Memories for Generations…

President’s Letter by Dave DiBerardino

Finance Chair Letter by Kerry Kemp

Summary of BOD Fees & Expenses 2019 (Fiscal Year)

RAVC & VI Resorts At A Glance

Top 10 Exchanges Where Do Members Go?

Message from Jack Corteway and Red Morris

IN THIS ISSUE

2020 SPRING

Dave DiBerardinoPresident & CEO

It has been an honor and a pleasure to serve RAVC members as your President and

CEO since May 2013. I started my career two days out of college with RAVC in 1978 and

have come full circle to navigate the Club through the sale of Acapulco, renovations,

refurbishment and rightsizing the Clubs assets. My time with RAVC has been both

challenging and rewarding.

Through my continuous interaction with the members, it is abundantly clear to

me that this Club is special and dear to so many of you. Your Board of Directors

have worked diligently and timelessly over the years to make sure your Club has a

viable future and to deliver on our promise of "Memories For Generations". The

RAVC Board has unanimously agreed that the merger with VI Resorts presents the

best opportunity for RAVC to continue its legacy and provide the members with great

vacations for years to come. You can rest assured that prudent decision making

guided the Board and outside counsels were employed as necessary to thoroughly eval-

uate this opportunity. You can be certain that you will continue to receive the same high

level of service with VI Resorts as they are guided by the same principles as RAVC. With

many long-term employees and a great company culture focused on service excellence,

your future vacations will be just as memorable as the one’s you’ve had thus far.

I urge you, as does the entire Board of Directors, to submit your proxy in favor of this

merger.

M A H A LO & A LO H A ,

BY DAVE DIBERARDINOPRESIDENT'S LETTER

*David DiBerardino is not receiving any additional fees and expenses beyond his compensation as the President of RAVC

Non-Member Directors Fees Expenses

David DiBerardino* — —

Bruce Coppa $19,020.00 $4,279.12

Member Directors Fees Expenses

Margaret Carlson $3,000.00 $3,688.65

Matthew Cheng $2,000.00 $2,409.51

Mark Gebhardt $1,000.00 $5,484.85

Kerry Kemp $3,000.00 $3,138.72

John Parady $3,000.00 $4880.71

Robert Stalder $2,750.00 $2,424.81

2019 (FISCAL YEAR)

SUMMARY OF BOARD OF DIRECTORS FEES & EXPENSES

Kerry KempMember Director

ONE-BEDROOM

2019 Amount Approved Change 2020 Budget

Operating Component $568.00 $34.00 $602.00

Reserve Component $156.00 $0.00 $156.00

Total $724.00 $34.00 $758.00

TWO-BEDROOM

2019 Amount Approved Change 2020 Budget

Operating Component $695.00 $40.00 $735.00

Reserve Component $185.00 $0.00 $185.00

Total $880.00 $40.00 $920.00

Our 2020 operating budget includes an increase of your annual dues by approximately 4.6%, mostly due to continuing upward pressure on labor costs, higher transport and hospitality supply costs, and increases in condominium fees, taxes and utilities. On the revenue side, the challenge is to meet these costs as the Club’s membership is in a diminishing trajectory, as costs are spread over a smaller number.

The second component includes reserves, which provides for current and future long-term capital needs based on a 10-year rolling forecast. Members continue to express their appreci-ation for the new and modern look of Club properties, and major improvements are finishing up in Maui, as well as the refurbished office in Waikiki. The 2020 budget provides for reserves to meet the Club’s projected needs.

Please importantly note that, if the merger is consummated, members in good standing will receive a rebate in the share of liq-uid assets, including monies in the operating and reserve funds.

Annual membership dues are presented in the tables below. We hope that you and your family will enjoy a vacation to one of your Club’s properties or do an exchange for a new adventure. Safe travels!

M A H A L O & A L O H A ,

Aloha Royal Aloha Members,

The big news is clearly the potential merger with VI Resorts. There has been much information disseminated about the course of action. I refer you to the mailings and FAQs to learn about this opportunity – one that is intended to continue our mission of creating “memories for generations.”

I would, however, like to highlight some key points from a financial perspective that are leading us in this direction. First, many weeks are being terminated. While some sales are being generated, there is a substantial net loss of membeship weeks each year. Second, to counteract the steady but continuing declining membership base the Club initiated a “right-sizing” strategy, selling off underutilized units. We are keeping the high-demand units such as Hawaii (and rightfully so), which are typically more expensive on a per unit basis to operate and maintain than the ones being jettisoned. This creates an upward pressure on costs. Third, in general our costs are rising based on a variety of factors.

The beauty of the merger is that many overall costs will be better controlled due to the greater number and variety of units in the portfolio, and the impacts of inflation would be spread over a larger number of members, both of which creates significant economies of scale.

Even as this unfolds, your RAVC Board of Directors remains actively engaged in the Club’s operational, audit and finan-cial matters. At its October 2019 meeting the Board reviewed and approved the fiscal year 2020 budget. We strive to provide the members with the highest quality of vacation services, to uphold and enhance the appearance and functionality of each unit, and to be prudent in planning for future capital needs. The Club is fortunate to have a committed and diligent staff that displays the Aloha spirit to meet your needs. The objective is to continue to maintain and improve the member experience at a price that provides the highest value.

The budget is made up of two components – operating and reserves. The first component includes costs of operating and maintaining the Club’s properties and delivering its services to you.

BY KERRY KEMPFINANCE CHAIR LETTER

PRIORITY RESERVATION PRIVILEGE

G.A. “Red” Morris Past Chairman, 1991–2015

Jack Corteway Past President, 1991–2013

As the past Board Chairman and President of RAVC, we know how important it is to constantly evaluate the Club’s direction and take appropriate action to ensure that RAVC members will always have value, quality and the best possible vacation experiences. Over our tenure and through today, RAVC has always relied on steady leadership and guidance to chart its future course for the best interest of the membership.

We have trust and confidence in the Boards’ unanimous decision to recommend the merger of two of the finest member-controlled timeshare companies, RAVC & VI Resorts. This merger will not only perpetuate the benefits you currently enjoy with your RAVC membership but also vastly increase your future vacation options. With more resorts and remarkable flexibility, VI Resorts has proven for more than 45 years to be a company you can depend on to fulfill all your vacation needs. It is truly an exciting time to be a Royal Aloha member!

We hope you will join us in supporting RAVC’s Board and their recommendation to merge. Please vote in favor of this important initiative, either by proxy or attending in person at the upcoming Special Membership meeting, for your benefit and the Club’s future.

M A H A LO & A LO H A ,

VOTE TO MERGE

MESSAGE FROM PA ST BOA R D CH A IR M A N & FOR MER PR ESIDEN T

Orlando*Las Vegas*

Puerto Vallarta*Florida Coast*

Arizona (Scottsdale & Sedona*) Palm Springs*

Cabo San Lucas Hilton Head

CancunColorado Rockies*

*VI Resorts has properties in these locations.

Last year, nearly 20% of RAVC members decided to explore new destinations and experiences. Here are the most popular destinations:

(RCI, INTERVAL INTERNATIONAL, DAE)

TOP 10 EXCHANGE DESTINATIONS

RAVC VI RESORTS

# of Resorts 8 40+

Anyday Check-In -

Any Unit Size -

Any Length of Stay -

Hawaii Reservation Rule -

Holiday Weeks Surcharge -

Energy Surcharge -

Perpetual Membership

Accumulate Weeks / Points

Borrow Weeks / Points -

Reservation Wait List -

Reservation Cancellation Insurance -

Bonus Time & Instant Exchanges -

Works with Top Exchange Companies RCI/DAE/II RCI/DAE/II

RAVC & VI RESORTSAT A GLANCE

Exclusively for RAVC Members! RAVC members that convert to VI points are given an extended reservation window of 13 months when booking into current RAVC-Hawaii properties. Sit back, relax and continue to enjoy Royal Aloha's newly renovated Hawaii units.

Got Questions Regarding the Merger?

Need a Proxy?

Call or Email Us!T: (808) 847-8050 x101

E: memberservices@ravc.com

ROYAL ALOHA VACATION CLUB

1505 Dillingham Boulevard Dillingham Shopping Plaza, Suite 212 Honolulu, HI 96817

DON'T FORGETTO

VOTEVOTETODAY!