Annual Meetings & Minutes

[BobH]

Does anyone know if there is information available to members on how many rooms are rented out by DVC on a cash basis in a given year? Does this information show up in the annual budget statements? I remember reading (can't remember where) that DVC makes about 4% of the rooms at a resort available for cash reservations. Anyone know if this 4% number is correct? I'd be interested in learning more about what is going on within my home resort than I am given in the annual budget estimate that gets mailed to my home.
Thanks.

 

[DVC Mike]

The number of points that DVD retains is no less than 2%. The actual number for each resort can be found in the estimated annual budgets that were mailed out. In the one for BWV, as an example, note #4 (related party transactions) shows the number of BWV points that DVD currently owns, as well as the number of points that DVC currently has available for sale.

DVC can also rent out units owned by members but not otherwise utilized. Rather than letting a unit sit empty, DVC makes it available for cash ressies. This income is "breakage income", and is noted in the annual budgets for each resort.

There are also the points that have been deposited for cash conversion due to exchanges by members. I don't think this is noted in the budget anywhere.

 

[RobDoc]

No, Disney does not release specific detailed information about rentals. DVD does retain 2-4% of the rooms at each DVC resort and those rooms are mostly used to replace member rooms taken out of inventory during renovations. In addition, Disney also is able to rent any rooms not declared into member inventory - currently this would only apply to undeclared/unsold rooms at SSR and AKV. DVC also has an inventory of rooms available from ROFR and foreclosed ownerships - and no information is publicly available about those numbers either.

The bulk of the cash availability comes from rooms made available by members for non-DVC options using points. The points used for the cruise, other Disney resorts and the Concierge Collection are converted into cash availability thru CRO. Those rentals do not appear in the DVC budgets.

At 60 days before any given date, any DVC rooms not reserved using member points are made available to CRO for cash reservations. Income from those rentals does appear in the annual budget under "Breakage Income". There is a prescribed limit for that income and CRO does also get a % of the income for their efforts in renting the rooms, but the income is used to defray member dues. No specific information about these "Breakage" rentals is published, but the income is certainly reported in the annual budget.

The projected "Breakage Income" at OKW for 2007 was $688,548.

 

[BobH]

Thanks Mike & Doc for your comments. I'll be able to understand my annual budget report much better now. Did most of your knowledge on this subject come from analyzing your initial offering statement from DVC or from other sources. Disney gives "behind the scenes tours" I'll bet that there is a lot more information about the resorts financial operation that the majority of DVC memebers may not understand. Thanks for the help.