I Disney was to sell Vero or HH,

[Tigger1]

If Disney ever sold Vero, HH or any of the DVC resorts, how would trading work? Could we still use points at one of the other resorts?

Tigger

 

[CarolMN]

I don't believe the POS addresses this issue. Therefore anyone posting here would be just be giving their guess/opinion.

Mine is that the sold resort would no longer be part of the Vacation Club and points would only be valid at the sold resort. Any exchanges would have to be via agreement with II or RCI or equivalent. Another reason to buy where you want to stay the most.

 

[DebbieB]

Found this in the POS dated 4/99, page 21:

Automatic Deletion by Termination of DVC Resort Agreement . A DVC Resort will be automatically deleted as a DVC Resort upon the termination of the DVC Resort Agreement for the DVC Resort. In the event that a DVC Resort is deleted, the Club Members who own Ownership interests at the deleted DVC Resort will not longer be able to participate in the DVC Reservation Component so as to maintain no greater than a "one to one purchaser to accomodation ratio", as that term is defined in Section721.05 (22) Florida Statutes. A Club Member at a deleted DVC Resort will not be able to make reservations at other DVC Resorts; however, the Club Member will continue to have reservation rights in the resort where the Club Member owns his or her Ownership Interest in accordance with the terms of the resorts Vacation Ownership Plan.

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Another reason to buy where you want to stay most.

 

[CarolMN]

Thanks for looking that up, Debbie.

 

[Johnnie Fedora]

If Vero and HH are sold out, aren't the resorts "paid for"? What financial incentive would there be for Disney to sell them off? Wouldn't most of the proceeds from such a sale actually go to the DVC members and not Disney? Guesses anyone?

 

[DebbieB]

My guess - I don't think they could sell the resorts themselves but they could sell the mangement rights to someone else, for example Marriott or Hilton. The members of that resort would still have their ownership rights but it would be managed by someone else and not part of DVC.

 

[Werner Weiss]

Originally posted by Johnnie Fedora
If Vero and HH are sold out, aren't the resorts "paid for"? What financial incentive would there be for Disney to sell them off? Wouldn't most of the proceeds from such a sale actually go to the DVC members and not Disney? Guesses anyone?

The only thing that DVC members have "paid for" are deeded leases that provide the right to use accomodations at the resorts until 2042.

There is absolutely no reason to believe that HH or VB will ever be split off from the other DVC resorts through a sale to another company.

But, if it ever happens, the buying company would be buying:

• The land
• The areas which are not declared into the DVC condominium, such as the restaurants and shops
• The management contract, which provides a guaranteed profit every year
• Complete control in 2042, including the ability to resell as timeshares or as conventional condos, or to convert to long-term or nightly rentals
• The asset value, which means the buying company could resell the resort to another company at a future date

None of the proceeds from such a sale would go to the DVC members. (Why should they?)

 

[Dean]

There are two issues here. One is the resort ownership, in this case the DVC members for VB. The other is the management company. If for ANY reason DVC were not the management company for any DVC resort, members would not be able to participate in the DVC system. This goes for owners at the resort in question trading out and other owners trading in. There would always be the possibility of an exchange company trade. DVC could pull out or the members could vote them out. Either way, the end result would be the same. Marriott has parted ways with 7 resorts over the past few years.

 

[Johnnie Fedora]

Since Disney makes all the decisions, any of the resorts could be sold off without any member input. The most logical resorts to sell off would be any of the free standing resorts including HH, Vero, OKW and SSR. Would the resorts tied to WDW properties with shared facilities be more difficult to sell off, or that wouldn't matter??

 

[TheRustyScupper]

1) Disney has the right to sell-off DVC's (although far-fetched)
. . . most logical would be VB and/or HH, as they are off-site
. . . they would not sell others
. . . on-site sales would allow non-Disney hotels into Disney

2) If they sold-off DVC resort(s), members of that resort
. . . can still use that resort as in the past
. . . would probably be barred from other DVC resorts
. . . would have no recourse
. . . might have access into the new owner's system (eg. Marriott)
. . . would probably see the market value or points plunge

3) DVC Owner Rights
. . . we only own a right-to-use
. . . we do not own the property or buildings
. . . we owners would have no voice in such a sale


PERSONAL OPINION: I do not see Disney selling off DVC properties that are off-site (away from DisneyWorld). However, if there were a takeover (eg. ComCast) this might become a possibility.