Update about Improvements in the Royal Resorts Membership Offering

Since Royal Resorts began business over three decades ago, vacation habits, needs, wants and desires have evolved and changed. To ensure that all of its products and services are consumer-driven and that they cater to the ever-changing needs of the marketplace, Royal Resorts communicates with current and potential members to determine what benefits, services and products they would like to see included in their membership. Every modification is carefully planned so as to enhance membership. The vast majority of today’s customers are looking for the enhanced flexibility, simplicity, and convenience available with a points-based offering.

We would like to share some information with our members about changes to the sales programs at the resorts.

Points Offerings now being sold at The Royal Cancun, The Royal Sands and The Royal Haciendas
Fifteen months ago, we began selling a membership points program grounded in The Royal Cancun, which has proved so popular with members and guests that we decided to extend it to The Royal Sands and The Royal Haciendas.

Effective April 3, 2016, points offerings were launched at both The Royal Sands and The Royal Haciendas, this means that there are now three points offerings (1) The Royal Cancun, (2) The Royal Sands, and (3) The Royal Haciendas; each with their own price per points and associated Club Service Fee.

Nothing changes for fixed unit/week members but you have the option to experience additional benefits with the Signature Club. It’s your choice
Royal Resorts fully understands that some of its members prefer the fixed unit/fixed week option that they purchased. For these members, nothing changes. Nothing is being taken away from current members; in fact, only voluntary additional benefits and enhancements are being offered. If a current member wishes to keep and use their existing fixed unit/fixed week as they have been doing ever since their purchase, they can do so with no changes whatsoever. On the other hand, if they wish to experience the significant additional services and benefits with points, they have the option of doing so with the Signature Club.

Signature Club membership gives you additional benefits
The Signature Club allows members to modify their fixed unit fixed week any year that they choose to do so. That is, if any given year they wish to turn what they have into points, they have that option through the Signature Club.
These benefits have a cost because they offer members:

• Access to converting their week into points any year for more flexible stays (“Signature Flexibility”)
• Access to an external exchange network powered by RCI so they can travel to other destinations worldwide exchanging their Royal Resorts unit (“Signature Exchange”)
• Access to an online portal where they can book travel services providing the best price guarantee plus exclusive offers and discounts on merchandise, golf and more. (“Signature Lifestyle Collection”)
• Access to an online portal where they can turn points from deposited units into currency and purchase travel services and other products (“Signature Marketplace”)

Points are linked to inventory and cannot be oversold
To provide additional clarification about Points, selling points does NOT allow Royal Resorts to sell as many as they want. Points are linked to inventory and Royal Resorts cannot “oversell.” There are a number of legal and operational controls that prohibit the company from doing this. In fact, the controls on selling points, in terms of inventory allocations backing up their sale are equal to, if not greater than, selling fixed weeks and units. Points began to be sold since 2015 through a Points Membership program at the Royal Cancun.

Royal Resorts is a Timeshare Industry Pioneer
We would like to point out that since it started business over three decades ago, Royal Resorts has always been a timeshare company from a legal perspective. We sell timeshare memberships tied to a unit of inventory. The term Timeshare and Vacation Ownership (V.O.) are synonymous. Some developers prefer to use Vacation Ownership because Timeshare had negative connotations due to bad practices of some developers in the early stages of this industry. In Mexico all memberships Royal Resorts sells are under the Timeshare Regime regulated by a Federal and State Law.

• What is different this year is that we now have three points membership offerings for The Royal Cancun, The Royal Sands and The Royal Haciendas and the remaining company inventory will be sold through Points Memberships.
• There will be a limited number of fixed unit-fixed week offerings depending on availability and season.
• If a member chooses to sell their week and they have a fixed week-fixed unit membership agreement, it will be sold as a fixed week fixed unit. On the other hand if you have a Points membership it will also be sold as such.

Changes in Resale Policy
Resale weeks are no longer available for purchase through Royal Resorts sales centers. In an effort to assist those members who wish to resell their membership, Royal Resorts is now working in conjunction with a highly reputable, ethical and successful online resale company to develop and offer an online distribution outlet for Royal Resorts members seeking to resell their weeks. This initiative is being undertaken to provide Royal Resorts members with an expanded, highly specialized, and focused outlet for their resale needs with the intent of increasing the velocity of, and options related to, member resales. An announcement on this will be forthcoming within the next several weeks.

The changes in the Royal Resorts resale approach are designed to enhance and expand the resale services provided, and the operations and services will remain with the same quality that has characterized Royal Resorts. Of course, members continue have the right to sell their Membership by their own means or through any other company they decide, as long as such activity does not ever take place on Royal Resorts premises.

We welcome your comments and suggestions and hope this information is helpful.