How much $$ did Disney make selling points at OKW??

[Uncleromulus]

Forgive me if this has been discussed before, but:
I was just thinking about my 350 point investment and how much I paid. Then I began to wonder--how many total points were they able to sell before OKW was declared "sold out"? And how much money did they actually get (Gross)??
I realize point prices went up a # of times since OKW opened, but I am wondering if any DVC experts might know the answer??

 

[dianeschlicht]

That is a very good question! I am not even sure how many points are available at OKW! ANyone know?

 

[nuthut]

It is an amount similar to the national debt, but in a positive, not negative number.......

 

[joepoe]

Rough numbers off the top of my head...

650 rooms times 365 days is 237,250 room nights.

96% of that is 227,760 roomnights available for sale.

Assume an average of about 40 points per night? so 227,760 times 40 = 9,110,400 points for sale.

9,110,400 times an average sale price of $48 per point? =

$437,299,200!!!!!!! Now can someone in the construction biz tell us how much it would have cost to build OKW back ten years ago?

 

[dianeschlicht]

Joepoe,
A few flaws in your reasoning are that not all units are the same size and were not built all at the same time.

 

[dianeschlicht]

Does anyone know how many points are offically available at OKW?

 

[Richyams]

The math is easy....someone is probably working on it diligintly right now. While the previous attempt may have been flawed in a few ways, average price per point was much higher than $48, and a few others things, it is still probably in the right magnitude.

The math:

Figure out the number of points to reserve the entire resort for a year times .96 times $55(probably closer to average)

 

[dianeschlicht]

IT took at least 7 years to sell out. Some bought points for $52 or less and some bought for up to $65.

 

[drusba]

Don't have the full total at OKW but have seen reports, although I can not recall where, that it is about 7 million points. As to sales revenue at about an average of $60 a point (more than half of OKW was actually sold after the price first went into the $60's) that gets you to about $420 million. With all resorts, Disney is in excess of $1 billion in gross sales.

 

[Richyams]

THat puts Joepoe right in the money, good job.

 

[Richyams]

Now lets guess construction costs.

one mil per building
ten mil for roads
another ten mil for pools and common buildings and areas

I would guess that $100,000,000 is probably the right magnitude.

Add the kiosks, the DVC channel, marketing, etc, that has to be a Two hundred million dollar profit.

 

[Maistre Gracey]

Why not look at the annual budget, then divide the income revenue by the per point mtc fee? This should be the exact number of points available per year. Of course, we must take into considerstion Disney's percentage and any special assessments.

 

[Richyams]

Does anybody think I am right or even close on the construction cost?

 

[joepoe]

Originally posted by Richyams
Now lets guess construction costs.

one mil per building
ten mil for roads
another ten mil for pools and common buildings and areas

I would guess that $100,000,000 is probably the right magnitude.

Add the kiosks, the DVC channel, marketing, etc, that has to be a Two hundred million dollar profit.

Sounds reasonable to me. Sell something for 400 mill that only cost you 200 mill. It's the American Way! They wouldn't keep building them if they weren't making big bucks on them, that is fer sure.

 

[PamOKW]

Saw this post this morning and I agree with the answer to "how much?" being "a lot".

If it's any help in figuring things out, here's some more background info. The dates are not exact.

Pre-opening $48
10/91-7/92 $51
8/92-11/92- $54.50
11/92-7/93 - $56
7/93-6/94 $57.50
6/94-11/94 $60.50
11/94-7/95- $61.50
7/95-1/99- $62.75
1998 OKW sells-out for the first time
More Units built and sold
1/99- second sell-out in early 2000 - $65

I'm also not sure how you would figure points that DVC bought back and then re-sold at a higher amount.

I tried to find the actual points in Offering Statement (I swear it's in there somewhere) but came across something else that was interesting. The park pass program was indeed an actual part of the DVC program, not just a perk/benefit. The caveat was that DVC only committed to running the program for the first two phases of the DVC (OKW) development and only until 12/31/99.

 

[vernon]

Don't forget to add into the calculations that the resorts revert back to Disney's ownership in 2042. So not only do they make a pretty lumpy profit inthe frontend, they take possession of a fully functioning resort(s) in 2042. It's gotta be the most cost effective way to build a resort for the future that the world has ever seen.

 

[Doctor P]

The final price for OKW was $67 at sellout I believe. We bought in near the end at $67 in August 2000 and it sold out about the time VWL was being presold, but, as I recall, before the point price went to $72.

 

[castleri]

Just curious about the pass program - we bought in Sept 1997 and never got any passes. When did they stop that perk? We were there in 1998 and Oct of 1999 so maybe I should have asked some questions. I don't remember my guide saying that we had that benefit but it sure would have been nice. We only bought 220 points at the time so was it tied into higher point purchases or just not offered after a certain date?

 

[dianeschlicht]

I think 1996 was the last of the park passes being offered. I remember it was about the time we were deciding to purchase, and we missed by a few months.

 

[Beth]

We first purchased in April, 1997.

At that time, the free passes were no longer available for those who purchased into OKW.

<i>However</i>, if we had purchased into Vero at that time, we <i>would</i> have gotten the passes to use only when we were staying at OKW.

We agreed to purchase at Vero, had the paperwork drawn up - drove over on a Sunday afternoon and signed on the dotted line. I got home, and read over and over again the warning about the developer subsidy coming to an end and, for some reason, it really concerned me. I called back and cancelled the transaction and had them rewrite it for OKW.

Those passes were really tempting - but I think we made the right decision.

We ended up buying 2 VB add-ons eventually, anyway...