When did they start doing fixed ownership interests

[normr]

I was looking over the Home Resort Rules and saw a paragraph about fixed ownership interests, which are like a normal timeshare where you purchase a fixed week, when did Disney start doing that? Is this something new that they are doing with the new resort?

 

[drusba]

Aulani only. They are selling both points for any time of year just like other resorts and fixed weeks.

 

[helenk]

My understanding is that they are doing this with Aulani. I remember reading about it when they first started building the resort. I have not heard much about it lately though.
It is not available in any of the other DVC resorts.

 

[Dean]

IIRC it's a 10% higher cost and I assume it's for a full week and full weeks points. I don't have specifics but assume they're using either fixed dates or the standard timeshare calendar. If I were interested in both DVC and HI at peak times, I think it's worth considering.

 

[Chuck S]

I heard it was basically offered because HI has great appeal in the Asian travel markets, and there are some very specific weeks annually that many of them travel. This gives them the opportunity to not compete for reservations during those weeks. It is for Aulani only, and they do not receive points for use within the normal DVC system.

 

[wdrl]

IIRC it's a 10% higher cost and I assume it's for a full week and full weeks points. I don't have specifics but assume they're using either fixed dates or the standard timeshare calendar. If I were interested in both DVC and HI at peak times, I think it's worth considering.

Dean is correct. The Fixed Ownership Interest option has a 10% premium over the standard points option offered at Aulani. For example, if it cost 200 points to stay for a week in a Ocean-view Studio, then a buyer who wants a Fixed Ownership Interest for that accommodation for that week would have to buy the equivalent of 220 points. There are 52 Fixed Weeks at Aulani that run from Sunday to Sunday.

Once an Owner has purchased a Fixed Week at Aulani, they are immune from any subsequent point reallocations. If the point cost of their week subsequently drops to 195 points or increases to 205, the Fixed Week Owner neither gains or loses in their cost.

This gives them the opportunity to not compete for reservations during those weeks. It is for Aulani only, and they do not receive points for use within the normal DVC system.

Fixed Week Owners are guaranteed their week's accommodation and do not compete with other owners for reservations. According to Aulani's Master Declaration, up to 35% of each week can be sold as Fixed Weeks.

Fixed Week Owners CAN convert their Ownership Interest into standard DVC points that can be used within the Vacation Club. Each Use Year a Fixed Week Owner can elect to opt out of the guaranteed week for that Use Year. If the Owner opts out for the UY, they receive the number of Aulani resort points for their fixed week. They do not receive points for the 10% premium that was paid for the Fixed Week. Those points are then treated as any other Aulani Resort points in the DVC system. They can be used to book accommodations during Aulani's Home Resort Period, or at other non-home DVC resorts at the 7-month window. The points can also be used for exchanges to RCI, DCL, etc., as rules permit. Once an Owner has converted their Fixed Week into points, the points can be banked or borrowed, and are governed by the same Use Year rules as standard Vacation Club points.

 

[JimMIA]

Hypothetically, if you like the Ko Olina location and you can ignore the cost of the points, that seems like a pretty good option for some buyers.

I wonder if all of the specifics of the fixed week will transfer to resale purchasers? If so, those weeks might hold their value better than Aulani points.

 

[Dean]

Hypothetically, if you like the Ko Olina location and you can ignore the cost of the points, that seems like a pretty good option for some buyers.

I wonder if all of the specifics of the fixed week will transfer to resale purchasers? If so, those weeks might hold their value better than Aulani points.

I'm sure the option would have to remain to transfer the fixed week. As for value, it likely depends on the underlying week. Certainly for weeks 5, 7, 51, 52, Easter and some mid summer weeks; they should fetch a premium comparatively. It's a great option for the right person and a horribly expensive one for the wrong person. It does put some of those weeks I mentioned north of $90K before discounts for 595 points ocean view in a 2 BR.

 

[JimMIA]

It does put some of those weeks I mentioned north of $90K before discounts for 595 points ocean view in a 2 BR.

Wow, that sounds really good!

Can I get Free DDP and "500 Kingdoms" with that? How 'bout Free current year points?

 

[Dean]

Wow, that sounds really good!

Can I get Free DDP and "500 Kingdoms" with that? How 'bout Free current year points?

In comparison, Marriott down the street was $87.5K and $88.5K for weeks 51 & 52 three years ago. The rest of the weeks for Platinum (ocean view) were $57K but did not give guaranteed reservations for the week you wanted, only the chance to compete for a given reservation. From a HI and trade perspective, Marriott is likely more flexible in many ways than is DVC. I wonder what the rental market would be for those 2 weeks for DVC Ocean View. Likely pretty good but doubtful enough money to justify the cost largely for the rental.