Speculation: Animal Kingdom Lodge DVC Expansion?

[Hubalorian]

They are buying back aggressively for a reason. I thought it was interesting that their $199 pp direct promotion only last a week i believe...

It’s a data point, they ran it for a week to gauge interest at that price point

 

[Girlstar30]

It’s a data point, they ran it for a week to gauge interest at that price point

Ah ok, makes sense!

 

[Nabas]

Converting cash to DVC is often about turning a quick profit.

Keeping the math simple, let’s say an Animal Kingdom Lodge room has a $50 margin per night.

That same room might cost 15 DVC points per night to book. Disney can convert this room to DVC and sell 15 points at $235 per point. Taking into account the cost to convert and sell, Disney probably is realizing a quick cash gain of perhaps $2500 for that same room night.

If you are responsible for making this decision, it's a choice between $50 in profit for the next 50 years or $2500 profit this year. Taking into consideration the C-suite turnover at Disney, is the person making this decision this year still going to be in charge of making this decision in 20 years? 10 years? Even 5 years?

 

[Cfabar1]

Given the studio-heavy way DVC is, it would be very easy to convert…. They could also do a CCV style renovation for dedicated 1 BR units for example and create a new category of group.

 

[Sandisw]

Given VLL slated for a 2027 opening, I just don’t see this.

Now that they have MMB program with BOGO free OTU points, maybe the extra ROFR is to help give them more points for this.

And, AKV is a pretty nice price and once that might rent well for cash too.

 

[Girlstar30]

Given VLL slated for a 2027 opening, I just don’t see this.

Now that they have MMB program with BOGO free OTU points, maybe the extra ROFR is to help give them more points for this.

And, AKV is a pretty nice price and once that might rent well for cash too.

I find it so interesting that I was inquiring to rent out points thru davids and dvc rental store and dvc rental store only offers $17 pp for baylake and $18 pp for animal kingdom, yet when I asked davids which resort they feel would sell points quicker for me to get the premium $18 pp during Christmas time they said BLT. I was definitely expecting them to say Animal Kingdom! Seems like davids puts more "value" on blt and rental store on akv

 

[SL6827]

Wonder if the AKL has reached some what of a ceiling price point and they are having rooms stay empty mote often than they like?

 

[TheDailyMoo]

$730,000/yr in dues that go toward paying for club level access.

that's a lot of hummus and butter chicken!