Residual Rights

Due to the fact that the wording of The Royal Caribbean membership contract is slightly different from that of other resorts in the Royal Resorts family, some Royal Caribbean members are asking for clarification regarding Residual Rights.

Residual Rights will be distributed in accordance with the following definition:

“Residual Rights” is the amount of financial proceeds that a Member would receive at the termination of their Membership Program in accordance to the terms of the Membership Agreement. The amount that they would receive would be distributed from the net proceeds resulting from the liquidation of assets (sale of the resort including buildings, equipment, furniture and fixtures) after payment of liabilities (debts; staff severance payments; municipal, state and federal taxes; legal fees and administrative and brokerage expenses associated with the sale of the resort) plus any cash reserves available at termination.

It is likely that the total amount distributed to members will be less than the total amount of the sales price paid by members, as was the case for The Royal Mayan.

In order to be eligible for Residual Rights distributions, Royal Caribbean members of record must be in good standing on the date of termination of the Membership Program. In other words, in order to be eligible for distributions, members must be current with their annual Club Service Fee payments, or any other debt.

In accordance with the terms of the membership agreement, The Royal Caribbean resort will be sold at a public or private sale for the best obtainable sales price.

The last Interval at The Royal Caribbean is week 43 and the last day of resort operations will be November 3, 2018.

After the resort has been sold, the estimate is that it will take six months until all funds are available for distribution.

We hope that this information is useful. We will be sharing additional details with you about the sales process in the months to come.