PAYMENT OPTIONS & FINANCING SCHEMES

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Q&A
Q1. How does the Condotel operation differ from Timeshares?
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 , 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.
Crown Regency Resort & Convention Center

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?
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?
The Condotel will be managed and operated 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?
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?
 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?
Insurances are sourced by the Hotel Operator and are shouldered under operating cost covered
in the estimated 50% Hotel Operator’s share.

Q7. When will be the declaration of dividends?
Quarterly or semi-annually, as may be mutually agreed upon with the Unit owners.

Q8. What are the considerations in determining revenues and dividends for Unit owners?
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.

Q9. How will dividends be paid to the Unit owner?
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.

Q10. Are there any other Condominium Association dues?
None. All expenses are charged to the Hotel Operator and part of the operating cost covered in the
estimated 50% Hotel Operator’s share