What's with all the OKW buybacks by Disney?

[tjkraz]

Huh, interesting stuff. Question: does this points/sq ft ratio mean that OKW CANNOT rebuild some of the rooms smaller to follow that SSR trend? Or would it just mean that the smaller 1-br would cost fewer points (hence making okw even more popular)?

Until 2057, DVD cannot rebuild with a different design at OKW any more than they could do so at BLT, VWL or any other. They sold the accommodations as-is and only minor cosmetic changes and adjustments would be permitted.

After 2057--if there is no additional extension--they can do whatever they wish.

On a related note, I don't see any reason to believe that Disney would rush to re-build existing properties simply to squeeze more units into available space or shrink villa square footage. The two most recent resorts--Bay Lake and Kidani--increased the villa size compared to the prior 10 years worth of new construction (SSR, BWV, BCV, VWL.)

WDW has ample space to build and SSR seems to have taught DVC that there isn't a market for 1000 rooms in a somewhat lesser location.

If 2057 rolls around without another extension, it's likely the point charts would be updated. It's also possible that some form of renovation / reconstruction could occur. But I doubt we will see any major design changes geared toward putting 4-5x as many rooms on the same real estate.

 

[DVC92]

DVD has promised it won't bill the non-extended owners for capital improvements made to OKW after January 31, 2042. I also think DVD is legally prohibited from doing as you suggested.

DVD agreed in a complaint filed with the Florida Timeshare Bureau to subsidize non-extenders at the appropriate time for the reserves component of their annual dues targeted for expenditure in use years 2042-2057; however, to my knowledge, such a subsidy has never been disclosed to the membership. It should mean, however, that over the next 30 years we will get to a point where non-extenders will have a yearly subsidy towards their dues payment from DVD. I believe it should begin at the point where certain components of the replacement reserves useful life expectancy exceeds the 2042 date and increase annually thereafter; however, the particular manner in which DVD intends to implement the subsidy has never been detailed.

 

[kdzgon]

Many months ago my guide mentioned we would be seeing much more ROFR activity, as (surprisingly) there was quite a pent-up demand for OKW points that had built up. I would guess use year would be the reason the ~$55 contract was ROFR'd while a lesser priced contract was allowed to pass during the same time period.

 

[susan514]

The other question is, since there are few who took the extension, would it be smarter to somehow rebuy the extension to make the resort go back to a strictly 2042 end date?