We work hard to create amazing vacation experiences for you and your family and to keep your resort looking beautiful. We are always looking for ways to add new activities and experiences for you to enjoy, while also keeping Club Service Fee increases to a minimum, however, given the impact of economic headwinds on the finances of Grand Residences by Royal Resorts® over the last two years, it is important to start building a reserve for the resort.
During the Advisory Council meetings, we presented the 2024 financial report, the 2025 budget and explained the need for a Club Service Fee increase.
The first six months of 2024 were challenging due to the continued strength of the Mexican peso. Club Service Fees are paid in U.S. dollars, whereas most expenditures (such as utilities, supplies and team member salaries) are paid in Mexican pesos. As the peso strengthens, the collected Club Service Fees pay for less expenses than budgeted for. Although the peso has weakened since July, factors such as staffing and wage pressures continue to be a challenge. A cost of living increase of 5 percent is considered in the 2025 budget for staff salaries. Additionally, the minimum wage has more than doubled in Mexico in the last five years and a 15 percent increase is expected for 2025. Furthermore, the dynamic growth of the hospitality sector in Cancun, Playa Mujeres and the Riviera Maya and the opening of huge new resorts with thousands of rooms creates an insatiable demand for labor, especially in the housekeeping, maintenance and food and beverage sectors, this makes it difficult to hire or retain staff, and as a result, the salaries for some staffing positions have had to be adjusted to keep them competitive with the market. An 11 percent rise in electricity rates is also included in the budget for all the resorts and is due to an increase in the rates per kilowatt charged by the Federal Electricity Commission (CFE).
After exhaustive budget analysis, and to best maintain the property and ensure the levels of service that our members have come to expect, Management recommended a 7.3 percent increase for the Club Service Fee for all fractional week owners and Points members. In the 2025 budget, Resort Revenue is split into two components: Annual Assessment to cover Operating Expenses and Annual Assessments - Reserves to start building a reserve fund in order to have funds for equipment and fixed assets replacements, and for larger improvement projects.
The Grand Residences Advisory Council did not endorse the 7.3 percent increase. Management values the Council’s input and understands its concerns, however, it considers that the increase is necessary to maintain and improve services and create a reserve to pay for future improvement projects.
2025 Club Service Fee for Fractional Memberships
Amounts in Dollars
| 2025 Club Service Fee | |||||||
| Villa | 2 Bedroom | 3 Bedroom | W/Roof Garden 2 Bedroom |
W/Roof Garden 3 Bedroom |
W/Roof Garden 4 Bedroom |
W/Pool 2 Bedroom |
W/Pool 3 Bedroom |
| CSF | 2,652.07 | 3,095.04 | 2,828.93 | 3,271.90 | 3,712.40 | 2,741.32 | 3,183.47 |
| VAT 16% | 424.33 | 495.21 | 452.63 | 523.50 | 593.98 | 438.61 | 509.36 |
| Hospitality 5% | 132.60 | 154.75 | 141.45 | 163.60 | 185.62 | 137.07 | 159.17 |
| Total | 3,209.00 | 3,745.00 | 3,423.00 | 3,959.00 | 4,492.00 | 3,317.00 | 3,852.00 |
2025 Club Service Fee for Points Memberships
| Grand Residences CSF 2025 | CSF | VAT | Hospitality | Total | CSF Per Point |
|||
| Points | Base | Variable | ||||||
| 1,200 | 1,599 | $274.67 | $0.2136 | $438.84 | 70.21 | 21.94 | $531.00 | 0.4425 |
| 1,600 | 1,999 | $274.67 | $0.2136 | $509.09 | 81.45 | 25.45 | $616.00 | 0.3850 |
| 2,000 | 2,399 | $274.67 | $0.2136 | $580.17 | 92.83 | 29.01 | $702.00 | 0.3510 |
| 2,400 | 2,739 | $274.67 | $0.2136 | $650.41 | 104.07 | 32.52 | $787.00 | 0.3279 |
| 2,740 | 3,300 | $274.67 | $0.2136 | $710.74 | 113.72 | 35.54 | $860.00 | 0.3139 |
| 3,301 | 4,000 | $328.08 | $0.2136 | $853.72 | 136.60 | 42.69 | $1,033.00 | 0.3129 |
| 4,001 | 4,800 | $421.17 | $0.1983 | $1,004.13 | 160.66 | 50.21 | $1,215.00 | 0.3037 |
| 4,801 | 5,700 | $503.57 | $0.1983 | $1,203.31 | 192.53 | 60.17 | $1,456.00 | 0.3033 |
| 5,701 | 6,600 | $579.87 | $0.1983 | $1,413.22 | 226.12 | 70.66 | $1,710.00 | 0.2999 |
| 6,601 | 7,500 | $671.43 | $0.1983 | $1,636.36 | 261.82 | 81.82 | $1,980.00 | 0.3000 |
| 7,501 | 8,600 | $762.99 | $0.1831 | $1,765.29 | 282.45 | 88.26 | $2,136.00 | 0.2848 |
| 8,601 | 9,800 | $762.99 | $0.1831 | $1,932.23 | 309.16 | 96.61 | $2,338.00 | 0.2718 |
| 9,801 | 10,900 | $793.51 | $0.1831 | $2,138.84 | 342.21 | 106.94 | $2,588.00 | 0.2641 |
| 10,901 | 12,100 | $808.77 | $0.1831 | $2,318.18 | 370.91 | 115.91 | $2,805.00 | 0.2573 |
| 12,101 | 13,500 | $862.18 | $0.1831 | $2,543.80 | 407.01 | 127.19 | $3,078.00 | 0.2544 |
| 13,501 | 15,800 | $892.70 | $0.1831 | $2,780.99 | 444.96 | 139.05 | $3,365.00 | 0.2492 |
| 15,801 | $923.22 | $0.1831 | $3,153.72 | 504.60 | 157.69 | $3,816.00 | 0.2415 | |
Historically, the average Club Service Fee increase for Grand Residences over the last 11 years is 5.18 percent.
Other resorts in the Holiday Inn Club Vacations network have had to raise their maintenance fees for 2025. In the U.S. the increases ranged from 3 percent to 15 percent with an average of 6 percent.
The Grand Residences Management team will continue to look for savings and work with the Advisory Council to address maintenance issues. The leadership is committed to completing the resort, and to continue offering the highest level of service, exceptional vacation experiences, and unforgettable Mexican Caribbean moments for you and your families.
The Grand Residences Advisory Council meeting report and financial statement will be published in the Owners Area of this website in the weeks to come.