Are DVC Resorts actually built using the sales of points?

[jade1]

Was wondering if anyone knows how much the "owners" of a specific resort actually pay for the construction of the resort. I realize they are being built with Disney dollars and the land is already paid for, but if the VWL for example cost X dollars, the points sold generated X dollars. Or is it a partial percantage or a profit from day one. Just wondering.

 

[BillPA]

I don't know the real numbers, but if you multiply the cost per point by the total in a resort, Disney must be making a very nice profit. If not they would have never made BWV and the rest after OKW.
Example: a 2BR at SSR for the full year is 15,116 points. Current price $98 that's $1,481,368. Does anyone think it's cost anywhere close to that to build? Oh I bet Disney is making a wonderful profit!

 

[DVCconvert]

I bet Disney is making a wonderful profit!

As confirmed by the last finacials put forth by TWDC.
DVC "works" for the company.

 

[Dean]

It depends on the resort in question. For phased resorts like OKW, SSR and even VB and HH; DVD ante's up then they use the proceeds to fund the ongoing project. Either way it's their money they use and they take ours to put in their pocket. Timeshares usually have a profit margin in the 30-40% range from what I can tell. Plus they make money on the management and CRO rentals as well as a few incidentals.

 

[gjw007]

It depends on the resort in question. For phased resorts like OKW, SSR and even VB and HH; DVD ante's up then they use the proceeds to fund the ongoing project. Either way it's their money they use and they take ours to put in their pocket. Timeshares usually have a profit margin in the 30-40% range from what I can tell. Plus they make money on the management and CRO rentals as well as a few incidentals.

I would be curious if that percentage was a little higher for RTU properties like Disney. After all, at the end of certain period of time, it comes back to Disney essentially being paid for by the DVC members and maintained by the DVC members. You also have to look at the other side of what they would have made if they just built it as a motel and rented the rooms over the same period. What type of profit is made with this scenario versus the RTU scenario.