Who Owns What at this Timeshare Resort?
Author: Jason Tremblay
Sometimes, no matter how hard I try, I just can’t bring you the whole story. So I am sharing as much as I know.
The Mountain Press is an online news publication that covers events in the areas of Gatlinburg, Sevierville, and Pigeon Forge, Tennessee—all of which are excellent timeshare resort destinations.
On September 12, The Mountain Press ran a letter to the editor, from Marcus N. Bressler, president of the board of directors of Laurel Point Condominium Association, Inc. The link above, should take you to the letter.
In Mr. Bressler’s letter, he explains that The Mountain Press had previously printed a press release from Festiva Development Group, and that some of the points of the release were inaccurate.
I am going to summarize this, as best I understand it. According to Mr. Bressler, the press release dealt with the purchase, by Festiva Development Group, of timeshare intervals previously owned by Peppertree Vacation Clubs, Inc., as well as assets of various resorts previously belonging to Peppertree and its subsidiaries. He said the article “implied” that Festiva had purchased the management contract Peppertree once held at Laurel Point Resort in Gatlinburg.
As Mr. Bressler explains, Cendant Corp. did purchase the assets and management contracts owned by Peppertree Resorts Ltd., in 2002. RCI Resorts Management, was, at that time, a division of Cendant, and became the management agent of Laurel Point Resort. In 2003, the Laurel Point Resort Board of Directors hired Defender Resorts Inc, to replace RCI Resorts Management, for a period of 3 years.
In January 2006, the resort entered into a new management contact with SPM Resorts, Inc of Myrtle Beach. Except for 156 unit weeks that were assigned to Peppertree/Equivest Vacation Club and 17 weeks assigned to the Trust, there are no assets owned by Laurel Point Condominium Association Inc, which could have been purchased by Festiva Development without the knowledge of the Laurel Point Resort Board of Directors.
To get to the very bottom line here, based on Mr. Bressler’s letter: “Festiva is merely the controlling agent for those 156 unit week owners who still remain in their Vacation Club, as well as the 17 unit weeks still in the Trust, and have nothing to do with the business of the resort except to pay the maintenance fees due on Jan 1, 2008, and to vote those 173 unit weeks of the Laurel Point Condominium Association.”
Let me add that while I searched the archives of The Mountain Press, I was never able to find any press release or article referencing Festiva or Peppertree, published by The Mountain Press in the past two years. Neither could I find any other news articles on this topic. That’s not to suggest they don’t exist - I simply could never find the original referenced article.
So here’s my suggestion, if you own Festiva timeshare, Peppertree timeshare, or Laurel Point timeshare, or you are thinking about purchasing a timeshare or timeshare resale at any of these locations, take the time to ask the logical questions. If you have concerns about the homeowners association or the property management company take a little extra time, do your own due diligence and satisfy your own curiosity that you understand the situation.
I am not suggesting that there are any problems at ANY of these resorts, only that if something is unclear to you, make that extra effort so that you understand what you own or what you are buying. It’s good advice when buying or selling timeshare resales and it’s good advice in all your business dealings.
Topics: Timeshare Resales, Timeshare Resorts, Vacation Club
2 Comments so far
1.
anonymous
September 21st, 2007 at 9:31 am
This is the original press release about the acquisition from Festiva Resorts that can be found on the company’s website at http://www.festivaresorts.com:
Tuesday, July 24, 2007
FOR IMMEDIATE RELEASE
–ASHEVILLE, NC
Festiva Resorts announced today that the Festiva Development Group has closed on the acquisition of the Equivest Vacation and Travel Club Inc. (formerly Peppertree Vacation Club Inc.) and assets at resorts formerly belonging to Peppertree Resorts Ltd. and its subsidiaries.
As a result of the acquisition, Festiva Resorts will obtain approximately 7,000 resort intervals, 12 management contracts and development rights in nine different locations. Festiva will also acquire a receivables portfolio, management of the Equivest Vacation and Travel Club Inc. and certain other fixed assets. Peppertree Resorts Ltd., founded in 1977, was acquired by Equivest Financial in 1999 and in 2002 by the Cendant Corporation.
In addition to bringing greater diversification to its portfolio of resorts, this acquisition enables Festiva Resorts to further advance its position as one of the largest privately held vacation ownership sales and hospitality development companies in the country.
“This acquisition not only adds to our existing family of resorts, but it also provides an opportunity for future growth in many of these resort locations. Future development will allow Festiva an opportunity to develop more up-to-date and enhanced accommodations that can be designed to meet the increasingly sophisticated needs and requirements of today’s vacationer,” said Butch Patrick, President of Festiva Resorts.
Festiva Resorts currently has more than 24,000 unit interval owners, Cruise Club members and Festiva Adventure Club members among nine vacation ownership resorts and four cruise club destinations. The addition of 10,400 Equivest Vacation and Travel Club members and 20,780 Peppertree Resorts unit interval owners will increase Festiva Resorts’ member base to nearly 55,000.
Resorts involved in the acquisition and previously owned by Peppertree Resorts are located in Wisconsin Dells, Wis., Branson, Mo., Gatlinburg, Tenn., Myrtle Beach, S.C., and St. Augustine, Fla. Four North Carolina resort locations include Outer Banks, Atlantic Beach, Banner Elk and Maggie Valley. The properties in Wisconsin Dells, Banner Elk and Atlantic Beach also include undeveloped land.
Festiva Resorts’ Chief Executive Officer Don Clayton and President Butch Patrick previously worked for both Peppertree Resorts and Equivest Financial for more than 20 years combined and were key players in Equivest Financial’s acquisition of Peppertree Resorts. Clayton and Patrick founded Festiva Resorts in 2000 and have since built a strong executive and corporate team based in Asheville, N.C., several of whom have had previous experience with Peppertree Resorts and Equivest Financial.
“Butch and I are fortunate to have enjoyed the success we have had in these last seven years since we formed Festiva. To have the opportunity to acquire these resorts now gives us both a great deal of satisfaction. Most of these resorts were developed during our tenure at Peppertree. We have known many of the employees and senior managers for years. We feel that this acquisition is going to provide Festiva owners with many more vacation options and we feel that we are going to bring the greater benefits of Festiva to the members of the Equivest Vacation and Travel Club as well as the owners at the former Peppertree resorts,” said Clayton.
Domestic properties currently owned and managed by Festiva Resorts are located in Branson, Mo., Myrtle Beach, S.C., Charleston, S.C., Hilton Head Island, S.C., and Orlando, Fla. Festiva Resorts also manages and owns Caribbean properties in locations including Paradise Island, Bahamas, and St. Maarten, Netherland Antilles. Elite Island Yachts, a Festiva Resorts company that operates the Cruise Club, charters all-inclusive luxury catamaran yachts in four locations in the Caribbean including the British Virgin Islands, the Grenadines, St. Maarten and the Bahamas.
For more information about Festiva Resorts visit http://www.festivaresorts.com.
2.
William Brayton
March 30th, 2008 at 8:04 am
I was told that PepperTree @ Tammarack in WI. Dells has been purchased by Festiva Resorts. What does this mean to me as an Equivest timeshare owner? Do I have to spend 3-7K to convert my points? Will I have more difficulty getting into my home resort in the Dells if I don’t convert?