Perhaps another way of looking at this is, does anyone really disagree that all buildings, including resorts, have some type of lifetime associated with them.
I have mentioned this already, but I am one of the KBV owners caught in that resort's quagmire. (See
this forum for all the gory details.) I would much rather go through an orderly wind-down than to spend approximately $500K per 2BR unit to try to bring it back up to snuff---and that's just the structural issues, and before you have to renovate all the interiors to the studs.
Yes, this means that the resort will no longer be part of the overall system. But what is the alternative? Imposing the necessary SA, which leads to a plurality (and probably a majority) of the owners defaulting. Wyndham then has to recover those deeds, probably through expensive and time-consuming foreclosure, and fold them into CWA. This defers the necessary repairs, raising their costs, and leaves the trust owners to pay for the renovation of the buildings. Yes, that is spread over many more owners so it is less painful. But, Wyndham in its role as the management company is arguably acting in its duty to owners to close the resorts instead.
Right now, I’m more anxious to learn if they plan to replace these units/locations and, if so, with what.
I don't believe there will be any. At least for the ones we know so far, I don't think it matters. Starting just over two weeks from today, Glade is completely open for 2BR units for nearly every single day over the next many months. Bay is completely open starting
next Monday. I mean, some people are booking these resorts, but mostly they are slack in the system. Bently Brook is busier, and losing that one will be a bummer, but still.
The plural of anecdote is not data, but in almost 20 years of ownership, I have booked exactly one of the resorts listed in the first post, (Orlando Innterational) once. None of the others beyond Edisto were even on my "that might be a place I'd stay" radar.
What's more, I suspect that this is being done in part because the inflow of inventory via Certified Exit and/or resort developement and acquisition has exceeded the pace of sales. Wyndham is not going to carry that inventory forever, and keeping it on the books means other owners who want to exit cannot, because there is a backlog of inventory. If I am correct, then doing an equity swap of some resort-specific deeds for CWA helps clear that backlog, and makes it easier to unload resorts that are entering a period of prohibitively expensive maintenance, have lagging demand, or both.
I know we all assume the worst of Wyndham---and that is often with good reason. But, let's see how this unfolds before we tar and feather everyone in sight.