Predictions about The Royal Mayan in 2013??

Predictions about The Royal Mayan in 2013?? (2007-2008 thread revisited)

I have acquired way too many timeshares in the last 10 years and was thinking of selling our Royal Mayan. Does anyone think the owners might get back MORE than the residual because of its location next to the other 2 Royals? Any other predictions?? We also owned at VCI and did not renew and will be getting all of the residual back over a few years time.

Carolyn

We sold our Mayan unit a long time ago but I have been considering this a bit for the fun of it.

In the case of VCI it seems like the developer overestimated the future value of the property and if it had been sold at market value the prediction was that only about 40% of the residual rights would have been paid out.

Did they do a better job of estimating the future value of the Royal Mayan several years later? No idea.

But we do know that eventually they stopped offering residual rights with a stated value and switched to a one membership / one share system so my take is that they probably decided they could not predict future value accurately (especially over 50 years) and so it is unlikely that the Mayan would sell for more than the residual rights.

Will the location help or hurt the value of the property? I don't think the proximity of the other Royals is an advantage personally. A guest at a post-Royal Mayan would not have access to services at the Carribbean or the Islander and the resorts being so close together is probably something a buyer won't like. The larger flexi-villa units could help with the value but VCI has more total units so how that plays depends on how a possible buyer plans to run the property.

The Royals will take what they learned from the VCI resale and make adjustments then continue in that direction.
The Mayan will be re-sold as Timeshare is my best guess.

Keep in mind that when VCI was built, that area was nearly the "hub" of Cancun. I have been reading the new book about the 30 years of the Royal Resorts. It provides a lot of insight into the early years, when Richard Sutton lived on the property in a trailer and was selling weeks. While he may have been a visionary, back that long ago he could not have envisioned the values of the open ocean beachfront compared to the stretch facing Isla Mujeres.
I think the land has a lot more value out by the Tri-Royals, even moreso now that there is very little left.
Looking around the VCI area, you see a lot of properties heading into town that have seen better days and are being revitalized, renamed, etc.
I re-upped at VCI; I will be 89 when the trust ends. I don't think I will re-up at the Caribbean!

FWIW, here are the points mentioned by my Royals rep last week when I was in Cancun.

- prior to the expiration of the VCI memberships the survey done by the Royals as to the likelyhood of VCI members renewing their timeshare indicated an acceptably high level of interest and intention to renew. The reality turned out to be quite different when talk needed to be turned to action. As a result, the Royals are now stuck with a lot of unsold VCI (now CIC) property

- the land at the Royal Mayan is far and away more valuable than the land at VCI

- having been burned (my words) by VCI owners, the Royals will not want to be burned again on the Royal Mayan so, the property will most likely be sold.

I think X-Ring is right!

If we had an original sales price sheet from the Royal Mayan, then a spread sheet could be created to see what the approximate original total sale price for the property was.

That original total sale price will be many times more than the original cost to the developer, which is what the current value has to equal or exceed.

Note: The original sale price of a villa = the residual value of the villa.

Note: The original sale price of a villa = the residual value of the villa.

Click to expand...

Not sure if you can depend on this 100%. It seems to me that on some resales in the past, the full residual value was not transferred to the new owners unless specifically requested of the Royals, at the time of the change in ownership.

X-ring said:

- having been burned (my words) by VCI owners, the Royals will not want to be burned again on the Royal Mayan so, the property will most likely be sold.

Click to expand...

Why would you say VCI got burned? Aren't they getting Residue value back?

myip said:

Why would you say VCI got burned? Aren't they getting Residue value back?

Click to expand...

I never said "VCI got burned".

Specifically, I said - "... having been burned (my words) by VCI owners, the Royals will not want to be burned again on the Royal Mayan so, the property will most likely be sold."

The "Royals" refers to the management company, not VCI owners so the Royals didn't receive residual value from anyone.

X-ring said:

Not sure if you can depend on this 100%. It seems to me that on some resales in the past, the full residual value was not transferred to the new owners unless specifically requested of the Royals, at the time of the change in ownership.

Click to expand...

I'm currently trying to buy a Royal Mayan week and requested the approximate residual value. That was the Royal Resorts response was to me.

I did buy a Royal Mayan week last year through a resale company and did get a number for residual rights on the contract, but can’t say if it’s the same as the original owner’s number.

When I bought at VCI my price was pre-construction. The residual I received was the advertised sale price, which was more than I paid.

We owned at VCI and choose NOT TO BUY back in, because at our age, it was not a good deal. Or so we thought and did not want to ''saddle'' the kids with something they may not want.
Royal Mayan: Just take a REALLY GOOD LOOK at the expense sheet that is sent out to the owners. Does it look like there will be a ''PROFIT'' at the end?

If no profit, then we will be just as happy with the Royal Mayan , residual pay back, as we where with VCI.
How can you expect the investers to project that far out? Be realistic.

nana7 said:

Royal Mayan: Just take a REALLY GOOD LOOK at the expense sheet that is sent out to the owners. Does it look like there will be a ''PROFIT'' at the end?

Click to expand...

Not sure I follow your logic - from a financial point of view, a P&L statement (or an expense sheet used to establish/explain maintenance fees) in itself tells you nothing about the true market value of the underlying assets.

For example, a grocery store in the middle of Manhattan might generate only a tiny profit for its owners every year but the real estate on which the store sits might be worth several million dollars if it were to be sold.

KarenLK said:

I think the land has a lot more value out by the Tri-Royals, even moreso now that there is very little left.

Click to expand...

I agree - but even if not, I think the owners at the Caribbean and Islander have an interest in keeping the Mayan a Royal to preserve the appeal of the "Tris" - perhaps if there's an arrangement similar to that at VCI, Caribbean and Islander owners will have an appealing opportunity to re-up at the Mayan. I know I would!

Predictions about The Royal Mayan, in 2013...

KarenLK said:

I re-upped at VCI; I will be 89 when the trust ends. I don't think I will re-up at the Caribbean!

Click to expand...

Well, I will barely be 68 in 2013 and 98 in 2043, so I definitely will renew at Royal Mayan.

I'm not sure what I will do in 2043 but I think I will renew... it depends on how I like the beaches, if you can still run on them... if the water is still crystal clear and good for scuba diving, I will like to renew in 2043...

But I might not like seeing all those OLD PEOPLE who will be members then... they will make me feel OLD myself, so maybe I will have to sell at Royal Mayan and buy at the Royal Haciendas to be with the 50 years old kids my age, then.

I predict that the Royal Mayan will be renewed, exactly like V.C.I. was renewed, and we'll get 50% discount if we renew, or our residual values... and this time you should believe 50% discount really means it is a 50% discount...
I want my same 4 weeks: 52, 12, 13, and 14, but I might change locations, I will want only Executive Penthouses...

And I predict they will put heated swimming pools exactly like they have done at Royal Caribbean and as they are going to do at V.C.I. And I predict that anybody who wants his residual value will get it and nobody will lose their money... And about 50% will renew, and 50% will ask for their residual values back...

I Have Spoken...
Ellis

I think the Royals will hold on to the resort, but that may change depending on many factors.

I have spoken... again!

Ha! I don't know how I read this post, but it was all written and discussed in early 2008...

As I was reading it, from top to bottom, I decided I was going to answer, and my answer was pretty much going to be exactly what I found I had already written in March, 2008.

So... now, after two years, I repeat what I wrote before: I don't think the Royal Resort developers will "sell" the Royal Mayan outside of the Royals group... Maybe it will be resold to themselves, more or less to the same developers as there are today, but from fathers to sons, but that doesn't concern me... What concerns me is that I firmly believe that we will receive at least the residual and perhaps more, and the Royal Mayan might be torn down (which would be criminal), but if it is torn down, it will be rebuilt bigger and more luxurious...

If it is torn down and rebuilt, I will not renew... if it is renovated, as was done at Vacation Clubs, then I will renew because I want to be able to go there and be sure that I can stay in an Executive Penthouse when I go.

I have spoken... again.

Ellis Toussier

Royal Mayan Fate!?!

All the posts here are pre 2010, as I read them I still have no concrete answers as to what the fate of the Royal Mayan will be. I am trying to get some info, if anyone knows of any published or leaked news about what the Royals intend to do come the end of the term. Can anyone please shed some light on this subject...

Everything is still in the rumor stage.