Big Doings at the Contemporary!

[Josh125]

I was at the world last week and asked about the "going-on" to a lot of people, ha. Not a single person flat out denied it, at worst they said they couldn't discuss it. My DVC guide even offered to put my on the list to contact once it's announced.

 

[nuts]

Since Disney is a public company, does anyone know how the revenue recognition works in regards to announcing and selling CRV? I know for my company, if we announce and sell a product that is not complete, we are not entitled to recognize the revenue on the sale of a product until it is commercially available. That affects our ability to do press releases and press tours for a product that may slip from one quarter to another. So the timing of announcements are directly tied to commercial availability. That being said, it seems that there are always loopholes. So I'm wondering if the same concerns even matter here- Does this work the same for timeshares? A previous comment on a building being 70% complete before they can sell it strikes me as perhaps a revenue recognition concern. That there is some sort of building completion metric that must be met before the accountants will give the OK to start talking about it. It may not matter that much on what unsold inventory remains at other units. The fact may be that bean counters don't want to announce and pre-sell CRV because they don't want to freeze sales of units that are commercially available today and that they won't be able to recognize the revenue of a pre-sale of a CRV unit until the unit is at some stage of reasonable completion in order to meet some sort of financial regulation. Public companies do not like non recognizable revenue.

That is just my hypothesis. I'm not an accountant, just know that revenue recognition rules are a pain in the rear end for my line of work.

Most of our discussions (this board) have not been on revenue recognition, but rather on Florida TimeShare laws. To prevent fraud (ie; pre-sell timeshare, then run off with the money without building something), Florida requires that a building be xx% complete before you can begin sales. However, you can certainly announce your intention to build at anytime...just can't pre-sell. As to revenue recognition...corporations are required to recognize the revenue in the period the sale took place (some exceptions do apply, but this is the basic rule). Where it gets tricky is when do you match the associated expenses against the revenue (to determine profit).

 

[BroganMc]

I was at the world last week and asked about the "going-on" to a lot of people, ha. Not a single person flat out denied it, at worst they said they couldn't discuss it. My DVC guide even offered to put my on the list to contact once it's announced.

Yeah, I get the same sort of reaction. A closed smile which means "I'd love to but I can't talk about it".

I hope when it does come down the line it is actually as amazing as all the anticipation builds it to be.

 

[RobDoc]

boy Doc you are wonderful!

my memory is definitely falling me.

I'd love to claim that I knew that from memory - but I actually depend on a chronology written down with most of the DVC pricing and resort dates.

It's tough enough for me to remember what year it is, let alone when VWL began sales!

 

[Good Ol Gal]

I'd love to claim that I knew that from memory - but I actually depend on a chronology written down with most of the DVC pricing and resort dates.

It's tough enough for me to remember what year it is, let alone when VWL began sales!

ok, you have powers that amaze me... I know I saw this post posted three times!

 

[RobDoc]

ok, you have powers that amaze me... I know I saw this post posted three times!

Yeah, no one on here is immune from slow boards and multiple posts!

 

[SSRFred]

I wonder when 70% of the exterior will be done....

 

[spiceycat]

I wonder when 70% of the exterior will be done....

hopefully May - when the next annoucement is surpose to happen.

 

[SSRFred]

With the other DVC's, how soon after announcement were they offered for sale?

 

[tomandrobin]

hopefully May - when the next annoucement is surpose to happen.

I hope its in the fall, need more time to work on wife and save money.

 

[gmboy95]

I wonder where there hiding the 70% of eagle Pines Villas

 

[SSRFred]

I wonder where there hiding the 70% of eagle Pines Villas

The Pines resort is coming, even though many of us won't be able to afford ever staying there. Brother Bill and the Prince will make sure it is built.

 

[nuts]

With the other DVC's, how soon after announcement were they offered for sale?

Varies. They announced the GCV last September, but don't anticipate sales to begin for a year. They announced Eagle Pines 7 years ago, and still no sales

 

[spiceycat]

The Pines resort is coming, even though many of us won't be able to afford ever staying there. Brother Bill and the Prince will make sure it is built.

I though that was now the 4 seasons (or whatever company brought it) area.

 

[SSRFred]

I though that was now the 4 seasons (or whatever company brought it) area.

That's what I meant regarding affordability, they will be Four Seasons not DVC. Bill Gates and Prince Al-Waleed (of Eurodisney fame) are the driving forces of the Four Seasons suites. Last I read , they want to have it up in 2010.

As for the Contemporary, we'll see if management reveals anything else about the villas during the earnings call on Feb. 5.

 

[sjdisneywedding]

Actually, not really true. Again, there are people that are in the DVC sales office now that would say "I will wait for CRV" instead of buying what is available.

actually my belief was that as soon as its ready to be sold(if its DVC) it will be announced. they are not going to build a new resort building and have it sit there unannounced and not sell it, it doesnt matter if SSR and/or AKV is sold out or not

so you would not have anyone calling the sales office saying I will just wait for CRV

 

[SSRFred]

actually my belief was that as soon as its ready to be sold(if its DVC) it will be announced. they are not going to build a new resort building and have it sit there unannounced and not sell it, it doesnt matter if SSR and/or AKV is sold out or not

so you would not have anyone calling the sales office saying I will just wait for CRV

I would have to agree. When it's ready they will announce, possibly six months before. With a new level going up every 3 weeks or so, we have at least 30 weeks left just to get the skeleton up.
I believe the delay in announcing has to do with the Disney stock valuation leading into this year. 2007 was a banner year, aided in part by DVC sales. The timeshare industry as a whole is doing extremely well. However, we are heading into tough times in the market. My belief is that on one hand, construction is at a furious pace so as not to miss the boat (AKV and CRV should be completed about the same time, it just makes money sense in regards to construction). On the other hand, Disney wants good news to relieve some of the pressure of maintaining earnings expectations in relation to 2007, especially in this current market.