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PELICAN RESORT GM SPEAKS OUT ON LATEST CRISIS FACING PELICAN RESORT CLUB.

julesjames22092010SINT MAARTEN:--- Pelican Resort Club, no stranger to adversity, is facing another crisis and its general manager is speaking out for the first time. Since its rebirth in 1996, after the original developer sent the resort into bankruptcy, 12,000 Pelican timeshare owners, employees, Board Members and Royal Resorts Management have persevered for progress. The Pelican Resort is once again facing hard times, but this time from a very unexpected source.
After 12 years of harmony and progress, the Home Owners Association (HOA) Board of Pelican Resort Club initiated unusual strategies including a battle with their long-time ally, Royal Resorts Management. The Board has embarked on an unprovoked defamation campaign, based mostly on untruths and manipulated facts aimed at harming Royal Resorts Management's reputation among timeshare owners.
It has also made a number of financial decisions that are putting the entire property at risk, including defaulting on loan payments that could result in the foreclosure of Pelican Resort Club. This would not only have a negative impact on Royal Resorts, it would devastate the club's timeshare owners who have so much invested.
The Pelican Resort Club is one of several Royal Resorts Management properties in the Dutch Antilles including Aruba, Curaçao and St. Maarten. Pelican Resort's General Manager, Mr. Jules James– a native St. Maartener, President of the St. Maarten Timeshare Association, and more than 20-year veteran of the hospitality industry – has expressed concern for the future of the property.
"I don't know what the HOA Board is hoping to accomplish by their actions," said James. "The Board's decisions have caused us to reduce the workweek to four days for all employees and discontinue all improvement projects for the property. These decisions have negatively impacted timeshare owner satisfaction, damaged employee morale and our relationship with the labor union, and made it very difficult for us to continue rentals and sales," he noted.
James continued: "I accepted the offer to lead Pelican Resort Club based on the quality and integrity of Royal Resorts and Richard Sutton. As part of my recruiting process I was required to go to Cancun, Mexico to learn about the company and meet the team members. They intentionally had me stay in the oldest Royal Resort property so I could see what a 31-year-old resort should look like and how it should operate. By the second day of the visit I knew this was a company I wanted to be a part of. Every owner and guest was happy, the service excellent, the staff members terrific, and everything looking new."
Pelican's HOA Board changes every year through an election by the timeshare owners. The current Board has sought increased control over the day-to-day operations and to place responsibility for all their challenges on Royal Resorts Management and its Directors.
"I have worked for several resort management companies and I have never seen a company so committed to the timeshare owners and resort staff as Royal Resorts Management," states James, adding:
"When oil prices spiked unexpectedly in 2008 and we needed cash, Royal Resorts voluntarily deferred six months of fees without interest to protect the resort and the payroll. After the recent earthquake in Haiti, Royal Resorts Management provided US$30,000 to our Haitian workers with families in need. Recently the uninsured mother of an employee needed an air ambulance from St. Kitts to San Juan and Royal Resorts Management paid for it. Whenever the Pelican Resort or its employee's needs something I know Richard Sutton (Royal Resorts, Founder and Chairman) and Richard Corso (Royal Resorts Caribbean, CEO) will be there to help. I am very proud to be a part of the Royal team."
Pelican Resort relies heavily on its management company. Royal Resorts Management provides all of the operating and sales systems including: accounting, front desk, human resources, training and development, IT, engineering and e-commerce.
"Pelican does not have the resources to stand on its own," James said. "An owner, who is now an HOA Board Member advised me that my job was safe even if they get rid of Royal. While I appreciate his vote of confidence, I don't think he understands how this Board's actions are placing the entire resort in jeopardy. I quickly realized they do not understand what Royal does to keep Pelican Resort running.
"The Pelican must have the support of a qualified management company. We rely on Royal for the most fundamental systems including all of our reservation, front desk, and POS systems, most of our rental business, and even credit card processing. I really thought we had solved this problem with the Board when their Antillean attorney recently opened a Board Meeting emphasizing the trust and confidence the Board felt as a direct result of the remarks of the Forensic Auditors. These auditors, according to the Board's own attorney, had removed doubt and reinstated the Board's confidence in Royal Resorts.
"Pelican Resort has been operated as an open book since 1997 – and the auditors reported as much to the Board," noted James.
Royal Resorts Management provides Pelican Resort corporate resources and support that would not otherwise be available to a single-location resort. Department experts from Finance, IT, Engineering, Maintenance and Housekeeping work side by side with Pelican staff to provide continuous training and development.
"After I was hired, I was sent for a full month of comprehensive training that Royal has developed over 30 years. I was amazed by what I learned and the possibilities that were inspired," said James. "Many of our local St. Maarten staff have been to Cancun for similar intensive training and more are scheduled every year."
Pelican Resort has been steadily progressing in quality and financial strength since the 1996 bankruptcy and the timeshare owners' 1997 hiring of Royal Resorts Management. Twelve positive years together led to not so lucky number thirteen. "We entered 2010 in great shape," continued James, adding:
"Renovations of the 30-year-old villas were underway and receiving rave reviews. Our debt load was decreasing and all of our loans were current. Owner satisfaction and employee morale were great. Even our sales and rental business was steadily growing. Our timeshare owners enjoy one of the lowest Maintenance Fees in Simpson Bay and we are still being asked to cut payroll expenses and resort maintenance.
"The long-time local staff hopes the Board will soon recognize the impact of their actions and the critical contributions of Royal Resorts Management," he added.
With 35 years of resort management experience, primarily in Cancun and Riviera Maya, Royal Resorts Caribbean operates three properties in the Caribbean with more than 350 employees. The company manages more than 40,000 timeshare intervals for nearly 20,000 families and provides a variety of services for resorts including full operations management, vacation ownership sales and vacation rentals.
Aside from Pelican Resort Club and its newest property in St. Maarten, the Pelican Marina Residences, Royal Resorts Caribbean manages Costa Linda Beach Resort in Aruba and the Royal Sea Aquarium Resort in Curaçao, which is located on a private island right next to the world-famous Curaçao Aquarium.
The company is also in negotiations with a number of additional resorts facing operational challenges due to a range of factors including the economic downturn.
The Royal Resorts Group was founded in 1974 in Cancun, Mexico. Now with over 60,000 members, Royal Resorts has been listed among the top-rated resort companies in the world since 1975. The resorts have received the coveted Five Star Rating from Interval International every year since 1983 when that rating was first established. Since 2008, they have also been classified as Premier Resorts in the Interval International Resort Recognition Program, the highest distinction awarded to resorts that offer an outstanding vacation experience.
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