Disney's Polynesian Villas & Bungalows Timeshare License Approved

[TSMIII]

The state approved DVC's timeshare license for the Poly Villas yesterday.
Hopefully the below link to the state's website works:

https://www.myfloridalicense.com/LicenseDetail.asp?SID=&id=2969D0AA1BAF1F1B7B8331BEE10CFBB0

 

[bwvBound]

So '8262 timeshare weeks' equates to what? If we divide by 51 weeks/year (allowing 1 week for maintenance) ... we might see 162 units?

 

[wdrl]

So '8262 timeshare weeks' equates to what? If we divide by 51 weeks/year (allowing 1 week for maintenance) ... we might see 162 units?

You have a sharp eye, bwvbound.

I looked at the license for VGF and it showed 5,100 timeshare weeks on its license. VGF has 100 vacation homes, so by multiplying 100 by 51 weeks, you get the number of timeshare weeks shown on the license.

Previous documents showed Polynesian Villas and Bungalows would have 20 over-the-water bungalows. That would leave 142 vacation homes in the renovated Tahiti, Rapa Nui, and (I assume) the Tokelau Longhouses.

There was some speculation that Disney was going to convert the hotel rooms in Tahiti, Rapa Nui, and Tokelau to studios. However, if there are only 142 vacation homes in the longhouses, then it appears to me as if some of the hotel rooms are being converted to larger two-bedroom dedicated and/or lock-off villas.

By the way, even if the Polynesian Villas and Bungalows has 162 vacation homes, we can't tell how many villas it will have. VGF has 100 vacation homes but 147 villas: 6 Grand Villas, 47 dedicated two-bedroom vacation homes, and 47 lock-off vacation homes. Since the lock-off can be booked as studios or one-bedrooms, the maximum number of villas at VGF is 147.

 

[Dean]

You have a sharp eye, bwvbound.

I looked at the license for VGF and it showed 5,100 timeshare weeks on its license. VGF has 100 vacation homes, so by multiplying 100 by 51 weeks, you get the number of timeshare weeks shown on the license.

Previous documents showed Polynesian Villas and Bungalows would have 20 over-the-water bungalows. That would leave 142 vacation homes in the renovated Tahiti, Rapa Nui, and (I assume) the Tokelau Longhouses.

There was some speculation that Disney was going to convert the hotel rooms in Tahiti, Rapa Nui, and Tokelau to studios. However, if there are only 142 vacation homes in the longhouses, then it appears to me as if some of the hotel rooms are being converted to larger two-bedroom dedicated and/or lock-off villas.

By the way, even if the Polynesian Villas and Bungalows has 162 vacation homes, we can't tell how many villas it will have. VGF has 100 vacation homes but 147 villas: 6 Grand Villas, 47 dedicated two-bedroom vacation homes, and 47 lock-off vacation homes. Since the lock-off can be booked as studios or one-bedrooms, the maximum number of villas at VGF is 147.

Lock offs are counted as the larger full unit for legal purposes, same for the POS.

 

[wdrl]

I did some more checking on the Florida Department of Business and Professional Regulation website. DVD's licensing for VGF was relatively simple and straightforward. It was issued a license on January 30, 2013, for all 100 vacation homes that were ultimately built at the resort. DVD starting selling VGF about four months after receiving the license and it opened VGF about nine months after the license was issued.

But DVD's licensing process for Bay Lake Tower was quite different. DVD received its initial license for BLT on January 30, 2008. Sales for BLT did not start until eight months later in September 2008 and the resort did not open until August 4, 2009, about 18 months after the initial license was issued.

Unlike VGF, DVD did not include all of BLT in its initial licensing filing in January 2008. At first, only 3,825 timeshare weeks -- 75 vacation homes -- were part of the initial license. DVD filed five amendments to its original license, two before the resort opened and three after it was operating, before it finally arrived at BLT's current capacity of 14,331 timeshare weeks for 281 vacation homes.

Given the different approaches DVD took with licensing BLT and VGF, the fact that it has received a license to sell the Polynesian Villas and Bungalows doesn't tell us much about when sales might begin or even how large the resort will be.

 

[wildforgoofy]

So now that there is some information out about the poly DVC explain it to a girl who's clueless. Where does it size up with the VGF? It sounds like it's bigger then people expected. Does that mean it won't be as hard to get a room without owning as some have predicted?

 

[disneynutz]

I did some more checking on the Florida Department of Business and Professional Regulation website. DVD's licensing for VGF was relatively simple and straightforward. It was issued a license on January 30, 2013, for all 100 vacation homes that were ultimately built at the resort. DVD starting selling VGF about four months after receiving the license and it opened VGF about nine months after the license was issued.

But DVD's licensing process for Bay Lake Tower was quite different. DVD received its initial license for BLT on January 30, 2008. Sales for BLT did not start until eight months later in September 2008 and the resort did not open until August 4, 2009, about 18 months after the initial license was issued.

Unlike VGF, DVD did not include all of BLT in its initial licensing filing in January 2008. At first, only 3,825 timeshare weeks -- 75 vacation homes -- were part of the initial license. DVD filed five amendments to its original license, two before the resort opened and three after it was operating, before it finally arrived at BLT's current capacity of 14,331 timeshare weeks for 281 vacation homes.

Given the different approaches DVD took with licensing BLT and VGF, the fact that it has received a license to sell the Polynesian Villas and Bungalows doesn't tell us much about when sales might begin or even how large the resort will be.

BLT was built with Jim Lewis in charge, VGF with Ken Potrock. My guess is that the Poly will have similar timing to VGF.

Bill

 

[wdrl]

BLT was built with Jim Lewis in charge, VGF with Ken Potrock. My guess is that the Poly will have similar timing to VGF.

Bill

You are probably right, Bill.

The Tahiti and Rapa Nui Longhouses were taken out of operation late last year (November '13?), so DVD has been working on their conversion to DVC vacation homes for several months. Many people say that the conversion of the Jambo House hotel rooms to Animal Kingdom Villas took about nine months. I would think DVD will have Tahiti and Rapu Nui converted to villas at least by the end of this year, if not sooner.

Since Disney is undertaking a number of major renovations at the Poly resort, including the main pool and Ceremonial House, perhaps it will wait until those projects are completed before it opens the DVC portion of the resort. Reports are that those non-DVC projects may not finish until mid-2015.

However, if the converted longhouses are completed by December 2014, I wonder if Disney would delay bringing them online until mid-2015? It could be losing 4-6 months of revenue, if not more, from some very prime real estate. I'm sure there will be pressure from within Disney to make this inventory as productive as possible and as soon as possible.

 

[disneynutz]

You are probably right, Bill.

The Tahiti and Rapa Nui Longhouses were taken out of operation late last year (November '13?), so DVD has been working on their conversion to DVC vacation homes for several months. Many people say that the conversion of the Jambo House hotel rooms to Animal Kingdom Villas took about nine months. I would think DVD will have Tahiti and Rapu Nui converted to villas at least by the end of this year, if not sooner.

Since Disney is undertaking a number of major renovations at the Poly resort, including the main pool and Ceremonial House, perhaps it will wait until those projects are completed before it opens the DVC portion of the resort. Reports are that those non-DVC projects may not finish until mid-2015.

However, if the converted longhouses are completed by December 2014, I wonder if Disney would delay bringing them online until mid-2015? It could be losing 4-6 months of revenue, if not more, from some very prime real estate. I'm sure there will be pressure from within Disney to make this inventory as productive as possible and as soon as possible.

Disney wants the DVD/DVC cash to flow as soon as possible, that's why converting existing buildings is popular. I find it interesting that Disney wants the short term sales income instead of the longer term CRO room booking income. Converting existing buildings reduces the available CRO inventory and makes it harder for Disney's cash guests to get a room.

Bill

 

[Reddog1134]

Converting existing buildings reduces the available CRO inventory and makes it harder for Disney's cash guests to get a room.

Which will allow Disney to charge more for the rooms.

 

[disneynutz]

Which will allow Disney to charge more for the rooms.

I would think that having more guests staying at a deluxe resort would make more money than higher room rates.

Disney is all about increasing attendance, that is one of the designs of MDE/MB's. Iger was all excited because MDE/MB's increased the MK attendance at Christmas by 3000 people. Taking rooms away would seem to be counter productive.

Bill

 

[Reddog1134]

I would think that having more guests staying at a deluxe resort would make more money than higher room rates.

But, as you said, reducing the number rooms makes them harder to get. If they increase the price to reduce the demand but still maintain their occupancy rate, it's a win-win for Disney.

 

[Lorilais_mommie]

I find this very interesting.. Still not buying in..
But of there are some larger villas, might be worth a night or two..

 

[Disney On The Bayou]

Disney wants the DVD/DVC cash to flow as soon as possible, that's why converting existing buildings is popular. I find it interesting that Disney wants the short term sales income instead of the longer term CRO room booking income. Converting existing buildings reduces the available CRO inventory and makes it harder for Disney's cash guests to get a room.

Bill

I'm sure Disney makes a good sum on its hotel operations, however, with DVC they can share the CRO expenses of a resort and have some consistency in revenue for general maintenance. Assume another period like the immediate aftermath of 9/11 and Disney doesn't have to handle the burden on their own. Plus I think in the case of the Poly, it was reported there was an asbestos issue that needed to be resolved. What better way to offset those expenses, then to just add the cost to re mediate to the cost of the new DVC project. Saves the Poly CRO from having to take that hit.


I think the whole DVC thing is just such a great cash cow for Disney. People only want to buy your product at your flagship operation in Florida, where you control almost all the expenses and reap the greatest reward when the owners visit their timeshare. However, as an owner, I'm very happy with the product they have sold me, capitalism working at its best!

 

[DenLo]

I don't think Disney really completes in the deluxe resort room in Orlando. There are many other resorts nearby that have more luxurious rooms. And more are being built daily. A 43 year old hotel that needs some heavy remodeling is an expense Disney doesn't want to put out so they bring in DVC and use the DVC cash to help pay for the remodel. And then DVC also helps with the ongoing expenses.

Now back to the subject, the number of rooms at the Poly, I suspect that the license is for the entire DVC longhouses plus bungalows. Although I would like that Tahiti would have nothing but studios that connect, it would make more sense that DVC would not pick the Tahiti longhouse for these type of rooms. Tahiti is the only one of the three DVC buildings that will have a view of thelagoon. And DVC would not want to limit the view category to only studios. It makes much more sense that all of the DVC rooms will have 2BR lockoff configuration with limited number of dedicated 2BRs. So that would mean that the 162 vacation homes will probably represent mainly 2BRs with an occasional dedicated studio or possibly 1BR.

Most of the DVC Declarations define this unit as

Vacation Home shall mean and refer to those portions of a Unit designed intended for separate use and occupancy.

A unit is not defined as a 2BR unit in case there are few dedicated studios or an extra one bedroom that cannot be configured into a 2BR unit. But it true that usually a unit represents a 2BR (either a dedicated or lockoff). But it could easily mean 142 studios in the Tahiti building.

 

[Disney Spaz]

I noticed it said that it expired on Jan 1, 2015 which happens to also be the date the VGF was set to expire. Does that have any factor on when sales have to start or possible room occupancy start time?

 

[wdrl]

I noticed it said that it expired on Jan 1, 2015 which happens to also be the date the VGF was set to expire. Does that have any factor on when sales have to start or possible room occupancy start time?

None whatsoever. All the licenses seem to expire within a year or so, but are then renewed. BLT's license expires every January but has been renewed every year since 2008.

 

[goofystitch]

BLT was built with Jim Lewis in charge, VGF with Ken Potrock. My guess is that the Poly will have similar timing to VGF.

Bill

Jim Lewis isn't the only reason - it is also because they did not want to completely kill Kidani sales.

 

[disneynutz]

Jim Lewis isn't the only reason - it is also because they did not want to completely kill Kidani sales.

May be true but Lewis is who made that decision.

Potrock has his own ideas and way of doing business, challenges, and performance numbers to meet.

Bill