Disney's Long Term DVC Strategy

[PolyRob]

I don't remember the exact details, but significant parts of Downtown Disney were closed for the building of a 4 or 5 star resort. It took out the movie theater, ESPN, and the Rainforest Cafe, as well as some smaller stuff. It was not going to be a DVC and was going to be the nicest/most expensive hotel in Anaheim. It was rumored to have an entrance to Galaxy's Edge in Disneyland. I think Rainforest Cafe was going to be the lobby restaurant or at least one of the restaurants at the hotel.

Disney and the City of Anaheim had lots of negotiations and when it was said and done, the city gave more than they wanted to. Somewhere in the permitting process, it was realized that the address of the hotel was wrong and the paperwork was nulled. The City didn't want to give Disney the discounts that the first contract held. Both sides played hardball and the project was thrown out.

Will the City of Anaheim give a special deal to Disney in the future? Who knows. Anaheim as a city was literally nothing without Disney. It's one of the main human trafficking hubs in the nation and full of addiction and crime. The City is absolute crap. Maybe they feel like they are special with the convention center at this point and with Angel's stadium. I would think that they would support the growth of Disney and I guess they are now with Disneyland Forward, allegedly.

Definitely which is why I think it would make sense that Disney could have some bargaining power with such a large expansion.

I made a thread about ToT within the past year and was referred to this thread: https://www.disboards.com/threads/d...ent-occupancy-tax-blame-disney-sorta.3920220/

Very informationational. It seems like the previous resort was going to be given the same discounted ToT as VCG, but Disney didn't want to follow wage requirements at that time.

 

[VGCgroupie]

Maybe, but the percentage tax on a $200 hotel room (or even better, one booked on points) is way less than the TOT at VDH...

Harbor $200 hotels are not in the same league as a Disney hotel so the comparison is null.

If you stayed at a hotel that was the same cost per night as VDH you would pay MORE in taxes since the TOT amount is much lower than the taxes charged at Disney on cash and as the surrounding hotels.

Know your facts.

 

[Brian Noble]

It's one of the main human trafficking hubs in the nation and full of addiction and crime.

I've been to Anaheim---and not just the parts around DLR---and while it is not Brentwood, it's also not Oakland. Or San Francisco. Or Las Vegas. Or even Detroit, a city I visit weekly.

 

[Tatebeck]

People say its wasnt possible because of the city not letting them do this anymore. I dont know enough about it to comment but the dues are already high enough for me not to want tot rolled in unless they lowered them and theyre not gunna do that for a future resort i dont think

VGC Dues are still cheaper than VDH even WITH the TOT included though. And as has already been mentioned they have a much lower percentage TOT as well.

 

[Tatebeck]

I've been to Anaheim---and not just the parts around DLR---and while it is not Brentwood, it's also not Oakland. Or San Francisco. Or Las Vegas. Or even Detroit, a city I visit weekly.

Agree. I have seen someone get in a knife fight/standoff on the street corner in SF just over a long weekend visit. Haven't seen anyone get stabbed at Disney yet!

 

[VGCgroupie]

VGC Dues are still cheaper than VDH even WITH the TOT included though. And as has already been mentioned they have a much lower percentage TOT as well.

Times have changed. Taxes like what were negotiated for VGC will never be that low ever again. The TOT sucks but it's just the cost of stying in CA. Just like VGC is VERY expensive up front compared to any other DVC property, it's the cost of staying in CA.

 

[Girlstar30]

VGC Dues are still cheaper than VDH even WITH the TOT included though. And as has already been mentioned they have a much lower percentage TOT as well.

Everything is relative. The high upfront cost still makes vgc the more expensive choice initially for some years and vdh has duo studios and during holiday times the amount of points needed to stay is much cheaper on one bedrooms and above. I think vdh is a great choice for some that want a cali resort over vgc for many reasons. For us, it definitely made sense. I havent even closed my direct contract yet and I just completed my 4th stay

 

[Girlstar30]

VGC Dues are still cheaper than VDH even WITH the TOT included though. And as has already been mentioned they have a much lower percentage TOT as well.

You cant compare a $200 harbor hotel to the disneyland hotel which is much more expensive for a reason. Besides location location location it has way more amenities and appeal than your average harbor offsite hotel

 

[Brian Noble]

It's not just location, because some of those hotels on Harbor are closer to the Esplanade than DLH is.

DVC is a niche product. The west coast resorts are a niche-within-a-niche.

 

[VGCgroupie]

Yes thats like saying to any DVC owner why buy DVC when you can just stay at All Star Sports. Why pay CFW high dues when you can rent a camping spot at the Fort. Harbor and the surrounding area hotels is just not the same as staying at a Disney hotel regardless of the distance to the turnstiles. There are some nicer options like the Westin, but again the % of taxes charged there is MUCH higher than the % charged via the TOT tax at VDH.

I am not a VDH apologist just because I own there. I fully admit all of VDH's faults. The TOT is just a CA reality and shouldn't be the sole reason to not own VDH or say thats why its resale value will tank. Its only competition VGC is much more expensive up front and expires much sooner. Any new DVC property in CA will have the same TOT at checkout. If you dont want that then pay more up front for VGC, fight at 7 months for a place to stay or just dont stay Disney

 

[cruisehopeful]

Maybe, but the percentage tax on a $200 hotel room (or even better, one booked on points) is way less than the TOT at VDH...

That's true. Fwiw, the last 2 times I stayed at the Disneyland hotel before VDH was built, I paid $850-$1,000/ night. Granted, I stayed in club rooms, but I also paid the tax on those rates.

 

[Girlstar30]

Yes thats like saying to any DVC owner why buy DVC when you can just stay at All Star Sports. Why pay CFW high dues when you can rent a camping spot at the Fort. Harbor and the surrounding are hotels is just not the same as staying at a Disney hotel regardless of the distance to the turnstiles. There are some nicer options like the Westin, but again the % of taxes charged there is MUCH higher than the % charged via the TOT tax at VDH.

I am not a VDH apologist just because I own there. I fully admit all of VDH's faults. The TOT is just a CA reality and shouldn't be the sole reason to not own VDH or say thats why its resale value will tank. Its only competition VGC is much more expensive up front and expires much sooner. Any new DVC property in CA will have the same TOT at checkout. If you dont want that then pay more up front for VGC, fight at 7 months for a place to stay or just dont stay Disney

Everything i was thinking put into words perfectly

 

[VGCgroupie]

Did a comparison of a 1 bedroom in Anaheim

1 bedroom at the Westin tax charged is $139.18
1 bedroom at VDH paying cash tax charged is $243.95
1 bedroom at VDH using points paying TOT $142.08

The cash cost of VDH comes to $1435 before taxes for a room. The cash cost for Westin is $809. As you can see the TOT % is much lower than traditional taxes paid while staying cash.

Cash tax charged is approx 17.2%
TOT is approx 9.9%



Westin



Direct w/ Disney

 

[Girlstar30]

Did a comparison of a 1 bedroom in Anaheim

1 bedroom at the Westin tax charged is $139.18
1 bedroom at VDH paying cash tax charged is $243.95
1 bedroom at VDH using points paying TOT $142.08

The cash cost of VDH comes to $1435 before taxes for a room. The cash cost for Westin is $809. As you can see the TOT % is much lower than traditional taxes paid while staying cash.

Cash tax charged is approx 17.2%
TOT is approx 9.9%



Westin
View attachment 1059135


Direct w/ Disney
View attachment 1059136

This and the fact that even if the tot was higher which amazing that its not, I still want to stay at Disney which is why I bought DVC as you mentioned. I would not be excited to stay outside of the bubble. I mean yeah I can do things in life that are cheaper that I dont like but what is the point of that. I tried that before and I am much happier staying at Disney

 

[VGCgroupie]

This and the fact that even if the tot was higher which amazing that its not, I still want to stay at Disney which is why I bought DVC as you mentioned. I would not be excited to stay outside of the bubble. I mean yeah I can do things in life that are cheaper that I dont like but what is the point of that. I tried that before and I am much happier staying at Disney

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