Timeshare Information

You've all heard horror stories about timeshare scams; promises not kept, heavy-pressure salespeople… on and on the bad news goes. There are many reputable businesses and good people in the timeshare industry, but we often only hear about the scammers and crooks. This isn't all bad; awareness keeps us on our toes and educates us as consumers and business people.

Most Frequent Timeshare Scams

• Paying Full Price for a Resale Timeshare
• High Pressure Salespeople
• "Nigerian" type transfers 
• Paying a large up-front fee to sell or rent your week 

Timeshare Companies in the News for Bad Behavior

A few specific complaints have surface recently and are finding their way around the internet:

Festiva Hospitality Group – High Pressure and Broken Promises 

Unfair and deceptive practices in connection with Festiva's points-based "vacation club" are the charges of a suit against Festiva Hospitality Group by Louisiana's Attorney General, Buddy Caldwell. "Festiva served up broken promises to Louisiana consumers," stated Caldwell, whose office received over 98 complaints about Festiva. The suit alleges that Festiva used high pressure salespeople to sell consumers "points" for membership in a vacation club and promised consumers they could use the points anytime at any number of Festiva resorts. After signing a 40-year contract, buyers found it impossible to book a vacation because of a lack of accommodations at the resorts, especially at prime locations and peak times. Buyers, were promised they could save their "points" for another year, but when they tried to do so, were told by Festiva that they couldn't carry over the points. Buyers also received unusually high maintenance fees and special assessments, and were told they couldn't cancel their contract.

 Calypso Bay Resorts – Unexpected Fees Surprise Owners 

Complaints from owners at Florida's Calypso Cay Resorts regarding problems with higher-than-expected fees were reported by the Consumer Affairs News Service. One owner felt it was wrong of the resort to charge a maintenance fee every year if he only owned every other year. He claims he was never told he would have to pay a maintenance fee in "off years" and says, “our affordable vacation is not very affordable now."

Another owner calls Calypso Bay a "rip-off" and says the resort promises that you can deposit your weeks if you can't use them before they expire. When an owner then tries to deposit or use the weeks, they charge a fee to deposit and a fee to change a week. When you try to reserve a week, there is nothing available, but the resort offers a getaway for another fee for the same week you deposited and are trying to use.

Global Exchange Vacation Club – Lies and Harassment 

There are claims of lies and harassment from owners at Global Vacation Exchange in another recent Consumer Affairs News Report. One owner had serious complaints about a Global Vacation Exchange package he purchased, "I am sick over the whole thing and the way I have been treated, the way I have been talked to and clearly the way you all lied, scammed, beat and cheated your way into my bank account."
The owner was told that $349 for a 3-bedroom condo was the most he would ever have to pay for a week stay anywhere in the world. Global Vacation Representatives told him he couldn't talk to anyone about a trip or price until he made an $800 down payment. Then when he tried to make his first trip reservation, he found out it was much more than the promised weekly price of $349. He questioned why he should pay Global $8,000 down and more money every month that he didn't take a vacation, when it would cost far less to just buy a package from a general tour operator. When he tried to get his $800 refunded from the company, he was told he couldn't and then was repeatedly harassed by club representatives with phone calls threatening to go after his credit and destroy it, and add on a foreclosure.

Summer Bay Resort – Sinkhole Nightmare 

After several vacation units fell into a sinkhole collapse at Summer Bay Resort in Florida's Four Corners area in August, the timeshare company promised the owners that they would "make them whole." But according to the affected owners, that didn't happen. Owners were told that the company wouldn't reimburse them for their loss of personal property. In a quote from UPI News Service, owner Maggie Ghamry who claims losses of $10,000 said, "They told us they'd make us whole and this isn't making us whole. It's definitely blind-sided us." It wasn't just the property losses, but the trauma of the event. One owner was in the bathtub when the sinkhole happened, and stated that, "water started jumping, and the tub moved as the building started to twist.

The Orlando Sentinel reported that a letter to owners from Summer Bay Chief Executive Paul Caldwell stated that under Florida law "a public lodging establishment is not responsible for the loss of personal belongings, but the victims might be able to recover their losses under their personal homeowner's insurance policy." This doesn't hack it for the owners at Summer Bay Resort who feel they got "sunk" by the resort.

Festiva Hospitality Group acquired six new vacation destinations for its resort portfolio from Arkansas-based Escapes! Inc., including properties in Alabama, Arkansas and Missouri.

The expansion is second only in size to the Peppertree Resorts acquisition of 2007, when Festiva added 10 resorts to its property mix.

This latest transaction also adds approximately 9,000 timeshare owners and club members plus nearly 4,000 intervals to the company.

“We have been looking for high-quality and well-maintained properties in the Mid-South and Gulf Coast to add to our resort offering,” said Festiva Hospitality Group Senior Vice President Rich Hartnett.

“A good number of Festiva members live in these areas as well as the Midwest, and they have asked for vacation options closer to home. This transaction not only gives our members what they have been waiting for, it also gives these Escapes! owners the ability to gain access to the Festiva Adventure Club, its privileges and 34 destinations,” Hartnett said.

Property Overview:
1. The Shores, Orange Beach, AL 
This oceanfront Gulf Coast property is Festiva’s first location in Alabama. Amenities include oceanfront balconies, indoor and outdoor pools, steam room, sauna, fitness center, and beach access.

2. Los Lagos at Hot Springs Village, Hot Springs Village, AR
One of Festiva’s three additions in Arkansas, Los Lagos at Hot Springs Village is located 20 minutes from Hot Springs National Park and close to area theme parks.

The 26,000-acre property has nine golf courses, 39 miles of trails, a performing art center, two marinas, lakefront access, fitness center, indoor pool and outdoor pools.

3. The Greens at Bella Vista Village, Bella Vista, AR
The second Arkansas property for Festiva provides guests access to eight pristine golf courses and seven lakes. Resort amenities include on-site clubhouse, swimming pool and tennis courts.

4. Cherokee Village, Cherokee Village AR
The third Arkansas property for Festiva is located on Lake Thunderbird in an area acclaimed for its natural beauty.

The resort gives members access to fishing and boating on the lake, 36 holes of on-site golf, swimming pools, tennis courts, and a recreational center.

5. Branson Yacht Club, Branson, MO
Festiva adds its fourth Branson property with the Branson Yacht Club, located on Table Rock Lake with a half mile of private shoreline.

Resort amenities include two swimming pools, boat launch and marina, tennis courts, and water-sports rentals.

6. Stonebridge Village, Branson, MO 
Located on 3,200 wooded acres just10 minutes from downtown Branson, Stonebridge Village rounds out Festiva’s five Branson properties.

The resort includes an 18-hole golf course; country club; fitness center; swimming pool; and lake access for boating, fishing and swimming.

Festiva Hospitality Group has announced the recent acquisition of Celebration World Resort in Kissimmee, FL, coming in the wake of troubled times for the resort and its owners.

Festiva is committed to making much-needed improvements to the property itself as well as to the management operations, so that the resort’s owners can enjoy the quality vacations they deserve.

“There was a 55% delinquency rate existing among the owners, along with several other cosmetic and operational challenges,” said Don Clayton, chief executive officer and co-founder of Festiva Hospitality Group. “Festiva has committed to fix those issues with financial contributions for renovations as well drastic operational changes and improvements.”

As part of the acquisition and overall improvements to the resort, Festiva has changed the name of the resort itself and its HOA to Festiva Orlando Resort. The new name represents the Festiva brand as well as the fantastic destination of the resort.

Several improvements are already underway at the property as part of the multi-million-dollar refurbishment and renovations project. These changes will ensure that the more than 11,000 Festiva Orlando Resort owners have the quality accommodations and amenities that they expect and deserve.

Festiva Hospitality Group became involved in this acquisition, which ultimately saved the property from bankruptcy, through CapitalSource Finance, LLC, a real estate and mortgage lending company specializing in commercial real estate that Festiva has previously worked with on several other acquisitions.

“CapitalSource reached out to Festiva because of our confidence in Festiva’s ability to deliver on the operational and administrative improvements necessary to turn the resort around,” said Brian Petronis, vice president of portfolio management for CapitalSource.

The acquisition and plans for improvements were made during a time of communication with the state of Florida as Festiva executives worked closely with The Florida Department of Business and Professional Regulation (DBPR) near the beginning of the acquisition process.

“Early on we recognized that the many issues the resort owners had been and would continue to deal with would cause ongoing operational, legal and managerial challenges. Therefore, Festiva decided to reach out to the DBPR to inform them of these many challenges and to work with them to ensure the best possible long-term outcome for the resort’s owners,” said Tobias A. Weas, Esq., RRP, vice president of government relations and general counsel of Festiva.

“Once our renovations and improvements are complete, the end result will be a high-quality and financially stable resort in one of the best vacation destinations in the world that can be enjoyed by its owners as well as Festiva’s existing members,” Clayton said.

During 2011 Festiva Hospitality Group worked on refurbishments and new construction at the Blue Ridge Village Resort in Banner Elk, N.C. These updates improve the long-term quality of the resort for all Festiva members and resort guests, and are part of a large improvement project taking place at several properties throughout Festiva’s network of resorts.

In 2008 Festiva began renovations at the Blue Ridge Village, taking it one building at a time. Improvements to the units included replacing all soft goods such as furniture, window treatments and bedding, replacing all cabinets, countertops and appliances in the kitchens, installing new televisions, replacing lighting and bathroom fixtures and updating the décor. These updates are completely funded by Festiva Hospitality Group at no cost to owners, members or guests.

In 2010, free wireless internet was installed in all units and throughout the resort. Several other improvements to shared amenities and common areas began near the end of 2010. Improvements to common areas include renovations to the pool area and the addition of a new spa, a repainted basketball court with a new adjustable goal, resurfaced tennis courts with new covered benches and new carpeting and landscaping at the mini-golf course. Additions to the resort’s grounds include new landscaping with a water feature, fire pit and pavilion complete with a large gas grill for guests to enjoy.

One of the most exciting additions to the property at Blue Ridge Village is Phase III of the resort. This will consist of luxurious stand-alone log cabins that will be located on previously undeveloped land on the property.

“We have received wonderful feedback from our guests on the improvements that have been made to date,” said a Festiva spokesperson, “and we are thrilled about the value we are adding to our properties for all of our members and guests.”

Based in Asheville, North Carolina, Festiva Hospitality Group manages and operates a dynamic collection of hotels and resorts in some of the most sought-after destinations throughout the Midwest, Southeast, Northeast and Caribbean. Festiva Resorts currently has more than 60,000 members among 25 vacation ownership resorts.

Festiva Hospitality Group has announced in a press release the purchase of the development rights, unsold inventory and management company at Coconut Malorie in Ocean City, Maryland.

The resort is nestled in the natural wetlands overlooking the beautiful Isle of Wight Bay. Coconut Malorie is the newest vacation option for Festiva Adventure Club members, and approximately 1600 owners will be added to Festiva’s member base with this acquisition.

“With this exciting addition to our family of resorts we continue to carry out Festiva’s purpose: We are passionately committed to improving people’s lives by providing a lifetime of travel, vacations and priceless memories,” said Don Clayton, Festiva Hospitality Group CEO. “We look forward to providing all of those things for both existing and new Festiva members through our relationship with Coconut Malorie.”

An extravagant marble lobby complete with a fountain welcomes guests to Coconut Malorie on the Bay side of the Coastal Highway. Guests can enjoy an on-site billiards room and fitness center located on top of the hotel in the tower with magnificent views of the Atlantic Ocean, the Isle of Wight Bay and the best sunsets on the east coast.

The Oasis Pool Deck is designed for ultimate relaxation with a heated outdoor pool and a whirlpool. Arched and lighted footbridges connect the resort to the restaurant and night life at Fager’s Island.

The resort offers luxurious accommodations in 85 studio and 1-bedroom suites, all newly designed with attention to luxury and meeting your vacation needs. Professionally decorated rooms showcase all new furniture, artwork, carpet, bedspreads and curtains.

“Now is the time to stop by and see all of the work we have done to enhance our guests' vacation experience!” said Clayton.

Based in Asheville, North Carolina, Festiva Hospitality Group manages and operates a dynamic collection of resorts in some of the most sought-after destinations throughout the Midwest, Southeast, Northeast and Caribbean. Festiva Resorts currently has more than 60,000 members among 26 vacation ownership resorts and the number of members in the Festiva Adventure Club exceeds 20,000.


Photo Credits: oc-condo.com
coconutmalorie.com