How the Royals are handling Owner 'renewals'

[GrayFal Silver Contributor and supermoderator Find all posts View Profile Close GrayFal]

I posted this as a response on TUG about how the Royals were handling the 'renewal' of ownership now that the 30 year lease is up.

I was visiting VCI and was told this by a 15 year owner.

Owners can 'buy' their unit again at 50% of the 'new' price and then 'minus' their residual.

example - unit XXXX week 3 sale price $20,000.
50% = $10,000
Residual = $6,000
Total cost to current owner = $4,000

I imagine there is value in this info if someone was thinking about getting a cheap resale at Royal mayan - I understand their residual is also a 'pre-fixed' amount unlike RC and RI.

[GrayFal Silver Contributor and supermoderator Find all posts View Profile Close GrayFal]

More info posted by a VCI owner on TUG

I have been trying to do this for the past month. But they are standing firm on offering only a 30% discount. They insist that the 50% offer expired in November (2006) and has been replaced by the 30% discount which is now also available for owners at any of the Royal Resorts. A non-owner can obtain the 30% discount if they work it out with a RR owner.

If anyone has been able to get the 50% discount recently (or knows someone who has), I'd really appreciate receiving information about it, as it is a "make or break" factor in my decision to repurchase (or not).

Also, an owner purchasing the new 30 year membership can apply any of their residual values to any available unit. They do not have to buy the same unit they own. They can also combine the residuals from two units to buy one more expensive unit.

Under the new membership terms, the owner of each unit will receive 1/10250 share of the selling price of the entire resort, no matter how much they paid for their unit. There will no longer be any specific contractual "residual value" attached to a unit. Reportedly this is the same deal that owners of the Royal Sands have received.

[tonyg Goomba & Super Moderator Find all posts View Profile Close tonyg]

This arrangement was made because a sale of VCI would not have given owners the full residual, just 1/2 or less. The Royal Mayan may be a more valuable property and be able to fulfill the residual arrangement, but I think the Royals will buy the resort back and resell those units which owners do not want to renew.

[GrayFal Silver Contributor and supermoderator Find all posts View Profile Close GrayFal]

This arrangement was made because a sale of VCI would not have given owners the full residual, just 1/2 or less. The Royal Mayan may be a more valuable property and be able to fulfill the residual arrangement, but I think the Royals will buy the resort back and resell those units which owners do not want to renew.

I agree it is more valuable at RM for the Royals to buy back.....do you feel that they will offer the same deal to current RM owners?

[KarenK Member Find all posts View Profile Close KarenK]

I would guess that they will do the same as at VCI, once they iron out the wrinkles. No one really knows what percentage agreed to re-buy but my understanding is that they did not get the 75% but went with it anyway.
My guess is that a lot of VCI owners are just too old to continue on if they don't have kids or grandchildren who were "brought up" there. I'll be there this Saturday and it will be interesting to see what some of the older members have decided...and I am sure it will depend on their kids or grandchildren.

[tonyg Goomba & Super Moderator Find all posts View Profile Close tonyg]

Have a great trip, Karen. If you get a chance, can you check to see if the Cove and Dolce Mente Pompeii are still operating ?

[KarenK Member Find all posts View Profile Close KarenK]

Tony -- Captain's Cove has re-opened and it is very large compared to the old one. They seem to run a scam on you as you enter and send you off to Pancho's and Willy's, their new bar area, to buy a drink. We waited quite a while to be seated, even though there were tables open. Once we got our food, it was wonderful.
Dolcemente? We didn't even walk down there this time, so I am not too sure about it. The Cove is still in operation, but once again people are complaining about the inconsistency in the food. Plus, we won't go back because twice now it has been buggy; they offer you bug spray, but that adds no flavor enhancement to the food and drinks.

We were told during week 13 that less than 50% re-signed at VCI. The population is older, and that may have been a part of the reason.

VCI now has an Express, with the take-out similar to the other Royals, and we were all pleased with the offerings.