DVC contract expiry...what happens then?

Nono Pep

Earning My Ears
Joined
Apr 12, 2019
I woul like to know what people think will happen when DVC contracts expire in 2042. Will the resorts be closed and renovated? Will maintenance fees go up significantly to cover the costs? What do you think will happen?
 

seashoreCM

All around nice guy.
Joined
Aug 25, 2001
You may or may not be offered a chance to renew the contract. You may have to pay a new buy-in price but that would be much less than a new joiner would pay. I would guess that maintenance fees would make a larger jump compared with the last few years of the previous contract but not a humongous increase.

Your may or may not be required to select a different home base resort when renewing. If a resort or a large portion of it is taken out of service for renovations, then not all members will be able to renew there.
 
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MarkE83

Mouseketeer
Joined
Jul 20, 2015
Points per resort:
Vero: 1.6m, OKW: 7.6m, Hilton head: 1.3m, Boulder ridge: 1.9m boardwalk: 4.9m, beach club: 3m. If half of OKW are now 2057, that’s a total of 16 million points due to expire in 2042. There’s no way on earth disney wants them all back and the pressure of trying to sell them all at once, they usually take a year or more to fully sell one resort at a time. I expect that over the coming years, people will be given the opportunity to extend their contracts the way OKW was originally done, only they’ll do it closer to the end date (day in the 2030’s). Point price won’t be too high as it’s the annual dues that make up the bulk of the income on these contracts, they’ll want folk to keep their points. Then in maybe 2035/36 they’ll start marketing the ability to buy the few points that do get returned in advance, so that when 2042 rolls around and the old owner passes them back, Disney already have people to give them back out to.

There’s no way on earth they close them down. Revenue wise that would be a disaster; they’ll just continue the refurbs they way they have always done.
 

skippytx

Bay Lake Tower
Joined
Aug 24, 2015
My thoughts:
Vero and Hilton Head will get removed from DVC and sold off once they can get rid of them.

BRV will probably be extended to co-term, or even join Copper Creek somehow.

Boardwalk and Beach Club will be refurbished and either sold as new DVC resorts, or converted into hotel space. They could even tear them down and build new hotels or DVC units. There is a 0% chance they offer an extension at these 2 resorts, the land they are on is way too valuable.

DVC doesn't make any money off the annual dues, they make money by selling new points. They might make a small profit off the management fees, but they clear over 50% profit (probably closer to 60%) selling new points to people. Riv probably cost them 400M to build and they'll sell well over 1Billion dollars worth of points when it's all said and done.

With how poorly the OKW extension offer went, I don't see DVC offering extensions at many places really. One of the nice things about DVC is there is an actual end date.
 

skippytx

Bay Lake Tower
Joined
Aug 24, 2015
Please don't tell me that my beloved BWV could be torn down
It's extremely unlikely, but that is a very valuable piece of land, in 20 years if they decide a tower hotel like Riv makes more sense there who knows what they'll do.
 

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