Extensions for the other '42s?

[DVC Grammy]

I may have missed it, but is there any talk about extending BWV, BCV and VWL also? Is the OKW offer supposed to be a trial balloon for this type of program?

 

[AKV707]

Nothing that I know of so far. I do think that OKW is a trial balloon. If it goes well, I would think they would do it for all of the '42 resorts.

 

[GusMan]

The official line is that this is just for OKW.
However, using logic and reason, it makes me think that this is a "dry run" as to how this process should/would/will work for the other resorts. Yes, this is pure speculation - but it only makes sense.

 

[tjkraz]

However, using logic and reason, it makes me think that this is a "dry run" as to how this process should/would/will work for the other resorts. Yes, this is pure speculation - but it only makes sense.

I disagree.

My own pure speculation is that the extensions are only being offered to give DVC another 50-year resort to sell while they are still building AKV's Kidani Village and the Grand Californian.

SSR and the first phases of AKV are likely to be sold-out by early '08. That gives them virtually nothing to sell for a year as Kidani will not open until early '09 and GC late '09.

It's always possible that they could extend others, but if they do, I suspect the motivation will be different than is the case with OKW.

 

[Dean]

While I don't usually buy in to the idea that DVC cares that much about owners being upset, I don't see how they would extend OKW and not the other on property resorts as a min. We shall see.

 

[AKV707]

I disagree.

My own pure speculation is that the extensions are only being offered to give DVC another 50-year resort to sell while they are still building AKV's Kidani Village and the Grand Californian.

SSR and the first phases of AKV are likely to be sold-out by early '08. That gives them virtually nothing to sell for a year as Kidani will not open until early '09 and GC late '09.

It's always possible that they could extend others, but if they do, I suspect the motivation will be different than is the case with OKW.

That makes perfect sense. I had not looked at the timeline. I know that SSr is close to seeling out, and there are a limited number of units in Jambo, so they could be selling out well before Kidani is ready. Do they have a ton of OKW points available to sell?

 

[dianeschlicht]

I disagree.

My own pure speculation is that the extensions are only being offered to give DVC another 50-year resort to sell while they are still building AKV's Kidani Village and the Grand Californian.

SSR and the first phases of AKV are likely to be sold-out by early '08. That gives them virtually nothing to sell for a year as Kidani will not open until early '09 and GC late '09.

It's always possible that they could extend others, but if they do, I suspect the motivation will be different than is the case with OKW.

I agree, and since OKW is big and less popular than BCV, I can see it never being offered at the "walk to Epcot" resorts. Well, at least not until it is MUCH closer to the drop dead date. Of course, I never expected they would do it at OKW this far ahead either!

 

[loveswdw]

I just took a DVC survey last night (received in the mail a couple of weeks ago). One of the sections had questions about whether or not we'd be interested in extending our contract if we had the opportunity and questioned how much per point we'd be willing to pay, etc. That gives me a small hope that they will be extending the other resorts as well.

I'm not sure though if BCV or BWV would be quite as "cheap" as OKW simply due to location, location, location. If we could get it for $15 per point we'd jump on it. We only own 150 points at BCV so that would be a pretty good deal for us.

 

[Mtnman44]

On a side note, aren't there going to be some major expenses as these resorts get older? Simply adding another 15 years on paper means a lot more wear and tear and aging of the building. That adds up to a lot more furniture, appliances, carpet, new roofing, etc.... These are going to be old buildings in 2042.

How will extending another 15 years affect annual dues as well? Special assesments? I realize the same issues exist for SSR and AKV, but to a lesser extent, wouldn't you think?

 

[GusMan]

I disagree.

My own pure speculation is ...

Thats cool... At the same time I dont think there is any one single piece of speculation going around that is the all-inclusive reason behind this offering. Every opinion I have seen does have some logic and reason behind it.

If they do this for other resorts and even if their motivation varies, this will still be their dry run. If they do it again in the future, they may change things based upon how it goes with OKW. Then again - maybe not if this goes well. Right now, we can only guess.

On a side note, aren't there going to be some major expenses as these resorts get older? ...That adds up to a lot more furniture, appliances, carpet, new roofing, etc....

Sure, there will be operating expenses that pertain to age. But that is also why we pay certain fees every year in regards to operating expenses. To elaborate, my annual dues statement has a line item for Operating Budget and Capital Reserves Budget. Remodeling and the like would come out of one of those two budgets, if not a little of both. That does not mean that special assessments will not come up in the future to supplement the costs for such upkeep, but then again that is one of those "only time will tell" kind of things.