Disney selling off hotels?

[GrandmaDeb]

We stayed at Kidani Village in October. We had a great time, can't wait to get back there again in January. ANYWAY - on one of our trips to the parks we were chatting with the driver. He told us Disney was looking to sell off thier hotels and only keep DVC resorts. He said drivers were upset becasue it would mean the new hotel owners would have to provide their own shuttles like off site resorts do and Disney would be laying off drivers. To me, it makes no sense because some resorts are "connected" to DVC. I wonder if this is just one of those rumors that gets started among employees? Just curious if anyone else had heard anything about this.

 

[TDC Nala]

Disney bus drivers are known to say all sorts of things - don't know whether they heard this stuff somewhere or they are having some fun with the guests. Maybe a little of both. At any rate I have heard enough that I do not consider Disney (or Mears) bus drivers to be a reliable source regarding anything to do with Disney management.

 

[YourEveryDayAdam]

Don't believe anything the bus drivers say.

 

[dianeschlicht]

Don't beleive the drivers, they aren't even real Disney employees anymore! They are outsourced personel.

 

[logan115]

On our last trip one of the drivers told us the next bus would be here in 10 minutes, after 30 minutes ,I decided to take anything else they said with a grain of salt.

Chris

 

[drusba]

I always like rumors because it is then fun to guess whether they can have any plausibility. This one does not really pass the smell test because I cannot think how Disney would even consider essentially giving up control of Disney World to others in this way. Moreover, it has even been considering trying to take back Swan/Dolphin rather than ridding of others. I could see the potential of selling or leasing a (not all) value or moderate resort if it wanted to (it did long ago enter into a long term lease of the Disney Inn, now Shades of Green, to the government) but it is unimaginable that it would ever consider giving up all its resorts.

 

[hakepb]

I would never say never. At one point, I sure some wondered why a state would ever consider selling their own roads, but there are now many privately operated toll roads.. I'm certain that if Disney ever thought total profit would permanently incease by selling its own resorts, they'd entertain offers. It will be interesing to see what Disney does as resorts age and require major infrastructure renovations...

As far as splitting DVC and CRO, would seem very difficult due to shared properties/sevices (especially the "DVC only", (no BWI, YC, VWI..) bus sevice the driver mentioned) unless they are splitting off mods and values and keeping Deluxe/DVC

 

[Dean]

While on one hand it's hard to imagine this happening in any variation or form, the rumors are starting to have a more ominous sound to them.

 

[thesupersmartguy]

Bus drivers are much like Boat Drivers. Don't believe anything untill it's confirmed by Disney.

 

[mel&me]

I just love some of the rumors
you can get from the bus drivers,

 

[GrandmaDeb]

I would never say never. At one point, I sure some wondered why a state would ever consider selling their own roads, but there are now many privately operated toll roads.. I'm certain that if Disney ever thought total profit would permanently incease by selling its own resorts, they'd entertain offers. It will be interesing to see what Disney does as resorts age and require major infrastructure renovations...

As far as splitting DVC and CRO, would seem very difficult due to shared properties/sevices (especially the "DVC only", (no BWI, YC, VWI..) bus sevice the driver mentioned) unless they are splitting off mods and values and keeping Deluxe/DVC

That is along my line of thinking, too. It would be difficult to sell off the deluxe resorts with DVC connected. Disney Inn/Shades of green was the oldest resort ( I believe) and I seem to remember hearing that the gov't did extensive infrastructure renovations before reopening, so selling off the older moderate/value resorts makes some sense. And I know not to believe most of what the drivers say ( one actually told us he could turn the bus into a parking lot - LOL we all groaned! - just wanted to put it out there as a topic of conversation.

 

[marynvince]

to DC Comics.

 

[BroganMc]

While on one hand it's hard to imagine this happening in any variation or form, the rumors are starting to have a more ominous sound to them.

Please!

Think about it. If it was true Disney sold off their hotels, and if that meant the hotels would have to provide their own Disney shuttle services, then who do you think the hotels would hire to drive their shuttle busses? Why, ex Disney bus drivers looking for a job.

So this rumor fails in the logic test from the getgo. Bus drivers are upset they may lose their jobs? But the change would just mean a shift in employer. Same job, different benefits.

Disney won't sell off their hotels. No more than they'll drop Magical Express. It's the best way they have of ensuring tourist dollars go in their pockets vs. Universal, Seaworld or the dozen other tourist attractions and hotel chains in the area.

Now what I can see happening is that Coronado, Caribbean Beach and Port Orleans get demolished in part to make way for the next onsite DVC. That would cut the number of guests at a resort in the building phase and therefore maybe cut the demand for all those bus drivers. But just for a time.

Also in Orlando, you have to remember how depressed the area is. They've been hit really hard by this recession. Almost everyone living there has a bit of Chicken Little syndrome kicking in.

 

[mgroshans]

to DC Comics.

 

[DVCconvert]

.....we were chatting with the driver. He told us Disney was looking to sell off thier hotels and only keep DVC resorts. He said drivers were upset becasue it would mean the new hotel owners would have to provide their own shuttles like off site resorts do and Disney would be laying off drivers.....

I seen a peanut stand
And heard a rubber band
I seen a needle that winked it's eye
But I been done seen about everything
When I see a elephant fly

I seen a front porch swing
Heard a diamond ring
I seen a polka dot railroad tie
But I been done seen 'bout everything
When I see a elephant fly

I saw a clothes horse he r'ar up and buck
And they tell me that a man made a vegetable truck
I didn't see that, I only heard
But just to be sociable I'll take your word

I heard a fireside chat
I saw a baseball bat
And I just laughed til I thought I'd die
But I been done seen 'bout everything
When I see a elephant fly

But I been done seen 'bout everything
When I see a elephant fly
(With the wind)
When I see a elephant fly

 

[Dean]

Please!

Think about it. If it was true Disney sold off their hotels, and if that meant the hotels would have to provide their own Disney shuttle services, then who do you think the hotels would hire to drive their shuttle busses? Why, ex Disney bus drivers looking for a job.

So this rumor fails in the logic test from the getgo. Bus drivers are upset they may lose their jobs? But the change would just mean a shift in employer. Same job, different benefits.

Disney won't sell off their hotels. No more than they'll drop Magical Express. It's the best way they have of ensuring tourist dollars go in their pockets vs. Universal, Seaworld or the dozen other tourist attractions and hotel chains in the area.

Now what I can see happening is that Coronado, Caribbean Beach and Port Orleans get demolished in part to make way for the next onsite DVC. That would cut the number of guests at a resort in the building phase and therefore maybe cut the demand for all those bus drivers. But just for a time.

Also in Orlando, you have to remember how depressed the area is. They've been hit really hard by this recession. Almost everyone living there has a bit of Chicken Little syndrome kicking in.

As I said, unlikely but the method of these rumors is starting to be a little more concerning. This is not a CM playfully spouting the next rumored DVC resorts or perk, this is CM's that would not mention this type of issue just to pull our leg, they have to have some question and concern themselves to mention it. Not to say it'll happen, I doubt it will, but to say this can't happen is overstating the certainty. Some made the same absolute statements about re-allocations, reservation changes and valet parking in the past. I choose to keep an open mind and evaluate the information that comes in.

 

[BroganMc]

Some made the same absolute statements about re-allocations, reservation changes and valet parking in the past. I choose to keep an open mind and evaluate the information that comes in.

Who's helped by all those changes?

Point re-allocations: they raise the number of points needed per contract so must buy more points

Reservation changes: discourage DVC commercial renters who directly compete with Disney CRO

Valet Parking Freebies eliminated: Disney doesn't have to pay for the service anymore, members do

Valet Parking subcontracted: Disney doesn't have to pay salaried employees with full benefits

Who benefits from hotel sales and their subsequent room rentals? Disney gets a short time payout, reduces labor costs but all future profits go to the outsourced hotel chain. The best Disney can hope for is some major lease money for the property.

 

[Dean]

Who's helped by all those changes?

Point re-allocations: they raise the number of points needed per contract so must buy more points

Reservation changes: discourage DVC commercial renters who directly compete with Disney CRO

Valet Parking Freebies eliminated: Disney doesn't have to pay for the service anymore, members do

Valet Parking subcontracted: Disney doesn't have to pay salaried employees with full benefits

Who benefits from hotel sales and their subsequent room rentals? Disney gets a short time payout, reduces labor costs but all future profits go to the outsourced hotel chain. The best Disney can hope for is some major lease money for the property.

Re-allocation has nothing to do with profit, it has everything to do with evening out demand and usage. I don't see where the reservation change affects renters really other than to possibly encourage them to do reserve first then rent which likely has the opposite effect you suggest. Disney wasn't paying for the valet for DVC anyway from what info I've gotten so far. So you'd be O fer with this list as support for money out of their pocket being the main motivation for DVC in these changes (valet would have come out of members pocket).

As I said, I'm keeping an open mind though don't expect this type of change. However, to discuss possible benefits to Disney for such changes would not be difficult. Same as you state about the Valet's, park patrons without risk or liability. They could contract out the management of any resort or resorts and still have all the guests spending money on all other options. Same goes for selling the resorts outright. They could even go for a royalty yearly and it would not surprise me if they could get more profit from a yearly royalty than they do currently on the resorts themselves AND have the initial influx of money. That would also allow them to divest themselves of some additional costs including transportation, laundry, housekeeping, etc. Ultimately it comes down to the $$$ and control. Disney is all about control which is the main argument against this rumor, $$$ would likely be better on the side of the rumor though we really don't have enough info to know more than simple speculation on that side.

 

[Micca]

WDW bus drivers get paranoid because they know the people-mover could replace them at any time

 

[zev]

I am suprised by how many are saying no way to this. It may not be right now but it could happen. Look at what they have already done. PI and some of DTD in private hands. Additional private hotel development on property besides what is already in place. Outsourcing of all sorts of services. It is the classic landowner no longer wanting to run the whole lot but willing to sell/rent the space and collect the money. I am sure there are all sorts of conditions, covanents language etc just like our own DVC contract that would let them step back in for whatever reason. If people still pay and still think of the overall experience still a Disney brand they would not care who is running it if its more profit for them. Welcome to the world of the Disney franchise. I want to be the owner/operator of the Haunted House!!! Oh and all the mountains!! HAHAHAHA!