In 2001 Disney halted construction on several resorts that they broke ground on and they just sat there until the time was right to build them. Disney has announced and then not built several
DVC resorts. If they don't feel the market is there, they won't build the resorts. And yes, it will cost them in bottom line, but DVC is a small portion of Disney's overall business model. They have parks to worry about. They'll need to get people into theatres again when its safe. There are cruise ships. A Star Wars themed hotel. Each one of Disney's business units are going to have a similar problem - and with DVC they have the advantage of just being able to halt construction and not expend the capital until the market improves. They have things that they need the return on capital on because that money has been spent and there is debt out there for it - three cruise ships. Park changes with Pixar and Star Wars. - With about 20% of Riviera sold, at least some of that capital has been recovered (that's about $250M in recouped capital - it isn't likely that construction cost much more than that) - not the case at all with the new ships or the Star Wars hotel - and they can back off on spending any more on Reflections and the announced Disney resort. And LAX is right - Riviera sales will slow - partly just due to the economy, partly because people are recognizing the risks of OWNING A TIMESHARE (it only took a pandemic, I always thought it would be a terrorist attack or mass shooting), but they won't stop. Too many people snort pixie dust.