Question regarding MBs for HHI

[Mickbee]

Sorry if this has been asked a million times and the long winded nature...

Based on the comments of this board, it appears that the majority of people that visited HHI really love it and plan to return over and over. If this is an accurate observation, why is it taking so long to sell out?

Based on the seemingly high demand, short season, and limited availability/smallest DVC Resort, it would seem it would sell out rapidly. I could be totally off base with my observations too!

I have never been there, but I have certainly added it to my vacation list based on all of the positive trip reports.

A few additional questions:

Why is Disney discounting the Magical Beginnings $10 at Vero and HHI?

Is Disney meeting their projected sell out dates for the resorts?

When do the MBs expire at HHI?

If the MBs remain until sell out, will they remain at the $10 current price or revert to the $5 as offered at VWL?

Will the discounted points have a long term negative impact on the value of the resort? I understand a point is a point if used at a resort other than your home.

Does Disney have the option/right to sell its portion of the resort and/or remove the "Disney" name from the resort if it doesn't prove to be a worthy investment for the company? The intent of this questions not to imply that they don't make their margins, rather if the resort doesn't fit into their business plan in the future. Could/would they do it?

Disney seems to be running low on available stock in DVC based on the reports of VWL, VB, and HHI estimated to sell out in the fall 01 and BCV not estimated to hit the street until spring 02. So why would they discount two of there remaining three available properties $10 and the third $5?

Wouldn't DVC be left twiddling their thumbs for the entire winter until the paint dries at BCV?

If you have made it this far, thanks for bearing with me and your comments are very much appreciated.

 

[RobDoc]

You've asked some great questions, most of which have no answer, since DVC doesn't publicize the information you ask. However, speculative answers are abundant- just be sure to recognize them as such.

HH is a great resort (as is VB). Since neither has the advantage of being onsite at WDW, they have faced a different sales challenge than the other DVC resorts.

MB is a sales incentive designed to provide an extra nudge for those who are looking for a "deal". The MB at VWL is generally recognized as being of negligible value, while those at VB and HH are more enticing. Since those resorts are more difficult to sell than VWL, DVC apparently chooses to offer a greater incentive. The MB for VB has actually been reduced from a high of $15 per point- and that was when points were at $67 @. You can make your own assumption about the reasons for these changes.

The DVC documents clearly spell out the circumstances where a resort would be elimintated from the program. Basically, as long as DVC is the managing entity, the resorts will be included. If the membership votes to replace DVC- they will disappear from the program.

Many of the glowing comments about HH are from members who have used points at the resort, but have not purchased at that resort. Many of the owners at HH have purchased an add-on- to allow them to utilize the 11 month window, but with not enough points to reserve each year at 11 months. Thus, while there are many delighted owners of the resort, many hold 50-120 points- it takes longer to sell out any resort at that rate.

Expiration, changes to and duration of the Magical Beginnings program at any resort is subject to change at any time. DVC can modify or eliminate the program without notice whenever they choose.

Information about original sales projections has not been made public. General speculation is that sales at VB and HH have discouraged any further off site development. It is always interesting to see the comments on this board about where the next offsite DVC should be located. Most of the responses indicate a strong desire to "visit" Hawaii, the Carribbean, ski areas, etc., but no strong indication that we would actually purchase a membership at these locations. Thus the "catch 22". Resorts don't sell by members just visiting. They have to have enough purchase strength to sell by themselves.

I can't see discounted points having any impact on the DVC program. Again, the discount (MB) is merely an incentive for people to buy. Annual maintenance fees are the important ongoing expense- and there are no discounts there.

Enjoy!

 

[Dean]

Doc's post is very on target and informative as always. I have a slightly different take on HH though. Remember that HH is a VERY seasonal resort and that DVC is trying to sell enough points for an entire year. They are selling points at a resort that is very desirable for around 12 weeks out of the year and hard to give away for 3-4 months. Consider that for about 3-4 months of the year, one can buy rooms both at DVC and at several top Marriotts for less than the maint fees, if they are members of II. I've seen 2 BR at HH in Jan and Feb for under $600 for a week. Also, while DVC HH is a great resort, as HH goes, it is not the most desirable resort on the island. It does have the lowest yearly fees of all the DVC resorts. It is however part of the DVC which gives flexbility and other options and give a big plus.

It appears that HH and VB have sold much slower than DVC would have anticipated though in line with other similar timeshares. Count on MB fading soon or maybe even stopping for a while. I agree with DOC, no negative impact on the resorts from the MB.

 

[RobDoc]

Dean's observation is also very accurate. HH has significant sales competition right at HH and while the resort is beautiful, there are other nearby options which are just as nice and even are on the beach. The very seasonal nature of the area certainly play a role in sales.

Most of my attraction for HH is the island itself, not any particular resort. We've been enjoying HH since 1984- long before DVC had anything going on there. The DVC resort was just a natural extension for us to enjoy an area we were well familiar with already and the DVC program offered a great vehicle to continue our enjoyment of the area.

One minor correction- HH has the 2nd lowest annual fees among the DVC resorts. OKW is still the lowest ($3.13 vs $3.32 at HH).

 

[Dean]

Thanks Doc, I was thinking HH was slightly lower than OKW at present.