ROFR Thread July to Sept 2022 *PLEASE SEE FIRST POST FOR INSTRUCTIONS & FORMATTING TOOL*

[Sunnyore]

Could be whatever reason like unit number, UY, where in the queue the contract is in and if the ROFR lady has had her lunch break or not...

I hope the ROFR lady has a great lunch with a nice boozy cocktail before tackling the “maybes” pile soon. It’s super aggravating to see ppl post results for dates way past your own submit date. This dragging things out just to possibly take the contract isn’t my cup of tea. Im ready to just buy some direct pts at VDH!!

 

[mtgtm4]

I doubt it is just demand as they passed on my CCV at $156 last week?

Yep I think there is definitely more to it. I purposely went $5 over per point bc there was a good match on UY thinking that it was "relatively" safe. Probably really is not much of a safe number if there are certain other things in play.

 

[EricLaurie]

In order to sell someone a contract, all points need to be deeded to the same unit. They can’t sell someone points deeded to different ones.

So, say they have 75 points in Unit 3A and 75 in Unit 3B but someone wants to buy 100 points. They can’t sell them 100 since it’s not the same unit.

If they see points from Unit 3A or 3B via ROFR, they can take them and now sell that person 100 direct points.

Thanks. Hadn’t thought of that. But they would have to be selling a bunch of direct points for that to make sense - right? Maybe they are selling more direct than I thought.

 

[DonMacGregor]

Thanks. Hadn’t thought of that. But they would have to be selling a bunch of direct points for that to make sense - right? Maybe they are selling more direct than I thought.

It's the opposite. They fewer points they sell direct, the smaller the inventory they keep on hand, and the more difficult it is to have a significant number of points within a single unit to make up a larger contract. When someone calls their guide and out of the blue says they want to buy 200 points at BRV, it's not likely that DVC is sitting on a ton of points on the off chance someone makes that request.

 

[CVG]

Did you ever hear back on this one? I have a OKW That is about 2 weeks behind you I am waiting to hear on.

No. Still waiting. But perhaps it's because they have delayed closing on this of end of Sep?

 

[CaptainAmerica]

When someone calls their guide and out of the blue says they want to buy 200 points at BRV, it's not likely that DVC is sitting on a ton of points on the off chance someone makes that request.

That used to be broadly true but I'm not sure it is anymore, at least depending on what resort we're talking about. There's no doubt in my mind that you could call up and buy a 2,000 point SSR contract tomorrow if you wanted to. They're ROFRing WAY more than they're selling.

 

[Spinster Travel]

That used to be broadly true but I'm not sure it is anymore, at least depending on what resort we're talking about. There's no doubt in my mind that you could call up and buy a 2,000 point SSR contract tomorrow if you wanted to. They're ROFRing WAY more than they're selling.

About a year ago, I pondered adding on Direct at either Boardwalk or OKW before they increased the minimum for Blue Card benefits and called my guide. She checked inventory and said "there was plenty on hand" in my UY. Granted, I wasn't looking for a 200 point add on, but they did have points at both resorts. I'd say that inventory has only gone up as we know they have purchased way more than sold at some of these resorts (SSR and OKW specifically).

 

[DonMacGregor]

That used to be broadly true but I'm not sure it is anymore, at least depending on what resort we're talking about. There's no doubt in my mind that you could call up and buy a 2,000 point SSR contract tomorrow if you wanted to. They're ROFRing WAY more than they're selling.

Obviously, based on recent ROFR reports. The buy back activity has been significant at SSR lately, so much so that it has been the subject of numerous posts and threads. I specifically used BRV as an example because they HAVEN’T been buying a ton of contracts back all year.

 

[CaptainAmerica]

Obviously, based on recent ROFR reports. The buy back activity has been significant at SSR lately, so much so that it has been the subject of numerous posts and threads. I specifically used BRV as an example because they HAVEN’T been buying a ton of contracts back all year.

I wasn't sure if you were making a BRV-specific point, or a general point using BRV as an example.

 

[DonMacGregor]

I wasn't sure if you were making a BRV-specific point, or a general point using BRV as an example.

Well, both. I just wanted to pick a resort that hasn't been the subject of weird ROFR activity, and when I bought a direct add-on there a few months back, I did need to wait a few days for them to get the points.

 

[KPeterso]

No. Still waiting. But perhaps it's because they have delayed closing on this of end of Sep?

Delayed closing should not cause ROFR delays. I have a delayed closing for the end of October. My contract went to ROFR in April, and sailed through in about 3 weeks. I was surprised how quickly it went through and was not expecting to hear for at least another week --- most people were around the 30 day wait at that time. Now I am just waiting on my closing documents (so late October).

 

[Jlo85]

That used to be broadly true but I'm not sure it is anymore, at least depending on what resort we're talking about. There's no doubt in my mind that you could call up and buy a 2,000 point SSR contract tomorrow if you wanted to. They're ROFRing WAY more than they're selling.

Can’t Disney just rent the rooms like a normal hotel room? With the limited availability, I could see them making bank just charging rack rates for DVC points they have.

 

[Sandisw]

Can’t Disney just rent the rooms like a normal hotel room? With the limited availability, I could see them making bank just charging rack rates for DVC points they have.

Any points DVC owns can be used to rent rooms for cash so yeah, it is a way to make money if they want to do that vs. selling them

 

[CaptainAmerica]

Can’t Disney just rent the rooms like a normal hotel room? With the limited availability, I could see them making bank just charging rack rates for DVC points they have.

In the short term, that might make sense during a period of high demand for cash rooms.

In the medium-to-long term, if they needed more cash inventory and less points inventory, they'd be building Poly2 as a hotel expansion and not a DVC expansion.

 

[Nursemanit]

I think that inflation is the reason

1. They have not ROFRed any 2042 resorts for the past few months. These resorts have no reason to gain value over 5 years.

2. SSR and OKW and BLT and CCV will still be viable to sell at a profit in 5 years if inflation lasts.

Basically RoFRing up deeds that are marketable in 5 years is a great way to protect against the risk of keeping cash when we are seeing the current inflation numbers and a mixed stock market.

The unexciting reason is really the simplest explanation

 

[Jlo85]

In the short term, that might make sense during a period of high demand for cash rooms.

In the medium-to-long term, if they needed more cash inventory and less points inventory, they'd be building Poly2 as a hotel expansion and not a DVC expansion.

Yes, I more question that Disney is just ‘sitting on the points’ as some have said. Checking the WDW hotel bookings, it’s pretty clear they’re actively renting out rooms at the DVC resorts they’re ROFR’ing.

 

[CaptainAmerica]

I think that inflation is the reason

1. They have not ROFRed any 2042 resorts for the past few months. These resorts have no reason to gain value over 5 years.

2. SSR and OKW and BLT and CCV will still be viable to sell at a profit in 5 years if inflation lasts.

Basically RoFRing up deeds that are marketable in 5 years is a great way to protect against the risk of keeping cash when we are seeing the current inflation numbers and a mixed stock market.

The unexciting reason is really the simplest explanation

I think Disney is much more worried about a Fed-induced recession in their effort to fight inflation than inflation itself.

 

[Nursemanit]

I think Disney is much more worried about a Fed-induced recession in their effort to fight inflation than inflation itself.

Agree but they are not mutually exclusive.

 

[Sandisw]

In the short term, that might make sense during a period of high demand for cash rooms.

In the medium-to-long term, if they needed more cash inventory and less points inventory, they'd be building Poly2 as a hotel expansion and not a DVC expansion.

Except that SSR is 14 million points. Even with the heavy ROFR data, it’s a very small % they have picked up in the scheme of things.

It takes about 140k in ROfR points to increase their ownership a measly 1%..pretty sure we are way under that right now.

No idea what they are doing or why…but cash stays are up short term and after Poly tower, who knows? Maybe we will see more cash rooms changed to DVC to balance loss of demand for cash.

They eliminated Reflections that was to be a mixed resort so they obviously know long term cash rooms don’t need an increase yet.

 

[pianomanzano]

Heard Marissa and Derek from the board sponsors on a podcast mention two things about ROFR that I’ve never heard before.

1) Disney will typically ROFR more at the beginning of their fiscal year (October) than the end, so they’ll let more contacts pass in August/Sept.

2) Disney will also ROFR some of the sold out resorts leading up to a member cruise in order to have inventory to sell during the member cruise itself.

Hadn’t heard either of these before so just thought I’d share!