Next DVC offsite resort

[AvonWuzzer]

When is DVC going to build another resort off Disney World property? Did it take too long for HH and VB to sell to make it worthwhile? Do they not get enough money from the off-site resorts, without the park tickets and meals, to make it possible?

I love HH, and it is nearly impossible to go over the summer unless you book at the first opportunity.

 

[Dean]

I don't think anyone expects DVC to build another off site resort. They announced then sold the site in CA where the Marriott Newport Coast now stands. They had a deal fall through in CO and broke off negotiations on a NYC opportunity several years ago. Don't hold your breath.

 

[Werner Weiss]

It seems that Disney's timeshare development subsidiary, Disney Vacation Development (DVD), has decided to concentrate strictly on WDW on-site DVC resorts.

DVD enjoys all sorts of business advantages at WDW that lead to the profitable sale of DVC memberships:

• The ability to market to on-site resort guests and park guests who are likely to like Disney (else why would they be at WDW?)
• The use of land that Walt Disney acquired for an average of $300 per acre
• The ability sell at a high volume, so that resorts sell out in as little as a year, thus reducing the carrying costs of unsold inventory

And Disney enjoys all sorts of indirect financial benefits from DVC members who return year after year to spend money at Disney parks, shops, and restaurants.

By the way, there's also the management fee (approx. 2% of the total operating budget) that Disney gets for being the management company at any DVC resort, but that has nothing to do with being on-site or off-site.

In comparison, at off-site locations, Disney faces serious marketing challenges, high land costs for prime sites, and, in the case of HHI and VB, a long, slow sell-out, where it's likely that marketing and carrying costs chewed up the profit.

 

[tiberius]

Originally posted by Dean
I don't think anyone expects DVC to build another off site resort. They announced then sold the site in CA where the Marriott Newport Coast now stands.

I was disappointed when I had first read about this because I had thought DVC would be a natural fit at Disneyland after seeing the success at WDW.

 

[Richyams]

Disneyland....almost a remote possibility, almost. The Marriot Newport Coast existing makes it not possible.


Any other off site resort is completely out of the question, not even a remote possibility.

 

[Werner Weiss]

Originally posted by Richyams
Disneyland....almost a remote possibility, almost. The Marriot Newport Coast existing makes it not possible.

Not only did Marriott acquire the former DVC site at Newport Coast, a half hour from the Disneyland Resort in California — Marriott was also allowed to develop the timeshare site on the Euro Disney property, where the soon-to-open Marriott Vacation Club is between the Davy Crockett Ranch campground and the two theme parks, overlooking the golf courses.

 

[Horace Horsecollar]

Originally posted by Richyams
The Marriot Newport Coast existing makes it not possible.

Why does an offsite Marriott resort make a DVC resort "not possible?" There are plenty of off-site Marriott resorts in Orlando, but that hasn't stopped the DVC resorts.

An onsite DVC resort at the Disneyland Resort is highly unlikely. They have very little land there, and it's likely that if Disney wanted a DVC resort there, they would have built one by now.

 

[JimC]

Am I correct in that Disney is only part owner of the foreign theme park investments? If so, Marriott putting in a timeshare in Euro Disney would not surprise me.

I think Disney's strength is WDW and DL. DVC started by leveraging the WDW strength and probably can not leverage as well elsewhere, possibly even at DL. The land, development and other costs associated with ventures off of the Florida property are quite significant and as someone else said do not include the economic multiplier of WDW.

The other growth area for Disney has been the cruise business. But I wonder (no pun intended) if there is enough magic (just could not resist) to expand the fleet further.

 

[AvonWuzzer]

I joined BWV in 2000 because of Disney World. We were staying at a BW studio and I liked it so much that I bought while the DW and kids were taking a nap.

I think the off-site formula works for the following reason. As the ownership population continues to grow rapidly based on the quick sell out of BCV and I am sure BWV will sell out... again... soon, the tendency will be for people to try the other properties.

I didn't think I would love HH so much. Because it is so small the level of service seems so much more personal. You actually get to know the people running the nature and kids programs and the lifeguards. You get to meet the other members and see them at the campfire, pool or beach. How many people who have been to HH know B'Lou and Chef Gordon? Can you say as much about anyone at Disney World? (other than a character of course)

As the member population matures, (years of ownership, not age) there is may be more of a tendancy to try the other locations. I wonder what the age of ownership is for the interval exchange? I can't see getting tired of the DVC resorts enough to see myself trading in time to stay elsewhere anytime soon. Does DVC make more money managing the exchanges rather than keeping the points in the DVC run properties and the marketing opportinities they represent?

I would imagine that a property in the Virginia to NY corridor would do well. It seems like majority of the people living in Florida used to live in NY or NJ. Many members drive the corridor and stop at HH or VB and Orlando in the same trip.

Another reason would be to quell the hesitation or criticism of "Why would you want to go to Disney World every year." (not my quote, I love the place.

:earsboy

 

[Richyams]

I say its impossible because Disney bought that land for a DVC resort, announced it and then seld it. They have clearly made up their minds that there will never be another off site DVC resort. THat Marriot existing on land that was announced as a DVC resort makes their position clear.

Sorry for all you hopefuls, but there will never be another off site DVC resort.

The punishment they took at VB and HH has forever nixed any hope of there ever being another one.

Personally, I appreciate the options and wish they would, but alas, they have made it very clear that we will never, ever see another off site resort.

 

[Niagara2]

Bought Marriott Newport Coast to visit Disneyland. The area is just so beautiful and so far from FL that I feel that Disney made a hugh mistake. But - now we can go to EuroDisney and stgay right next door. Happy that we have both!! Newport CA is one of the nicest area's I have ever visited!!

 

[timC]

Rich. Never is a very long time. The conditions are certainly not good now, but at some point I think management (new management perhaps), will decide that timeshares fit with Disney's plans. When that happens, I could see them buying some (not building).

It might be on the back-burner now, but I think the next era of expansion for Disney could be in hotel/resort and travel real-estate.

 

[Werner Weiss]

Originally posted by timC
The conditions are certainly not good now, but at some point I think management (new management perhaps), will decide that timeshares fit with Disney's plans. When that happens, I could see them buying some (not building).

I really don't see Disney buying existing timeshare resorts. After a timeshare is sold out, it's just a property management business. And if a resort's public offering wasn't orginally based on a points-based usage structure, it would be very hard to convert later on. There are property management companies that like the steady 2% (or so) management fee, but why would Disney want to be in the property management business for a resort that they didn't build?

I think it's safe to say that Disney has decided to be only in the "Disney business," not in the lodging business. As I noted earlier in this thread, Disney's business advantages largely disappear at off-site locations.

A true, on-site DVC resort at the Disneyland Resort in Anaheim (not one that's 25 or 30 miles away at Newport Coast) is a slight — very slight — possibility, especially if Disney decides not to build a third theme park there (after the disappointing results from DCA). A DVC resort at Disneyland would enjoy the same business advantages as the DVC resorts at WDW, except for the plentiful, cheap land.

Otherwise, I think Richyams is right on this.

 

[vernon]

I tend to agree with Dean, Rich and Werner on this. I can see a SLIGHT chance of a DVC resort in California, but I think land use restrictions will rule it out, other than that I don't think anywhere on mainland USA and with Disney not being 100% owner of Paris ( plus other timeshares already going up there) I think this is a non starter.

 

[CarolA]

I have to say that I don't think Disney has done near as well with offsite time shares.

While a lot of people love HH, I think the location is proof that Disney came into that market TOO late. I spent almost all my summers at HH growing up and when I visit there I want to be able to walk or bike to the beach QUICKLY! That is not going to happen at DVC. I have stayed there and it was nice, but I would not spend an entire week there. Instead I rent a villa at either Sea Pines or Palmetto Dunes.

 

[Doug Wolfe]

I think the problem with Newport was the fact that it was 30-minutes from Disneyland. I would be willing to bet that if Disney Vacation Development thought it could turn a nice profit with DVC properties near Disneyland & California Adventure, if not on-site, they would build in a Mickey minute.

I agree that off-site has been a problem for them. Vero Beach has still not sold-out and Hilton Head has only sold-out in the past couple of months.

Boy, would I like to see them put a DVC property in Hawaii! I am dreaming of course.

For now I think DVC will be tied up for the next several years selling Saratoga Springs, which will probably end up being one of their bigger properties.

 

[Califgirl]

Originally posted by Doug Wolfe
I think the problem with Newport was the fact that it was 30-minutes from Disneyland. I would be willing to bet that if Disney Vacation Development thought it could turn a nice profit with DVC properties near Disneyland & California Adventure, if not on-site, they would build in a Mickey minute.

Doug is absolutely right! Two years ago while at Disney's Grand Californian Hotel, I heard that they were planning a DVC resort on that property. (still waiting)
When I was there last week, I asked my source if there was still a DVC resort in the works at the Grand Californian. The answer was "yes". Construction is being planned for part of the Grand Californian parking lot. No time table as far as I know. But there are definite plans.

Enjoy life and great vacations!
Chris

 

[one_cat]

I agree with everyone here. It's very doubtful that DVC will ever put up another off-site resort although I'd love to see one at Disneyland. We'd go there. I think one of the problems is the whole point system which works well with a 12 month resort like the wdw ones but wouldn't work well with a ski resort timeshare or even at HH. (How many of us non-hh owners can get into HH during the summer?) Everybody vies for the same time. When we bought our ski resort time share we made very sure to have a static week smack in the middle of ski season. I know that the point systems are the popular way to go for timeshares now but they work against a system at DVC which is supposed to allow easy access to multiple sites. Why bother selling a years worth of points when people will only go there for the hot season?

 

[icydog]

When we bought at Disney 12 years ago they told us there would be numerous locations around the US to choose from in a few years time. What a dream. I wish there was a DVC location closer to the NY,NJ area. Always schlepping to Florida gets very old. We haven't tried Passprt locations yet and don't know if any are up to DVC standards. I am upset that DVC is now charging $95 a pop for Concierge stays. The advantage of the CC was that you could stay for short periods of time at nice resorts around the country. If you stay for one or two nights the $95 charge sure impacts the value of the trips.

 

[CaptainMidnight]

Originally posted by one_cat
..... I think one of the problems is the whole point system which works well with a 12 month resort like the wdw ones but wouldn't work well with a ski resort timeshare or even at HH. (How many of us non-hh owners can get into HH during the summer?) Everybody vies for the same time. ......Why bother selling a years worth of points when people will only go there for the hot season?

This is a great point, I think the year round demand is an important aspect, which leads to any possible off-dite resorts to be located in a warm climate. CA would certainly be a logical choice, and make a wonderful option for west coasters. At one time rumors about Texas seemed to fit the warm year round model as well.

Another nice perk might be better trading power with our DVC points for ski resorts, etc. Good pont about teh $95 fee as well, it does discourage the shorter trips.

How about a DVC ship as an offsite resort? Wouldn't that provide a unique adventure, especially if the trips and destinations varied to lots of different ports and length of trips......

A post awhile back indicated there is such a thing as timeshare ships.....

Perhaps another location that might have year round appeal would be something like Washington D.C. with plenty of activities and sites to see even during the winter months. Probably unlikely, but fun to speculate.