What happens to the resort when the contracts expire?

[TiggerBouncy]

I know this is a tough question because it hasn't happened yet. But any idea what DVC will do with the resorts when the contracts all revert back to Disney? Will it resell new shares or just tear down the entire thing and start over?

 

[_auroraborealis_]

It is a mystery.

 

[DisDadDVC]

 

[supersnoop]

I know this is a tough question because it hasn't happened yet. But any idea what DVC will do with the resorts when the contracts all revert back to Disney? Will it resell new shares or just tear down the entire thing and start over?

Disney owns the property. DVD has a 50 year lease. They built the buildings and sell them to you. At the end of the contract term, then land and anything on top of it goes back to Disney. I can't imagine they'll "give" it back to DVD to re-sell. Either it gets torn down, or Disney uses it as hotel rooms or other housing.

 

[_auroraborealis_]

In most cases, unless the place is in dire shape, I don't see Disney doing full tear-downs. Re-theming? Maybe. But full-teardowns on the 2042 properties would take a LOT of on-site capacity out of the mix, and at properties that are typically booked 92-98% capacity. That's a lot of capacity to take out of circulation for multiple YEARS (as in the case of a full tear down).

 

[disneynutz]

Disney or who owns Disney at that time will do what makes them the most money.

Bill

 

[miTnosnhoJ]

As long as the theme parks are doing well, I would expect Disney to do a renovation and then sell them to the public as a new resort with a new 50 year life.

 

[YourEveryDayAdam]

They could also do another extension, similar to what they did with OKW. I am sure they will have to do it differently than how it was done at OKW, since it didn't go well. But I don't expect them to just abandon the resorts. They are already built as DVC resorts, so it's much easier (and much more profitable) for them to sell them as timeshares again.

 

[icc2515]

Disney or who owns Disney at that time will do what makes them the most money.

Bill

+1

 

[luvdisneyland]

LOL!!!!

 

[Dean]

I know this is a tough question because it hasn't happened yet. But any idea what DVC will do with the resorts when the contracts all revert back to Disney? Will it resell new shares or just tear down the entire thing and start over?

We really don't know, lots of possibilities. IMO the likely expectations vary with each resort plus there's the ? of possible extensions which is even less of a certainty.

 

[ktmo]

My question - will I get 2042 points if I have a June UY? My guess is NO, since the contract ends January 31. So, I will have 2041 points, but will I be able to use them in the spring of 2042 or will they have to be used before January 31st?

 

[zemra406]

Interesting question and I'm not sure anyone knows the answer. However, if the contract expires 1/31/42 I think logically there would be no 2042 points and any 2041 points would need to be used before 1/31/42 since technically there is no contract in force after that date.

 

[ScubaCat]

Without any changes to the expiration date, I would think that 2040 would be the last year any points are allocated and that they'd have to be used by 1/31/2042. Otherwise, if, for instance, you had a December use year, you'd get points on 12/1/2041 -- hardly a "use YEAR".

 

[Dean]

Without any changes to the expiration date, I would think that 2040 would be the last year any points are allocated and that they'd have to be used by 1/31/2042. Otherwise, if, for instance, you had a December use year, you'd get points on 12/1/2041 -- hardly a "use YEAR".

That's possible. My thought is they'll prorate 2041 on some type of basis. Maybe allow some to op out but not pay dues, ? lottery, or partial use. Or maybe they'll give everyone points but only charge for what's used. They also have to limit banking the last few years (? 2-3 min) and likely borrowing as well.