Celebrity Resorts, formerly known as Resort World, filed for Chapter 11 bankruptcy protection. Being unable to pay back tens of millions of dollars in debt, the resort company had little choice but to declare bankruptcy to move forward. Of the 13 properties the company reportedly owns, one in particular has been thrust into the spotlight, the David Walley’s Hot Springs Resort & Spa in Genoa, Nevada.
Celebrity Resorts had been the managing partner of the property. There had been threats of special assessment fees as high as $939 per timeshare owner, or the resort would have been closed. Fortunately, that option was not passed, and the resorts will continue to operate with scaled back on amenities and services. Because of alleged mismanagement by Celebrity Resorts, the Walley’s Property Owners Association filed an action to appoint Quintus resorts as receiver of the association’s assets and accounting records. Quintas has the largest remaining number of timeshares at the resort.
Celebrity Resorts started as a family-owned business that sold time shares in the Caribbean in the 1970s and then in the Orlando, Florida area in the 1980s.
