s bankruptcy filing but it would be very helpful if Wydham would fill us in.

The poster attended one of the Shawnee HOA meetings and was told it would be filed in 3 weeks time (which is now 4+ weeks ago).

 

[HitchHiker71]

The poster attended one of the Shawnee HOA meetings and was told it would be filed in 3 weeks time (which is now 4+ weeks ago).

Unless he's speaking with the representatives from the K&L Gates law firm that's actually controlling the filing process, it's second/third hand information at best, which I wouldn't put much of any stock in for my part.

 

[Aicken]

thats the story about this saga- no info to the deeded owners and always we will get to you soon. Cant understand why the director of all this activity- Wydham- doesn't take some communication ownership.

 

[Davidgoo]

Why would Shawnee be trying to file Bankruptcy when as I hear it, they are trying to sell the property?...Anybody bothered to look at the financial statements of Shawnee (as deed holders I believe we are entitled to do so) to see if bankruptcy is actually necessary?

 

[paxsarah]

Why would Shawnee be trying to file Bankruptcy when as I hear it, they are trying to sell the property?...Anybody bothered to look at the financial statements of Shawnee (as deed holders I believe we are entitled to do so) to see if bankruptcy is actually necessary?

This is the method being used to facilitate a sale by all of the Club Wyndham HOAs that closed. Bankruptcy isn’t necessary, if by necessary you mean the resort is financially insolvent. But it was determined by the fancy lawyers and corporate leadership that the most efficient way to herd the cats that are hundreds or even thousands of individual timeshare owners towards a sale of the entire property is under the auspices of a bankruptcy court.

 

[Aicken]

Why would Shawnee be trying to file Bankruptcy when as I hear it, they are trying to sell the property?...Anybody bothered to look at the financial statements of Shawnee (as deed holders I believe we are entitled to do so) to see if bankruptcy is actually necessary?

The homeowners association, who had that authority, voted to cease operations last october and file for bankruptcy. That action conveys to Wydham the deeds and the right to sell the land with appropriate title. A long established legal process. As former former deed owners after the filing we are entitled to our meager share of the sale.

 

[shawnee83]

No idea where the speculation comes from on date for Shawnee’s bankruptcy filing but it would be very helpful if Wydham would fill us in.

Got that from the HOA board at the recent meeting. So it wasn't speculation, it was a (poorly) informed estimate.

I doubt Wyndham knows any more than this, they have dumped the whole mess on all the individual HOAs. In fact, since the resorts are now closed, I would say that Wyndham/T&L is already out of the picture.

 

[chapjim]

Why would Shawnee be trying to file Bankruptcy when as I hear it, they are trying to sell the property?...Anybody bothered to look at the financial statements of Shawnee (as deed holders I believe we are entitled to do so) to see if bankruptcy is actually necessary?

As has been noted, Chapter 11 bankruptcy does not imply insolvency. In the case of the Wyndham resorts, Chapter 11 filings facilitate a sale.

One major benefit of Chapter 11 is that it prevents disgruntled owners from filing nuisance suits. Another is that virtually every move made by the HOA is subject to approval of the bankruptcy court, which pretty much puts to rest claims of hanky-panky. As we are seeing, these cases are proceeding orderly, albeit at glacial speeds.

 

[HitchHiker71]

As has been noted, Chapter 11 bankruptcy does not imply insolvency. In the case of the Wyndham resorts, Chapter 11 filings facilitate a sale.

One major benefit of Chapter 11 is that it prevents disgruntled owners from filing nuisance suits. Another is that virtually every move made by the HOA is subject to approval of the bankruptcy court, which pretty much puts to rest claims of hanky-panky. As we are seeing, these cases are proceeding orderly, albeit at glacial speeds.

The wheels of justice always turn slowly, especially within corporate America.

 

[Aicken]

Wyndam cant be out of this conversation. They are the iwner of over 50% of the deeded properties. Travel and leisure is their corporate parent

 

[shawnee83]

Wyndam cant be out of this conversation. They are the iwner of over 50% of the deeded properties. Travel and leisure is their corporate parent

Wyndham used those ownerships to force the Chapter 11 vote. As I understand it, the bankruptcy proceedings include a process to force people to give up their deeds by taking legal action against reluctant deed holders.

Somebody mentioned the K&L Gates law firm, which is handling the bankruptcy. Both that firm and the real estate firm (Hilco?) were "recommended" by Wyndham (or at least they do a lot of business with them) but I'm sure all their fees will come out of the proceeds of the sale... not from Wyndham.

 

[Aicken]

All true but question remains when will the bankruptcy be filed and the process proceed. Getting answers to that had been the challenge- wydham can answer that but ….

 

[paxsarah]

Wyndham used those ownerships to force the Chapter 11 vote. As I understand it, the bankruptcy proceedings include a process to force people to give up their deeds by taking legal action against reluctant deed holders.

Somebody mentioned the K&L Gates law firm, which is handling the bankruptcy. Both that firm and the real estate firm (Hilco?) were "recommended" by Wyndham (or at least they do a lot of business with them) but I'm sure all their fees will come out of the proceeds of the sale... not from Wyndham.

Hilco may be paid out the proceeds of the sale, but I've skimmed through a bit of the bankruptcy court documents from some of the resorts and it appears that K&L Gates is typically being paid as they go out of existing cash on hand (I think mainly reserves). It seems all of these payments have to be approved by the court so they're all in filed documents.

 

[shawnee83]

Got a letter today notifying us of an upcoming Annual Meeting of the Shawnee Commons Corp. Honestly I never paid so much attention to our timeshare in River Village II before the bankruptcy became an issue, so I have no idea exactly what this is. Maybe the "corporation" that handles the shared areas including the community center and pools?

I went through all the papers we've kept over the years and noticed that each annual report included a "Shawnee Commons Fee" line item. There was also a note in a very old newsletter that the pool in River Village was owned by Shawnee Commons.

One interesting note is in an FAQ attached to the document it says, "This association is not going through bankruptcy proceedings so no information on the individual HOA bankruptcies will be provided at this meeting." There could be various nuances to this but I am exhausted from speculating at this point.

Does anyone have any other factual info about the "Shawnee Commons Corp." that they can share? The meeting is on August 15th and will be conducted over zoom.

 

[tomt73]

We just visited Club Wyndham Pagosa in Pagosa Springs, CO. While there, we discovered an interesting angle on the closure of four of the eight developments originally managed as a group by Wyndham.

Over the past two years, Wyndham has dropped four out of eight separate developments (and HOAs) it has managed there for many years. That amounts to 82 condo units. Don't feel bad for Wyndham; they still have over 350 units to manage in the remaining four active (and very well maintained) developments.

I met with the site's general manager, and learned:
1. None of the "dropped" developments had set aside sufficient reserve funds to accomplish near-term renovation needs. We're talking big-ticket items like siding, roofs, exterior staircases, HVAC systems, electrical systems, and parking lots.
2. Wyndham was not only manager, but also an owner (presumably a significant owner) in at least three of the four developments.
3. The owners at each development were unwilling to fork over the (large) special assessment that would be required to make the needed renovations.
4. The developments were also at or near their "optional termination" dates, typically a date about 40 years after they open.
5. We didn't discuss Wyndham's product quality standards, but I have to believe that Wyndham told the involved HOAs that they MUST make renovations or be dropped, thus triggering the whole process.

The mechanism used to handle the owner deeds for each development was to file for Chapter 11 bankruptcy (a court-supervised process to reorganize a company's operations). The plan will treat owners as creditors. As with most TS properties, there is no mortgage debt or large unpaid bills. The looming obligation to make costly renovations is the real driver in the process. What is expected is that the reorganization plan will call first for the cancellation of the timeshare structure (this has already been done by an appropriate super-majority vote). Then, all TS deeds will be cancelled in favor of including the owners in the creditor group. Then, the court-appointed receiver in bankruptcy will find a buyer for each property, and the proceeds after selling expenses will be distributed to the owner group.

At Pagosa Springs, local Wyndham management believes that all three of the latest BK properties will be packaged and sold to one investor company or group. That group will then execute its own plan to make money off the deal. They could a) renovate and flip individual units immediately, b) renovate and manage them as short-term or long-term rentals, c) retail them "as-is" and let a new HOA worry about renovations, or d) some combination of the above, or some other strategy.

While the process plays out, the developments involved (Masters Place, Village Pointe, and Elk Run) are sitting empty. They are no longer available for use by anyone. On our visit, we noticed that Wyndham staff are still performing basic exterior maintenance such as landscape maintenance, mowing, lawn irrigation, and so on. This keeps the entire area looking good for guests at the other developments (Teal Landing, Ptarmigan, Peregrine, and Eagle Loft) that are still in operation.


The Town of Pagosa Springs has already put in a "stalking horse" bid of about $7.4 million for the 70 units involved in the most recent action. (The first development to go through this process has already been sold, and the new investor owner is in process of making renovations.) The Town's interest is to renovate and sell the units as moderate-income housing, something apparently lacking in this vacation-home-filled town. The math says that this would return something on the order of $1,800 to each owner (7.4mm/70, less 20% for legal fees, divided by 51wks/unit). With the Town's bid, an investor buyer would have to offer a better deal to get the places for themselves.

 

[rhonda]

DELETED after threads were merged. (Just a sappy memory report — not related to the larger context of Wyndham’s property actions.)

 

[amycurl]

Maybe Wyndham doesn't have a majority stake in the Commons Association? So the commons would still be available to whomever the purchasers of the other assets might be? The plot thickens....

 

[amycurl]

@HitchHiker71, maybe add the note about the City's "stalking horse" bid to the tracking post? I think that's a brilliant strategy on the part of the town, tbh.

 

[Floridaman76]

What is "moderate income" housing? I certainly hope the quality of tenant is better than "low income" housing. People don't go on vacation to get robbed or their cars broken into or stolen.

 

[dioxide45]

Is Shawnee Commons Corp the master association for the entire property?

 

[Aicken]

No

 

[amycurl]

Moderate income housing is typically considered workforce housing, which is often in short supply in tourist areas. Think local teachers, first responders, nurses, care providers, etc.


Sent from my iPad using Tapatalk

 

[Aicken]

The property owners in each HOA are the ‘master’ of each HOA. They don’t report to any other HOA only to the property owners and must act consistent with rules for each association. Typically this is by a democratic vote and the decisions to cease operations and support for filing for bankruptcy came from that process. Numerous owners have reviewed the legalities of that process and my understanding no one has found a flaw

 

[CO skier]

1. None of the "dropped" developments had set aside sufficient reserve funds to accomplish near-term renovation needs. We're talking big-ticket items like siding, roofs, exterior staircases, HVAC systems, electrical systems, and parking lots.
3. The owners at each development were unwilling to fork over the (large) special assessment that would be required to make the needed renovations.
5. We didn't discuss Wyndham's product quality standards, but I have to believe that Wyndham told the involved HOAs that they MUST make renovations or be dropped, thus triggering the whole process.

Something is not quite right here.

Like other resorts that were closed, such as Bentley Brook and Patriots Place, all three Pagosa HOAs that closed 12/31/2025 (and the four remaining HOAs) were renovated within the past 2 years. I saw the parking lots for Elk Run, Peregrine, and Ptarmigan HOAs get ripped out to the ground and repaved. Village Pointe did not get a new parking lot, but it is desperately needed.

This is the 2024 President's letters for Eagles Loft and Ptarmigan discussing how all the HOA renovations restored the RCI Gold Crown status for Wyndham Pagosa. The President's letters at the time for the closed resorts were equally glowing, but they have been replaced with the closure notices.

4. The developments were also at or near their "optional termination" dates, typically a date about 40 years after they open.

Something is not quite right here. There were no sunset clauses ("optional termination" clauses) in any of the Wyndham Pagosa HOA governing documents.

At Pagosa Springs, local Wyndham management believes that all three of the latest BK properties will be packaged and sold to one investor company or group. That group will then execute its own plan to make money off the deal.

The Town of Pagosa Springs has already put in a "stalking horse" bid of about $7.4 million for the 70 units involved in the most recent action.

This does not agree with what is posted on the Hilco site where the developments are offered individually or as a group, with the presumably stalking horse bid for each individual development, and for all three at $10.2 million.

 

[dioxide45]

The property owners in each HOA are the ‘master’ of each HOA. They don’t report to any other HOA only to the property owners and must act consistent with rules for each association. Typically this is by a democratic vote and the decisions to cease operations and support for filing for bankruptcy came from that process. Numerous owners have reviewed the legalities of that process and my understanding no one has found a flaw

I don’t think you understand what a master association is or does when it comes to HOAs. When there are multiple associations that share common areas there is often a master association that governs how those common elements are managed. Bases on what you stated about the line item in the budget, this certainly sounds like a master association. A master association doesn’t control other associations.