Extensions on 2042 Contracts?

[SherylLC]

Is there a guesstimate on about when contract extensions would be announced? What happens when they are announced? Are current owners required to pay to "claim" the extension?

TIA!

 

[BillPA]

They only did one for OKW, it was not very successful, only a small percentage did the extension. They have not offered it on any other resort. I wouldn't give it much hope of happening again.

 

[_auroraborealis_]

I doubt they extend BCV or BWV. Maybe BRV to eventually merge it with CCV.

 

[Ben E N]

I doubt they extend BCV or BWV. Maybe BRV to eventually merge it with CCV.

I fully agree. They would be throwing money away by extending the points per night at BCV and BWV.
BRV may not even get extended due to the OKW mess and the fact that those rooms are a bit larger than CCV, which costs the same per night.

 

[_auroraborealis_]

I fully agree. They would be throwing money away by extending the points per night at BCV and BWV.
BRV may not even get extended due to the OKW mess and the fact that those rooms are a bit larger than CCV, which costs the same per night.

I think the impact of possibly not having BRV shouldering a lot of the burden of maintenance fees would be a big deal for CCV, though. I think that's the outside risk at CCV right now for new buyers - whether they extend BRV, make it hotel, or re-sell, what's the impact between approximately 2042-2050 on fees?

 

[Ben E N]

I think the impact of possibly not having BRV shouldering a lot of the burden of maintenance fees would be a big deal for CCV, though. I think that's the outside risk at CCV right now for new buyers - whether they extend BRV, make it hotel, or re-sell, what's the impact between approximately 2042-2050 on fees?

That's a fair point. I suppose something else to take into account is how the new developments in the parks affect booking at hotel rooms. If deluxe rooms become more popular, they could just own BRV and make it part of the hotel again, selling the rooms as suites. The hot DVC rental market might entice Disney to just cut out the middle man. Who knows, though? I wouldn't bet money on either side of that possibility, but would put money down that BCV and BWV will not be offered any extensions beyond maybe 5 years in order to stagger the resale of the resorts.

 

[disneynutz]

Disney will do what makes Disney the the most money. If tearing down buildings and putting up larger more income producing ones works then that is what they will do. Wiring, plumbing, HVAC replacement can get expensive when you are rehabbing.

Bill

 

[ScubaCat]

I agree that it's unlikely there will be an optional extension offered. My guess is that they'll be rehabbed or rebuilt (in some way as yet unknown since it's still pretty far off) and sold as a new DVC property for whatever outrageous price points are going for at that time.

 

[icc2515]

No need to rehab and definitely no need to tear down and rebuild. For Disney the great thing about DVC is our dues keep the buildings in pretty decent shape. You can bet that as 2042 approaches they will step up the maint a bit, on our dime. That way when 2042 hits all they will have to do is slap some new paint on the walls and throw in some new furniture and they will have very close to 10,000,000 points at BCV, BWV, and BRV alone, plus 5-6million at OKW (don't exactly how many because of the extensions). At probably $350pp on the low side that's 5.2 Billion dollars worth of points that will cost Disney next to nothing to acquire. I have no idea what they will do with Vero and HHI, probably sell them off would be my guess.

 

[Ben E N]

No need to rehab and definitely no need to tear down and rebuild. For Disney the great thing about DVC is our dues keep the buildings in pretty decent shape. You can bet that as 2042 approaches they will step up the maint a bit, on our dime. That way when 2042 hits all they will have to do is slap some new paint on the walls and throw in some new furniture and they will have very close to 10,000,000 points at BCV, BWV, and BRV alone, plus 5-6million at OKW (don't exactly how many because of the extensions). At probably $350pp on the low side that's 5.2 Billion dollars worth of points that will cost Disney next to nothing to acquire. I have no idea what they will do with Vero and HHI, probably sell them off would be my guess.

I bet they keep Vero and HHI, though. It adds to the appeal to buyers to know that they are not just limited to WDW when buying in. Even if they take a loss at those properties, it helps them sell for a gain elsewhere.

 

[icc2515]

Even if they take a loss at those properties,

Bite your tongue, Disney does not take a loss. Full price or nothing at all. Look at Aulani. They are still trying to sell that at full price and you can buy it resale for less than half that. What did they sell, probably 3 points there last month.

 

[KAT4DISNEY]

I bet they keep Vero and HHI, though. It adds to the appeal to buyers to know that they are not just limited to WDW when buying in. Even if they take a loss at those properties, it helps them sell for a gain elsewhere.

I think Disney has discovered they can have a decent timeshare business without off site. It's what they are best at. They have continually backed out of offsite projects and I personally don't expect them to do another. Following that I expect they'll let VB and HHi end and sell them or something similar.

 

[Ben E N]

I think Disney has discovered they can have a decent timeshare business without off site. It's what they are best at. They have continually backed out of offsite projects and I personally don't expect them to do another. Following that I expect they'll let VB and HHi end and sell them or something similar.

I agree with not adding anything extra, but it is a strong selling point for guides to tell people that if they need a break from Disney World, there are three other properties that they can spend their points at. Plus, people with those as home resorts means a more diverse crowd coming into Disney every few years.

 

[_auroraborealis_]

Guides tend to push RCI trades lately. It is also a direct benefit, whereas Vero can be booked on filthy resale points.

 

[KAT4DISNEY]

I agree with not adding anything extra, but it is a strong selling point for guides to tell people that if they need a break from Disney World, there are three other properties that they can spend their points at. Plus, people with those as home resorts means a more diverse crowd coming into Disney every few years.

There's RCI and such. The guides and sales spiel would adjust accordingly.

 

[tjkraz]

Disney will do what makes Disney the the most money.

As with every company, there are differing opinions on what will make the most money. Jim Lewis apparently thought that extending OKW 15 years was the most lucrative path. Lukewarm public response and the lack of any subsequent extensions suggests he was probably wrong.

Ken Potrock and the half-dozen people who succeed him between now and 2042 all have a chance to make their mark. I tend to think that there will not be blanket extensions. Maybe something like BRV as others have suggested. But all it takes is one DVC executive seeking to pad the bottom line and the subject could be revived.

 

[Ben E N]

There's RCI and such. The guides and sales spiel would adjust accordingly.

There's really still a ton of time for them to decide what to do with these properties. 15 years at least until the pressure builds. If they find RCI works and these properties do not, then they are set. If not, then they keep them.
With the long long timeline still ahead, I doubt even Disney has discussed it much.
Heck, even climate change could play a role by then. Within 25 years, Vero beach could be half underwater. There are just too many unknowns to make a bet on these outside properties at this time.

 

[ScubaCat]

I expect they'll let VB and HHi end and sell them or something similar.

I agree completely. Everything they've built that's not within a reasonable bus/monorail/gondola/etc. ride from a theme park has been far more difficult both to build and to sell. I know people like them, but the difference from DVD's perspective is massive (even more so with AUL). Plus, by then the other 2042 properties will be able to be resold/repurposed/etc. for more fairly easy money. Heck, they just LOWERED the VB direct price now. That, alone, is a pretty telling sign that they just want to keep that above water -- figuratively and literally -- and get rid of it as soon as the deeds expire.

No need to rehab and definitely no need to tear down and rebuild. For Disney the great thing about DVC is our dues keep the buildings in pretty decent shape.

You might be surprised on that one. Often at the 40-50 year mark, buildings can become far more expensive to maintain than to rebuild, even with good upkeep. That, and rebuilding gives them a chance to add units by re-configuring (altering the footprint somehow, building taller, wider, making smaller units, etc.). Especially for older properties like BWV, BCV, etc., I'm sure they could squeeze more units out of those builds somehow.

 

[Chuck S]

You might be surprised on that one. Often at the 40-50 year mark, buildings can become far more expensive to maintain than to rebuild, even with good upkeep. That, and rebuilding gives them a chance to add units by re-configuring (altering the footprint somehow, building taller, wider, making smaller units, etc.). Especially for older properties like BWV, BCV, etc., I'm sure they could squeeze more units out of those builds somehow.

Rebuilding would also give them the ability to incorporate the latest technologies from the ground up and not retrofit. When OKW was built, the internet was just gaining wide popular usage, cell phones were in their infancy, flat screen TVs were still the stuff of science fiction. A lot changes in 25 years, much less 50+ years...add to that wear and tear from high usage, even when well maintained, and the resorts will either need an expensive major overhaul or a rebuild.

 

[chalee94]

No need to rehab and definitely no need to tear down and rebuild. For Disney the great thing about DVC is our dues keep the buildings in pretty decent shape. You can bet that as 2042 approaches they will step up the maint a bit, on our dime...I have no idea what they will do with Vero and HHI, probably sell them off would be my guess.

OTOH, using owner-paid maintenance fees to extend the life of a resort past 2042 would be illegal - so they'd have to roll the dice a bit if they tried that.

I'd bet on VB going independent - HHI is probably still a toss up.