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Royal resorts sold- former owners left out in the cold

Pinckney, Michigan
2 posts
1 review
Royal resorts sold- former owners left out in the cold

The royals have changed hands and this is common knowledge. As a former owner in good standing, the lack of transparency about what's happening and when is unnerving. I (for one) was expecting a timeline and notifications as the steps toward finalizing residuals as happened with the Royal Carribean and Royal Mayan. All I see and hear is a void and numbing silence. Has anyone in the "loop" heard anything besides,"wait and we'll get back to you".?

72 replies to this topic
Saint Charles...
Level Contributor
209 posts
10 reviews
10 helpful votes
1. Re: Royal resorts sold- former owners left out in the cold

I did not own at Royal Islander, but I follow a few Facebook groups for Royal Resorts. Most RI owners received this in an email around October 17.

Dear The Royal Islander Member, We would like to give you an update on The Royal Islander®. The Royal Islander membership agreement terminated on July 15, 2023, and the final day of resort operations was July 16, 2023. Under the terms of the membership agreement, The Royal Islander was put up for sale by the new ownership in a process led by CBRE. We can now report that the resort has been sold to an international investment group called Alojica for the sum of US$53,100,000 + VAT. Alojica presented the highest bid for the property in the marketed sales process.

Due to the nature of the transaction, an in-country review and approval was required and was undertaken by COFECE, a Mexican Government agency. Such reviews can take a few weeks or several months. At this stage, a response from COFECE is expected within the next 4-8 weeks, although this is not guaranteed.

Residual rights will be paid to Members of The Royal Islander in good standing, who have residual rights stipulated in their Membership Agreement, and in accordance with the terms of the Membership Agreement.

We hope that this update is useful. In the next few weeks, members eligible for residual rights will be receiving additional information and the timeline for the distribution process.

Warm regards,

Real Isleño S.A de C.V.

Va
Level Contributor
16,864 posts
16 reviews
33 helpful votes
2. Re: Royal resorts sold- former owners left out in the cold

I always wondered what happened when they sold. As I understand timeshares in Mexico, you don't actually own anything so what are the 'residual rights' that they are referring to?

Saint Charles...
Level Contributor
209 posts
10 reviews
10 helpful votes
3. Re: Royal resorts sold- former owners left out in the cold

Sunngod, the Royal Resorts contracts stipulate that the member has right to use for 30 years for the older properties and 50 years for the newer ones. It says that after that time, the resort is to be sold to the highest bidder. Profits are to be distributed among the members after sale expenses, employee severance, etc have been paid out. The members’ original purchase price (not resale price) was referred to as the residual and was what the member expected to receive at the end of the term. It was transferable upon resale. My residual when the Royal Caribbean sold was approximately 60% of the original purchase price. The OP and many other Royal Islander members have been waiting to see how much they will get back since the Royal Islander closed in July. They are worried that the fact that Royal Resorts pulled up stakes may interfere with them receiving their promised residuals.

2 posts
4. Re: Royal resorts sold- former owners left out in the cold

When will we see our check from Ilanders sales

2 posts
5. Re: Royal resorts sold- former owners left out in the cold

Were is our checks owed us

Weatherford, Texas
Level Contributor
3,806 posts
53 reviews
82 helpful votes
6. Re: Royal resorts sold- former owners left out in the cold

Royal Mayan (Emporio) was the first one with the 40 year lease expiring. They chose not to buy it back and Emporio’s owners have it. Then the next 2 leases expired on Caribbean and Islander. Supposedly, Royal had purchased Islander and Caribbean back. Then after some time it appears they sold it off. I haven’t heard about the The Royal Sands.

What a big mess this sounds like. And I’m sure legal action would be difficult in Mexico. I sure am praying people get their money back. Those were 3 great resorts. Hopefully, Islander and Caribbean will stay with a European option like Emporio did.

Edited: 01 December 2023, 17:24
Saint Charles...
Level Contributor
209 posts
10 reviews
10 helpful votes
7. Re: Royal resorts sold- former owners left out in the cold

@Larry G - Royal Islander owners received an email this week asking for confirmation of their contract info. They are saying that payment could be in January.

@Partygirl - Holiday Inn Vacation Club now has Royal Sands, Royal Cancun, Royal Haciendas, Grand Residences. Royal Caribbean was first bought by Royal Resorts, remodeled and reopened as Royal Uno. Earlier this year Royal Resorts sold it. Now Hilton has it, and it is Hilton Cancun Mar Caribe. Royal Islander was sold recently, but the buyer hasn’t been announced.

Minnesota
Destination Expert
for Cancun
Level Contributor
12,385 posts
11 reviews
82 helpful votes
8. Re: Royal resorts sold- former owners left out in the cold

We are very disappointed in the sale of the ownership intervals to Holiday Inn Vacation Clubs. The Royals going all inclusive have changed the resorts and it's very disheartening. We received that email for the Royal Islander this week checking our information for residuals to come. We shall see.

Folsom, California
1 post
9. Re: Royal resorts sold- former owners left out in the cold

I was an owner at the Royal Islander and have not received any emails about the sale. Who do I contact?

Saint Charles...
Level Contributor
209 posts
10 reviews
10 helpful votes
10. Re: Royal resorts sold- former owners left out in the cold

Email: residualrights@intervalservicing.com

Phone:

US & Canada: 1-800-930-5050

Mexico: 1-800-099-0486

Elsewhere: 1-954-485-5400

Office hours: Monday to Friday, 9 a.m. – 6 p.m. Saturday, 9 am – 5 p.m.

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