2 0 1 9 W I N T E R

DEDICATION TO MEMBER SATISFACTIONAs I've mentioned many times before, delivering on our promise to improve membership value is something we take seriously. From remodeled condominiums, improved check-in facilities and online res-ervations, your Club is dedicated to member satisfaction.

However, we can’t and we won’t rest on our laurels. There is still so much more to be done! We feel strongly that keeping you informed of our progress in a timely manner is equally important.

Technology provides us more opportunities to interact with our members and keep you up to date on what we’re doing and what’s new at RAVC. Many of you have commented on the frequent emails you received from us and how it keeps you connected with your Club. Looking towards the future, you can expect more regular correspondence via email and our blog. So when you see an email from RAVC in your inbox, be sure to open it. This improved method of communication with our members will allow us to keep you in the know, without waiting for the printed newsletter that was sent twice a year.

Moving forward, we will print fewer newsletters for mailing but increase the communication by electronic means, allowing us to be cost conscious and environmentally friendly while still keeping you up to date.

We are confident that you will enjoy the frequent communication.

ALOHA & MAHALO,

Dave DiBerardino President & CEO

PRESIDENT'S LETTER

President’s Letter — Dedication to Member Satisfaction

Resort Updates By Lisa Kalakau

RAVC's Got A New Look

Election Results

Mahalo Randy!

Finance Chair Letter — Matthew Cheng

Summary of BOD Fees & Expenses 2018 (Fiscal Year)

Connect With Us!

Comment Card Winners

Seasonal Specials

IN THIS ISSUE

Memories for Generations…

Aloha Tower Kitchen Kona Bathroom Sky Towers Bedroom

RAVC'S GOT A NEW LOOK

As part of our continued improvement in member experience, we've created a brand new website at www.ravc.com. It is extremely user friendly, can be viewed on any device from a smart phone to a desktop. It provides in-depth information on our resorts, updated photos and an improved 24/7 reservation search engine where you can look at availability by resort in 100 day in-crements. Hop online today to discover our new look and book your next vacation with a click of a mouse or a tap of your finger!

Having worked for Royal Aloha for over 35 years, I have seen and experienced many changes over the years. One thing I have learned is that our members love to see and experience these changes too! Being Director of Resort Operations & Member Ex-perience, one of my duties is overseeing renovations, refurbish-ments and updates to the units. It’s an exciting responsibility that involves many people and processes, from our long-term designer, Linda Ueda, to factories that have ranged from Mexico to Indonesia, as well as many other vendors and locations in be-tween. Over the years I’ve come to learn there is so much more involved than “this looks pretty,” or “I love this color." Technol-ogy is involved in the construction of the fabrics we employ, as well as the furniture itself. The logistics of delivery and installa-tion are big challenges for us at every turn. Each cycle of refur-bishment and renovation brings new and improved products for you to enjoy while staying in your home away from home.

As many of you are aware, in the last couple years we have un-dertaken huge renovations in Waikiki, both at the Aloha Towers and Waikiki Sky Towers, and in Kona. These have included new kitchens, bathrooms and flooring at Aloha Towers, and complete unit renovations and furnishings at Waikiki Sky Towers. Kona has also experienced a complete renovation that brought some wonderful changes to the units which include much needed, appreciated and super-efficient air conditioning systems! Both of these locations have been modernized, using granite count-er tops, new draperies, and luxury vinyl plank flooring that is constantly thought to be real wood! The great thing about our new flooring is that it is impervious to water and very forgiving.

In 2019 more exciting changes are going to happen! First, in mid 2019, the Aloha Towers and Kona will be receiving new furniture. In Maui, we will be completely renovating the units, and as they are finished, new furniture and draperies will also be installed. In addition to the up to date finishes that some of you have already seen in Waikiki and Kona, both Kona and Maui will also be converting from queen beds to king beds in the master bedroom – much to the relief of many of you!

We hope that all of you will get to experience our new look, and enjoy it as much as we have enjoyed creating it.

RESORT UPDATES

Margaret "Peggy" Carlson of La Grange, Illinois was elected to a sec-ond term as a Member Director.

Kerry Kemp of Yachats, Oregon was elected as a Member Director.

Additionally, the "Right Sizing" initia-tive was passed by the membership.

2018 ELECTION RESULTS

BY LISA KALAKAU

MAHALOA big mahalo (thanks) to retiring Director Randy Beeson.

RAVC thanks Mr. Beeson for serving two terms as a Member Director. His contribution to the Audit and Finance Committee and Strategic Planning made him a key contributor to the Club's ongoing success.

FINANCE CHAIR LETTER — MATTHEW CHENG

Aloha members! Royal Aloha Vacation Club’s Board of Directors approves the budget for the upcoming year at the October Board Meeting. We strive to provide members with the highest quality vacation experience and enhance the functionality of each property while prudently plan-ning for future capital needs of the Club units and maintaining strong membership value. In addition, we are continuing to explore at new ways to increase the value of your Club membership with more travel destinations and flexibility.The Board’s budget planning efforts are focused on evaluating present and future costs - the Club utilizes a 10-yeart rolling forecast for each of the 28 income and expense drivers along with a detailed projection of the funds required to maintain each RAVC unit and related infrastructure. The Board and management focus on prudent cost savings measures that do not sacrifice the quality of your vacation experience at an RAVC property. The budget is made up of two components. The first component is the operating budget which covers the day to day operating expenses of maintaining the Club’s properties and delivering services to you. The second component is the reserves budget which provides for both current renovations and future long-term refurbishments capital needs. The Board’s goal is to ensure there is enough funds in the reserve budget to keep the funding actuarial calculation at a “100% funded” status.In 2018, the strong economy and recent Hawaiian events put pressure on RAVC’s operating and reserve budgets which are expected to continue in 2019: • Recent Marriott strikes in Honolulu have resulted in higher service and maintenance costs across the Hawaiian Islands • Fees paid to our respective condominium associations continue to rise as our building common area infrastructure is renewed • The 2017 fire at a high-rise building (Marco Polo Tower) in Honolulu has resulted in new fire prevention equipment requirements and regulations in Honolulu which will result in material and costly long-term retrofits at all similar Oahu properties • The strong economy with historic low unemployment across the U.S. is resulting in higher transport and hospitality supply costs – especially in Hawaii and the U.S. West Coast Despite these cost pressures, the Board’s annual dues competitive analysis continues to indicate that RAVC offers its members excellent resort units and amenities at some of the best maintenance fees in the timeshare world!Keeping in-step with our peer timeshare properties, 2019 annual dues will increase $26 for one-bedroom members and $30 for two-bedroom members. This increase will cover both the operating and reserve component of member annual dues and is expected to keep the Club on pace of maintaining our 10-year operating and reserve plan. To continue to add value to your vacation experience, close to $2 million in refurbishments are planned in 2019 - including new furniture at the Aloha Towers and Kona resort and the start of renovation and refurbishment in Maui. These upgrades will com-plement the nearly $7 million of renovations that have been completed over the last 5 years by the Club. On behalf of the RAVC Board of Directors, we sincerely hope you and your family will enjoy a vacation at one of our properties or have the opportunity to exchange for another location through our partner exchanges.

ALOHA & MAHALO!

Matthew Cheng Member Director

ONE-BEDROOM

2018 Amount Approved Change 2019 Budget

Operating Component $547.00 $21.00 $568.00

Reserve Component $151.00 $5.00 $156.00

Total $698.00 $26.00 $724.00

TWO-BEDROOM

2018 Amount Approved Change 2019 Budget

Operating Component $670.00 $25.00 $695.00

Reserve Component $180.00 $5.00 $185.00

Total $850.00 $30.00 $880.00

ROYAL ALOHA VACATION CLUB

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

SUMMARY OF BOARD OF DIRECTORS FEES & EXPENSES 2018 (FISCAL YEAR)

*Dave 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 $16,400.00 $2,058.98

Member Directors Fees Expenses

Randall Beeson $1,760.00 $2,188.66

Margaret Carlson $2,640.00 $2,488.73

Matthew Cheng $2,860.00 $3,396.23

Kerry Kemp $ 880.00 $2,773.07

John Parady $2,640.00 $1,375.81

Robert Stalder $2,420.00 $2,078.89

CONNECT WITH US!Be an RAVC insider. Sign up to subscribe for up-to-date news, special offers, and alerts from Royal Aloha Vacation Club by signing up for the RAVC Blog. Sign up on our website at www.ravc.com.

COMMENT CARD WINNERSMarion R. of Santa Barbara, CA.

John P. of Port Townsend, WA.

Winners are selected at random to receive one free accommo-dation at any non-Hawaii RAVC Resort.

SEASONAL SPECIALSBook one week and get an additional week for $149:

•Branson: November - Mid March

•Lake Tahoe: Mid April - May & October - November

•Spain: November - March

•Chandler: May - September

Availability is limited, subject to change and may exclude holiday weeks.