ST. MAARTEN NEWSLETTER


We have heard from many owners at Royal Palm Beach Resort and Flamingo Beach Resort who are frustrated about the current construction timeline and we agree that the process is slower than we would all like. But the resort is being rebuilt the right way. All new roofs, electrical, plumbing, windows, doors, mechanical components – the resorts are being completely rebuilt aside from the concrete frames. This isn’t just a few repairs and we are in no way dragging out the reconstruction process. We want to see the resorts reopen, so we can once again welcome you home.

Here are some details:
Based on the advice of insurance adjusters, industrial hygienists, remediation specialists and other experts, the decision was made to completely rebuild Royal Palm Beach and Flamingo Beach because of the damage caused by Hurricane Irma. Our resorts were not the only properties damaged in the storm. In fact, resorts across the island sustained varying degreend several other properties have also remained closed – some with no set date of reopening, such as the Westin Dawn Beach.
Blueprints were not available for either resort, forcing us to complete new drawings before beginning any work. That took time and construction could not proceed without them.
Building materials are not readily available on the island, and everything has to be imported. With an incredible number of reconstruction projects happening across the island right now, it is taking longer than normal to get supplies through the ports.
Finding skilled workers has also been a challenge. We currently have nearly 200 workers between the resorts. When we began the project, obtaining local workers proved to be difficult – the island didn’t have any skilled trade workers for some of the pieces needed. That has forced us to hire foreign workers, and obtaining the necessary paperwork for the foreign workers has been a daunting and long process. Each of the workers needs to have a permit before they are allowed on the construction site. If we don’t follow the process, it could jeopardize the entire project.
Flamingo Beach was fortunate there was adequate cash flow to cover 2018 insurance premiums and other administrative costs. Owners, including weeks owned by Diamond Resorts and the Trust, were billed a reduced maintenance fee for 2019 because the cash flow was insufficient to cover estimated 2019 expenses. The operating portion of the maintenance fee, as noted in the summary budget enclosed with the billing statement, covers the insurance premiums and some minor administrative costs. It is necessary not only to keep the building insured but to maintain insurance coverage given the difficulty of keeping insurance at all. Premiums increased significantly over previous years due to the number of natural disasters occurring (hurricanes, fires, floods, even volcanoes) across the globe. Even though the resort is not operating, there are administrative costs that occur which would not be paid under the insurance claim, such as owner mailings, audit fees, and credit card charges. The reserve portion of the maintenance fee is allocated to a few projects including the upgrading the waste treatment facility, adding a fitness center and an outdoor hot tub to provide additional amenities, replacing corridor tile in Building 7 and modifying the studio layout. The insurance claim is paying to rebuild the resort “like for like.” The claim is in excess of $60 million to rebuild the resort. The only expenses not covered under the claim are the deductible and any improvements or upgrades that may be considered.

Royal Palm was billed a reduced maintenance fee for 2019. Like 2018, the cash flow was insufficient to cover the insurance premiums and other administrative costs. The operating portion of the maintenance fee, as noted in the summary budget enclosed with the billing statement, covers the insurance premiums and some minor administrative costs. It is necessary not only to keep the building insured, but to maintain insurance given the difficulty of keeping insurance at all, as premiums have increased significantly in recent years because of the number of natural disasters occurring (hurricanes, fires, floods, even volcanoes) across the globe. Even though the resort is not operating, there are administrative costs that occur, which would not be paid under the insurance claim, such as owner mailings, audit fees and credit card charges. The reserve portion of the maintenance fee is allocated to a few projects such replacing corridor tiles and includes a provision for any possible upgrades or uninsured expenditures. The insurance claim is paying to rebuild the resort “like for like.” The claim is in excess of $50 million to rebuild the resort. The only expenses not included under the claim are the deductible and any potential improvements or upgrades that may be considered.

The Royal Palm Beach Resort annual owners meeting will be held Tuesday, May 21, at noon at Simpson Bay Resort. The Flamingo Beach Club annual owners meeting will be held Wednesday, May 22, at noon, also at Simpson Bay Resort. A preview of model units will be included as part of the meeting agendas. As the resort is an active construction site, the contractors are allowing us to tour without personal protective equipment; however long pants and closed toe shoes are required.

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Flamingo Beach Resort




At this time, we’re estimating the following completion dates:

Royal Palm Beach Resort:Project completion estimated for June 2020

Flamingo Beach Resort: Completion of building 6 in April 2020; building 4 in June 2020, and buildings 3 and 7 in August 2020


As always, there are many unknown factors that could impact the project, including labor constraints, availability of materials, government permits and the 2019 hurricane season. We understand that this is situation is not ideal. But we’re happy to say that when you return to Royal Palm Beach or Flamingo Beach Resort, you will essentially be walking into a brand new resort.

Our Member Services team is available by calling 1.877.374.2582, should you have any additional questions at any time.


Diamond Resorts™ 10600 West Charleston Boulevard, Las Vegas, NV 89135 USA.

I am so thrilled that we do not own at either of these resorts. This letter, as i read it, is total [censored]. How come the Sonesta Maho and Ocean Point were able to come back so fast while these two resorts can't?? The answer is easy....the owners there brought in 300 workers from China, and they worked on the project twenty four hours a day..in shifts. They also had to design, order furniture, and get supplies to the island. Last December there was only a concrete shell remaining...but they managed to get the job open, although not total completed yet, it wascompleted in time to welcome plenty of guests. If Diamond wasn't so damn cheap, I am sure they could've paid more and bring in workers, supplies, and whatever else was needed....but obviously they choose to go the ''cheaper'' route....in spite of what their owners may think. We drove by Royal Palm almost every day during our trip....and even though we didn't purposely look, never saw any advancement on anything while we there for three weeks. People have reported, more than once or twice, whenever they have gone to the building sites, they have seen no workers. I guess when you don't pay for it...workers just don't show up. Maybe Diamond resorts should take a page out of every other resort that has opened up after Irma....but no....they only choose to use the Westin Dawn Beach, as an example, and not all the other resorts such as Sonesta, Royal Islander, Divi, Belair, BSV, El Zaffiro, and the countless other resorts that had the same problems....but were able to fix them in a much quicker manner. If i were an owner at either of the Diamond resorts...i would be screaming!!! Maybe Diamond should take another page out of other timeshares such as LaPlage and LaTerrace, for NOT CHARGING ANY MAINTENANCE FEES FOR THE TIME THEY WERE CLOSED!!!!! ALSO, THERE WAS NO ASSESMENT LEVIED TO THE OWNERS HERE DURING THE TIME OF CLOSURE. Instead, the tout that they charged the owners of one of the resorts a ''reduced fee" during this closure. i call TOTAL [censored] for this one!!! I feel for each and every owner of these two timeshares, for the crap that Diamond is putting them through. Also feel for the countless businesses owners who rely on tourism to make their livings, and having these two HUGE resorts closed is making them lose a ton of money also. Seems like the only thing that Diamond cares about is themselves...and the hell with anyone else. A lousy way to do business. My two cents.

Every one is entitled to their opinion and I somewhat understand yours. If what Diamond is saying is true I can't wait to see the final results. Looking forward to seeing and enjoying my home resort Flamingo when it's completed.

I don't see anything new there at all, for it to be called an update. Are there actually 200 workers onsite? Can anyone on island confirm that? I haven't seen a report from someone on island for a while, but the last reports I have seen were that there was almost no activity.

I was on island two weeks ago staying at SBR. I saw one person on one day the whole time I was there. Maybe they were all inside? Lol!