2013 Dues Analysis

Discussion in 'DVC-Mousecellaneous' started by tjkraz, Dec 4, 2012.

  1. tjkraz

    tjkraz <img src="http://www.wdwinfo.com/images/silver.jpg

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    I'm in the process of gathering budgets for all of the resorts. Have 6 of them so far and can share some very high-level observations based upon what I have seen:

    Bay Lake Tower

    Big drivers of the dues increase at BLT are property taxes and housekeeping.

    2012 Taxes: .9805
    2013 Taxes: 1.0743

    2012 Housekeeping: .6534
    2013 Housekeeping: .8502

    Meanwhile the budget for capital improvements was reduced significantly.

    2012 Reserves: .6817
    2013 Reserves: .5836

    Total dues increase amounted to $.2753 per point and .1925 of it comes from these three categories. I had personally questioned whether the staffed front desk at BLT caused some of the increase. Turns out "front desk" charges actually went down about a half penny per point from '12 to '13.


    BoardWalk

    The BWV dues increased $.2249 per point and almost all of it can be attributed to housekeeping.

    2012 Housekeeping: .8563
    2013 Housekeeping: 1.0403


    Saratoga Springs

    SSR had one of the lowest dues increases, going up just $.0820 per point. Contributing to that was a reduction in property taxes of $.0644 per point. Without that reduction, SSR would have seen an annual increase of 3.1% instead of the 1.7% actual.

    2012 Taxes: 1.0515
    2013 Taxes: .9871


    At AKV and VGC, nothing really stands out as the major source of the increase. Housekeeping at each only went up about $.04 per point. Other categories were also up in the $.01 - .04 neighborhood.

    VGC did have a "front desk" increase of $.12 per point, which is abnormally high. No real explanation can be gleaned from the budget statements, though.
     
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  3. tjkraz

    tjkraz <img src="http://www.wdwinfo.com/images/silver.jpg

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    Hilton Head

    HHI dues went up a modest 1.55% from $5.9290 to $6.0213 per point.

    That number was aided by the developer loan finally coming off the books. Approximately 5 years ago DVC effectively loaned money to the HHI Condo Association for repairs (roof?) which were needed much earlier than originally planned. In 2012 owners were paying $.1303 per point to repay that loan.

    Meanwhile similar to VGC, HHI is seeing a dramatic increase in front desk charges.

    2012 Front Desk & Admin: .7890
    2013 Front Desk & Admin: .9559

    Adding the additional front desk charges and deducting the developer loan accounts for all but $.0557 of the increase.
     
  4. KLEONARD

    KLEONARD WDWRunner

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    Thanks Tim.

    I wonder why the upgrade of the Paddocks pool did not raise the dues to a higher level at SSR?
     
  5. tjkraz

    tjkraz <img src="http://www.wdwinfo.com/images/silver.jpg

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    Remember when dealing with percents, the impact is only visible in the first year following the event. Paddock Pool opened in mid 2011 and 2012 SSR dues went up nearly 5%. There's your Paddock increase.

    Construction costs came from reserve fund so a modest increase there spread over 10-20 years would help replenish. And day-to-day operating costs are limited to a couple lifeguards, utilities and pool upkeep. Restaurant is a profit center for Disney so owners wouldn't be paying anything for that.

    Also it's a big resort with around 11 million points. Just a penny in dues generates over $100K in operating revenue.
     
  6. CMOORE185

    CMOORE185 HH 240 Points, SSR 260 Points

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    Good news for me this year as I own at SSR and HHI.
     
  7. bighoo93

    bighoo93 Mouseketeer

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    This was really good analysis. I posted a joke earlier that I thought was obviously tongue in cheek, but it was removed. I hope you were not the one who misinterpreted. I found this interesting.
     
  8. wdrl

    wdrl DIS Veteran

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    I find it interesting that both AKV and BLT (the two resorts that I own) have significant increases in Common Element Renovation reserves in 2013. This budget line item is increasing $0.2456 at AKV and $0.1922 at BLT. In AKV's case, its maintenance fees would have actually gone down $0.0063 if the Common Element Renovation amount had remained unchanged.

    I'm hoping that DVC Management will explain at the Annual Meeting what is driving these large increases in AKV's and BLT's Common Element Renovation reserves in 2013.

    Like Tim, I was surprised that BLT's Front Desk and Administration costs are going down in 2013 compared to 2012. However, I wonder if the modifications made in BLT's lobby and/or behind the scenes to accommodate the new check-in desk are being charged to Common Element Renovation reserves.
     
  9. marynvince

    marynvince DIS Veteran

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    Us too!! Curious. Did you buy SSR first, stay at HHI and decide I need HHI points too?
     
  10. CMOORE185

    CMOORE185 HH 240 Points, SSR 260 Points

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    We were at HHI looking at a different timeshare and happened to see Disney's HHI resort and stopped in to talk to a guide. We ended up buying right there in the spot. BWV's were also for sale at the time and we chose HHI for two reasons, 11 month booking window in summer and believe it or not HHI had the lowest dues at the time. We bought SSR some years later.
     
  11. mom_rules

    mom_rules <font color=FF66FF>LOVES the Yachtsmen!<br><font c

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    Would you happen to have a last yr over this year comparison for actual dues amounts?
    or know where I could find one?

    Thanks
     
  12. wdrl

    wdrl DIS Veteran

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    Here is a chart that shows maintenance fees for each DVC resort through 2012. I anticipate that it will be updated shortly to include the 2013 amounts: http://dvcnews.com/index.php/dvc-program/owning-dvc/faqs?task=view&id=51.
     
  13. Bellecruiser

    Bellecruiser Mouseketeer

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    Tim,

    Thanks so much for this. :). Your usual excellent analysis. This seems like a very reasonable rise in mf. We appreciate all you do.
     
  14. mom_rules

    mom_rules <font color=FF66FF>LOVES the Yachtsmen!<br><font c

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  15. Greysword

    Greysword <img src=http://www.wdwinfo.com/dis-sponsor/images

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    The transportation expense at SSR always has me taken back :) $7.7M for buses... um kay :rolleyes:

    As for the Front Desk costs at BLT, I wonder if the decrease is due to some services moving to the BLT lobby instead of despite the move. Meaning, it is possible the DVC finance team negotiated a lower allocation of the Contemporary's front desk costs, which may net lower than last year even with the increase in staff in the BLT lobby. :thumbsup2
     
  16. BWV Dreamin

    BWV Dreamin DIS Veteran

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    Any info on VWL? I'm suspecting mostly housekeeping increases however they are getting refurbished soon.
     
  17. bookwormde

    bookwormde <font color=darkorchid>Heading out now, another ad

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    Thanks for the analysis.

    How does housekeeping go up close to 25% in one year and only at 2 resort (BWV & BLT)?

    Any one do the 2br equivelent weighted average for all the WDW resorts yet?
     
  18. dizfan

    dizfan DIS Veteran

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    Is there some reason house keeping varies in cost so much between resorts?

    I could see AKV and BLT being higher because of the extra bathroom, but that does seem to be the case.
    Is it shorter stays, which require more cleaning?
     
  19. tjkraz

    tjkraz <img src="http://www.wdwinfo.com/images/silver.jpg

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    In order to do any resort-to-resort comparison, you really need to start by looking at the variations in number of points required for a night stay.

    For instance, let's say OKW had housekeeping dues of $1 per point and it cost 25 points per night for a 2 bedroom. In that example, you're basically contributing $25 per night for housekeeping services.

    Meanwhile a BLT 2 bedroom costs 50 points per night and housekeeping is only $.50 per point. 50 points x $.50 is the same $25 per night for housekeeping.

    You can't just assume that the $.50 charge for BLT means owners are paying less.

    To do any meaningful comparisons, you'd have to try and normalize the data across every resort. Look at the weighted average point cost per night for a given room class--remembering to account for the different "views" (since a BLT theme park room doesn't actually cost more to clean than a Standard View)--and then apply that normalized data to the dues charges. It's a pretty daunting project.
     
  20. dizfan

    dizfan DIS Veteran

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    Thanks Tim
     
  21. Rob S.

    Rob S. DIS Veteran

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    I've done that calculation for the resorts that I own (SSR, AKV, BLT & VWL). Using the information in the budget, I calculate the number of points at each resort along with the number of points in each vacation home (2BR equivalent). I've calculated the annual cost of housekeeping per vacation home in 2013 as follows:
    SSR - $11,668
    AKV - $13,219
    BLT - $17,344 (was $13,328 in 2012)
    VWL - $12,150

    The BLT number does stand out as high when compared to the others.
     

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