[Merged] Sale of Royal Mayan, Cancun

[Tfish]

[This post was made at the request of the poster of #10 in this thread, and he gives additional info in that post]



My wife and I just returned from our vacation at the Royal Mayan. We own villa E214 week 4 at the Royal Mayan. We stayed weeks 4 thru 8 at RM and RC. We attended the member meetings regarding the RM sale on Feb. 5 and 26, where questions were answered concerning the sale of the RM.

The answer to this question: "Who are the brokers that will be promoting the sale?" troubles me greatly.



Roger Sherman's answer to this question was "We have signed confidentiality agreements with each of the brokers and therefore cannot release the names". Excuse me! The owners who are definitely a party to the sale cannot be informed of where the resort is listed for sale?!



The question was asked another way: "How is the property being advertised for sale?" Roger's reply was "We are using a number of commercial brokers and other marketing channels to maximize exposure for the sale." Excuse me! If you are trying to "maximize exposure for the sale" why sign a confidentiality agreement?!



After the first meeting, I spent an hour online looking for a Royal Mayan listing. I found eight commercial real estate sites with hotels listed in Mexico for sale. None listed RM.



While at the RM week 8 I asked the front desk manager to tell me how to get in touch with the RM advisory council. He told me that he did not have that information and that he would find it and let me know. I never heard back from him. On Feb. 28 I spoke with Gonzolo, the manager of the sales office in the RC about my concerns in regard to the "confidentiality agreement". He told me that he was going to a meeting with Roger Sherman that afternoon and he would recount my concerns to him and see that I would get a response. I have not heard from Roger or Gonzolo.



Before leaving the resort to come home on March 1 I asked Sylvia in the Royal Resorts office at the Sands to tell me how I could contact the RM Advisory Council members. She told me that she would send me an email with that information. I have not received any information from Sylvia.



My conclusions:

1. Royal Resorts management is extremely nervous about questions concerning the listing of the RM property and their "confidentiality agreement" with OUR brokers.

2. Royal Resorts management has decided to buy the RM property back under a shadow corporation name - at a low price.

3. The only way they could do this would be to not advertise or to minimize exposure in advertising.

4. The only way they could get away with this is to tell the owners (and parties to the sale) that they have no right to know how the property is being advertised for sale or who the brokers are.

5. Our rights as owners as parties to the sales process are negated by this so called confidentiality agreement.

6. This so called confidentiality agreement is probably illegal and certainly unethical.



We the owners must act now to see that this so called confidentialy agreement, if there is one, is nulified. Until this is accomplished, the owners can have no faith or trust in the integrity of this sale.



I would be very happy to discuss this with any of you. Please call or email me. I would appreciate it if you would forward this on to RM owners.



Orvid Pratt, orvpratt@hotmail.com, 772-589-4556

 

[pjrose]

This is very interesting.

May I suggest that to get more readers, you retitle the thread to reflect the topic, for example, Concerns about the sale of The Royal Mayan. To do that, click edit, and then click go advanced.

I also suggest removing your email and phone, as people can click to pm or email you, without your info being exposed to spammers.

 

[Phydeaux]

Very interesting indeed. I am to meet with my RH representative while I am here this week. I am also a member of the RM, thus have a vested interest. I will bring this directly to his attention, gauge his response, and post the outcome.

Tfish, I agree with both of PJ's suggestions. Please, follow up on both of them.

Members, if there is validity to this, I would hope that we could join together and get off of our collective apathetic asses and do something for a change to correct matters.

 

[Phydeaux]

Is this Orv, Leon's friend?

I'm all in.

One piece of advice - we shouldn't waste a nanosecond dealing with the Advisory Committee. Trust me, I have dealt with them and learned they are nothing more than a rubber stamp committee, hand selected by RR management. I'll leave it at that.

 

[Phydeaux]

I just spoke with the OP. Tfish posted this message on the OP's behalf, hence the obscure subject title. I've asked the OP to come to this forum, and repost.

RR members, if THIS confidentiality agreement and sketchy pending sale doesn't have you a bit concerned, then we deserve exactly whatever we get.

 

[radmoo]

We own he t HIaciendas but I did ask ou r rep about RM and was told it was listed for sale with Hgh level broker. She indicated that's they cannot extend until Caribbean is up as they need to reimburse current "members" and without sale, would lack cast to do so. I personally don't think they we out to mess wi th current members as after all, the ultimate goal is to upswell, either down here at RH which according to them is pretty much sold out or
Grand rEsidences, out of most folks' league. Also said something about building new Ts properties djacent to residences.
PHydequs, do you know anything about oer's reception this afeternoon? Also' do you have any comments or info re my earlier post and request to "swap" locations without pay isn't 8k?

 

[Helene4]

Tfish, I wholheartedly agree with your #2 statement. While we were there recently we were told that if they sell the Mayan to a hotel the asking price would be 40 million, but if they sell to a timeshare the price would be 30 million.
The good ole days of the Sutton attitude are gone and I believe we are now dealing with a company who is only in it for the bottom line and forget the owners. Will they ultimately turn into a full scale scamming company?

 

[Phydeaux]

Tfish, I wholheartedly agree with your #2 statement. While we were there recently we were told that if they sell the Mayan to a hotel the asking price would be 40 million, but if they sell to a timeshare the price would be 30 million.
The good ole days of the Sutton attitude are gone and I believe we are now dealing with a company who is only in it for the bottom line and forget the owners. Will they ultimately turn into a full scale scamming company?

Once again, Tfish is not the author of this post.

Members need to contact a Mexico real estate attorney, and ask if this is a legal transaction, and call attention to this pending transaction. Can someone give me a hand here, please? Internet speeds here at the RH are painfully slow, and I was hoping to get a little R&R this week.

 

[Helene4]

Once again, Tfish is not the author of this post.




Whatever. It is the info that is important. Not the author.

 

[orvpratt]

Royal Mayan Sale ---- deception!

My wife and I just returned from our vacation at Royal Mayan. We own villa E-214 week 4 at RM and A-601 week 6 at RC. We stayed weeks 4 thru 8 at RM and RC. We attended the member meetings regarding the RM sale on Feb 5 and 26 where questions were answered concerning the sale of the RM.

The answer to the question "Who are the brokers that will be promoting the sale?" troubles me greatly.

Roger Sherman's answer to this question was "We have signed confidentiality agreements with each of the brokers and therefore cannot release the names". Excuse me! The owners who are definitely a party to the sale cannot be informed of where he resort is listed for sale!

The question was asked another way - "How is the property being advertised for sale?" Roger's reply was "we are using a number of commercial brokers and other marketintg channels to maximize exposure for the sale." Excuse me! If you are trying to "maximize exposure for the sale", why sign a confidentiality agreement?

After the first meeting I spent an hour online looking for a RM listing. I found the following sites with hotels listed in Mexico:
Top Mexico Real Estate
Remax
Century 21
Hotels for sale in Cancun
Mexico Hiotels for Sale
Viva Real
Vivian
Businesses for sale.com

None of these sites had a listing for the Royal Mayan.

While at the RM week 8 I asked the front desk manager to tell me how to get in touch with the RM advisory council. He told me that he did not have that information and that he would find it and let me know. I never heard back from him., On Feb 28th I spoke with Gonzolo, the manager of the resort sales office in the RC about my concerns in regard to the "confidentiality agreement". He told me that he was going to a meeting with Roger Sherman that afternoon and that he would recount my concerns to him and see that I would get a response,. I have not heard from Roger Sherman or Gonzolo.

Before leaving the resort to come home I asked Sylvia in the Royal Resorts office at the Sands to tell me how I could contact the RM advisory council members. She told me that she would send me an email with that information. I have not received any information from Sylvia. I finally found the names when I got home.
George Marczewski, gmarczewski@yahoo.com
Dewey Lockwood Jr, lockwoodds@aol.com
Larry Hildebrandt, larryhilde@aol.com
Ralph Peterman, rpeterman@aacrealty.com
Robert Bennett, rubo1964@comcast.net

My conclusions:
1. Royal Resorts management is extremely nervous about questions concerning the listing of the RM property and their "confidentiality agreement" with OUR brokers.
2. Royal Resorts management has decided to buy the RM prooperty back under a shadow corporation name - at a low price.
3. The only way they could do this would be to not advertise or to minimize exposure in advertising.
4. The only way they could get away with this is to tell the owners (parties to the sale) that they have no right to know how the property is being advertised for sale or who the brokers are.
5. Our rights as owners as parties to the sales process are negated by this so called confidentiality agreement.
6. This so called confidentiality agreement is probably illegal and certainly unethical.

We as owners must act NOW to see that this so called confidentiality agreement, if there is one, is nullified. Until this is accompolished, the owners can have no faith or trust in the integrity of this sale or any future sales of Royal Resort properties (RC, RI, Sands, Haciendas)

 

[pjrose]

Has anyone seen the last issue of The Owners Manual? They have a long discussion of the impending sale of TRM, and seem to have some info I haven't heard here. I don't have it in front of us, but that includes dates for soliciting bids, date for opening bids, various "what happens if" scenarios.....

I don't think the articles from the print version are online.

 

[KarenLK]

Here now at VCI. Someone was told that the Mayan was already sold.

 

[Phydeaux]

Here now at VCI. Someone was told that the Mayan was already sold.

With due respect, posts such as this do more harm than benefit.

I would suggest this thread be closed or abandoned because the original author has reposted, providing additional information, in the thread titled: Royal Mayan sale- deception.

 

[Phydeaux]

The silence thus far is deafening.

Royal Resorts members, if this information hasn't stirred your interest, what will?

I will be meeting with a representative tomorrow to take up this matter face to face. I will post the results here, on this thread.

What will YOU be doing?

====================================

Orv, thank you very much for investigating this, and taking the time to call members attention to a matter that should be important to anyone that is a member of any of the Royal Resorts.

 

[Helene4]

I think many people believe 'it's Mexico, there is nothing we can do'. Also I believe there is a large amount of apathy because otherwise it would require some effort on their part. I personally wonder (as I said in another thread) if having Isco located in Florida is to the owners advantage in finding out what is going on.
When we were there week 6 we were told that if RR sells to a hotel the price would be 40 million, but if they sell TO A TIMESHARE the price would be 30 million. This is why I believe they will create a shadow company and sell to themselves, otherwise why such a descrepancy in the sale price?
On another topic, we were highly insulted by Diane, a sales agent, who said the drug problem in Mexico is directly related to the United States' desire for drugs! Then a sales agent at RI told me that in regard to my AI questions the management does not have to answer to the members and they can "do whatever they want" and seeing as how he was not my sales agent he did not have to talk to me or answer my questions!!! I'm floored at this horrendous attitude of management on all levels.

 

[Blue Skies]

This is what the Owner's Manual said about the Royal Mayan:

The Royal Mayan will be sold. Tentative plans are to look for qualified bidders through April 1, 2013, when the submission of bids is due. The Royal Mayan advisory council and management have agreed to use the well known independent firm of Ernst & Young Mexico, an international tax accounting and auditing firm, to supervise the resale process.

Bids will be enclosed in a sealed envelope and opened on June 19, 2013. The bids will be analyzed through June 27 with the selection scheduled for June 28, 2013. These dates are subject to change depending on the interest a company or a group of investors has in purchasing the Royal Mayan. If no bids are acceptable, the Royal Mayan will continue to be up for sale until a suitable buyer can be found.

The article then discusses the valuation for a few paragraphs, then propose this:

The Owner's Manual may look for investors to submit a bid which would include owners who would like to repatriate their residual amount of a sale what would be due to them. We are estimating owners will receive their proportionate share of a sale which will be approximately 30-35% of the original residual value.

They would continue using the Royal Mayan for at least the next four or five years, retaining their full residual value until the Royal Caribbean trust expires. If the new owners (investment group) feel that the Royal Mayan and Royal Caribbean should be sold together, each resort may be worth more than either one sold alone.

The article does not end there and is quite long, but I copied the paragraphs pertaining to the dates.

 

[buceo]

[/QUOTE]Until this is accompolished, the owners can have no faith or trust in the integrity of this sale or any future sales of Royal Resort properties (RC, RI, Sands, Haciendas)[/QUOTE]

I'm not following the RM sale a whole lot, but I for one wouldn't see ten thousand "owners" in on the deal making an advantage to anyone. The little I know business, large sales typically proceed without a lot of details until the deal is final. I think (just guessing) it more likely they have a buyer, maybe not yet a done deal and so are keeping as quiet as possible about it. The OPs conclusion #2, intent to mislead would be fraud. I'm not seeing it that way, not even close, but those who see fraud can fight it. The pending sale has been known by anyone with any interest at all in Cancun real estate for 30yrs.

"Faith" will be determined by the outcome. If it is all done in relative secrecy, but the sale is successful and residuals are paid there will be plenty of faith. In the mean time maybe for those who see fraud ask an attorney or commercial real estate broker for their opinion.

 

[Carta]

Talked to owner at RC..he was told at meeting yesterday,royal will no longer be affiliated with II in a few months..(just hearsay)...I'm at RI now

 

[pjrose]

Talked to owner at RC..he was told at meeting yesterday,royal will no longer be affiliated with II in a few months..(just hearsay)...I'm at RI now

Rumors are flying, aren't they. That contradicts the January '13 email from The Royals, which included

"Royal Resorts members who are currently members of Interval International (I.I.) may continue to use the I.I. vacation exchange system, providing that they pay the corresponding fees established by I.I. Their exchange rights are unaffected by the Royal Resorts decision to sign an affiliation agreement with RCI. They can deposit and exchange their Royal Resorts unit and use other Interval International services."​

I sure hope the rumor is wrong; I have a bunch of II deposits that I intend to exchange for more Royals weeks

 

[Phydeaux]

I met with my RR rep today and asked about this matter, along with a few other things. Here's a summary:

Q: A limited search was done for agencies listing the Royal Mayan for sale, but none was found. Where, specifically is the RM being listed?

A: I don't have that information..... It isn't being listed until the expiration of the term.

Q: It isn't being listed now? Why isn't listed?

A: Because it is still occupied. We can't list it for sale until the term has expired.

Q: I don't understand. Why not? People list their homes for sale while they are occupied. Why is this any different?

A: if you owned the home, but had renters occupying it, you would need to call the renters and ask their permission to show it. I don't have all of these facts, but you could ask Roger Sherman. He is in charge of this. It is out of my realm.

Q: There is some concern that the Royals may attempt to establish an inside, or phantom company, and re-purchase it, preventing the sale to other interested parties. Is this possible?

A: No. We are already establishing severance monies to RM employees. Why would we let go good employees go, and pay them, if we were retaining the resort?

===========================================

What I didn't ask:

Where are these severance funds coming from?
Why would severance money be established if the resort isn't even being listed, no less sold?

The above, of course is paraphrased. I did my best to recollect, but no one should take any of these statements as direct quotes, although I did my best to retain accuracy.

============================================

The meeting came to and end, and I was told to feel free to contact Roger Sherman with questions pertaining to the RM sale.

Rsherman@royalresorts.com

I plan on it.

 

[buceo]

As the OP eluded to, Roger is doing the weekly member meeting at the Mayan. The owners see him and ask questions in person every week...in case you really want to spend the time asking about an "inside phantom company". I'd like to see the look on his face when asked that question, please take a picture.

 

[orvpratt]

RM sale

Good job Lee, thanks for asking the pertinent questions. The most important thing is that you got Roger Sherman's email address. Not that HE is any part of the management. I believe he is head of sales. Management is obviously using him to head up the meetings because he is a good pr person. When VCI had meetings about their "sale", Richard Sutton was at the meetings. Where is the management now? Hiding! Seriously, the big thing is: they should do the right thing (advertise openly the RM for sale) ---for us and for their reputation. The best thing we can do now is keep stirring the pot (including emailing to Roger Sherman -(rsherman@royalresorts.com)

 

[Cancun1986]

Thanks for all the info. I just came back from the Royal Mayan 3 weeks ago. Lots of rumours going on. Someone from the RC was upset because he heard that the RM members were getting all their residuel rights back, leaving nothing for the RC members. I informed him that we are only getting 25%-40% back. I was very vocal about it because the other members from the RC and RI have to realize whatever happens to us, will happen to them. I can't believe the amount of people who were in the member's office looking at buying new timeshare. Fools. Now that we are no longer going back to the RM I will just rent from the timeshare. I told the representative about that and he informed me that I would have to be forced to do the overpriced meal plan. Then I told him that I will just go somewhere else. My supervisor went to the RS on a package deal and was not impressed by the meal plan. She would never go back.

 

[buceo]

...I can't believe the amount of people who were in the member's office looking at buying new timeshare. Fools. ...I will just rent ...I will just go somewhere else.

Everyone has a different opinion, that's why they invented tripadvisor. Not including the 10 new listings on redweek, now through March 86% of the 73 Sands/Haciendas rental listings are rented. The Royals called me looking for any unused Feb units, I had open two nights in a suite (had to depart early). They rented both and the check arrived last week.

 

[herestoya]

Fate of the Royal Mayan Owners Investment!

So, what is the latest on the Royal Mayan, will there be any payout after it is over?