dvc contract extensions

[lilpooh108]

I'm sure some of the HI properties are leasehold but I can't think of any that are RTU and have expired though some would have been at their end point by now. Most RTU options are not in the US which is hard to compare. The Royals in MX are likely the best comparison as far as it goes. They've had one expire so far. IIRC they redid it and resold it giving current owners first crack and a significant discount, I haven't kept up with that system for a few years. I'm not personally aware of other resorts that have gone through this situation so far though some must have since some of the early ones in HI were RTU 40 YEARS. Timesharing is only about 43 or so years old in the US.

Thanks. This is interesting. What is the name of that expired timeshare (so that I can google what happened to it)?

And FWIW, I do believe that Disney will do the same----allow the contracts to expire, re-do the resorts building by building and give the owners a savings and the right to purchase presales.

 

[Dean]

Thanks. This is interesting. What is the name of that expired timeshare (so that I can google what happened to it)?

And FWIW, I do believe that Disney will do the same----allow the contracts to expire, re-do the resorts building by building and give the owners a savings and the right to purchase presales.

It had 2 names before the change, one Vacation Club International and Club International de Cancun, the new name is the Royal Cancun I believe. If you go to TUG at www.tug2.net, I'm sure you can find more and better info than I've given you fairly easily. All of the Royals were 30 year RTU until the Sands came along at 50 years. The next one should be up for expiration soon. I haven't been on TUG much the last couple of years so I don't know if info is floating around about that as well.

 

[sweetdana]

Rather than a complete tear down, another option would be to let the contracts expire, then do a complete refurbishment on all the rooms (ie gut and renovate) and then sell the resort as new. I imagine they could get a nice price for a new BWV and BCV.

Now with OKW they certainly have a problem what with two seperate end dates for owners.

With the location of BC, and BWV I cannot imagine them not taking advantage of a complete demolish rebuild..

IMO both BC and BWV are way to small for the land value they have. They could build something 10 times the size in the same location. (Up Up Up)(Adding another sand pool at BC, and a walk in, or wave pool pool at BWV, maybe on the roof with a view of Epcot, or something, and make bank!)

Nothing stopping a 8 story or 10 story building.. and with a few fixes parking, pool, adding internet into the bedrooms ect, would sell for millions more than an extension. (And the point per room could be increased as well. BWV standard rooms are cheaper than SSR, OKW, and they really shouldn't be.)

IMO these 2 have zero chance of extending.. others maybe.

 

[bakenatj]

In construction it's usually cheaper to level and start over. Especially if you want to change the building configuration with a bigger foot print or extra floors to make more units to sell.

Bill

Bill is right. Remodeling jobs always run more expensive than building new. Plus we don't know what kind of codes will be in place in 2042, so my money is on leveling it and building new. With OKW they will probably have to buy out the few contracts who extended. I don't know how they can justify holding up a project the size of replacing OKW for a few members. Does anyone know how many points were renewed versus those set to expire in 2042?

 

[tfc3rid]

With the location of BC, and BWV I cannot imagine them not taking advantage of a complete demolish rebuild..

IMO both BC and BWV are way to small for the land value they have. They could build something 10 times the size in the same location. (Up Up Up)(Adding another sand pool at BC, and a walk in, or wave pool pool at BWV, maybe on the roof with a view of Epcot, or something, and make bank!)

Nothing stopping a 8 story or 10 story building.. and with a few fixes parking, pool, adding internet into the bedrooms ect, would sell for millions more than an extension. (And the point per room could be increased as well. BWV standard rooms are cheaper than SSR, OKW, and they really shouldn't be.)

IMO these 2 have zero chance of extending.. others maybe.

One thing stopping an 8 to 10 story building there... Sightlines from Epcot Center...

 

[wcpamotm]

One thing stopping an 8 to 10 story building there... Sightlines from Epcot Center...

That's the way I would think. But it didn't stop 'em from putting the Bird'n'fish.

 

[DougEMG]

With the location of BC, and BWV I cannot imagine them not taking advantage of a complete demolish rebuild..

IMO both BC and BWV are way to small for the land value they have. They could build something 10 times the size in the same location. (Up Up Up)(Adding another sand pool at BC, and a walk in, or wave pool pool at BWV, maybe on the roof with a view of Epcot, or something, and make bank!)

Nothing stopping a 8 story or 10 story building.. and with a few fixes parking, pool, adding internet into the bedrooms ect, would sell for millions more than an extension. (And the point per room could be increased as well. BWV standard rooms are cheaper than SSR, OKW, and they really shouldn't be.)

IMO these 2 have zero chance of extending.. others maybe.

I'm not personally worried about what happens to BWV after it expires. I'll be 80+ and still have my SSR points to use if I'm still able to go.

 

[chalee94]

With OKW they will probably have to buy out the few contracts who extended. I don't know how they can justify holding up a project the size of replacing OKW for a few members. Does anyone know how many points were renewed versus those set to expire in 2042?

pretty sure OKW will run to 2057 as a resort.

while most owners did not extend their contracts to 2057, every time DVC ROFRs an OKW-2042 contract, they can resell it as an OKW-2057 contract...and they have been doing that for some time now.

 

[bakenatj]

pretty sure OKW will run to 2057 as a resort.

while most owners did not extend their contracts to 2057, every time DVC ROFRs an OKW-2042 contract, they can resell it as an OKW-2057 contract...and they have been doing that for some time now.

Good point. Wasn't sure how they were handling that.

I wonder what they are going to do with the large amount of points when all of the 2042 contracts expire? 15 years is a long time to go with a high percentage of unsold points.....and unless it is at an amazing price don't know that you would get to many people buy a 15 year contract.

 

[tjkraz]

I wonder what they are going to do with the large amount of points when all of the 2042 contracts expire? 15 years is a long time to go with a high percentage of unsold points.....and unless it is at an amazing price don't know that you would get to many people buy a 15 year contract.

Problem is we have no idea how big of an issue it is even today. We can only speculate as to whether 5% extended...25%....50%....

But whatever the number may be, DVC has another 30 years to chip away at that number. ROFRs will continue and the points will be re-sold with the additional years. It wouldn't surprise me if the extension offer was revived at some point. Biggest issue with the original extension (IMO) was pricing. If memory serves, the best price was $15 per point for an extension which had a present value of around $6 per point. If DVC's primary goal is to simply rid itself of the non-extended points, they could make a lot of headway via more appropriate prices.

They could even offer the 15 extra years to owners of BCV, BWV, VWL, VB and HHI--the other 2042 resorts. That way, those owners wouldn't lose their DVC access entirely on 1/31/42...instead they would become OKW owners until '57.

After '42 the points DVC still holds could be used as incentives for new sales, they could be sold for $15 each (or whatever the prevailing price may be) as one-time-use points. The rooms could be rented out via CRO as is the case now.

Or they could even remove some buildings from the property. As Dean said earlier, there would be legal issues to be overcome with existing deeds but it is not an insurmountable obstacle.

 

[timmac]

That's the way I would think. But it didn't stop 'em from putting the Bird'n'fish.

That was due to the result of litigation, the judgment of which determined the location for the two hotels. I wouldn't say Disney was exactly happy or willing to have the buildings where they are.

 

[Dean]

Good point. Wasn't sure how they were handling that.

I wonder what they are going to do with the large amount of points when all of the 2042 contracts expire? 15 years is a long time to go with a high percentage of unsold points.....and unless it is at an amazing price don't know that you would get to many people buy a 15 year contract.

I know many disagree but I don't see much market for an older timeshare with 15 years and counting and maint fees that late in the game. At least not for a retail type of purchase and not a lot for any options. That's not to say there will be no interest but I'm thinking it'll be a lot less than many here think.

 

[bakenatj]

I know many disagree but I don't see much market for an older timeshare with 15 years and counting and maint fees that late in the game. At least not for a retail type of purchase and not a lot for any options. That's not to say there will be no interest but I'm thinking it'll be a lot less than many here think.

I agree. The closer it gets to 42 the harder it is going to be to sell those points. With the price of direct and the many other options for resorts I can't see to many buyers for a resort that is old.

 

[carlbarry]

Who's going to buy points 15, 10, or 5 years out? It seems to me that if DVC wants to be able to continue selling points, they'll have to offer an extension.

 

[Dean]

Who's going to buy points 15, 10, or 5 years out? It seems to me that if DVC wants to be able to continue selling points, they'll have to offer an extension.

I will be that'll be an expensive proposition by the time you buy in, pay closing and dues then pay for any extension.