Royal Resorts would like to share this update on the Villa Renovation Program (FF&E) program at The Royal Sands. To date, 163 villas have been renovated and you can see the list of completed units below.

Work is currently underway in 42 villas, of these, work is 80 percent completed in 17 units, the walls have been painted and the new furniture is in place but the kitchen cabinet doors and countertops have yet to be installed. For the remaining 25 units in this group, progress is at 50 percent. The painting phase is over but the new furniture and kitchen cabinet doors and countertops have not been installed yet.

One hundred villas are scheduled for renovation in 2018 (including the aforementioned 42 units), however this is subject to availability. The high occupancy level at the resort, particularly during peak seasons, reduces the number of units available for renovation work.

Renovated units at The Royal Sands as of February 1, 2018

 

Building A

A5002                        A5003                        A5004                        A5101                        A5102

A5103                        A5202                        A5203                        A5502                        A5602

A5701

 

Building B

B5105                        B5106                        B5107                        B5206                        B5305

B5307                        B5405                        B5605                        B5607                        B5707

B5805                        B5807

 

Building C

C5208                        C5209                        C5408                        C5409                        C5608

C5708

 

Building D

D5410                        D5511                        D5610                        D5611                        D5710

D5711                        D5911

 

Building E

E5313                        E5314                        E5413                        E5512                        E5514

E5515                        E5612                        E5614                        E5715                        E5812

E5813                        E5814                        E5815                        E5912                        E5913

E5914

 

Building F

F5317             F5516             F5616             F5716             F5717

F5816             F5917

 

Building G

G5118                        G5418                        G5519                        G5718                        G5719

 

Building H

H5120                        H5122                        H5220                        H5221                        H5320

H5321                        H5322                        H5420                        H5521                        H5522

H5620                        H5621                        H5622                        H5720                        H5721

H5722

 

Building I

I5023             I5024             I5028             I5124             I5125

I5225             I5325             I5327             I5426             I5525

I5625

 

Building J

J5131             J5230             J5329             J5330             J5331

J5431             J5529             J5530             J5631

 

Building K

K5132                        K5133                        K5232                        K5333                        K5433

K5533                        K5632                        K5633

 

Building L

L5135             L5235             L5237             L5434             L5435

L5436             L5534             L5537             L5634             L5636

L5736             L5737             L5837

 

Building M

M5138           M5139           M5239           M5339           M5538

M5638           M5639           M5738           M5739           M5838

 

Building N

N5141                        N5240                        N5242                        N5340                        N5341

N5540                        N5740                        N5741                        N5742                        N5840

N5841

 

Building P

P5043                        P5044                        P5045                        P5046                        P5048

P5049                        P5145                        P5146                        P5148                        P5149

P5244                        P5248                        P5250                        P5349                        P5445

P5446                        P5448                        P5645                        P5646                        P5647

P5747

 

We hope that you find this information useful. We will be publishing additional progress updates during the year as work advances.

The 2017 Advisory Council meetings were held in Cancun during week 43 and the representatives of The Royal Caribbean, The Royal Islander, The Royal Sands and The Royal Haciendas met with Management to review the 2017 financial reports and the proposed resort budgets and Club Service Fees for 2018.

Due to supplier price rises and higher utility rates in 2017, a jump in the inflation rate in Mexico and other adverse economic factors, Resort Operations costs have risen at each club, The Royal Haciendas (5.3 percent), The Royal Cancun (5 percent), The Royal Sands (4.1 percent), The Royal Caribbean (3.56 percent) and The Royal Islander (2.19 percent). Management proposed a 2.5 percent increase in the 2018 Club Service Fee to partially offset the impact on resort operations. Royal Resorts budgets conservatively and works hard to keep Club Service Fee increases to a minimum and this is the first time that the annual dues have gone up in four years.

The Royal Sands and The Royal Haciendas Advisory Boards unanimously approved the dues increase.

There is no change in the Club Service Fee for The Royal Caribbean as the membership program ends on November 4, 2018.

The Royal Islander Club Service Fee also remains unchanged for 2018.

At the Royal Islander Advisory Council meeting, Management presented the budget and recommended a 2.5 percent increase for the 2018 Club Service Fee (CSF).  The Advisory Council accepted all of Management’s proposed budget items except for the increase of the Club Service Fee.  The initial budget showed a profit for the year but the Council representatives felt it was unnecessary at this time to add additional funds to the Club Cash Reserve account (as it is currently more than sufficient to meet an unanticipated catastrophic/emergency event which might require up to a 3 month resort shutdown).  When the budget was revised to keep the CSF at US $1,037 –the budget still shows a small cash surplus.  So, at the request of The Royal Islander Advisory Council representatives, Management agreed to hold the CSF increase over.  Nevertheless, Management would like to state for the record – that depending on next year’s economic indicators, a larger CSF increase might be necessary for 2019.

In the case of The Royal Cancun, which does not have its own Advisory Council yet, a 2.5% increase in the Club Service Fee for C Villas is also shown. When the resort is 80 percent sold the Advisory Council will be duly constituted.

 

CLUB SERVICE FEES FOR 2018

 

The Royal Sands

2.5% increase

	Villa		Occupancy		1-44 days before		44-90 days before
	CSF		918.49		905.88		893.28
	VAT 16%		146.96		144.94		142.92
	Occupancy tax 3%		27.55		27.18		26.80
	CSF + Taxes		1,093.00		1,078.00		1,063.00
	Suite		Occupancy		1-44 days before		44-90 days before
	CSF		605.88		593.27		580.67
	VAT 16%		96.94		94.92		92.91
	Occupancy tax 3%		18.18		17.81		17.42
	CSF + Taxes		721.00		706.00		691.00
	Room		Occupancy		1-44 days before		44-90 days before
	CSF		337.81		325.21		312.60
	VAT 16%		54.05		52.03		50.02
	Occupancy tax 3%		10.14		9.76		9.38
	CSF + Taxes		402.00		387.00		372.00

 

The Royal Islander

No change

	Villa
	CSF		871.43
	VAT 16%		139.43
	Occupancy tax 3%		26.14
	CSF + Taxes		1,037.00

 

The Royal Caribbean

No change

	Villa
	CSF		831.93
	VAT 16%		133.11
	Occupancy tax 3%		24.96
	CSF + Taxes		990.00

 

The Royal Cancun

2.5% increase for C Villas

	Villa		B Villa		C Villa
	CSF		811.77		893.28
	VAT 16%		129.88		142.92
	Occupancy tax		24.35		26.80
	CSF + Taxes		966.00		1,063.00

 

The Royal Haciendas

2.5% increase

	Villa		Flexivilla		Deluxe
	CSF		960.50		1,021.01
	VAT 16%		153.68		163.36
	Occupancy tax 3%		28.82		30.63
	CSF + Taxes		1,143.00		1,215.00
	Suite
	CSF		624.37		663.86
	VAT 16%		99.90		106.22
	Occupancy tax 3%		18.73		19.92
	CSF + Taxes		743.00		790.00
	Room
	CSF		336.14		357.15
	VAT 16%		53.78		57.14
	Occupancy tax 3%		10.08		10.71
	CSF + Taxes		400.00		425.00

 

What does my annual Club Service Fee cover?

Your annual Club Service Fee covers upkeep of your resort home and the following:
• Maintenance and replacement of furniture and appliances in the villas due to wear and tear
• Landscaping and gardening
• Utilities
• 24-hour Front Desk
• 24-hour security
• Maid service (except Sundays and official Mexican holidays)
• Floodlit tennis courts and use of tennis rackets
• Sports desk and snorkeling gear, bicycles, sailboats and/or kayaks
• Activities organized by the Social Activities Team
• Supervised Kids Club
• High-speed Wi-Fi
• Professional resort management

Resort services not covered by the Club Service Fee

There are some services that many Members believe are covered by their Club Service Fee when in fact they are not. For clarification purposes we would like to point out that the following services are in fact part of resort businesses or sales and marketing programs with independent budgets and are not included in your annual Club Service Fee. They include:

• Restaurants and bars
• Spa and gym
• Tour desk
• The Royal Market
• La Paloma Gift Shop
• Concierge Desk and Service
• Events such as the Welcome Party, weekly Cocktail and Taco Party, which are activities organized and sponsored by the Sales and Marketing department
• REFINE All-Inclusive package

 

The Club Service Fee does not pay for expenses relating to the REFINE All-Inclusive Package

Some members at The Royal Sands, The Royal Cancun and The Royal Haciendas think that their Club Service Fee pays for services used by All-Inclusive guests in some way. This is not the case. The REFINE All-Inclusive program has a separate operating budget and pays a resort fee of US$2.50 per All-Inclusive guest per day to Resort Operations to cover extra expenses generated by the program such as the evening turndown service and housekeeping service on Sundays, laundry (bathrobes, linens and towels) and use of the Kids Club. In addition, the resort also receives a Club Service Fee for the rental of each villa to cover the services included in the annual dues.
Member Club Service Fees do not subsidize the REFINE All-Inclusive program in any way.

The Advisory Council meeting reports and financial statements will be published in Royal Resorts Life magazine in January and online here in the Members Area in the weeks to come.

We hope that this information is helpful, if you have any questions please do not hesitate to contact us.

 

 

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.