Owners' Update Webinar - April 26th 2024 - FAQs

1. How are the Club's various stakeholders affected by the Fee Reapportionment?

Off Season Fixed Week Members: By 2026, Owners of 34 “Summer” Weeks will on average pay fees reduced by 8.5% (16 weeks), 13.6% (12 weeks) and 24.9% (6 weeks).
High Season Fixed Week Members: By 2026, Owners of 18 “Winter” Weeks will on average pay fees increased by 11.8% (2 weeks), 21.9% (10 weeks) and 34.4% (6 weeks).
Crane & Encore Points Members are not affected because they already pay fees based on the seasonality of the week used.
Owners of All 52 Weeks in the Residences by the Sea and Residence in the Park were not affected, as the fees of the 18 weeks that increased were exactly offset by the 34 weeks that were reduced.
Crane Private Residence Owners were not affected because they continue to pay monthly fees for their residence, much like a condo owner’s fees.
Founder Member/Millennium: The fees that Millennium pays are adjusted in the same way as Fixed Week Members. To the extent that Winter weeks have traditionally been more popular than Summer weeks, Millennium will be responsible for paying a higher fee on Winter Season bookings which will continue to have a high occupancy. To the extent that Millennium can increase Summer Season bookings (due to lower rates, made possible by lower summer season fees), Millennium will pay fees on a greater number of summer weeks.
HGV: HGV was not affected.HGV's Fees (which are calculated similarly to traditional “Fixed Week” Members) have not been reapportioned, such that HGV, which owns more weeks in the summer season than the winter season, does not benefit from the reapportionment of fees.

2. Why should high season Fixed Week Members pay more than low season Fixed Week Members if operational costs remain consistent year-yound?

As explained above, failing to charge Fixed Week Members based on the value received is unsustainable. Having Winter Season paying according to the value they receive allows summer season owners to pay a lower fee based on the value they receive. All 52 weeks paying fees proportionate to the value received, allows all 52 weeks to be equally attractive, thus eventually promoting fees to be paid to the Club over the entire 52 weeks of the year. In the long run, all members will benefit from the Club earning a discounted fee in summer versus no fee at all.

3. How does Millennium cover fees for Weeks acquired through the Exit-for-Points Program?

Millennium pays fees for all Exit Points used at the same fee/point rate charged to Ordinary Members.

4. How has the Exit-for-Points program benefitted the Club?

Since 2019, Millennium has implemented an “exit for points” scheme to assist Owners in relinquishing their ownership with value. This unique offering distinguishes our Club as the only one we are aware of in the shared ownership industry. Without this option, it’s likely that many Owners, particularly during low season, would have simply walked away from their ownership and fee obligations, leading to an immediate reduction in the Club’s Fee revenue. Instead, Millennium is contributing fees for these exited weeks in full over the next 5-8 years as these owners use their exit points, which we expect will provide ample time to resell the weeks to HGV and/or new members.

5. How did Millennium's transition from Rental Pool to Leaseback between 2020 and 2022 affect the Club?

The Leaseback Program, which exempted qualifying owners from their fee obligations, was especially helpful to owners during the challenges posed by COVID-19. As Millennium covered losses on behalf of the Rental Pool Owners during the leaseback period, the Leaseback program did not affect the Club.

6. How does Millennium profit on building and unit refurbishments?

Millennium is entitled to a 10% Management Fee of the total expenses incurred on behalf of the Club.

7. Will Millennium introduce a Member Finance Committee?

After consideration, we intend to institute a Crane Residence Club member advisory and finance review committee (the “Member’s Committee”) prior to the posting of our 2022 Club Accounts, in order to assist us in better understanding issues facing The Crane Residence Club from a member’s/owner’s point of view. This committee will also preview our 2022 Club Accounts (which will include comprehensive notes for the first time) in order to review the Club Accounts from a member’s point of view before they are finalized and posted online.

The Member’s Committee will have the opportunity to discuss issues facing the club and to pose more specific questions to management which will be made fully available to the Member’s Committee. In this way, we anticipate that management will not have to be engaged in fielding numerous, often repetitive questions from individual members and owners. We hope to update all members on this in the coming months.