What does the future hold for DVC?

[disneynutz]

One thing that I have not heard is the possibility of conversion of rooms at GF. Given what we are seeing with Deluxe occupancy rates, even the flag ship is likely in DVDs sights and necessary or Disney CRO to maintain the premium GF rates.

It's all about the money. If converting regular rooms to DVC makes Disney more money they will do it, only Disney knows the numbers.

Bill

 

[jmassey1samchi]

if more and more resort rooms become dvc rooms, I wonder if the increase in the supply of rentable points will be big enough to make the demand for cash stays less, and have a negative effect on cash stay prices?

 

[mac_tlc]

Lets not forget

Disney’s Eagle Pines Resort would have been a 600 unit Disney Vacation Club resort built in the award winning Eagle Pines Golf Course. The Walt Disney Co. announced the plans to build the 61-acre, $170 million resort on July 23rd, 2001 and would have made it the seventh Disney Vacation Club property. It would have been the largest vacation club property at the time.
From disneydrawingboard.com....


Unfortunately 9/11 happened, and attention turned to the Disney Institute -- which became Saratoga Springs Resort & Spa.

 

[JimMIA]

Why do you think VGF was a miss?[\quote]

Maybe because he doesn't own there?

Bill

Bill is partially right.

Financially, I'm sure DVD did very well, so I was probably wrong to say it was a miss from that perspective.

As far as MEMBERS are concerned, I'm sure any addition at WDW would be welcome and beneficial. Location, location, location.

 

[DVC Mike]

Disney’s Eagle Pines Resort would have been a 600 unit Disney Vacation Club resort built in the award winning Eagle Pines Golf Course. The Walt Disney Co. announced the plans to build the 61-acre, $170 million resort on July 23rd, 2001 and would have made it the seventh Disney Vacation Club property. It would have been the largest vacation club property at the time. Unfortunately 9/11 happened, and attention turned to the Disney Institute -- which became Saratoga Springs Resort & Spa.

http://i235.*************************************Resorts/Future/VEaglePines.png​

Here's the article from the Orlando Sentinel:

Disney Ready To Build 600-unit Time Share

July 24, 2001 | By Tim Barker, Sentinel Staff Writer

Fast running out of inventory, Disney said Monday it will build a new flagship-style time-share resort between the Magic Kingdom and Downtown Disney.

The 600-unit resort, which has not been named, will be Disney's first full-scale time-share offering since its Old Key West Resort sold out in late 2000. The new resort will sit on 61 acres adjacent to Disney's Eagle Pines Golf Course.

As with other time-share projects, this one will be built in phases, beginning with six buildings and 360 units. The first two buildings will open in mid-2004, followed by the others throughout the year.

Taking its theme from Florida's history, the property will feature tropical landscaping and architecture with Spanish, Moorish and Gothic influences.

"It adds a different flavor, a different atmosphere to our portfolio," said Mariska Elia, spokeswoman for Disney Vacation Club, the company's time-share arm.

This will be Disney's seventh time share -- giving the company 2,100 units at completion -- but it will be the second local property that functions as a stand-alone resort. The others, including The Villas at Disney's Wilderness Lodge, are smaller resorts that share amenities and facilities with Disney hotels.

The Wilderness Lodge property and Disney's Beach Club Villas -- a smaller resort now under construction -- are expected to be sold out around the time this newest resort opens.

"We really need a big project," Elia said. "This is another anchor property with a lot of inventory."

Here's the Press Release from Disney:

Disney Vacation Club Announces Plans for Largest Ownership Resort to Date At Walt Disney World Resort

LAKE BUENA VISTA, Fla.--(BUSINESS WIRE)--July 23, 2001--Disney Vacation Development, Inc., operators of Disney Vacation Club (DVC) -- Disney's innovative vacation ownership program -- announced today that it will expand its timeshare resort presence at the Walt Disney World Resort in Florida (subject to obtaining necessary approvals) by building a seventh DVC property. This latest development for the growing Disney Vacation Club product marks the Company's largest ownership resort project to date.

The announcement heralds a time of exciting growth for Disney Vacation Club, which now boasts a membership of nearly 60,000 member families from over 60 countries.

The proposed 600-unit ownership development is slated to occupy a 61-acre site along the award-winning Disney's Eagle Pines Golf Course at Walt Disney World Resort. All rooms will feature either a pool, golf course or forest view. Initial plans call for the construction of a main Inn building encompassing a check-in area; accommodations; restaurant/lounge; theme pool with feature slide; retail space; arcade; common living room area and a health club, as well as Villa buildings containing vacation home accommodations. Development will begin this fall with an estimated opening in Spring/Summer 2004.

"We are very excited to expand the Disney Vacation Club concept to an entirely new resort area here at Walt Disney World Resort," said George Aguel, Senior Vice President and General Manager of Disney Vacation Development, Inc. "I am confident that this new offering will be a successful addition to the dynamic vacation options we provide."

The theme of the proposed DVC resort will complement and enhance the beautiful setting found at Disney's Eagle Pines Golf Course. The new resort will be inspired by the architecture of Addison Mizner, a celebrated early 20th century architect who led the renaissance of Florida resort design. The property's design will reflect a variety of motifs found in indigenous Florida buildings of this era, including Spanish, Moorish, Romanesque and Gothic forms. The atmosphere and elegance found in the coastal communities of southeast Florida (including West Palm Beach and Boca Raton) will be found in the resort's architecture, ranging from tile roofs to fountains to lush, tropical landscaping.

Commissioned to design the resort was renowned architect Graham Gund, who created the architectural look for such Disney projects as Disney's Coronado Springs Resort and Disney's Vero Beach Resort -- another Disney Vacation Club property. Gund designed the resort to take advantage of the pristine setting found at Disney's Eagle Pines Golf Course while maintaining the integrity of the existing golf course. Guests at the resort will have views to Disney's Eagle Pines Golf Course but golfers' view of the property will be buffered, with resort buildings "stepping down" in height as they near the golf holes.

The new resort is scheduled to open in phases, with the first phase consisting of the Inn building and five Villa buildings for a total of 360 units. The Inn and one Villa building are currently expected to open in Spring/Summer 2004, with the four additional Villa buildings opening throughout the remainder of that year. The final phase of five additional Villa buildings containing 240 units are currently anticipated to open by Spring/Summer 2005.

As Disney Vacation Club approaches its decade mark on October 1, 2001, the Company is celebrating a number of achievements, including the expansion of its resort collection through the proposed addition of the new resort at Disney's Eagle Pines Golf Course and the completion of Disney's Beach Club Villas, which is currently under construction at Walt Disney World Resort next to the popular Disney's Beach Club Resort (expected opening in September 2002).

"These latest expansions of our successful vacation ownership program will allow us to provide still more magical experiences for our guest and member families," added Aguel.

The current collection of Disney Vacation Club Resorts includes Disney's Old Key West Resort; Disney's BoardWalk Villas and The Villas at Disney's Wilderness Lodge -- all located at the Walt Disney World Resort -- as well as Disney's first resorts beyond the Disney theme park locations; Disney's Vero Beach Resort on Florida's Atlantic Coast and Disney's Hilton Head Island Resort in South Carolina.

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http://i235.*************************************Resorts/Future/Eagle-Pines-Inn-Front.jpg

http://i235.*************************************Resorts/Future/Eagle-Pines-Inn-Back.jpg

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[Halle]

DH knows the father of the person who initiated the DVC concept. He moved on to Marriott.

 

[T00dles]

I'm not sure why there is the perception that DVD resorts are not profitable unto themselves. Why would DVD build a resort that would lose money? I always reasoned that the point sales were to cover (recoup) construction costs of the resort, MF's to maintain and CRO's to provide further profit to DVD. But perhaps that isn't enough so they've taken to making "trades" to DCL, Concierge, RCI easier and more abundant?

But to have a business plan that you HAVE to have new construction to profit seems negligent at best.

 

[micfan]

The trades to DCL, Concierge, RCI are make DVC easier to sell. Selling the points is the core of the business as that's where all the profit is. As long as they can be sold DVC will need a constant stream of points, thus a new project every couple of years.

 

[nkosiek]

I'm not sure why there is the perception that DVD resorts are not profitable unto themselves. Why would DVD build a resort that would lose money? I always reasoned that the point sales were to cover (recoup) construction costs of the resort, MF's to maintain and CRO's to provide further profit to DVD. But perhaps that isn't enough so they've taken to making "trades" to DCL, Concierge, RCI easier and more abundant?

But to have a business plan that you HAVE to have new construction to profit seems negligent at best.

I don't think that there isn't profit in running the resorts, but in terms of selling points, there is much more profit in that. I'd venture the management fees are nice and all but compared to selling of points, not in the same ballpark. One is a nice steady stream of dollars, the other is a huge chunk that looks good on the spreadsheets and numbers that the investors see.

Take the Poly for example...$165/pp. There's no way that the Poly redo costs NEARLY that much. I'd be surprised if it cost much more than $100 pp. THe only new construction were the bungalows, which though I'm sure cost a good chunk, didn't cost as much as 3 new buildings would've. That arm of Disney will turn a nice profit with sales that make it look spectacular. Without sales it doesn't look as good. People don't care about slow and steady, big and splashy is all that matters.

 

[DVC Mike]

Does anyone think DVC will revive their plans for a DVC resort at Fort Wilderness?

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Got questions about DVC?
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[buzzrelly]

I kind of hope they don't build another DVC building at BLT, BUT…if they do, I hope it's not a curved building! What a terrible design!

 

[DVC Mike]

Anyone interested in a more detailed look back at DVC can read A brief history of the Disney Vacation Club.

. . . . . . . . . . . . . . . . . . . . . . .
Got questions about DVC?
★ ☆ ★ THE DVC INFORMATION CENTER ★ ☆ ★
in the DVC Forums has the answers to your questions about the Disney Vacation Club.
. . . . . . . . . . . . . . . . . . . . . . .
​

 

[ParrotBill]

Converting existing Deluxe rooms is a great idea while Disney thinks they will have trouble filling them to 100% occupancy year-round. But eventually you cannibalize the Deluxe base and it stops making sense. And, as we've discussed, converting rooms at successful convention spots is senseless unless convention business is in a downward trend that cannot be saved.

So I think we might see a little more of this, but then, they have to build again. And it only makes sense to build one of the places where the site engineering and design has already been paid for. So I think we'll see Eagle Pines or Fort Wilderness next. I just think that DVC and Campground is an odd mix, but, we'll see.

See the News & Rumors Board for a discussion I started from an Orlando Sentinel article about Disney seeking permission to develop nearly a square mile of wetlands in their "next 30 years" of plans... on top of other land... and I uncovered the RCID land use planning with maps that show targeted areas for development through 2020. Most never happened but we had a little recession there... so I expect those maps to get updated but most to be still potential development areas. Lots of speculation space there!

 

[Counterfiend]

I'm pretty new to DVC. Have my first trip in a week. Curious how this all works out. But i see lots of complaints now.

 

[JimMIA]

I'm pretty new to DVC. Have my first trip in a week. Curious how this all works out. But i see lots of complaints now.

Don't worry too much about complaints.

First of all, we always tend to comment more quickly on things we don't like than things we do like. That's just human nature. That's not to say that the negative comments are unfounded, but there tends not to be a balance. Everything is either super-magical or horrible.

Second, what troubles me may not matter at all to your family. So when you read something negative (or positive), ask yourself, "Do I care about that?' If not, let it go.

The best way to evaluate anything is your own personal experience. Have a great trip!

 

[Disn3yVision]

Resurrecting an old thread here but I would love another DVC resort here in Cali at DL or a ski resort would be awesome too. Wouldn't mind seeing a further expansion at the Poly too (since it's our HR) but right now that seems unlikely... It seems to me Disneys current trend is to try to attract those velvet rope clients by developing super expensive rooms such as the bungalows at pvb and the new cabins at wilderness lodge

 

[TiggerBouncy]

My problem right now, and building more resorts or converting rooms won't help is for them to find a way to have more availability when people want it. It's ridiculous now that you can only get a room outside of your home resort if you book midnight on the 7 month mark, but you can cash pay the same resort AND ROOM one week out.

IMHO they need to stop being so stingy on the amount of rooms open to DVC and stop reserving so many for cash. But realistically that's not going to happen.

 

[com_op_2000]

...IMHO they need to stop being so stingy on the amount of rooms open to DVC and stop reserving so many for cash...

DVC must own 2% of any resort per filed documents. Those can used by DVC for maintenance outages or rented to offset MFs.
The part that DVC can not control is the members who trade out their points for vacations outside the DVC resorts (IE: DCL, RCI, etc). Those points must be converted to room nights and then those rooms rented for cash to pay for those vacations. The more members that trade out of DVC the less rooms there are available to be used for points.
So my point is that DVC does not have full control over the amount of rooms available for DVC point usage.

 

[Disn3yVision]

Anybody think there is a chance of adding DVC to Disneyland Hotel? I love that place and it would be an easy option to add another DVC resort on the west coast.

 

[freediverdude]

I wonder whether it's more profitable for Disney to rent out deluxe rooms for the $200/night convention rates or turn them into DVC and sell points. That would be interesting to see the numbers.