ASHEVILLE, NC (July 10, 2012) — Festiva Hospitality Group is announcing the recent acquisition of Celebration World Resort in Kissimmee, Fla. This acquisition comes in the wake of troubled times for the resort and its owners, and Festiva is committed to making much-needed improvements to the property itself along with 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. Festiva has committed to fix those issues with financial contributions for renovations as well drastic operational changes and improvements,” said Don Clayton, chief executive officer and co-founder of Festiva Hospitality Group.
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. These owners will also have access to even more benefits and vacation opportunities through Festiva’s services and other properties.
Festiva 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.
This addition of Festiva Orlando Resort to Festiva’s portfolio will also benefit the company as a whole as it increases its presence in one of the most popular vacation ownership destinations in the country, while expanding vacation options for Festiva Adventure Club members. Festiva’s leaders have created a plan that will greatly improve Festiva Orlando Resort over the next few years without negatively impacting Festiva’s existing members or the current resort owners.
“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.
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 Sailing Vacations, a Festiva company that operates the Festiva Cruise Club, charters all-inclusive luxury catamaran yachts in the Caribbean. Festiva currently has approximately 70,000 members among 23 vacation ownership resorts and five Festiva Cruise Club destinations. The number of members in the Festiva Adventure Club exceeds 23,000.
SOURCE: Festiva Hospitality Group