New Environmental Fee for all Hotel Guests in Cancun on March 1

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New Environmental Fee for all Hotel Guests in Cancun on March 1

Members due to travel to Royal Resorts this year should be aware of a new municipal green tax that comes into effect on March 1, 2019. As part of its work to protect the environment, the Benito Juarez (Cancun) Municipal Government will begin charging an Environmental Sanitation Fee to all hotel and resort guests in Cancun, including members and guests staying at Royal Resorts.

In accordance with Municipal Finance Laws, the Environmental Sanitation Fee that will be charged to your account at check out is as follows:

Room:                                                $25.35 pesos per night

Suite                                                   $25.35 pesos per night

Villa (2-bedroom)                           $50.70 pesos per night

This is the equivalent of just under US$19 for a week’s stay in a two-bedroom villa. This fee is not covered by the annual Club Service Fee for Royal Resorts members or by the REFINE All-Inclusive room rate.

What will the taxes be used for?

The proceeds from this new Green Fee will be used to contribute to environmental protection and sanitation initiatives in Cancun, such as:

  • Beach cleaning
  • Water treatment
  • Waste collection
  • Reduction of carbon emissions with LED lighting
  • Reef conservation
  • Coastal wetland management
  • Reforestation and other programs geared towards making Cancun a more sustainable destination

Why is an Environmental Tax needed?

The white sand beaches and coral reefs of the Mexican Caribbean are world-famous; its jungles and wetlands are home to rare species of birds and animals. Yet visitor numbers and population growth are outpacing public services and placing pressure on area ecosystems. More action is needed to improve water treatment and waste management for the health of the environment. The new Green Fee charged by the Benito Juarez Municipal Government will be used for such programs.

In the Riviera Maya, the Solidaridad Municipal Government began charging an Environmental Sanitation Fee to all hotel guests in Playa del Carmen and the surrounding area in the fall of 2017. The Puerto Morelos municipal government also introduced an eco tax for hotel guests on January 1, 2019.

Worldwide, popular tourist destinations ranging from Barcelona to the Maldives have implemented similar green taxes.

IMPORTANT NEWS ABOUT NEW TIMESHARE SCAMS

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It is Royal Resorts policy to alert members of possible scams attempted by companies or individuals operating online. On this occasion we would like to share reports received from several member about a company called CTrip, which called or emailed them with offers to buy their villas.

This company claims to be a travel service provider in China, but the offer received by members has a Mexico City address.

CTrip representatives contact members to make them an offer for their unit, invariably more than the asking price to make it seem attractive. If the offer is accepted they charge the member a processing fee, which is a percentage of the price and runs into thousands of dollars. Sometimes they claim to be charging Membership Company fees (fees that your Membership Company does not charge you).

According to information the member received from the Owners Manual, which has seen evidence of a number of scams involving CTrip, when the member issues a check for the processing fee the representative sends a money order, which arrives late. The money order turns out to be a forgery with no funds when the member goes to cash it. Needless to say, the representative has vanished and the affected party has no way of getting his/her money back.

The Owners Manual has seen many cases where the fraudsters disappear with the check and the membership unit. They target the elderly and people who may have their timeshare on the market anyway. The red flags to be aware of are that scammers offer a ridiculously inflated sale price that sounds too good to be true and ask for money upfront to cover processing and administrative fees.

If you receive a call or email from CTrip or any of the companies we have alerted you to in the past, we recommend that you do not do business with them.

When such companies contact you via email or phone to offer unsolicited broker, resale, exchange or rental services and ask for cash in advance to cover “administrative fees” “guarantees” or “deposits” it is generally a good indication that they may not be genuine and if you pay it is very possible that you will not hear from them again.

Protecting your personal information

Royal Resorts has a rigorous privacy policy and is in full compliance with privacy laws. Our members’ personal information is confidential and we do everything possible to protect it. We do not sell and have never sold personal information to third parties.

Always follow these steps if you receive a suspicious email or phone call:

  • Check the source of the email if the company or individual claims to be associated with Royal Resorts. All Royal Resorts communications are sent from an official royalresorts.com email address, if this is not the case, then the email is not from Royal Resorts.
    • Disregard the email or phone call if money is requested in advance for resale or other timeshare-related services.
    • Do not supply personal data or the contact details of friends if referrals are requested.
    • Do an online background check on the company to see if it is legitimate.
    • Ask Royal Resorts if you are in any doubt, we are here to help you.
    • Above all, do not send any money.

We recommend that you avoid disclosing your personal information on forums, blogs and other open media venues and participation in Internet referral schemes that ask you to send the names and details of friends. When you provide your information to others in order to rent, sell or lend your unit please ensure that your information will be protected.

 

The latest news about The Royal Caribbean. August 21, 2018

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August 21, 2018 We would like to give you an update on the termination of The Royal Caribbean Membership Program and the sale of the resort. With regard to the sale of the resort, we are happy to inform you that after carefully analyzing the offer presented by a third party as well as the […]

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Update on the Sale of The Royal Caribbean. June 11, 2018

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June 11, 2018 We would like to give you an update on the termination of The Royal Caribbean membership program and the sale of the resort. Last Friday, June 8, the Company received an offer to purchase The Royal Caribbean. We are currently reviewing this proposal and will make a decision considering what is best […]

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Important News about The Royal Caribbean. June 4, 2018

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June 4, 2018

We would like to share some important information about The Royal Caribbean and the termination of the membership program.

As you know, the final interval is week 43 and the resort will close on November 3, 2018.

The membership agreement stipulates that The Royal Caribbean must be sold in a public or private sale and the net proceeds of the sale, after deducting taxes, commissions and other appropriate charges and expenses, divided among the members in good standing and the Company, with members having first priority.

Rombec S.A. de C.V., the company that owns The Royal Caribbean property, hired three valuation and appraisal firms to carry out independent market valuations of the property. HVS Consulting and Valuation, CBRE Valuation and Advisory Services, and JLL Hotels & Hospitality Group are all leading international valuation companies with years of experience in the hotel and real estate sector.

Each firm presented a valuation of The Royal Caribbean based on the best use of the property and current market conditions in Cancun and they are as follows:

HVS US$56,000,000.00
CBRE US$51,800,000.00
JLL US$54,800,000.00

After reviewing the appraisals, Royal Resorts decided to buy The Royal Caribbean and keep it in the Royal Resorts family.

An affiliate company in the Royal Resorts group will purchase The Royal Caribbean and will pay the highest appraised market value (the HVS valuation), a purchase price of $56 million dollars.

Advertising a resort property for public sale entails marketing costs, broker commissions and legal fees. This decision means The Royal Caribbean will be sold at the best market price and the fees and expenses associated with the sale will be kept to a minimum.

There will be no marketing expenses or broker commissions to pay which results in fewer deductions from the net proceeds available for Residual Rights distribution.

The fact that The Royal Caribbean will be remaining in the Royal Resorts group means that members at the other clubs will still have access to the facilities.

The company has obtained a loan to purchase The Royal Caribbean and will be formalizing the credit agreement in the coming months. The sale will happen on November 5, 2018, right after the last occupancy date. As a result, there will be no additional expenses associated with the upkeep of the resort to pay after the sale takes place.

Once the sale of the resort is formalized and the final report of resort operations and other expenses is available, we will be sharing additional information relating to the Residual Rights distribution, the payment process and timeline.

Residual Rights will only be paid to Members that have these rights stipulated in their membership agreement and are in good standing in accordance with the terms of said agreement. The amount they will receive would be distributed from the net proceeds resulting from the sale of the resort and its assets, after the deduction of expenses such as staff severance payments, debts, taxes and any legal and administrative fees associated with the sale. Any remaining cash reserves available at termination will also form part of the proceeds to be distributed; this includes the club cash reserve and hurricane cash reserve.

We estimate that Residual Rights payments will be sent in the first quarter of 2019.

In order to be eligible to receive their Residual Rights, members must be current with their annual Club Service Fee payments or any other debt on the date of the termination of the Membership program. Members who are currently in arrears are urged to settle their financial obligations now by contacting Interval Servicing.

We know that many members have concerns about The Royal Caribbean employees. They will receive severance payments when the resort closes, in accordance with the Mexican labor laws in effect in November 2018. It is likely that some of them will decide to retire or pursue their own business interests. The purchasing company also intends to hire many of the current employees in the future.

On May 24, Royal Resorts management representatives met with The Royal Caribbean Advisory Council members to brief them on actions taken to date and to present the plan for the sale of the resort. Click here to read their letter endorsing the decision to keep The Royal Caribbean in the Royal Resorts family.

We hope that this information is useful. We have prepared a FAQ section to answer any questions that you may have about the sale of the resort and the Residual Rights distribution. We will also be sharing additional details with you in the months to come.

This information was sent to The Royal Caribbean members by email.

Frequently Asked Questions for The Royal Caribbean Members

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  1. Who is purchasing the assets of The Royal Caribbean property?
    The assets are being purchased by an affiliate company of the Royal Resorts Group. The Company decided to keep The Royal Caribbean in the family for the benefit of Members, employees and ultimately to secure the Company´s interests long term.
  2. Does the Royal Resorts have the financial resources to purchase and pay cash for The Royal Caribbean property?
    Yes, Royal Resorts has raised the equity and secured a loan to ensure the payment in cash of the price offered at the time that the sale of the assets takes place.
  3. Was The Royal Caribbean advertised for sale?
    No, the property was not advertised for a public sale; instead three market valuations were carried out by three different independent professional brokerage and valuation firms. The resort is being sold through a private sale as permitted by the membership agreement.
  4. Which firms conducted the market valuations?
    The market valuations were carried out by HVS Consulting and Valuation, CBRE Valuation and Advisory Services, and JLL Hotels & Hospitality Group, all well-known international firms.
  5. What were the bases and the US dollar amounts of each market valuation conducted by these firms?
    The three firms concurred on the same business model for the best use of the property. The US dollar amount of each market valuation is shown in the following table:

    MARKET VALUATIONS
    USD
    CBRE $ 51,800,000
    JLL $ 54,800,000
    HVS $ 56,000,000
  6. What was the price originally offered by Royal Resorts management for The Royal Caribbean property?
    The price offered is the highest of the three market valuations: US$56,000,000 dollars.
  7. Why did the Advisory Council endorse the private sale when Royal Resorts Management expressed their interest in acquiring the property?
    The endorsement of the Advisory Council was for the following reasons: to receive the maximum market value for the sale of the property, to save broker commissions and marketing expenses associated with the sale and to ensure that The Royal Caribbean remains in the Royal Resorts family. See attached letter.
  8. What are the benefits of a direct sale to a Royal Resorts affiliate?
    The benefits are: (a) The property is being sold at the highest appraised market value; (b) there will be no marketing expenses or broker commissions; (c) The Royal Caribbean property will remain in the Royal Resorts family and the members of the other Royal Resorts will not lose access to facilities at The Royal Caribbean; (d) the purchasing company intends to hire many of the current employees working at The Royal Caribbean and (e) The Royal Islander members can continue to have access to The Royal Caribbean facilities.
  9. Roughly what is the amount of money required to cover staff severance payments?
    This amount varies but it will be in strict accordance with Mexican Labor Laws in effect in November 2018. The initial estimate is over US$1 million dollars.
  10. How many of the current The Royal Caribbean employees are expected to be hired by the company that will operate the resort?
    We expect there to be many; however at the moment it is difficult to estimate a number. It will depend on the needs of the resort once it is remodeled and the desire of the employees to continue working for a Royal Resorts affiliate since some might prefer to retire once they have received their severance payment.
  11. How much money is expected to be in Club Service Fees (CSF) reserves at the end of the membership period and are these funds added to the amount to be distributed to Members?
    Please refer to Royal Resorts Life magazine for a breakdown of reserves as of 2017 and be aware that these amounts may vary by November 3, 2018. All reserves existing on this date will indeed be part of the funds to be distributed to Members in good standing.
  12. What will happen to the Hurricane fund reserves when the property is sold?
    The funds remaining in the Hurricane Fund on November 3, 2018 will form part of the reserves that are returned to Members. However, in the unlikely event of a hurricane happening before November 3, 2018 the cost of the resulting damage will be taken out of the existing reserves.
  13. What is the approximate number of The Royal Caribbean memberships?
    There are approximately 10,557 memberships.
  14. What percentage of these memberships is in good standing?
    Currently there are 10,225 memberships in good standing. That is 97% of all memberships.
  15. What are Residual Rights?
    “Residual Rights” is the amount of financial proceeds that a Member would receive at the termination of their Membership Program.
  16. Where does the Residual Rights amount to be distributed come from?
    The amount to be received by Members will come from the net proceeds resulting from:

    • The liquidation of assets (the 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
  17. Would Residual Rights be paid to all The Royal Caribbean Members?
    No, Residual Rights will only be paid to Members who have Residual Rights stipulated in their Membership Agreement and are in good standing according to the terms of said agreement as of November 3, 2018.
  18. How will the members be notified about the Residual Rights payment process?
    Members of The Royal Caribbean who have Residual Rights stipulated in their Membership Agreement and are in good standing according to the terms of said agreement will receive detailed information by email.
    It is important to have your contact information up to date in order to receive this in a timely manner. Members may contact Interval Servicing to make updates.
  19. What is the estimate of Residual Rights proceeds to be paid to Members compared to the Membership price paid?
    At this point in time it is too early to give you an estimate. As soon as we have an accurate percentage, we will advise Members.
  20. When will the distribution of Residual Rights take place?
    The distribution and payment of Residual Rights will take place during the first quarter of 2019.
  21. Will the sale of The Royal Caribbean affect the value of The Royal Islander?
    It is very early to say, the value of The Royal Islander will depend on the demand and the economic conditions prevailing in Cancun at the time of sale.
  22. Will the properties across the street also be sold (Captain’s Cove) when selling The Royal Caribbean?
    No, that property is owned separately.
  23. If Royal Resorts keeps The Royal Caribbean, will there be any membership programs available for the current members?
    Yes; the plan is to have points-based memberships backed by The Royal Caribbean inventory once this resort is remodeled. They will be available for members and non-members to purchase.
  24. What is the latest price offered by Royal Resorts management for The Royal Caribbean property?
    This information, as well as the specifics of the sale will first be presented to the Advisory Council of The Royal Caribbean during their meeting at the end of October; once it is validated we will inform the Members accordingly.

New in La Rotonda Bar, Wednesday Wine Tasting at The Royal Haciendas

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It’s #WineWednesday in La Rotonda Bar at The Royal Haciendas, our Riviera Maya resort. Don’t miss the new Wine Tasting at The Royal Haciendas every Wednesday afternoon from 4 to 5 p.m.

Your host Alejandro Cruz is a mine of information on the world of wine and he will share his passion and knowledge with you.

You will be sampling wines from Mexico and learning about the history of wine production in the country, which dates back to the 16th century and the grapes grown by missionaries in the gardens of the first monasteries and on haciendas.

However, despite its long history, the Mexican wine industry really took off in the 1980s. The Guadalupe and Santo Tomás Valleys near Ensenada in Baja California and the Parras Valley in Coahuila have both produced international award winning wines in recent years and the number of wineries is growing. On this occasion you’ll be trying Mexican wines made from Zinfandel, Merlot and Cabernet Sauvignon grapes.

The cost is US$20 per person and space is very limited. Reservations are required, ext. 66214.

#winewednesday

SEPTEMBER WINNER OF MONTHLY RAFFLE FOR MEMBERS ATTENDING MARKETING EVENTS

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Stephen Eugene Prather, member at The Royal Islander, was the latest winner of the monthly raffle for members attending Marketing events such as the Orientation Briefing, Taco Party or the Welcome Party. 

All members who go to the social events organized by the Marketing department during their vacation are eligible to participate in a monthly draw. The prize is a one-week stay for two in a room at The Royal Haciendas. The names of the lucky winners will be published in Members News each month.

Congratulations to Mr. Prather, the September winner

AUGUST WINNER OF MONTHLY RAFFLE FOR MEMBERS ATTENDING MARKETING EVENTS

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Minerva Padron Rojas, member at The Royal Sands, was the latest winner of the monthly raffle for members attending Marketing events such as the Orientation Briefing, Taco Party or the Welcome Party. 

All members who go to the social events organized by the Marketing department during their vacation are eligible to participate in a monthly draw. The prize is a one-week stay for two in a room at The Royal Haciendas. The names of the lucky winners will be published in Members News each month.

Congratulations to Mrs. Padron Rojas, the August winner

Improving facilities at The Royal Haciendas

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We have some news for The Royal Haciendas members traveling to the Riviera Maya this September. We are working on improvements to facilities at your resort that affect La Palapa del Sol and the motor lobby. Work will take place during Maintenance Week from September 8 to 14 but will continue in week 37 until September 21. We have taken steps to keep the impact on guests to a minimum and apologize for any inconvenience caused by this essential work.

La Palapa del Sol

Repairs will be carried out on the metallic structure sustaining the roof of La Palapa del Sol restaurant and the thatch will be replaced. The restaurant will be closed while work is carried out but Members and guests will be able to enjoy normal La Palapa del Sol restaurant service in alternative locations for their dining pleasure. The schedule for breakfast, lunch, dinner and the theme nights is as follows: 

September 8 -14

The Royal Haciendas Maintenance week 

Saturday, September 15

9 a.m. A la carte breakfast in Los Murales available

10 a.m. Room Service 24-hour service

10 a.m. Sol Grill opens, 10 a.m. to 4 p.m. for lunch

10 a.m. Luna Grill opens, 10 a.m. to 7 p.m. for lunch

5 p.m. Los Murales opens for dinner, 5 p.m. to 10 p.m., daily

6 p.m. Gala event to celebrate Independence Night: Fiesta Mexicana, 6 p.m. to 10 p.m., Phase I stage 

September 16 to September 21

7 a.m. to 11:30 a.m. Breakfast, a la carte and buffet service, La Rotonda Bar and Los Murales

Room Service available 24 hours

Sol Grill open from 10 a.m. to 4 p.m. for lunch

Luna Grill from 10 a.m. to 5 p.m. for lunch

La Palapa del Sol Theme Nights will take place in the Luna Grill, 6 to 10 p.m.*

Saturday Cookout at Sol Grill 6 to 10 p.m.

Los Murales open for dinner 5 to 10 p.m., daily

* In the case of bad weather, the La Palapa del Sol theme nights will be held in the Sales Room.

As La Rotonda will be used for breakfast during week 37, the Members Lounge will be temporarily relocated to the main lobby in front of the Front Desk.

Replacing the thatch on the motor lobby palapa

The thatched roof of the motor lobby palapa will also be replaced during Maintenance Week and week 37. Work will be carried out in the afternoon and evening.