SSR Selling out?

[luckyman_apd]

My supposition is that DVC wants to get more points extended at OKW from the 2042 end date to the 2057. When they ROFR a 2042 contract they turn around and sell it with a 2057 end date.

I know that OKW is the only resort that had an extension. I'm curious as to why they never offered extensions on other resorts built after OKW? Were there not enough owners who bought the extension to make it worthwhile at the other resorts?

Also, with some SSR contracts selling in the $50 price range and now a waitlist, why isn't Disney ROFR them? Just curious as to Disney's logic. I don't understand why if there is a waitlist, why they would ROFR? If I was waiting for say a Sept UY for 160 pts and I was willing to pay $99 or $105 (whatever the current price SSR) why wouldn't they exercise ROFR on a $60 or $65 contract? They still make a profit. I know it's not the same profit as an OKW rebuy and resell, or a AKV sale, but if the buyer is waitlisted at a specific resort and not purchasing the others, why would Disney pass up on it?

I've read many posts about Disney being all about profit, and this seems to me to be the easiest profit of all. On a 160 point contract, Disney selling at $99 and ROFR at $65 still nets them $5,000. 3 ROFR = 1 direct sale. Plus, Disney offers financing so they could make the money off of the interest. Just saying. It's an easy profit grab for Disney if the waitlist is there.

I completely understand passing up on ROFR if they have to work to resell it.

 

[Caren90]

I know that OKW is the only resort that had an extension. I'm curious as to why they never offered extensions on other resorts built after OKW? Were there not enough owners who bought the extension to make it worthwhile at the other resorts?

Also, with some SSR contracts selling in the $50 price range and now a waitlist, why isn't Disney ROFR them? Just curious as to Disney's logic. I don't understand why if there is a waitlist, why they would ROFR? If I was waiting for say a Sept UY for 160 pts and I was willing to pay $99 or $105 (whatever the current price SSR) why wouldn't they exercise ROFR on a $60 or $65 contract? They still make a profit. I know it's not the same profit as an OKW rebuy and resell, or a AKV sale, but if the buyer is waitlisted at a specific resort and not purchasing the others, why would Disney pass up on it?

I've read many posts about Disney being all about profit, and this seems to me to be the easiest profit of all. On a 160 point contract, Disney selling at $99 and ROFR at $65 still nets them $5,000. 3 ROFR = 1 direct sale. Plus, Disney offers financing so they could make the money off of the interest. Just saying. It's an easy profit grab for Disney if the waitlist is there.

I completely understand passing up on ROFR if they have to work to resell it.

The question as to why Disney is not ROFR-ing SSR may be answered by knowing how many points Disney has received back from foreclosed or abandoned SSR contracts. These are hard times and SSR is a large resort, so there could be thousands of points being "walked away from" by previous owners. Also, I believe Disney's focus is on selling BLT, AKV, and Aulani. More money to be made from direct sales on these resorts.
Stephen

 

[luckyman_apd]

The question as to why Disney is not ROFR-ing SSR may be answered by knowing how many points Disney has received back from foreclosed or abandoned SSR contracts. These are hard times and SSR is a large resort, so there could be thousands of points being "walked away from" by previous owners. Also, I believe Disney's focus is on selling BLT, AKV, and Aulani. More money to be made from direct sales on these resorts.
Stephen

Good point about the foreclosure or abandoned contracts. It's finally clicking what someone else said earlier. IF Disney knows within a year X amount of contracts will forclose or they will get back, they would obviously want to resell those first.

 

[drusba]

I know that OKW is the only resort that had an extension. I'm curious as to why they never offered extensions on other resorts built after OKW? Were there not enough owners who bought the extension to make it worthwhile at the other resorts?

The OKW extension sale was close to a disaster for DVD. They did not get anything near the participation they expected including because the price was too high and many did not perceive the need because they were years from expiration and would likely not be alive when it happened. Also, they used a method where they had to not just sell new shares of units but had to get those who did not accept buying the extension to sign a document relinguishing any extension. Many being normal human beings did not bother to send back the signed document so Disney kept offering incentives (some minor cash) to get members to send back the signed document. It probably is still waiting on some. As a result, DVD is no hurry to offer extensions elsewhere and if it does it will probably be much closer to the end date.