Most lucrative of the resorts for DVC?

[tvwalsh]

Which resort or resorts do you think made the most money for the DVC? Which are making the most money for them as the years go on and why do you think so?

Which of the new resorts will be the best moneymaker for DVC?

 

[Chuck S]

I think a lot of that has to depend upon the economy. I;m sure they never invisioned having to sell 100 point contracts to first time buyer, as the original minimum was 230.

I imagine that overall, Hawaii and the Contemporary Tower will be the two most expensive resorts to build so far, so their profit margin may actually be lower there unless the price per point goes up. I'm thinking AKV is probably the most "per point" profit so far, on a per point profit breakdown.

If you are talking just overall, then SSR, because they had so many more units/points to sell..

 

[spiceycat]

since oKW has been around the longer - my guess would be OKW.

they get the building paid off and upkept from us - as well as that reserve.

 

[BillPA]

It has to be the Jambo House units at AKLV. They modified rooms that they could not rent to create villas. A GV for the year is 33,574 points. They sell these at $104 a point for cash in of $3,491,696. Does anyone think Disney put more that a $100,000 into the conversion? That is very lucrative to me.

 

[Halle]

I think they had to put more than $100,000 into the renovation. I agree with a previous poster that OKW has been the most lucrative.

 

[Granny]

As long as we are guessing, I'll guess VWL, BCV, BWV and AKV as the most lucrative for Disney.

Why? Because each of those defray some of the costs that the Deluxe partner resorts would otherwise have to completely bear on their own. While DVC resorts do increase overall costs at a partner resort, I tend to think that there are other costs that are shared that don't increase all that much.

Specifically, the front check in desk, bell services, and transportation are all areas that I think can be spread to the DVC part of the resort. For an example that I'm familiar with...before VWL came along the buses to WL ran about every 20 minutes per destination. Now with VWL built and full, the buses run....about 20 minutes per destination. The same goes for the boats to MK and Bay Lake destinations. So without any increase in service or oveall costs the Villas now pick up a portion of transportation.

I don't know what else the Villas share costs for, but just having the Villas makes the main resort more profitable, I'm sure.

 

[rsinj]

.

 

[hakepb]

In terms of total revenue per construction$, you need to exclude OKW, because didn't those points sell for $55 when new?

 

[Chuck S]

In terms of total revenue per construction$, you need to exclude OKW, because didn't those points sell for $55 when new?

Actually, pre-sales at OKW, I think were $48, We purchased in 1992 for $51

 

[Granny]

But none of those have anywhere near the number of units which OKW and SSR have. Though you may get additional profit from having the shared facilities/services, you can have far greater raw profit with a lower margin from the much greater volume.

But supposedly Disney only makes a profit when they sell points. Maintenance is not supposed to be a profit generator (besides the management fee). So yes, OKW and SSR had many more units and undoubtedly made more profit on the sale of points.

But my post was more about the ongoing profitability enhancement for the existing resorts that DVC adds on to. That increased profitability is not limited to the number of points sold, nor is it just for the period that points are being sold. That increased profitability goes on in perpetuity.

 

[spiceycat]

In terms of total revenue per construction$, you need to exclude OKW, because didn't those points sell for $55 when new?

It also cost a heck of less to build. Florida building costs have increased what 100% since OKW.

now without OKW - then DVC would never be the sucess it is today!

 

[hakepb]

Although since OKW, every WDW DVC resort has been an addition to an existing resort, or rehab (Disney Institute became SSR), and the last 2 (AKV and BLT) are additions, so I would think additions are the most profitable.

 

[BillPA]

I think they had to put more than $100,000 into the renovation. I agree with a previous poster that OKW has been the most lucrative.

That is $100,000 per unit. Leaving DVC with more that $3.3 million profit per GV.

 

[Corinne]

Actually, pre-sales at OKW, I think were $48, We purchased in 1992 for $51

I thought we had a deal in 2001 with my CM discount!

 

[BeccaG]

I think a lot of that has to depend upon the economy. I;m sure they never invisioned having to sell 100 point contracts to first time buyer, as the original minimum was 230.

I never knew it was as high as 230, when did it drop to 160? (Which if I recall correctly was the minimum before the current promotion.)

 

[castleri]

In the beginning it was 230 then it was 150 and then 160. It may have even been 190 in 1997 but we bought 220 so am not certain about that one. BCV and SSR the minimums were 150 when we bought during the pre public sales.

 

[castleri]

In the beginning it was 230 then it was 150 and then 160. It may have even been 190 in 1997 but we bought 220 so am not certain about that one. BCV and SSR the minimums were 150 when we bought.

 

[spiceycat]

230, 190 (93), 150, 160, now 100.

 

[Sammie]

OKW and SSR, more rooms and less cost per room due to not having interior hallways. Those air conditioned, carpeted hallways are expensive to maintain.

 

[mrdiscranky]

Those air conditioned, carpeted hallways are expensive to maintain.

From Disney's standpoint, expensive is good. We pay the costs; Disney gets paid a fixed %. The more it costs, the richer the mouse.