Las Vegas Timeshare

…but it is important for timeshare owners at Consolidated Resorts timeshare to continue to make payments and pay dues on the vacation property they own.

Consolidated Resorts, a Las Vegas timeshare company that filed for bankruptcy protection at the end of June, is the developer of the Tahiti Village Resort, the Tahiti Resort, and the Club de Soleil, (all Las Vegas timeshares). They also developed three Orlando timeshare resorts and nine Hawaii timeshare resorts. Almost all of the timeshare units at these resorts have been sold, meaning that the timeshare owners (not Consolidated Resorts) hold deeds to these properties.

According to ReviewJournal.com, the bankruptcy attorney for Consolidated and 12 of its affiliated companies, Lenard Schwartzer, has explained that the people who bought deeds to timeshares at the companies’ resorts should not be affected by the bankruptcy filing. “They (the timeshare owners) are able to call up and get their week as if this bankruptcy never happened,” says Schwartzer.

Since the collective of timeshare deed holders own the resorts, and all of the resorts have enough money to remain in operation, (plus the fact that none of the timeshare resort management companies were involved in the bankruptcy filing) there is really no reason for Consolidated Resort’s bankruptcy to become a problem for the resorts. Unless—and this is a very important detail—timeshare owners take it upon themselves to stop paying their annual fees, or stop making payments. If timeshare owners panic and stop paying what they rightfully owe, the timeshare owners themselves could become the downfall of their own resorts and vacation ownership.

Previous related post from The Timeshare Authority:

• Consolidated Resorts Timeshare says Bankruptcy Will Not Affect Timeshare Owners

Sources:

• ReviewJournal.com

The latest news for Consolidated Resorts owners, as Director of Communications Steve Luba explains.

Last week, rumors turned to fact when Consolidated Resorts filed for Chapter 7 bankruptcy through the courts in Nevada. And when something like this happens, everyone feels a little concerned about what the future holds—whether you are employed by the industry, you own timeshares, or you are a vendor who serves timeshare resorts and timeshare owners. But as the Wall Street Journal pointed out this week, “So far this year, Consolidated is the only time-share developer to have said it will file for bankruptcy protection.“

Despite some cutbacks, layoffs, and the assorted challenges that the industry faces, timeshare resorts across the US and around the world are still providing timeshare owners and timeshare renters with quality vacation experiences. And when you consider that the timeshare industry has been hit from more different directions than most by the complexities of the weak economy and poor credit market, the very fact that only Consolidated has been forced to make this move says a lot about the strength and solidity already in place.

In quotes that appeared in the Wall Street Journal, Steve Holmes, Wyndham timeshare‘s chairman and chief executive, says he anticipates the securitization market eventually will loosen a bit for time-share deals. “I’m not calling for a return to the kind of liquidity that existed 18 months or two years ago, but I think, over time, there will be a middle ground that’s found.”

Las Vegas Timeshare Was Expanding

What’s especially sad for Consolidated Resorts is that they were expanding one of their three Las Vegas timeshare properties, the Tahiti Village on Las Vegas Boulevard at Interstate 215. The property has 860 timeshare units but room for expansion, space the other two Las Vegas locations, the Tahiti and Club de Soleil did not offer. Completion of the expansion would have given the company more timeshare to sell, something it needed greatly as its existing inventory was low.

The bottom line is that none of us knows exactly what the bottom line will be in this economy. But timeshare companies, developers, and timeshare resales companies are stepping up their efforts, and scrutinizing how they can improve their product, their services, and their business models. Some of the details may change, but your opportunity to enjoy vacation ownership through timeshares and timeshare resales, remains.

Consolidated Resorts Inc., a Las Vegas based timeshare company along with its affiliated companies, has commenced the process of filing for Chapter 7 protection this week in Nevada bankruptcy court. A Chapter 7 liquidation filing means that trustees will sell the timeshare company’s assets and then apply the proceeds to repay debtors.

Last month Consolidated Resorts Timeshare Company announced it was closing its sales and marketing offices but that the resorts would remain open for timeshare owners. Consolidated spokesman Ken Chupinsky told The Las Vegas Sun, “…timeshare interval owners will continue to have full use and enjoyment of the resorts.”

According to officials at Consolidated Timeshare Resorts, a management company that has not filed for bankruptcy protection will run the condominium associations that are responsible for each resort, adding that resorts are owned by the timeshare owners. Ken Chupinsky was quoted in The Las Vegas Sun as saying, “This has nothing to do with the timeshare owners. The timeshare owners are in fine shape.”

The timeshare company pointed to lack of financing available to timeshare owners to purchase new timeshares and a dwindling inventory as contributing to the problem. Consolidated Timeshare Resorts includes 14 timeshare properties; 3 that are Las Vegas timeshare resorts, 1 Orlando timeshare resort and 9 Hawaii timeshares.

It is hard to predict what the immediate or long-term responses will be by timeshare buyers and sellers.

Here are links to timeshare resales at Consolidated Resort’s 9 Hawaii timeshare properties:

• Sands of Kahana Vacation Club
• Kahana Beach Resort
• Hono Koa
• The Gardens at West Maui
• Kahana Villa Resort
• Maui Beach Vacation Club
• Maui Banyan Vacation Club
• Kona Islander
• Imperial Hawaii

Sources:

• Las Vegas ReviewJournal.com
• The Las Vegas Sun