Credit to April and May 2020 Club Wyndham South Pacific Levies

In my email on Club Wyndham South Pacific levies on April 2 and my email on April 21 with respect to Privileges By Wyndham fees, I promised we would provide an update on levies as we re-forecast Club income and expenses.

I am pleased to announce today that the Responsible Entity Board has considered and approved management’s recommendation to provide a credit toward your annual levies which has been calculated as 36 per cent of the April 2020 and May 2020 Club Wyndham South Pacific levies.

Over the next 10 days, our Owner Levies team will be applying the credit to all owner accounts to offset levy payments in future months.

I wanted to thank our Operations, Finance, and Procurement teams who have been working resourcefully to minimise costs while we are forced to close our resorts through until at least May 31.

Some of the key reasons this credit can be provided include:

• Staffing rosters have been revised to ensure a minimum skeleton staff at all properties to focus on security, deep cleans and refurbishments only
• Procurement has negotiated with all suppliers to receive credit on fixed cost contracts (for example, Telstra and Foxtel have both agreed to provide partial credits to their fixed charges).
• Finance has been reforecasting property by property with Operations to minimise all variable spending, secure opportunities to step down fixed costs and reset our forecasts for the April/May period and beyond with what we currently know
• Wyndham has lowered its management fee by 36 per cent for April and May
• The Australian Federal Government’s JobKeeper program and New Zealand Government’s COVID19 Wage Subsidy have also assisted. These have provided some income to those Club employees we have had to stand down, and the programs provide some cost benefit for the skeleton staff still working.

In addition, here is a reminder with respect to your credit entitlements:

We know many owners have had to cancel reservations through until May 31 or have credits expiring through this date. We are doing all that we can to ensure you will have the opportunity to use your accommodation entitlements in your Club at a future date.

Even where your credits for cancelled bookings have expired during this period, we have put in place arrangements to allow an extended period of use to prevent the loss of accommodation rights that you pay your annual levies for.

The coronavirus/COVID-19 has created a situation none of us have ever experienced and, hopefully, will never experience again. There is no rule book or formula to follow. However, rest assured that your club and Wyndham teams are working to ensure the best outcome for you, our valued Club Wyndham South Pacific owners. We will continue to keep you updated as circumstances change.

Thank you for your understanding, support and patience in these difficult times. We will continue to do everything we possibly can to support you.

Please stay safe and I look forward to seeing you at one of our fabulous resorts in the near future.

Liam Crawley

Chief Financial Officer

Wyndham Destinations Asia Pacific