PDA

View Full Version : Contemporary DVC ? Its sounds true to me !!


Cyril pb
01-16-2008, 08:02 AM
January 16, 2008


Jason Garcia | Sentinel Staff Writer
January 14, 2008

Walt Disney World is in the midst of building a $110 million, 15-story tower next to its iconic Contemporary Resort that likely will feature time shares -- bringing the units closer to the Magic Kingdom than ever before.

Disney will say little publicly about the fast-rising Contemporary addition. The new tower already stands five stories on 14 acres just to the north of the resort's signature A-frame main building, which was just the second hotel at Disney World when it opened a few months after the park itself first welcomed guests Oct. 1, 1971.

But there is ample evidence Disney plans to use the tower for time shares.

Building-permit applications filed with Reedy Creek Improvement District identify the owner of the property as a company called JMSRM Inc. State records show that is a fictitious name created in August 2006 by Celebration-based Disney Vacation Development, parent company of the Disney Vacation Club time-share arm.

In a pair of letters, an environmental consultant hired by Disney calls it "a proposed Disney Vacation Club (DVC) Resort at the Contemporary hotel."

And in a recent filing with the U.S. Securities and Exchange Commission, Disney, which has built about 2,400 time-share units at eight resorts, revealed that it has about 680 more under construction at Disney World.

Disney has only publicly acknowledged one ongoing time-share construction project in Orlando: Kidani Village, an extension of the partially completed Disney's Animal Kingdom Villas. That project is expected to have 340 units when finished in spring 2009 -- leaving another 340 or so unaccounted for.

Construction records for the Contemporary expansion call for 295 three-bedroom suites. Some could be sold as separate two- and one-bedroom units.

Still, Disney will not talk about the Contemporary addition.

"We have plans to expand our Disney Vacation Club business both on Walt Disney World property and at other vacation destinations in the future. However, we don't have anything formal to announce today," Disney Vacation Club spokeswoman Rena Langley said.


Reasons to stay mum

Analysts say Disney may have strategic reasons for holding back on a Contemporary time-share announcement.

Disney, which has invested deeply in the time-share business in recent years, is still in the midst of peddling time shares in Animal Kingdom Villas and Saratoga Springs Resort & Spa, both at Disney World.

Announcing future time shares now in the Contemporary -- which are likely to be hugely popular, given their prime location along the Magic Kingdom monorail and within walking distance of the park -- could slow the current sales, said Robert LaFleur, a leisure-industry analyst with Susquehanna Financial Group.

Disney time-share buyers, though they own a real-estate interest, do not purchase specific units in individual resorts; rather, they buy points that they can redeem for rooms in the company's time-share resorts or elsewhere.

But buyers must purchase those points from a "home" resort -- there are a limited number of points available for each facility -- and they are given priority at that particular resort when booking a stay.

"If you're trying to pitch a sale at Saratoga Springs or trying to pitch a sale at the Animal Kingdom, and somebody's aware that a year from now there's going to be stuff available in the Contemporary . . . that would cannibalize your other sales, I would think," LaFleur said.

It is also possible that Disney could decide against marketing the Contemporary addition as time shares and use the building for more hotel rooms instead. Company executives said recently that Disney World hotels are averaging 90 percent occupancy, and the Contemporary commands some of the highest room rates of them all: A one-bedroom suite can run as high as $1,310 a night.

"I know [Disney has] talked about a tower there for a long, long time," even before the company's interest in time shares, said Reedy Creek District Administrator Ray Maxwell.

The Contemporary addition is sure to be a lavish one. Records say the crescent-shaped tower will include a host of amenities, including a swimming pool and water-play area with an outdoor bar and a water slide; a spa; tennis courts; a barbecue pavilion; and a 499-person lounge on the 15th floor featuring a restaurant and bar. The new tower will be connected to the main building by a pedestrian bridge.

The project price tag: $109.6 million.


Completion likely in 2009

According to development records, Disney broke ground on the expansion in January 2007. The construction, which began with the demolition of an older, three-story wing of hotel rooms, is expected to take about 32 months. That would put the completion date about September 2009.

The construction comes with Disney already in the midst of a major time-share building boom. Last fall, Disney announced that it will build an 800-room resort in Hawaii in which at least half of the rooms will be time shares and that it will add 50 two-bedroom villas to Disneyland's Grand Californian Hotel & Spa, which will be the first time shares at Disney's original resort.

Disney Vacation Club President Jim Lewis has also said that the unit is considering projects in Lake Tahoe and the Caribbean. The company currently has six time-share locations at Disney World and one each in Vero Beach and Hilton Head, S.C.

Time shares have blossomed across the hotel industry. Jeremy Glaser, an analyst with Morningstar, said they are especially lucrative for a company such as Disney because time shares lock in future trips to its theme parks.

"They're going to make money from your park admission and all of that ancillary money you're going to spend every time you come to Orlando," Glaser said. "They have an added bonus to get you to commit to taking vacations there for years."


Jason Garcia can be reached at 407-420-5414 or jrgarcia@orlandosentinel.com.

eliza61
01-16-2008, 08:15 AM
It continues to be interesting. That would be prime location for a DVC resort.

ElizabethB
01-16-2008, 08:41 AM
At a dinner, a CM told me way over a year ago it would be a DVC property. Not sure why all the speculation -- it's so obvious and has been for ages! He also said Disney would hold off announcing it while they work to sell SSR and AKV knowing full well that it will be hard for SSR and AKV to compete once CRV are announced..

spiceycat
01-16-2008, 09:12 AM
lots of people (even some DVC members) don't like the CR.

It was the first of the WDW resorts. So my opinion, which doesn't mean anything, is that the top management is still fighting it going to a DVC resort.

really think it will be someday - but someday and now are not the same. Disney also needs deluxe suites. this could become those suites. Hope not. but it might.

been waiting on a DVC on the monrail since 1992 - so want it badly - but still until DVC start selling points there - it is not a done deal.

annoucement don't count - there have 3 or 4 DVC resorts annoucement that never happened. but once they start selling it is a commitment.

MrsBlovesDisney
01-16-2008, 09:48 AM
WHERE DO I SIGN!!! LOL!!!;)

ElizabethB
01-16-2008, 10:44 AM
Why would top management be fighting over the new tower at CR? It's very hard for me to believe Disney starts a project of that magnitude with disagreement among the ranks.

My view is that the "top management is fighting over it" rumor, which I've hard before is disinformation put into the marketplace to keep people wondering, so that everyone doesn't automatically assume it's going to be DVC and thereby quit purchasing points with SSR or AKV as their home resort.

Also, Disney is doing a huge amount of legal work with all the indications of DVC -- filing with the SEC, e.g., -- all of which costs many pesos.

People may not like CR, but you can't tell me folks will keep spending their money for AKV once they know they could have a home resort next to MK.

Finally, according to the article the construction plans call for 295 three-bedroom suites. No WDW hotel tower would be built with 295 three-bedroom suites. There simply isn't that much demand for $2,000 per night rooms, even in these times of outrageous compensation for CEO's and hedge fund managers.

All I can say is if it walks like dog, looks like a dog, barks like a dog, it's a dog!

sukhakuli
01-16-2008, 04:58 PM
We've been debating DVC for a while, and if the CR opens up, we're sold, lol. I'm one of the few that really liked the CR when we stayed there before. You just can't beat the location.

stacy6552
01-16-2008, 05:46 PM
you mean a little something like this.....

http://www.wdwradio.com/shownotes/images/contemporary-concept-art-buildings.jpg

alldiz
01-16-2008, 05:55 PM
Yes....I do believe it will be the worst kept secret.....

some bigwig at DVC thought it would be a good idea to sell multiple
timeshares.....

not so much....SSR is just about done....
they couldn't even fill AKL.....which is why....IMO..they built DVC there....in
the not so great view rooms...

If they announced CRV....you would see a COMPLETE stall in sales in
AKV......thats why they haven't announce it....:rolleyes1
Kerri

sdzman
01-16-2008, 06:21 PM
Makes me think if WDW will ever have enough hotel rooms in their eyes. They already have 4 parks always crowded and a 90% occupancy rate at their existing hotel rooms not to mention all neighboring offsite hotels. Disney gets more and more expensive every year.

To many DVC is not affordable, but this seems to be the direction WDW is going.

CR Resort Fan 4 Life
01-16-2008, 07:17 PM
I have always believed from the start this would be a DVC building, so this article is just stating the obvious. Plus a Cast Member who works on the 4th floor who once told me where the new arcade would be located, before it was announced when everyone said let's and wait see. Well we all know how that turned out and she even said to me it's a 100% chance that it's going to be a DVC building.