Westgate Timeshares PH Towers… Who Owes Whom Roughly $20 Million?

PH Towers Westgate opened this past December and currently says only about 20 percent of its timeshare units have sold. But the rest of this Las Vegas timeshare’s units are not sitting empty; they are being used as hotel inventory by Planet Hollywood resort (which is owned by Harrah’s Entertainment Inc).

The 52-story, 1200-room Las Vegas timeshare is described by Westgate timeshare as both the world’s largest timeshare building (all units contained within a single structure) and the only timeshare in the world that is fully integrated with a casino.

The timeshare’s builder, Tutor-Saliba Corporation, has filed a foreclosure lawsuit in Nevada’s Clark County District Court against Westgate Planet Hollywood Las Vegas LLC. Tutor-Saliba alleges that Westgate owes the company $19.3 million based on the terms of the 2007 Las Vegas timeshare construction contract. According to the Las Vegas Sun, Westgate Resorts timeshare plans to fight the lawsuit against their newest Las Vegas timeshare property and says that liens filed against the resort by Tutor-Saliba and liens filed by subcontractors cover duplicate issues.

Westgate Timeshare Tells Its Side of the Story

Mark Waltrip, chief operating officer of Westgate Resorts, was quoted as saying, “We have exhausted every effort to work cooperatively with Tutor-Saliba to resolve these issues. We have previously provided Tutor-Saliba a well-documented position that has been independently verified by a third-party construction management firm and proves that not only are these claims totally without merit, but in fact Tutor-Saliba owes Westgate in excess of $18 million. In addition, Tutor-Saliba signed an agreement subordinating its claim to the lenders on this project and therefore has no right to pursue this course of action. We not only intend to vigorously defend these claims brought by Tutor-Saliba, but also seek recovery of millions of dollars in claims due to Westgate, including overcharges, credits due for unperformed work, liquidated damages for untimely performance and failure to comply with the plans and specifications of the project.”

So Westgate timeshare and the construction company for this Las Vegas timeshare agree that somebody owes somebody between 18 and 19.3 million dollars. One thing is certain, until this is resolved, only the attorneys involved benefit by the situation.