Disney's Long Term DVC Strategy

[Mirabell Rose]

Honestly, no up-front renovation is really even required, is it? They could pre-sell the existing rooms such that the new owners take possession on Feb 1, 2042, rent the unsold rooms that they own, and take blocks of their own rooms out of service a few at a time so they can renovate without closing the resort. As a buyer I'd want to know that the developer will eventually pay for renovations so it's not hitting the HOA's reserves after I've already paid a premium to acquire the new resort, but I don't think I'd care a ton about timeline.

Don’t they have to distribute any reserves they are holding back to the owners on termination? Under the 2025 law, they would then need to replace those reserves before they can start reselling the units.

 

[Cfabar1]

Honestly, no up-front renovation is really even required, is it? They could pre-sell the existing rooms such that the new owners take possession on Feb 1, 2042, rent the unsold rooms that they own, and take blocks of their own rooms out of service a few at a time so they can renovate without closing the resort. As a buyer I'd want to know that the developer will eventually pay for renovations so it's not hitting the HOA's reserves after I've already paid a premium to acquire the new resort, but I don't think I'd care a ton about timeline.

My personal theory is those resorts are so beloved and the location is ideal they could do nothing to the buildings, make no promises, and increase the points charts by 35-40% and no one would bat an eye and they'd sell out in record time...

BRV they might have to work a little harder...

In the event VB and HHI are kept, I can't imagine they'd do something meaningful to the rooms... maybe if we are lucky they'd add some additional amenities to those properties...

 

[Sandisw]

Honestly, no up-front renovation is really even required, is it? They could pre-sell the existing rooms such that the new owners take possession on Feb 1, 2042, rent the unsold rooms that they own, and take blocks of their own rooms out of service a few at a time so they can renovate without closing the resort. As a buyer I'd want to know that the developer will eventually pay for renovations so it's not hitting the HOA's reserves after I've already paid a premium to acquire the new resort, but I don't think I'd care a ton about timeline.

I actually didn’t even think about that but yes, they could do that, especially under the trust model they created.

Heck, they could decide to put both BWV and BCV into one RTU plan so one gets home resort at both….and do some at each?

They can’t keep any of the current reserves that belong to owners, but since they would be new resorts. it would be no different than how it works now.

They would be responsible for the intial costs of renovations, just like they pay for an initial build, except they’d be doing it slowly and not all at once.

 

[Mirabell Rose]

I actually didn’t even think about that but yes, they could do that, especially under the trust model they created.

Heck, they could decide to put both BWV and BCV into one RTU plan so one gets home resort at both….and do some at each?

They can’t keep any of the current reserves that belong to owners, but since they would be new resorts. it would be no different than how it works now.

They would be responsible for the intial costs of renovations, just like they pay for an initial build, except they’d be doing it slowly and not all at once.

It would be different in that since it is a 50 year old property they would need substantial reserves from the start. Newly built resorts are allowed to start with no reserves because they are new. The older the property the higher the reserve requirements.