Contract Extension

[tx2tn]

I understand that Disney offered owners of OKW an extension of their existing contract until 2057.

Is Disney expected to offer this to the other DVC resorts? If so, what was the cost and when would they do this?

 

[Chuck S]

I think OKW was a test case to see how it was received by the owners. There has been no indication from DVC as to whether the other resorts will be extended.

Some things to consider at the other resorts:

1) While DVC has a ground lease, Disney Resorts may have other plans for those areas in the future, especially since most are shared DVC/Cash resorts. If the "attached" cash resorts need major repairs/refurbishment/replacement it would make sense that the DVC units would also be closed down.

2) If the OKW response was not as great as DVC expected (and we don;t know what their target extension sales were) they may not deem it as a profitable undertaking at the other resorts.

The approved price for the extension was $25. However, for the first few months,it was offered to owners for $15 per point, and I believe they are currently offering $20 per point. No word when the full $25 may kick in.

Of course, the other resorts could certainly be offered at a different price, if DVC decides to extend.