Detsis, who has been on the Board since October 2010.

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1 Summer 2012 A Message From the Board Dear Hyatt Sunset Harbor Owners: I hope you are all enjoying your time at Sunset Harbor. The Board has been working closely with Hyatt to update the property and maintain its five-star status. The Board also welcomes our new Resort Manager, Derek Nelson. Derek brings a lot of Hyatt experience and new energy to our resort. We also offer our appreciation to Bruce Hagemann, who did a great job at the resort; we wish him nothing but the best in his future endeavors. The Board has been working diligently with Hyatt and we have more improvements on the calendar in the coming months. Currently, the Board consists of me, who has been on the Board since its inception in November 1998, Don Fisher, who has been on the Board since October 2005 and George Detsis, who has been on the Board since October We all spend a lot of our time away from our everyday jobs to maintain and improve your investment and to make sure your stay is a pleasant one each year. I appreciate their contributions. As a reminder, all seats on the Board of Directors are up for election this year. We have a new online voting process & encourage all owners to vote! Owners who have opted to receive association communication via will be able to vote online via the new system. All other members will be able to vote as they did in the past via the mail-in system or can vote online as well. Voting will start in September and run until October 7th, the day before our annual meeting. As in the past, please feel free to contact me with any suggestions or feedback. You can also contact Derek or any of our fine front desk staff who can give you my contact information. Sincerely, Jim Drum President CONTACT INFORMATION GENERAL INFORMATION Resort Manager: Derek Nelson dnelson@hyattvoi.com Front Desk Manager: Nina Delgado ndelgado@hyattvoi.com Engineering: Mykola Myakushchak mmyakushchak@hyattvoi.com Front Desk: Check In: 4:00PM Check Out: 10:00AM No Smoking, No Pets After Hours: After 11PM

2 A Message From The Resort Manager Owner Spotlight Mr. & Mrs. Becsi Greetings to all of our Sunset Harbor family members from your favorite Key West resort! It s been an exciting first half to the year, filled with upgrades, projects & promotions. In my short time here at Sunset Harbor, I ve quickly come to realize that our owners are very loyal, passionate & engaged in everything going on at the resort. In addition, our employees are some of the best I ve worked with in my 9 years with Hyatt. They consistently add a genuine, personal touch & welcome our owners home year after year. They turn each stay into a uniquely memorable experience & truly embrace the Old Town ambiance that Sunset Harbor has been a part of since I would also like to take a moment to recognize a couple employees on their recent, well-deserved promotions. Nina Delgado was promoted to Front Office Manager & Jeff Klezos to Front Office Supervisor. Both have very bright futures with Hyatt & we look forward to their future successes. I am looking forward to working with all of our owners & continuing to make progress & improve the resort we have all grown to know & love. If anyone has any feedback, questions, comments or concerns, please feel free to contact me directly. Derek Nelson Resort Manager or dnelson@hyattvoi.com. Our Owner spotlight in this issue is on Mr. & Mrs. Becsi. Donald & Laila have been owners for 11 years & bought week 24 because it was the week of their Anniversary. Like so many of our owners, they have stayed at Sunset Harbor in their owned week every year since their purchase in 2001 & have actually never been to any other Hyatt Residence Club. We vacation where we like to go, states Laila, and we like to go to Sunset Harbor. This year marked some welcome surprises for the Becsis. They loved the upgrades to the bedrooms, bathrooms & particularly the new patio furniture on the balconies. One of their favorite activities is relaxing in the chaise lounge chairs on the balcony of their master bedroom where they watch the water, the cruise ships coming & going & the people heading out on the fishing charters and sunset cruises. But their favorite thing about the resort? The location! They love that they can just park the car & never have to use it. Mr. & Mrs. Becsi always head to the action at Mallory Square to enjoy the sunsets & Key West legend, Dominique aka the Catman. Currently living in Nokomis, FL they met in New Jersey & recently celebrated their 42nd Wedding Anniversary! They dined at SHOR American Grill, at the Hyatt Key West Resort & Spa, where they both enjoyed a perfectly cooked lobster tail. The service was great & the server made some great recommendations. We will definitely be back! Other recommendations from the Becsis include the Conch train tour (a must), Hogs Breath s Saloon, Sloppy Joe s Bar, the Truman Little White House, the Hemmingway House, Fury s Sunset Sail & a trip to the Dry Tortugas National Park.

3 Local Events Key West Fishing Tournament 3/17-11/30 - More than 40 species of fish are targeted during these months, with divisions for men, women, junior anglers (ages 10 to 14) and Pee Wees (under 10 years old). In a March kickoff event, anglers target 15 species and $5,000 in cash prizes is split between the top anglers. Employee Spotlight Kathy Arrazola Goombay Festival 10/19-10/20 - Goombay marks the beginning of Fantasy Fest. Goombay centers on Petronia Street in the Bahama Village. Enjoy live entertainment, purchase arts and crafts, and sample food from a variety of cultures and countries. 34th Annual Fantasy Fest 10/19-10/28 - An outrageous, 10-day celebration featuring costume competitions, promenades, street fairs and a grand parade with marching groups and lavish floats. This year s theme is A- Conch-Alypse. 21st Annual Parrot Head Meeting Of The Minds 11/1-11/4 - Join some of the biggest Jimmy Buffet fans as they host several events and live shows benefitting charities of their choice. Some events may be members only. Super Powerboat Races 11/4-11/11 - Super Boat International will be hosting the official offshore powerboat racing World Championship here in Key West. This year will mark their 30th Anniversary. Key West Christmas Parade 12/8 - Enjoy Key West s charming holiday parade with creative decorated floats and local families. The parade begins at 7:00PM, starting from the corner of Truman & White proceeding down Duval Street to Green. 22nd Annual Schooner Wharf Lighted Boat Parade 12/15 - This must see nautical event will be held at 8:00PM along the Key West Seaport. Kathy, who was born and raised in Key West, has been welcoming guest and owners to Sunset Harbor for the past 12 years at the Front Desk. Kathy is happily married and a mother to 3 beautiful women. She is truly an asset to our team, with her friendly personality and making everyone feel like family. When asked what she enjoys most about working with Hyatt, she responds seeing guests come back year after year and being able to make friends and create a bond with each owner is something I greatly cherish. She continues, I have watched some of our owners meet their spouses and come back year after year and see their families grow. Kathy states being able to have freedom within Hyatt to truly be herself is one thing she does not take for granted. She also appreciates her fellow employees and the tight knit family atmosphere between each and everyone on property. We absolutely appreciate Kathy and her positive energy at Sunset Harbor, making it a pleasure working with her. Being here 12 years, she is very knowledgeable of the property and makes sure to make each guest s stay one to remember.

4 Rewarding Experiences Share your Hyatt experience with friends and family members to earn valuable rewards! The concept of sharing is nothing new. At a very young age we learn the importance of sharing our toys. It s designed to teach each of us the sense of satisfaction from being generous and the gratification of seeing delight on another person s face. With the advent of social media, sharing has taken on a whole new dynamic. From restaurants and shops, to the next book to read and even where to go on vacation, everyday millions of people share simple sentiments about their lives. Think about how you use all the information that surrounds you on a daily basis. However, if you hear (or read) about something from a close friend or family member does it have more value? We think so! At Hyatt Residence Club, we want to reward you for sharing your vacation experiences with your friends and family In fact, with our newly enhanced referral program, Hyatt by Invitation, if one of your registered referrals purchases you may even be eligible for a 100% credit on your next maintenance fee bill.* Simply log in to the Member Clubhouse at hyattresidenceclub. com or call us at 800-GO-HYATT and share the names of the people in your life who you feel would get the most out of learning more about Hyatt Residence Club and we ll handle the rest! *Members and their referrals must meet certain qualifications to participate in Hyatt by Invitation, the Hyatt Residence Club referral program. To view the complete terms and conditions visit hyattresidenceclub.com and log in to the Member s Clubhouse. Any friends or family members who accept a vacation offer will be required to attend a 90 minutes informal sales presentation of the Hyatt Residence Club. Share Hyatt with Your Family and Friends Visit hyattresidenceclub.com Click the link Already a Member link in the upper right to log into the Member s Clubhouse Select Member Referral from the menu on the left Add your names and we ll take care of the rest!

5 Property Upgrades Behind The Scenes Our Engineering Department Misha P. pool chemical testing Rafael Painting Mykola checking A/C Sunset Harbor has seen some great improvements in So far this year we ve replaced the patio furniture, installed new pool umbrellas & completed our bathroom refresh project, which included painting the bathrooms, upgrading the shower heads & hair dryers, installing grab bars & towel racks & framing the existing mirrors. We also have several projects that will be completed by the end of the year. All coffee makers & toasters are due to be replaced as well as the awnings on the top floors of the 2-Bedroom Townhomes in Buildings 1-5. Furthermore, we are updating & standardizing all signage on the buildings & around the pool deck. In 2013 we are planning several more upgrades to the resort. Some of these reserve projects include, but are not limited to: upgrading the living room TVs, replacing the ceiling fans, replacing the sofa beds & painting the exteriors of the buildings. Our Department Spotlight this year shines on our outstanding & knowledgeable Engineering Department. Consisting of our Engineering Manager, Mykola Myakushchak, Supervisor Vasyl Tsapko, and General Engineers Misha P., Misha F., Rafael, Leon and Denis, they work closely with the Front Desk and Housekeeping teams to ensure that Sunset Harbor remains as lovely as your last visit. Daily job duties include the upkeep of the pool and spa, cleaning and skimming each one first thing every morning. In addition, they clean all the pool filters and test the chemical levels multiple times a day. Engineering then moves on to the barbeque grills, making sure they re working properly and have sufficient propane because they know that a grill without propane is no grill at all. Throughout the course of the day, Engineering receives several requests ranging from assistance with the safes, to operation & repair of dishwashers, laundry machines, TV s, and all of your small appliances. They also make certain the appearance of the property & buildings remain exquisite by painting the interiors and exteriors or anywhere else that might need a touch up. Each month Engineering has the task of completing a minimum of eleven preventative maintenance units. When performing preventative maintenance, a unit is put out of service anywhere from 3-6 days depending on the unit type. Within this time frame, some of the duties include: re-grouting the bathroom tile, tile replacements, caulking, and painting. The Engineers also make sure each balcony is as beautiful as your view by painting the floors, ceilings & rails. They even replace the wheels on the sliding glass doors! The Engineering Department has to be one of the hardest working departments here at Sunset Harbor. The next time you see an Engineer, please show your appreciation & thank them for all their hard work & contributions.

6 USING YOUR FIXED POINTS Home Resort Preference Period (HRPP) Begins: 12 months prior to deeded week Ends: 6 months (182 Days) prior to deeded week HRPP Home Resort Preference Period YOUR OPTIONS ARE: 1. Reserve your entire fixed week or any portion thereof. Should you reserve only a portion of your unit, the remaining portion will automatically convert to points and the inventory will become available for Club use. 2. Convert to points in order to: A. Exchange with Interval International using all or a portion of your points B. Apply all points to the Gold Passport Exchange Program every other year (or every year for Diamond and Platinum Fixed Week Owners) C. Reserve any available Hyatt Residence Club inventory at any Hyatt Residence Club destination D. Commit all or a portion of your points to the Extended External Exchange Program for the sole purpose of exchange through Interval International CUP Club Use Period Club Use Period (CUP) The 6 month (182 Day) period beginning on the day after the expiration of the HRPP period Begins: 6 months (182 Days) prior to deeded week Ends: The first day of your deeded week YOUR OPTIONS ARE: 1. Reserve any available Hyatt Residence Club inventory at any Hyatt Residence Club destination 2. Exchange with Interval International using all or a portion of your points If your vacation plans are uncertain, you may commit all or any portion of your point balance to the Extended External Exchange Program no later than 4 months prior to the end of your Club Use Period. LCUP Limited Club Use Period Limited Club Use Period (LCUP) Begins: The day after the expiration of the club use points Ends: 6 months (182 Days) after your deeded week YOUR OPTIONS ARE: 1. Reserve and occupy any Hyatt Residence Club inventory at any Hyatt Residence Club destination available within 60 days of the date of the reservation. Any and all unused points will expire at the end of your Limited Club Use Period. EEE Extended Use Period Extended Use Period Begins: Day of your request to commit to EEEP Ends: 24 months after end of Club Use Period YOUR OPTIONS ARE: Provided you have committed all or a portion of your points to the EEEP no later than 4 months prior to the end of your Club Use Period, these points will have an extended lifetime of 24 months from the end of your Club Use Period to use for the sole purpose of exchange with Interval International. Usage of points is subject to the Hyatt Residence Club Rules and Regulations Usage of Hyatt Gold Passport program is subject to the Hyatt Gold Passport Terms and Conditions

7 BORROWING POINTS Should you not have enough points to make a reservation, you may borrow points from your next year s Fixed Week on the condition that: 1. You reserve and occupy within the next 60 days 2. Your maintenance fee for the next year is paid at time the reservation is made 3. You relinquish your HRPP reservation window for the next year 4. Borrowing points is not permitted for exchange through Interval International FEES There is no fee for your first confirmed HRPP reservation made during your HRPP. A transaction fee applies for any other type of reservation. Fees Via The Web Transaction Fee $39 Cancellation Fee $49 Gold Passport Exchange Fee $129 Guest Certificate $29 Returned Check Fee $40 Split Week Resort Fee $35* (*This is paid to the resort upon departure.) Split week fees DO NOT apply at Hyatt Main Street Station; Highlands Inn, A Hyatt Residence Club Resort; The Residences at Park Hyatt Beaver Creek; and Hyatt Grand Aspen. Any of these fees may be paid by VISA, MasterCard or American Express. Fees Via Phone Transaction Fee $45 Cancellation Fee $55 Gold Passport Exchange Fee $139 Guest Certificate $35 Returned Check Fee $40 Joint Member Fee $30 Split Week Resort Fee $35* (This is paid to the resort upon departure.) Fees are subject to change at the discretion of Hyatt Residential Group, Inc. UPDATE! NEW ADDRESS FOR MAINTENANCE FEE PAYMENTS! Hyatt Residential Management Corp (maintenance fees) PO Box Denver, CO

8 EXPLORE OUR CLUB Beach House, A Hyatt Residence Club, Key West, Florida Coconut Plantation, A Hyatt Residence Club, Bonita Springs, Florida Hyatt Escala Lodge, Park City, Utah Grand Aspen, A Hyatt Residence Club, Aspen, Colorado Hacienda del Mar, A Hyatt Residence Club, Dorado, Puerto Rico High Sierra Lodge, A Hyatt Residence Club Resort, Incline Village, Nevada Highlands Inn, A Hyatt Residence Club Resort, Carmel, California Main Street Station, A Hyatt Residence Club Resort, Breckenridge, Colorado Hyatt Miami At The Blue, Doral, Florida Mountain Lodge, A Hyatt Residence Club Resort, Avon, Colorado Piñon Pointe, A Hyatt Residence Club Resort, Sedona, Arizona Siesta Key Beach, A Hyatt Residence Club Resort, Siesta Key, Florida Sunset Harbor, A Hyatt Residence Club, Key West, Florida Wild Oak Ranch, A Hyatt Residence Club, San Antonio, Texas Windward Pointe, A Hyatt Residence Club, Key West, Florida Northstar Lodge, A Hyatt Residence Club, Truckee, California The Residences At Park Hyatt Beaver Creek, Beaver Creek, Colorado Hyatt has granted the Developers of The Blue, Hyatt Residences and Hyatt Escala Lodges the right to sell condominiums at those Resorts under the Hyatt trade names and marks pursuant to Marketing License Agreements. Units in those Resorts have not been developed, offered, or sold by Hyatt or its affiliates. Inventory at The Blue, Hyatt Residences and Hyatt Escala Lodges available for reservation by Hyatt Residence Club members may be limited due to the whole ownership product offered at those Resorts.