1. Call to Order / Attendance

The Advisory Council Meeting was held on October 23, 2025.

The following Advisory Council Members were present:

• Steven Richard Bayerlein
• Jeff Johnson
• Brian Shecterle
• William Scott
• William Ulaszek

The following Management representatives were present:

• Fernando López – President, HICV Mexico
• Javier Vales – VP of Hospitality Mexico
• Armando Millet – Resident Manager
• Paola Shouse – Senior Manager, Holiday Inn Club Vacations Mexico
• Diego González – Legal Vice President Mexico
• Michelle Cypher – Sr. Director, HOA Accounting Services
• Rosana Burlingame – HOA Sr. Accounting Officer
• Hugh Rosenblum – VP HOA Asset Management

2. Resort Tour Highlights

Prior to the meeting, Council Members toured the resort with Management to review completed projects and planned initiatives for 2026.

• Improvements in Kids Club and guest areas
• New sliding windows in Sports Services
• New sunbeds and shade umbrellas
• Additional safety features in pools and beach areas
• Planned villa upgrades and equipment enhancements
• Back-of-house inspections and solar panel review

3. Key Operational Feedback

Council Members provided feedback regarding resort operations and guest experience, and Management shared updates on improvements.

• Air-conditioning feedback in Kids Club
• Enhancements to villa comfort and equipment
• Expansion of dining and recreational experiences

4. Financial Review – 2025 (YTD)

Management presented the Operating and Reserve Fund Balance Sheet and Income Statement through July 2025.

• Restricted Cash: US$385,287
• Assessments Receivable: US$2.13 million
• Allowance for Uncollectible Assessments: US$926,614
• Net Loss: approximately US$2 million
• Negative Fund Balance: (US$9.98 million)
• Exchange rate fluctuations impacted performance

5. Collections & Membership

Management presented the Collection Aging Report and collection initiatives.

• Strong collection rate at 93%
• Voluntary Turnover Program planned
• Recovery focus on long-term delinquent accounts
• Transient revenue from rental of delinquent units

6. 2026 Budget Overview

Management presented the proposed 2026 budget and outlined the key drivers impacting the resort’s financial outlook.

After an exhaustive budget analysis, a 3 percent increase was recommended for the 2026 Club Service Fee.

The key drivers behind the increase are:

• An unfavorable exchange rate effect caused by the weakening of the U.S. dollar against the Mexican peso as a result of continuing global economic uncertainty and market volatility.
• Inflation in Mexico is at 4 percent and is expected to continue at this rate into 2026.
• The budget also includes an adjustment in the Assessment for Uncollectible accounts to ensure full funding.

THE BREAKDOWN OF THE 2026 CLUB SERVICE FEE IS AS FOLLOWS

Amounts in dollars

View the Club Service Fee for Points Memberships here .

7. Capital Improvements – 2026

The Capital Improvements budget is US$1,720,725 and includes:

• Villa upholstery projects
• Appliance replacements
• Lobby and furniture upgrades
• Mechanical and HVAC systems
• Wastewater and sustainability equipment
• Sargassum barrier system

8. Advisory Council Decision

After reviewing the budget and listening to Management’s recommendations, the Advisory Council unanimously endorsed the proposed Club Service Fee increase.

9. Additional Topics

• Resort Operations and Medallia results reviewed
• Food & Beverage improvements
• Online reputation discussed
• Sustainability initiatives
• Membership and rental program feedback
• Phases 3 and 4 development awaiting permits with firm commitment to move forward with construction

10. Adjournment

There being no further business to discuss, the meeting was adjourned.