Crown Regency Boracay

Q1. How does the Condotel operation differ from Timeshares?

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/are represented by a specific Condotel Unit. At the same time, since you own a Club Ultima membership, you have a vacation exchange privilege with Interval International.

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

A2. The Preferred Stock Share certificate, which 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. The Condotel will be managed and operated by the
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 the regular rate).
Crown Regency Resort & Leisure Park Management
Services, Inc.

Q4. Are there additional cost incurrence to be shouldered by the Unit owners upon enrolment in the Condotel
operations?

A4. Yes. An initial one time joining fee of Php30,000.00 per 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. A 20% of net sales in exchange of the following:
• All salaries of Sales & Marketing and Reservation Staff except for promotional and advertising collaterals.
• All expenses related to maintaining a Sales & Marketing office.
• All salaries of General Manager and Resident Manager.
• 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 date.
• 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 cost covered in the
estimated 50% Hotel Operator’s 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 will be the declaration of dividends?

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

Q9. What are the considerations in determining revenues and 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 & maintenance, utility, taxes, and insurance attributable only to the Units. F&B income and its related expenses as F&B personnel, kitchen equipment, supplies, utilities, taxes, and insurance are treated separately from and independent of the room divisions expenses of each Condotel Units.

This setup 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. All expenses are charged to the Hotel Operator and part of the operating cost covered in the estimated 50% Hotel Operator’s share.

Q12. Will there be a Unit owners’ association?

A12. 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.

Q13. What is the purpose of the Unit Owners Association?

A13. The 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 protected and their Units are well managed.

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

A15. Minor and major repairs are shouldered by the Hotel Operator and chargeable to and part of the operating cost
covered in the estimated 50% Hotel Operator’s share.

Q16. Can a Unit owner use his 45-day FREE stay in another Crown Regency Resort in Boracay?

A16. Yes, he can. However, this must only be on a one to one room night basis.

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

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

A17. Yes. The Unit owner, as individual and not pooled, will receive a 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?

Q19. When does the Unit owner get his 45-day FREE stay benefit?

Q20. Can a Unit owner use his 45-day 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 will rent another Unit for his friend, he will consume a total of 14 days for the week chargeable to his
45-day FREE stay.

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

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

A22. Yes, provided, the notice of cancellation is made two (2) weeks in advance. However, the new booking dates are
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.