[Merged] Sale of Royal Mayan, Cancun

[pjrose]

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

My crystal ball says yes.....but likely not 100%.

 

[pjrose]

. . . . 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. . . . . .

Go to the RC or RI, or rent from an owner, and you don't have to do AI.

 

[herestoya]

I was wondering, as to the sale of the Royal Mayan, where is it posted, what are the terms, proposed amounts, values etc. Is it listed worldwide for any and all investors to easily find?
This information affects all of us "owners" so there should be full disclosure to us just by the asking. Who represents us, our interests, and why must we take the royals at their word in such a large transaction?
It seems to me, this "sale" should be advertised extensively for the best exposure and the most profitable sale. The apparent mismanagement thus far tells me the ultimate conclusion will be "as proposed" thru our only communication; a "Portion" of our residual value, which, at the time they sold it to us was technically protected!
I am sure you would all agree; we want full disclosure of the terms of this sale!

 

[X-ring]

By now, the ballpark prices that Royals management have mentioned that the Royal Mayan might fetch are well known to those in the property business in Cancun.

Have any of these local industry players come forward to suggest that the numbers mentioned by the Royals are somehow off-base?

 

[moonlightgraham]

Correct me if I'm wrong, but I thought our timeshare ownership at the Royals constitutes membership rights only. We have no ownership interest in the real estate. Thus, I don't see that we'd be entitled to any disclosures, counsel or discussions regarding the sale that are not available to the general public. It would be nice to be kept informed and so forth but I don't see where we have the legal right to demand it, and given the myriad disappointing decisions of management lately it's not surprising that we are being kept in the dark.

 

[papeterie]

We have owned 5 weeks at the Tris for over 20 years. It stands to reason that if you buy six pieces of pie it will cost more than buying the pie and cutting the pieces yourself. Selling individual weeks leveraged the units when sold and now the units are being sold as one entity. I doubt and don't expect to get much for our 2 holiday weeks at RM, but the Royals have done themselves in with the direction they are going and that is why we are not buying any more weeks. I still believe they should try to sell condos for some (VCI?) but they have created such a large overhead that would be nearly impossible because the MFs have priced condos out of the market.
As far as not knowing who is representing RM on any sale, I owned commercial property for many years and anything of this scope is not going to be found in a real estate book - its done by specialized brokers who keep it pretty close to the vest. I am hoping when all is said and done I will get something back-I guess time will tell. For those who are unhappy, my advice is to not buy anything more from the Royals because if you do what you've always done you'll get what you've always got.

 

[Phydeaux]

Back to topic, the Royals management has replied to the concerns. Too much to copy/paste. Go to RR website members area to read for yourself. Reply dated March 18.

 

[Ellis2ca]

Show the right hand, do the trick with the left hand.

If you know how magicians do a magic trick, you show the audience one hand and you do the trick with the other hand.

Here is how they are going to trick us, if they go through with this.

I copy and paste from their "News About the Royal Mayan" which you can read at www.royalresorts.com (login to member's area, read "News About The Royal Mayan")

Q: Can Royal Resorts buy The Royal Mayan again?
A: No, we will not participate in purchasing the assets of the resort to avoid any conflict of interest

Q: Who will operate the new property?
A: We do not know. However, if Royal Resorts is invited by the new owners to operate it we will consider offers.

 

[ilene13]

Back to topic, the Royals management has replied to the concerns. Too much to copy/paste. Go to RR website members area to read for yourself. Reply dated March 18.

Found it

 

[X-ring]

will not participate in purchasing the assets of the resort ... but invited by the new owners to operate it we will consider offers.

Where's the alleged magic trick ?

Example
---------

You who live in city A decide to sell your house to move into an apartment. I who live in city B decide to buy it from you as an income property investment.

As I cannot be on site to manage my new property, you who know the house and local market very well offer to manage it for me - at an agreed fee of course.

Assuming that we are both honest entities, exactly what impropriety (aka 'magic trick') will have taken place if I agree?

 

[geoffb]

I agree. It doesn't seem like a trick it just seems like a way for them to let it be known that they are open to offers and willing to provide that service.

Royal Resorts doesn't appear to want to own and sell the property as a timeshare. I am sure they would be happy to provide management and staff to operate it.

 

[Char8les]

Did anyone do the math? 200 units x 52 weeks = 10,400 units total. 40,200,00 divided by 10,400=3865. This sale is a sweetheart deal, compelely unethical and probably illegal. For everyone to get their purchase price back the sales price should have been more like 400,000,000. I do not know anyone who bought for as low as $3865.

 

[pjrose]

It'll be less than that, after commissions, taxes, payouts to workers, etc. But that's what was in the agreement, that the amount depended on the actual price minus all of the above.

 

[tonyg]

Did anyone do the math? 200 units x 52 weeks = 10,400 units total. 40,200,00 divided by 10,400=3865. This sale is a sweetheart deal, compelely unethical and probably illegal. For everyone to get their purchase price back the sales price should have been more like 400,000,000. I do not know anyone who bought for as low as $3865.

I wouldn't be surprised if someone did buy as low as $ 3,865, particularly those sold in the closeout selling phase. I'm pretty sure that one of the beachfront ground floor units I formerly owned had a residual of just over $ 4,000. Also, some units resold by the Royals did not have any residual value, but I'm not sure if that was just Club International or if it included the newer resorts.

 

[kenie]

WE paid 2k for our resale unit and it has a residual of $8600.

 

[tonyg]

Kenie, the residual amount is generally based on the original developer sales price of the unit and not a resale price. Resales by the Royals of foreclosed or otherwise obtained formerly owned units may or may not have a residual. I paid more than the residual amount on one of my Royal Mayan units when I bought it resale. When they were closing out the Islander, I could have bought a unit (from the developer-previously unsold) for $10 k and change. Prices for the developer units sold varied sometimes widely.

 

[kenie]

Hi Tonyg

that was the reason that we bought the unit. We knew that when they sold the Mayan we could get as much as the full $8900 back. Since it looks like we should get enough to cover our resale purchase price we look at it as a wash...

 

[radmoo]

Just wondering as to status of Royal Mayan as we are now almost at end of January 2014.

 

[Phydeaux]

Just wondering as to status of Royal Mayan as we are now almost at end of January 2014.

Not sure if this is what you're referring to, but as far as when it closes..Excerpt off the RR's website:

.....According to the timeline, The Royal Mayan will be open for Intervals 1 through 4 of 2014. The final guests will depart on February 1 and the resort operations will wind down. Staff will receive severance payments in the second week of February. On February 14 the sale of the resort will be closed and the installations and assets will be delivered to Sibra Diestra......

For the complete letter, go to RR's website - Members Area (notice it doesn't say Owners Area - Latest Update on the Royal Mayan

RH en 36 mas diaz Radmoo?

 

[buceo]

This thread started with some ridiculous conclusions like:
2. Royal Resorts management has decided to buy the RM property back under a shadow corporation name - at a low price.

Others piled on including listing management's email.

Here is the new "shadow" owner if anyone is interested.

http://www.hotelesemporio.com/cancun_eng

The remaining bi's have, ~soon to end, 30 yr contacts too as I recall. Not until the Sands are they 50. All are slated to be sold.

 

[radmoo]

Not sure if this is what you're referring to, but as far as when it closes..Excerpt off the RR's website:

.....According to the timeline, The Royal Mayan will be open for Intervals 1 through 4 of 2014. The final guests will depart on February 1 and the resort operations will wind down. Staff will receive severance payments in the second week of February. On February 14 the sale of the resort will be closed and the installations and assets will be delivered to Sibra Diestra......

For the complete letter, go to RR's website - Members Area (notice it doesn't say Owners Area - Latest Update on the Royal Mayan

RH en 36 mas diaz Radmoo?

Non, non señor.

We own EOY and this year we are off to Thailand and Vietnam! not timeshare

 

[X-ring]

This thread started with some ridiculous conclusions like:
2. Royal Resorts management has decided to buy the RM property back under a shadow corporation name - at a low price.

Others piled on including listing management's email.

Here is the new "shadow" owner if anyone is interested.

http://www.hotelesemporio.com/cancun_eng

Thanks for posting, Glenn. Yeah, it's nice to see that not everybody sees every action of the Royals' management with deep suspicion and an effort aimed solely at lining their pockets at our expense.

We've enjoyed 11 great years at the Royal Mayan and will miss it. But life goes on and we will continue to enjoy the RH and now our more recently acquired BF unit at the Royal Cancun ... only wish we had not waited 9 years before even going over to visit VCI!

 

[pjrose]

I thought they were going to market it as a timeshare. Not sure where I read that, but they're calling it a hotel on their site. ???

Anyway, glad to see they're showing it pretty much as is and there's no implication that they're going to tear it down.

I wonder if they'll have any kind of visitor program for their next-door neighbors?

 

[Phydeaux]

On the subject of the sale of the RM, what struck me rather profoundly was the complete absence of a send off during our final visit.

For someone that was invested for as many years as these members, I found it very odd and somewhat disappointing that there wasn't any recognition to the members. I'm not at all suggesting anything in the form of gift or reward, just a simple but sincere "thanks" from management. Instead of the time worn and silly (sorry, I know many members love it) welcome party, why not a "adios, thanks for your support" party? Or a written thank you on departure day from management? Strikes me as odd, and a missed opportunity, once again, by management.

 

[X-ring]

why not a "adios, thanks for your support" party? Or a written thank you on departure day from management? Strikes me as odd, and a missed opportunity, once again, by management.

Possibly because it would be seen by the chronic b*tchers (i.e. those who feel that management can never do enough, or ever do the right thing) as yet again another cynical attempt to take advantage of members.