Keyholder Vacations (e.g. DVC Resale Market/Rental Store) has its exit event

[Cfabar1]

Brokers who rent a lot of reservations for individual owners are not a problem so if that is what they continue to do, it’s not an issue.

Is that because we are guaranteed that right, or because Disney has allowed that to happen?

 

[Sandisw]

Is that because we are guaranteed that right, or because Disney has allowed that to happen?

Because the contract prohibits an owner from renting to the degree that DVzc can conclude we are doing it for a commercial purpose…which is also used the word commercial enterprise and practice.

So, how one finds a renter seems like a very difficult definition to use to say you have a pattern that switches from your right to rent to commercial.

As I have shared, it’s about patterns done by owners and not one single thing in isolation.

And, DVC seems to recognize and support this notion which is why they will never put into play that you can’t use a broker to rent.

Even FL timeshare law has language that discusses owners ability to use a third party to help them rent…so, to me, that makes it something that is seen as acceptable.

Now, set up your own site to rent your own points? Different situation.

 

[mkatsy]

You have got to be kidding me these new folks have LLC full of DVC points and there are purchases from TWO WEEKS ago. If DVD looks the other way, I think it’s safe to assume it’s willfully ignorance.

 

[Starport Seven-Five]

So I did a little googling - apparently back in 2020 the World of Disney was created by packaging the rental brokerage + the resale business + Monera & a majority interest was sold to The Resorts Companies & private equity firm Xyresic Capital. It appears that the World of Disney was Xyresic Capital’s initial investment & they’ve since acquired interests in several other companies. Xyresic divested their interest in ‘Keyholder Vacations’ in 2025, but Cotton is still listed as one of a dozen operating partners of Xyresic Capital.
I find the fact that the first acquisition of an ownership interest occurred in 2020 - a year when travel/hospitality was hit hard due to Covid to be interesting - was there a need for an infusion of cash to survive 2020? Or was there a belief that DVC was selling at a discount & they wanted capital for an aggressive acquisition strategy?
In 2021 Magic Vacation Title & Be Our Guest Vacations were acquired & in 2023 DVC Fan was acquired.
Keyholder seems to be the new name for the World of Disney + the new discounted ticket arm of the company.
The Resorts Companies statement is that they’ll assume the role of parent company w/ the existing Keyholder players remaining. They also mention things like expanded vacation opportunities for Keyholder clients whom they state “[h]ave long expressed interest in ski vacations, mountain adventures, & outdoor experiences…” They also mention expanded vacation offerings for their existing timeshare owners. I’m not sure how that would work since they trade through RCI & DVC through IL. Reading the Resorts Company’s PR about the acquisition they make it sound like their timeshare owners will now have DVC access - whether that’s hyperbole or they have some plan to try & back door access for the timeshare owners of Resorts Companies .
If I were in the travel/hospitality business & focused on one brand, like Keyholder is, I’d certainly be looking to diversify given the financial headwinds currently gathering. Monera claims they’ve loaned 100 million - that’s a lot of exposure should another housing/lending downturn occur.

Regarding the bolded, they frequently talk about "exchanging" DVC points for a cruises or other travel on The DVC Show. They have the owner rent the points through DVC rental store and then book the cruise through their travel agency. Guessing they'll do the same here where they "rent" the points through the rental store to exchange them. Considering they make profit on both ends of the transaction it is a pretty smart play for them.

I'm also understanding more why The DVC Show last week was a Royal Caribbean informercial. Nothing against RCL (we will be on Utopia in February) but it's not exactly the content I go to that podcast for.

 

[eticketplease]

So I did a little googling - apparently back in 2020 the World of Disney was created by packaging the rental brokerage + the resale business + Monera & a majority interest was sold to The Resorts Companies & private equity firm Xyresic Capital. It appears that the World of Disney was Xyresic Capital’s initial investment & they’ve since acquired interests in several other companies. Xyresic divested their interest in ‘Keyholder Vacations’ in 2025, but Cotton is still listed as one of a dozen operating partners of Xyresic Capital.
I find the fact that the first acquisition of an ownership interest occurred in 2020 - a year when travel/hospitality was hit hard due to Covid to be interesting - was there a need for an infusion of cash to survive 2020? Or was there a belief that DVC was selling at a discount & they wanted capital for an aggressive acquisition strategy?
In 2021 Magic Vacation Title & Be Our Guest Vacations were acquired & in 2023 DVC Fan was acquired.
Keyholder seems to be the new name for the World of Disney + the new discounted ticket arm of the company.
The Resorts Companies statement is that they’ll assume the role of parent company w/ the existing Keyholder players remaining. They also mention things like expanded vacation opportunities for Keyholder clients whom they state “[h]ave long expressed interest in ski vacations, mountain adventures, & outdoor experiences…” They also mention expanded vacation offerings for their existing timeshare owners. I’m not sure how that would work since they trade through RCI & DVC through IL. Reading the Resorts Company’s PR about the acquisition they make it sound like their timeshare owners will now have DVC access - whether that’s hyperbole or they have some plan to try & back door access for the timeshare owners of Resorts Companies .
If I were in the travel/hospitality business & focused on one brand, like Keyholder is, I’d certainly be looking to diversify given the financial headwinds currently gathering. Monera claims they’ve loaned 100 million - that’s a lot of exposure should another housing/lending downturn occur.

Thanks for this research and for @Brian Noble finding this.

Always interesting to see what is happening in the background.

Paul had mention becoming president of rental store on 1/1/26 and perhaps was waiting on this to close.

 

[muppets3d]

Regarding the bolded, they frequently talk about "exchanging" DVC points for a cruises or other travel on The DVC Show. They have the owner rent the points through DVC rental store and then book the cruise through their travel agency. Guessing they'll do the same here where they "rent" the points through the rental store to exchange them. Considering they make profit on both ends of the transaction it is a pretty smart play for them.

I'm also understanding more why The DVC Show last week was a Royal Caribbean informercial. Nothing against RCL (we will be on Utopia in February) but it's not exactly the content I go to that podcast for.

But I guess since it's an individual owner renting their points, it doesn't count as commercial activity even though the broker is certainly a commercial enterprise. Funny how that works.

 

[mkatsy]

I doubt Disney cares all that much and for that matter can and are willing to do that much.

Oh but they did do something … they paid themselves $500 on each contract churning through these point factories. it’s not a fee, it’s a vig.

 

[Sandisw]

But I guess since it's an individual owner renting their points, it doesn't count as commercial activity even though the broker is certainly a commercial enterprise. Funny how that works.

Which is the way it is required to stay. DVCMC has to apply things to the owners as that is who the contract is with.

The only contracts that brokers can be held to for rental activity are contracts owned by then, including LLCs that are bought in their names.

Assuming that DVC wants to prevent LLCs from renting.

 

[muppets3d]

Which is the way it is required to stay. DVCMC has to apply things to the owners as that is who the contract is with.

The only contracts that brokers can be held to for rental activity are contracts owned by then, including LLCs that are bought in their names.

Assuming that DVC wants to prevent LLCs from renting.

Which they obviously don't (want to prevent LLCs from renting) because these LLCs own thousands of points and keep buying more.

 

[pkrieger2287]

Regarding the bolded, they frequently talk about "exchanging" DVC points for a cruises or other travel on The DVC Show. They have the owner rent the points through DVC rental store and then book the cruise through their travel agency. Guessing they'll do the same here where they "rent" the points through the rental store to exchange them. Considering they make profit on both ends of the transaction it is a pretty smart play for them.

I'm also understanding more why The DVC Show last week was a Royal Caribbean informercial. Nothing against RCL (we will be on Utopia in February) but it's not exactly the content I go to that podcast for.

Thanks for the feedback! We will always keep Disney/DVC at the heart of what we do. We thought the Royal Caribbean show would be relevent given our Keyholder Vacations cruise aboard Utopia of the Seas in July 2026. Lots have asked why RCCL and what we think of them versus say Disney Cruise Line, so we felt the timing of the topic was relevant.

 

[juliebee]

Thanks for the feedback! We will always keep Disney/DVC at the heart of what we do. We thought the Royal Caribbean show would be relevent given our Keyholder Vacations cruise aboard Utopia of the Seas in July 2026. Lots have asked why RCCL and what we think of them versus say Disney Cruise Line, so we felt the timing of the topic was relevant.

I was glad for the Royal Caribbean show. I'm not going on the Keyholder cruise, but love to cruise and wondered how RC was now. I last cruised them over 25 years ago. Your show has made me really consider RC for our next cruise instead of DCL.

 

[AnnaKristoff2013]

Brokers who rent a lot of reservations for individual owners are not a problem so if that is what they continue to do, it’s not an issue.

Until Disney decides that it is an issue.

Disney has quite the history of aggressively going after individuals and businesses that it feels are encroaching on its product.

 

[eticketplease]

Until Disney decides that it is an issue.

Disney has quite the history of aggressively going after individuals and businesses that it feels are encroaching on its product.

But the brokers aren’t really the renter so I’m not sure how this would work without in turn penalizing us who want to rent out a few points but don’t want to deal with people directly. In the end we our the ones renting the points which we are allowed to do. Unless there is something in the POS that states renting is only allowed to occur a particular way.

 

[Judique]

But the brokers aren’t really the renter so I’m not sure how this would work without in turn penalizing us who want to rent out a few points but don’t want to deal with people directly. In the end we our the ones renting the points which we are allowed to do. Unless there is something in the POS that states renting is only allowed to occur a particular way.

Brokers are in many cases also owners and have been flippers. I can see Disney having a problem with that aspect of the broker operation.

 

[Sandisw]

Until Disney decides that it is an issue.

Disney has quite the history of aggressively going after individuals and businesses that it feels are encroaching on its product.

After all the time I have spent with this with both DVC and others, it is not something that will happen, especially given the FL 718.111 law on 2021. If the owner is not renting to a degree that can be reasonable with riding to commercial levels.

DVC makes moves that they feel confident they have at least plausibility with the law behind them.

And, FL 721 even includes lanauge that seems to support owners having the right to rent their timeshares using third party services.

 

[Sandisw]

Brokers are in many cases also owners and have been flippers. I can see Disney having a problem with that aspect of the broker operation.

Definitely that could happen but that would be DVC treating the broker that way based on them being an owner, and not because they are a broker for others.