What was the amount paid for The Royal Caribbean? A Royal Resorts affiliated company purchased The Royal Caribbean for US$56,000,000, the highest of the market valuations conducted by three international professional brokerage and valuation firms. In addition, Royal Resorts tendered to the Company additional funds to offer an amount higher than the net amount represented by the unsolicited offer submitted by a third party. By taking this action, the company ensured that the amount that members will receive as residual values is higher than the amount they would have received had the unsolicited offer been accepted.
What percentage of their residual rights will members receive? Members in good standing will receive 57% of their residual values as shown in the Membership Agreements.
When will I know how much I will be receiving as my residual rights payment? In January, 2019 you will receive an individual notification of The Royal Caribbean with the amount of residual rights that will be paid out to you if you are a member in good standing and have residual rights in your Membership Agreement.
How and when will the proceeds be paid to members? Details of the form of payment as well as the amount to be paid to each member will be explained in the individual communication letter referred to above. Residual rights will be distributed starting the first quarter of 2019.
What is the number of The Royal Caribbean memberships? There are 10,557 membership contracts.
How many membership agreements are in good standing and have residual rights? There are 9,762 membership agreements with residual rights that are in good standing at The Royal Caribbean, roughly 92.47%. The remaining memberships that are delinquent or do not have residual value in their Membership Agreements will not receive residual rights. Only members who had residual rights and were in good standing as of November 3, 2018 will receive funds from the sale of the resort.
What are the tax implications for me on getting my residual rights? We are not qualified to give tax advice. If you have questions you need to consult with your tax advisor at home.
What will happen to The Royal Caribbean staff? In strict accordance with Mexican labor law, all employees at The Royal Caribbean receive a severance payment.
The resort developers will pay the severance payment for resort business staff (food and beverages, spa and gym, convenience store, gift shop, etc.) at The Royal Caribbean.
Some of the employees that have been with Royal Resorts for many years have chosen to retire. Others will be rehired by Royal Resorts and transferred to other clubs or the new The Royal Caribbean operating company.
What will happen to The Royal Caribbean now? The Royal Caribbean will still be part of the Royal Resorts family. We will be sharing additional information on this once plans have been finalized.
Will there be any membership programs available for in the future for the current members?
Yes, we will be sharing additional information on this once plans have been finalized.