KING OF PRUSSIA, PA-Locally based Epic Resorts, once forced into bankruptcy by creditors owed more than $300 million, sells to the highest bidder, Las Vegas-based Sunterra Corp., for $25 million in cash. The acquisition, which will be unsealed and confirmed in court on Oct. 7, is expected to close by the end of this month.

Epic encompasses six resort locations: Hilton Head, SC; Daytona Beach, FL; Scottsdale, AZ; Palm Springs, CA; Lake Havasu, AZ, and Las Vegas. The points-based Epic vacation club has approximately 16,000 active members, and there are also approximately 4,500 owners of Epic timeshare weeks at the Hilton Head and Daytona Beach properties.

Sunterra’s acquisition includes management rights to the club and four of the Epic resorts, inventory assigned to the club, development land at the Hilton Head property and unsold inventory at the resorts.

The Epic properties take Sunterra’s portfolio to 93 worldwide. One of the world’s largest vacation ownership companies, it has 87 affiliated resort locations in the US, Europe, the Caribbean, Hawaii and Mexico.

“We believe this (acquisition) will be beneficial to the members of both the Sunterra and Epic communities, and we intend to continue our search to make additional strategic acquisitions,” says Nicholas Benson, Sunterra’s CEO. He also says Sunterra will disclose plans for integrating Epic into its existing business following the court’s confirmation of the winning bid.

Epic’s troubles began with a charge of fraudulent telemarketing, leveled in 2000 by the FTC, and went well beyond mounting debt. Club members and timeshare owners were not alone in accusations of mishandled funds. After Epic’s owners took the company from involuntary to voluntary bankruptcy, the court-appointed trustee, Anthony Schnelling of Bridge Associates, joined the chorus.

At one point, his relationship with the owners grew so contentious that he leveled a $30-million lawsuit against them, charging them with fraud. In the wake of the suit, this January the owners stepped down from the board, the lawsuit was dropped, and Schnelling proceeded to clear Epic’s properties of liens and encumbrances, making way for the company’s sale at auction.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.