Reduction in 2042 Contracts?

[BWV Dreamin]

Well, is it possible for Disney to reduce the number of years from a 2042 contract? I never thought they could just automatically extend the contracts, so now I'm wondering? Let's say Disney doesn't want to continue with HHI or Vero Beach? Is this possible?

 

[Dean]

Well, is it possible for Disney to reduce the number of years from a 2042 contract? I never thought they could just automatically extend the contracts, so now I'm wondering? Let's say Disney doesn't want to continue with HHI or Vero Beach? Is this possible?

They could sell or simply end the management contract but the resorts themselves would be in place. Members would have to vote simply to end the contract unless there were a disaster and they decided not to rebuild all or a portion. Those resorts would then cease to be a member of the club.

 

[LoveMyDisneyCats]

How would that work exactly? If they end the management contract, I would then have a time share at VB and not actually DVC? Or if there was a "disaster" and they decided not to rebuild- do I get some insurance money as repayment of my lost timeshare or am I just out of luck? Not that I'd expect either to ever happen, I am curious as a VB owner.

 

[BWV Dreamin]

How would that work exactly? If they end the management contract, I would then have a time share at VB and not actually DVC? Or if there was a "disaster" and they decided not to rebuild- do I get some insurance money as repayment of my lost timeshare or am I just out of luck? Not that I'd expect either to ever happen, I am curious as a VB owner.

I have that same question. A disaster is a real possibilty as Vero has already been hit by a hurricane. But, if management were to end its agreement, wouldn't another company have to by it? Or would the property be put up for sale for the current owners to purchase?

 

[CarolAnnC]

You know this would all be purely speculation. Nobody can predict exactly what would happen in the event of a disaster of large proportions. This could happen to any of the Resorts or Parks for that matter. One day all of California could even drop into the ocean, yikes. The great city of Chicago where I am from could be destroyed and burn to the ground....oops that already happened! LOL!

Anyway, I do not put much stock in worrying about the future or possible disasters. I figure that is why we all have insurance including our DVC resorts. And, btw, I do also own at Vero Beach, lol.

 

[LoveMyDisneyCats]

Hey CarolAnnC- nice to meet another chicagoan VB owner
Anyway, I don't ever expect it to happen either, but I will say I'd be REALLY mad if they ended managment of it and sold to another company. I use my points at WDW every year and not VB- I'd love to go there too some time, but it's never worked out (I've only actually stayed there once). Yeah, so great I'd still have a timeshare, but I want to own DVC so I can stay at WDW. At the time I bought, I bought to be a DVC member not a VB owner. I know some people buy a place because they want to always stay there, but like many others, we bought for the option of staying at any DVC resort. We don't book 11 months out so home priority is not relevent for us.
If a sellout or disaster ever happened, then I'd have to sell my new VB-only timeshare and buy in at whatever new WDW DVC resort they were building at the time (for probably the price of $300 per point, pretty different from the $70ish per point I paid for VB). Actually, at that point I think DH would be so ticked, we wouldn't be able to buy new DVC....well, I guess I could always find a new DH who would buy a new DVC (just kidding honey, if you are reading this )

 

[Dean]

How would that work exactly? If they end the management contract, I would then have a time share at VB and not actually DVC? Or if there was a "disaster" and they decided not to rebuild- do I get some insurance money as repayment of my lost timeshare or am I just out of luck? Not that I'd expect either to ever happen, I am curious as a VB owner.

If the management contract is ended, most scenarios would have that given resort ceasing to be a member of DVC. The only scenario that wouldn't would be if all resorts were turned over to the same group. The POS and Laws of Fl actually deal with the issue of destruction and ? rebuilding. If temporary, the member could use their points at other resorts within the rules of the system. If deemed to be permanent, for either all of a portion and those member would cease to be a member of the club. They would get any money available distributed, if no $$ were present, they'd just walk away.

 

[BWV Dreamin]

If the management contract is ended, most scenarios would have that given resort ceasing to be a member of DVC. The only scenario that wouldn't would be if all resorts were turned over to the same group. The POS and Laws of Fl actually deal with the issue of destruction and ? rebuilding. If temporary, the member could use their points at other resorts within the rules of the system. If deemed to be permanent, for either all of a portion and those member would cease to be a member of the club. They would get any money available distributed, if no $$ were present, they'd just walk away.

I wonder why Disney doesn't want to expand Vero as previously planned, assuming the trend is to have more DVC resorts? Do you think there are plans to excise Vero and HHI before 2042?

 

[Dean]

I wonder why Disney doesn't want to expand Vero as previously planned, assuming the trend is to have more DVC resorts? Do you think there are plans to excise Vero and HHI before 2042?

I certainly can't speak for DVD but the fact is they abandoned plans to expand both on the ocean side and across the street. Common thinking is due to slower than expected sales at both VB and HH. As many other timeshares have found out, if you want a resort to sell itself you've got to give people things they can't live without and get the people to the sales presentation. DVC did neither comparatively for either resort. They've since sold the oceanfront parcel with a condo being planned for that site last I heard.

 

[No1HawkFan]

It is possible.

 

[BWV Dreamin]

Ok, so if this were to happen, what might be some possible senarios? Would DVD offer current owners a chance to buy any of the property? Might they sell to another timeshare magmt. company? Since there is activity about another condo being built close by, I wonder if eventually the property might be converted into condos also?

 

[Dean]

Ok, so if this were to happen, what might be some possible senarios? Would DVD offer current owners a chance to buy any of the property? Might they sell to another timeshare magmt. company? Since there is activity about another condo being built close by, I wonder if eventually the property might be converted into condos also?

First, I don't think there's any real risk from DVC's standpoint here other than possibly having the properties expire in 2042 but having the other 2042 resort extended. The real risk here is natural disaster such as a hurricane. I could easily see DVC closing them down if they were completely destroyed, or nearly so.

But what could they do?, they could:

• not rebuild all or any portion that was damaged. Those owners would cease to own anything at that point and would be out. They MIGHT get a few $$$ as their portion of any insurance but that's about it.
• They could sell the management contract. Owners at that resort would cease to be a member of the club unless they sold the contract for all to one group.
• DVCMC could simply tell the owners at any give resort that they were ceasing to be the management company and the owners would then be responsible for making other arrangements. Again, they would cease to be a member of the group unless they formed a new group.

 

[BWV Dreamin]

First, I don't think there's any real risk from DVC's standpoint here other than possibly having the properties expire in 2042 but having the other 2042 resort extended. The real risk here is natural disaster such as a hurricane. I could easily see DVC closing them down if they were completely destroyed, or nearly so.

But what could they do?, they could:

• not rebuild all or any portion that was damaged. Those owners would cease to own anything at that point and would be out. They MIGHT get a few $$$ as their portion of any insurance but that's about it.
• They could sell the management contract. Owners at that resort would cease to be a member of the club unless they sold the contract for all to one group.
• DVCMC could simply tell the owners at any give resort that they were ceasing to be the management company and the owners would then be responsible for making other arrangements. Again, they would cease to be a member of the group unless they formed a new group.

Thanks Dean! Well, I don't have that much invested in Vero, so I'm not too worried. Thanks for all your info!

 

[Dean]

Thanks Dean! Well, I don't have that much invested in Vero, so I'm not too worried. Thanks for all your info!

You are welcome. I don't think there's any reason to be worried at all but one should know where they stand. To a degree, any timeshare is an investment in uncertainty. Many things can happen, often in spite of the written rules, verbal promises and assumptions. But if one is invested in a quality public company like DVC, Marriott, Hyatt, Hilton or the like, that does give a significant degree of protection though I also think it gives many an undeserved sense of security. If not, we wouldn't have all this discussion about a $95 fee for a program that's not enough value to stay in place anyway and that everyone that bought in should have known could change dramatically the day after they bought or be eliminated altogether.

 

[tubtruck]

I think its highly unlikely that Disney would drop Vero or HH, imagine the press outfall if it caused owners to lose their investment, the negative publicity would damage not only the DVC that is presently being pushed very hard but also the whole disney brand. Companies that sell products at a premium price as Disney do, reley a lot on their brand and actually value it in monetary terms very highly. I doulbt Disney would want the damage or fall out of damaging their brand over a couple of ocean side hotels which even if they fell down tommorow it would only make a dent in one years profits and I imagine that for Disney to prefere to take the hit themselves rather than lose peoples trust.

 

[tubtruck]

I think its highly unlikely that Disney would drop Vero or HH, imagine the press outfall if it caused owners to lose their investment, the negative publicity would damage not only the DVC that is presently being pushed very hard but also the whole disney brand. Companies that sell products at a premium price as Disney do, reley a lot on their brand and actually value it in monetary terms very highly. I doulbt Disney would want the damage or fall out of damaging their brand over a couple of ocean side hotels which even if they fell down tommorow it would only make a dent in one years profits and I imagine that for Disney to prefere to take the hit themselves rather than lose peoples trust.

 

[BWV Dreamin]

Well there has been some comments about how HHI and VB might get sold off to another timeshare co., as interest hasn't been what Disney anticipated. I only know of the hurricane that hit VB, so if there is any other info pertaining to these resorts that might be why Disney would do this, comments would be appreciated. Its really about the dollar with DVD, so I don't really think perception would come into play with any of their decisions.

 

[dwelty]

Its really about the dollar with DVD, so I don't really think perception would come into play with any of their decisions.

I disagree, Since Disney knows that negative perception would hurt the "Dollar". Disney has ALWAYS been concerned about how the public perceves them. The Disney name is their most valuable asset, and they know that. Why do you think Disney is spending 1.2 billion to fix DCA?

 

[BWV Dreamin]

I disagree, Since Disney knows that negative perception would hurt the "Dollar". Disney has ALWAYS been concerned about how the public perceves them. The Disney name is their most valuable asset, and they know that. Why do you think Disney is spending 1.2 billion to fix DCA?

Yes, I agree that Disney's name is valuable to them, and they are using that to their best advantage. They don't need to worry about this perception. They didn't care about it when they instituted the the "extension to 2057". They aren't caring about it with the new changes that have happened this year. They are a business, and have to operate in such a manner that they maximize profit, at whatever the cost. It will take much to tarnish the "Disney" perception.