Home Page : Realtor® Edmund A. Garces

A1. In timeshare, you only exercise a right to use the property and facilities for a certain period of time. When you own a unit in Crown Regency Resort & Convention Center, you own a preferred stock share in the company wherein your share/s is represented by a specific condotel unit. At the same, since you own a club ultima membership you have a vacation exchange privilege with Interval International.

Q2. Is the Preferred Stock Certificate redeemable from the holder of such share to be replaced by a title to the unit? If so, when?

A2. The preferred Stock Certificate represents ownership or title to the condominium unit shall be redeemed once, the title to the property by the issuing company is obtained with individual title to each condominium unit issued and distributed to each shareholder. This is indicated in the Articles of Incorporation of the company.

Q3. How does the condotel operate?

A3. Condotel will be managed & operated by the Crown Regency Resort & Leisure Park Management Services, Inc. as a resort hotel. Subject to advance booking, unit owners have priority use of their condotel units or an equivalent type for 45 days every year for free . If the usage will exceed 45 days, they will have to pay the member's rate (30% discount from regular rate).

Q4. Are there additional cost incurrences to be shouldered by the unit owner upon enrollment in the condotel operations?

A4. Yes, an initial one time joining fee of Php 30,000 / unit will be required to cover initial operating expenses.

Q5. What fees do we pay Crown Regency Resort & Leisure Park Management Services, Inc. as hotel operator?

A5. 20% of net sales in exchange for the following:

• All salaries of sales & marketing and reservation staff except for promotional and advertising collaterals
• All expenses related in maintaining a sales & marketing office.
• All salaries of general managers & resident managers.
• The hotel operator also guarantees to exchange the unit owner's unused 45-day free stay in his condotel with Crown Regency Hotels room nights nationwide with no expiry period.
• As a premium responsibility to the hotel operator, if total expenses do not exceed 30% of net sales which shall result in a 50% gross operating profit before income tax, an additional 3% of net income will be given as a bonus to the hotel operator.

Q6. Is the unit owner required to source insurance by themselves in order to protect their investment?

A6.No, insurances are sourced by the hotel operator and are shouldered under operating costs covered in the estimated 50% hotel operators share.

Q7. Can a unit owner live in their property full time?

A7. No, this project is for investors only. You are required to enroll in the condotel operations for a minimum of ten (10) years with further option available to the operator which he is likely to invoke to extend the term on expiry subject to mutual agreement as per majority vote of the unit owners’ association.

Q8. When is the declaration of dividends?

A8. Quarterly or semi-annualy, as may be mutually agreed upon with the unit owners.

Q9. What are the considerations in determining revenues & dividends for unit owners?

A9. In order to maximize returns and ensure cost efficiency for unit owners, only room revenues and room divisions related expenses are considered in the determination of income such as housekeeping, laundry, front office, security, repairs and maintenance, utility , taxes, and insurance attributable only to the units. F & B income and its related expenses such as F & B personnel, kitchen equipment, supplies, utilities, taxes, and insurance are treated separately from and independent of the room division expenses of each condotel units.

This set-up assures the unit owners a cost efficient operation as room related expenses are easily controlled and managed.

Q10. How will dividends be paid to the unit owner?

A10. Dividends are payable in checks to be mailed to unit owners or paid directly to the bank accounts of unit owners. Dividends will be in peso currency. For foreign currencies, prior arrangement can be made with the hotel operator on a case to case basis.

Q11. Are there any other condominium association dues?

A11. None. Since all expenses are charged to hotel operator and part of operating cost covered in the estimated 50% hotel operator’s share.

Q12. What is Unit Owners' Association?

Q12. Unit owners' association is organized to provide financial, operational and property management of the condotel units. The association needs to elect board officers to make sure that the unit owner's interests are protectedand their units well managed.

Q13. Will there be a unit owners' association?

A13.Yes. All unit owners are automatically members of the unit owners' association and shall elect among themselves a board of trustees to formulate policies and implement the rules and regulations of the association.

The board will be composed of nine (9) members to be elected from among the shareholders whose qualifications and voting rights are defined in the by laws of the association to be adapted by the members.

Q14. Will the unit owner still earn if his unit was not rented?

A14. Yes. Unit owners will still receive quarterly income based on the type of unit regardless of whether the unit was rented or not. This is because condotel operator will pool together its entire total income from rental operations and distribute this to unit owners as dividends according to the pro-rata percentage sharing on unit types. Income will come from room revenue less room division expenses.

Q15. Who will shoulder the repairs and maintenance of unit?

A15. Minor and Major repairs are shouldered by the hotel operator and chargeable to and part of operating cost covered in the estimated 50% hotel operator’s share.

Q16. Can a unit owner use his 45-free stay in another Crown Regency Resort in Boracay?

A16. Yes, he can. Only on a one to one room night basis.

Q17. Is there any benefit if the unit owner does not use his free stays on peak season?

A17. Yes, he individually not pooled, receives bonus on those days equivalent to room rate difference on regular days.

Q18. Can a unit owner upgrade his free stay to a different unit category?

A18. Yes, unit owner's free stay is upgradeable but has to pay the price difference in room rates.

Q19. When do the unit owner gets his 45-day free stay benefit?

A19. The 45-day free stay commences at the start of every fiscal year. This will be distributed to the unit owner in terms of certificates where they are entitled to priority in booking even on peak seasons provided availment of the 45-day free stay is exercised and availed of by negotiating in advance in the use of the unit.

Q20. Can a unit owner use his 45-free stay for more than one unit at the same duration?

A20. Yes, he can. Provided that it would be the same unit type. For example, if an owner will stay in the resort for a week and he’ll rent another unit for his friend. He will consume a total of 14 days for that week, chargeable to his 45-day free stay.

Q21. What if the Unit Owner was not able to use the 45-day benefit?

A21. Subject to 3 months prior notice before expiry, the unused 45-day free stay is convertible to same room night equivalent at any Crown Regency hotel with no expiry period. The 45-day free stay could also be exchanged with 2,000 Interval International affiliated hotels & resorts worldwide. Advance booking and registration required subject to Interval International rules, regulations and fees. (www.intervalworld.com)

Q22. Can a unit owner who has made an initial booking to use its 45-day free night stay but who eventually cancels it and make a new booking dates to use his room unit be allowed?

A22. Yes, provided the notice of cancellation is made two (2) weeks in advance but the new booking dates subject to availability of room units. This is because all the pooled room units are blocked and rented on a day to day basis by guests of the hotel condominium facility, hence, advance booking is necessary.