Poly DVC expansion coming 2024!

[Sandisw]

More just joking that I think we give corporations more credit than they’re due. Worked in corporate America long enough to know they aren’t as smart as we think they are. It’ll probably be whoever the President of DVC is at the time making the decision. And I bet they will wait till the last minute.

Oh I think that is what happens but they tell themselves it’s best..which is why so many of us scratch our heads sometimes when decisions are made!

This Poly tower announcement is one of them. No need to have shared it so early and then give no details about it.

And yet, here we are! Lol

 

[Royal Consort]

Restrictions had to have been a long term sales strategy and not a short term one.


Though, even now, RIV is only $1350 less for 150 points. Not sure it’s enough of a price difference to make a huge difference in what a buyer chose.

Strategy is the optimum word. Riviera has not been designed as a restricted resort exclusively. That makes no sense without a broader strategy/approach. Seemingly DVC would have removed restrictions if they were to alter their strategy at the time of VGF. Otherwise why stifle sales? They didn't. Ergo, the strategy is maintained. Restricted resorts will only have Disney's desired effect cumulatively. Furthermore there is now evidence that restrictions don't tank sales.

 

[Nabas]

Strategy is the optimum word. Riviera has not been designed as a restricted resort exclusively. That makes no sense without a broader strategy/approach. Seemingly DVC would have removed restrictions if they were to alter their strategy at the time of VGF. Otherwise why stifle sales? They didn't. Ergo, the strategy is maintained. Restricted resorts will only have Disney's desired effect cumulatively. Furthermore there is now evidence that restrictions don't tank sales.

Disney’s DVC strategy was laid out while Iger was in-charge. Chapek has demonstrated that he quickly abandons any legacy strategy, if it does not meet his financial goals.

A decision made several years ago is not safe under Chapek.

Separately, I agree that resale restrictions have not tanked RIV sales but they have had an effect on resale prices, which is perhaps what Disney intends. If so, then it does make sense to continue them.

 

[Roughians_satchel]

To be fair, there are only a few options that they can choose.

One is restrictions. New resort gives them the option to keep them, or abandon them…adding to PVB prohibits them from implementing.

Expiration date. Adding to PVB forces the expiration to be 2066. New resort allows them to go with 2066, 50 year contract or something else.

Only other possible option is to stop the build..

Regardless of what is decided, it will be because they believe it will give them the highest sales based on their goals.

If their goal is highest sales, one association is the only thing that makes sense. If their goal is something else (long term chip away at resale?), and they don't care how fast/well the second poly sells, then they'll consider the separate association.

Sometimes Disney doesn't chose what's best for profits/shareholders - just look at their DCL strategy.

 

[RoseGold]

Seemingly DVC would have removed restrictions if they were to alter their strategy at the time of VGF. Otherwise why stifle sales?

I don't think they can go back in RIV and lift it. I know it's in the paperwork, but I think that would make people more angry than keeping it like it is and it being the only "protected" one. If they reverse course, RIV (and probably DLT) will stand alone, which will make a really weird scenario with locked down resale buyers and direct buyers from RIV and not-RIV.

 

[hcortesis]

Well, speaking for myself, since I’m not a fan of Poly’s outdated design, I would only buy if the new tower was in a separate association.

Same here. But also because I don't want to compete with the "Zillions" as you say, current Poly members to get rooms at 11 months. I love the new look of the tower and hope to buy there.

 

[Sandisw]

If their goal is highest sales, one association is the only thing that makes sense. If their goal is something else (long term chip away at resale?), and they don't care how fast/well the second poly sells, then they'll consider the separate association.

Sometimes Disney doesn't chose what's best for profits/shareholders - just look at their DCL strategy.

I think it’s the other way around. A new association will cause more direct sales than rolling it in to PVB.

If it’s part of PVB, then you lose the buyers who will go cheaper and buy resale and still have all the advantages.

If it’s new, especially if they stay with restrictions, people have only one choice..buy direct.

And I bet that one reason it has not been announced is because they don’t want to commit to a decision right now, even if it has been made.

I’d even so far to say that I think this tower is the perfect project to continue them..if they want..because being an MK resort will sell well regardless.

I know VDH is a different situation but if those have them, it means they have not changed course and moves the needle that
this will be a new association..at least IMO

I guess the big plus is that if they do abs for them, then the should be removed from RIV as well.

 

[Sandisw]

I don't think they can go back in RIV and lift it. I know it's in the paperwork, but I think that would make people more angry than keeping it like it is and it being the only "protected" one. If they reverse course, RIV (and probably DLT) will stand alone, which will make a really weird scenario with locked down resale buyers and direct buyers from RIV and not-RIV

It won’t make any sense to put them in VDH and RIV and then abandon

If they abandon, they will remove them from RIV as well.

Not sure who is going to be angry about the decision.

 

[hcortesis]

I think it’s the other way around. A new association will cause more direct sales than rolling it in to PVB.

If it’s part of PVB, then you lose the buyers who will go cheaper and buy resale and still have all the advantages.

If it’s new, especially if they stay with restrictions, people have only one choice..buy direct.

And I bet that one reason it has not been announced is because they don’t want to commit to a decision right now, even if it has been made.

I’d even so far to say that I think this tower is the perfect project to continue them..if they want..because being an MK resort will sell well regardless.

I know VDH is a different situation but if those have them, it means they have not changed course and moves the needle that
this will be a new association..at least IMO

I guess the big plus is that if they do abs for them, then the should be removed from RIV as well.

Well said!

 

[lovethesun12]

If it’s part of PVB, then you lose the buyers who will go cheaper and buy resale and still have all the advantages.

There are only so many contracts on the market though. Right now there are only about 49 contracts at the 150+ points you would need to buy direct, and you can't buy the exact number of points you want in the use year you want. Those contracts are not priced that far off direct pricing anyway (thinking of VGF price) and if those sold the price would go even closer to direct.

I'm not sure the resale market has a huge impact on direct sales, if it did they probably would have considered it necessary to add the resale restrictions to VGF as well.

 

[KAT4DISNEY]

Not sure why DVD would construct such a monstrous new addition and then keep it in the same association, where the zillion poly owners could use their existing points to book without spending a dime, or Disney making any money.

I do not think that one necessitates the other nor that being in the same association would prevent the majority of buyers purchasing. Remember that the vast majority of DVC is still sold to those who show up for a Disney vacation, have a blast and decide then and there they want to enjoy it for years to come. DVC will spin as they need to. Always have. Always will. No matter the resorts they have sold them all at a relatively similar pace. The current owners perspective is often quite different than the future owner DVC is targeting and it becomes more and more obvious that Disney wants to target new. Still, even those who currently own could be driven to add on in order to book larger accommodations since their current ownerships would be more geared to studios. I still perceive marketing and sales as easier if it's all one. Question is what DVC thinks will help them though.

 

[tidefan]

I'm not sure the resale market has a huge impact on direct sales, if it did they probably would have considered it necessary to add the resale restrictions to VGF as well.

But if they were going to do that, then VGF2 would have had to have been a separate Condo Association (which it probably should have been).

 

[TraderStitch]

But if they were going to do that, then VGF2 would have had to have been a separate Condo Association (which it probably should have been).

It doesn't really make sense to make it a new association as they are just retrofitting an existing building. This has been talked about in a few other threads at length.

The new Disneyland Tower and the Poly Tower are new construction all together so if they continue the restrictions, as Riviera was the break in DVC resorts (think Legacy resorts verse next gen), it would make sense. The only way we will know for sure is when Disneyland Tower goes on sale.

 

[Nursemanit]

It doesn't really make sense to make it a new association as they are just retrofitting an existing building. This has been talked about in a few other threads at length.

The new Disneyland Tower and the Poly Tower are new construction all together so if they continue the restrictions, as Riviera was the break in DVC resorts (think Legacy resorts verse next gen), it would make sense. The only way we will know for sure is when Disneyland Tower goes on sale.

Restrictions mean nothing on the west coast. Most won't care if the DLT points can only be used at DLT.

 

[tjkraz]

A decision made several years ago is not safe under Chapek.

DVC is barely a rounding error to Chapek. He'll set expectations for lower-level execs, but I sincerely doubt that he's micromanaging DVC sales policy. Details like this are left to Bill Diercksen and Stephanie Young whose futures with the company are determined by their ability to meet or exceed expectations. They're the ones who will have direct say over whether the restrictions continue or not.

If DVC felt the resale restrictions were not aiding sales, they'd be gone already. Doesn't matter what promises were made to buyers. The legality of lifting the restrictions may be questionable, but they'd publicly spin it as a benefit to owners and it would never be challenged.

Handling of Grand Floridian certainly casts doubt on Poly2. Poly2 is a coin flip at this stage. But DVC seems to be playing the long game. Those 14 unrestricted resorts sound pretty good via resale now, but in 19 years it will be down to 9. And then 8. And then 6. If this policy sticks, it means they're not worried specifically about Riviera sales. It means they're thinking 30 years ahead, to a time when buying direct will be the only way to get access to more than one resort.

Or maybe they reverse the Riviera policy tomorrow and we can all agree it was hurting DVC sales. But until that happens, safe money is that internally they view the restrictions as a net plus.

Another possibility is that DVC offers a way for resale owners to buy-up to direct status. Open another revenue stream. It doesn't have to be cheap. We'll see.

 

[tidefan]

It doesn't really make sense to make it a new association as they are just retrofitting an existing building. This has been talked about in a few other threads at length.

It does if you are an existing VGF1 owner with no desire to book hotel rooms...

 

[Nursemanit]

Same here. But also because I don't want to compete with the "Zillions" as you say, current Poly members to get rooms at 11 months. I love the new look of the tower and hope to buy there.

I still don't understand this logic - you can get 1br at any WDW resort except sometimes BCV at 7 months, and you can get SV studios now at PVB at 7 months - why would this change? It's a very small percentage that is excited to pay almost 2k more a week for an oven and W/D.

This is the opposite of VGF where they added tons more members and no new 1br or 2 br units.

 

[Sandisw]

I still don't understand this logic - you can get 1br at any WDW resort except sometimes BCV at 7 months, and you can get SV studios now at PVB at 7 months - why would this change? It's a very small percentage that is excited to pay almost 2k more a week for an oven and W/D.

This is the opposite of VGF where they added tons more members and no new 1br or 2 br units.

It matters for me because I don’t want to stay at the current PVB. So, if I am going to buy at Poly tower, I want the best possible chance to get what I want at 11 months.

Im not interested in spending money to own if they decide to allow 6 million points to be eligible to compete for 2 million points worth of rooms.

Sure, not everyone owning PvB will book the new tower, and maybe getting something at 11 months won’t be an issue, but for us, if I am paying that much for tower stays, I want to compete only against those who own the tower.

If I can’t do that, it’s not worth it for me to own there…I’ll simply buy more RIV points and take my chances at 7 months because at that point, I won’t care as much if I don’t get it.

But, if I buy, and the studios at the tower are more popular than the current studios are, and I get shut out of the tower, then I wasted my money.

 

[SLThomas318]

I still don't understand this logic - you can get 1br at any WDW resort except sometimes BCV at 7 months, and you can get SV studios now at PVB at 7 months - why would this change? It's a very small percentage that is excited to pay almost 2k more a week for an oven and W/D.

This is the opposite of VGF where they added tons more members and no new 1br or 2 br units.

I don’t either. I’m a current poly owner (direct) and we did a couple small add-ons because we love the vibe and the larger studios. I would expect the tower to be pretty point heavy so I don’t know how far many current owners points are really going to go if they do make it the same. Someone also commented earlier that based on the cleared space it looks like it’s going to be a small addition. I could see the studios in the tower being a problem (as low point studios at any resort tend to be a problem), but I wouldn’t expect larger units to be an issue. It will be interesting to see how it all plays out.

 

[Nursemanit]

It matters for me because I don’t want to stay at the current PVB. So, if I am going to buy at Poly tower, I want the best possible chance to get what I want at 11 months.

Im not interested in spending money to own if they decide to allow 6 million points to be eligible to compete for 2 million points worth of rooms.

Sure, not everyone owning PvB will book the new tower, and maybe getting something at 11 months won’t be an issue, but for us, if I am paying that much for tower stays, I want to compete only against those who own the tower.

If I can’t do that, it’s not worth it for me to own there…I’ll simply buy more RIV points and take my chances at 7 months because at that point, I won’t care as much if I don’t get it,

But, if I buy, and the studios at the tower are more popular than the current studios are, and I get shut out of the tower, I wasted my money.

If you're going for a 1br - I think you would be fine either way, Based on the location, I think any studio in the tower will be smaller than PVB or RiV. There is simply not much room unless they are going to go with only one side of the building having rooms.