Direct Purchase Question

[CaptainAmerica]

Dean and others have mentioned that if Disney winds up holding 30-50% of the resort in 2042, they might shutter some of the buildings (if they can swing it given the mix of unit ownerships) or use it for cast housing or otherwise restrict activities or reduce restaurant hours or such... Maybe it won't be that noticeable in 2043 but there are questions.

Why wouldn't they just rent the rooms to cash guests?

 

[stwaldman]

Why wouldn't they just rent the rooms to cash guests?

Not sure if there is a legal reason they couldn't as rooms come"offline", but a practical reason is that it's a large "deluxe" resort that requires a big price tag to run at that standard and there will be no more MFs to cover that cost. Disney has a bunch of deluxe resorts they already have enough trouble filling without an extra few hundred OKW units diluting the market.

So maybe converting to staff housing or a similar use that generates revenue from another disney entity is more palatable

 

[stwaldman]

Just quick math using dvchelp.com, there are a max of 761 units at okw (I assume the allocation of lockouts in 2043 may be impacted by which units expire). So if 30% of those are converted to cash rooms, you're adding over 200 rooms to your inventory in addition to what is already sold as breakage. But now Disney parks and hotels are on the hook for the cost, including shared resort costs, and not dvc members. This is just one angle, although maybe the more feasible approach is a rebrand or reworking of a portion of the resort, if you can actually pull enough buildings and real estate "offline" from DVC.

 

[davidl81]

I closed SSR at $102.50 a month ago. It's crazy how much prices have changed in such a short amount of time.

It really is. I’m guessing you started your process sometime in March if you closed a month ago. I just think that if someone goes looking into resale trying to get SSR at $110 right now it’s going to take a ton of time and likely multiple attempts to actually get done. Not impossible, but just need to have the understanding of where the current market is right now.