A Caribbean resort owned by Bill Gates is facing a $100 million (£73.27 million) lawsuit that claims the 'luxurious' island property has been left to fall into disrepair.
On 11 August, the homeowners association for Four Seasons Resorts Nevis filed a civil suit against Nevis Peak Holdings in the Delaware Court of Chancery. Court documents say that Nevis Peak, a firm controlled by Cascade Investment, the family office of Bill Gates, 70, owns the resort and neighbouring land at Penney's Beach in Charlestown, on the island of Nevis in the West Indies.
Known for its privacy, the resort has previously welcomed high-profile guests such as Meryl Streep, Oprah Winfrey and Justin Trudeau.
$100 Million Lawsuit Over Resort Conditions
Representing 66 owners who hold 89 two- to six-bedroom villas at the base of a volcanic mountain, the homeowners association claims Nevis Peak has neglected facility maintenance and repairs since buying the property in 2016. In their filing, they argue the company let Four Seasons Nevis 'deteriorate below any acceptable standard.'
According to an independent third-party assessment cited in the complaint, amenities such as the fitness centre, spa and tennis facilities were failing to meet the standard of world-class quality tied to the Four Seasons brand as of June 2021.
The evaluation also noted that much of the golf course — including its trees, fairways and roughs — was in 'below average condition', calculating that repairs would cost between $6.5 million (£4.76 million) and $8.5 million (£6.23 million).
Fire Damage Left Unrepaired
The lawsuit also highlights the fitness centre and golf pro shop, which were destroyed by an electrical fire in October 2022. According to the homeowners, four years on, the buildings have still not been rebuilt and the site remains sectioned off by a stockade fence.
Resort grounds are also suffering from a lack of investment, according to the lawsuit, which points to visible rubbish, broken-down golf carts, poor landscaping, missing pool tiles and buildings left with 'rotted wood and peeling paint.'
$20 Million in Membership Fees
Since 2013, homeowners have handed over more than $20 million (£14.65 million) in membership fees for work that was never done, according to the lawsuit. On top of a $100,000 (£73,273.50) 'initiation fee' and a $13,000 (£9,525.55) annual 'Resort Club Membership' fee, property owners must pay a 25% fees on all services, alongside 15% on capital improvement projects.
Four Seasons calculated that bringing the property back up to brand standards would require $65 million (£47.63 million), per the complaint. The association claims Nevis Peak has taken no action to upgrade the resort following that estimate, causing property values for the villas to fall by more than $100 million (£73.27 million) in lost resale value.
Owners Seek Repairs or Compensation
In their lawsuit, property owners are asking the court to make Nevis Peak carry out all necessary repair work. As an alternative, they are seeking monetary compensation in an amount that will be set during the trial.
Nevis Peak is the only named defendant in the filing. Addressing the lawsuit in a statement to Forbes, a Cascade Investment spokesperson declared their intent to defend itself against the claims, which it 'believes are entirely without merit.'
Gates' Plans for a Luxury Redesign
Shortly after acquiring the resort, Gates brought in luxury designer Todd-Avery Lenahan to redesign the property, according to a June 2018 report by The Hollywood Reporter. At the time, Lenahan estimated that the multimillion-dollar project would cost 'equal to or greater than' building the resort from scratch 25 years earlier.
