Will Disney build a new DVC property off site?

[Girlstar30]

The problem with having a DVC as part of a private island that is reached, basically, by DCL only is DVC resort HAVE to function at near 100% capacity year round. I just don;t see that happening on a private island. DCL could finance and build a limited use resort, if they wanted to do so, but I just don't see it for DVC.

I would actually love that at lookout cay. It's my favorite of the two and seems like they have a lot of undeveloped space. A girl can dream..

 

[matt and beth]

I don't think they're either/or, they're complementary, and they use each product to cross-sell the other. Cruise ships also have a shorter lifespan and are associated with an asset that fully depreciates / becomes unsellable, where as a DVC property is still on land, there's still something tangible at the end of the day.



The simplest answer IMO is that real estate has become prohibitively expensive for Disney to gamble on; the real estate market in general has become too efficient to extract excess returns relative to risk. For instance, Airbnb / VRBO fundamentally changed the vacation rental game and greatly increased customer expectations of a vacation rental. Only within the Disney bubble does Disney feel like they still have a differentiated product. And that's why I'd expect Disneyland Paris to eventually get a DVC property or two. Would also make the DVC product "more exotic" if you could visit Paris on your Copper Creek contract (without using your points on a hotel stay with poor conversion rates for your points).

100% agree. France, Japan, and China should be the next focus outside of Orlando or California. That would be pretty sweet and certainly would make DVC more elite

 

[matt and beth]

There's really not much happening politically between the US and Mexico that would impact investment right now. And any big Disney / DVC expansion would be built on local audiences, not dependent on US tourists.

On the Mexico front specifically, I think Disney should be watching what Xcaret is doing very carefully and potentially build in the same area.

We would avoid the Mexico location like the plague. It’s not the politics. It’s the crime and cartels. Instead maybe an Aruba with US customs already established in Aruba for expedited travel

 

[Cfabar1]

We would avoid the Mexico location like the plague. It’s not the politics. It’s the crime and cartels. Instead maybe an Aruba with US customs already established in Aruba for expedited travel

I personally have little to no interest in a DVC in Mexico... I think they should do Paris if they want to play around with international....

 

[Girlstar30]

Would love an Encanto Costa Rica or Coco Mexico

 

[Brian Noble]

every sale for years has been pure profit (same as any mostly sold timeshare)

Well, minus the marketing costs, which are substantial,

 

[peder]

Well, minus the marketing costs, which are substantial,

No doubt, they still have an entire army of DVC reps at Aulani.

 

[ocdb8r1]

I don't think they're either/or, they're complementary, and they use each product to cross-sell the other. Cruise ships also have a shorter lifespan and are associated with an asset that fully depreciates / becomes unsellable, where as a DVC property is still on land, there's still something tangible at the end of the day.

In accounting terms, the same is true for DVC/land. I guarantee you they fully depreciate the asset and from an accounting perspective it doesn't matter that there is something of value left at the end. Yes, once they realize that value by re-selling that resort there would be a corresponding accounting gain....but I have zero confidence this plays into any DVC or Disney executive's mind.

I would think that a small Disney Paris DVC offering could be very popular….

Agreed. This to me seems the most natural and probable thing outside of WDW and Disneyland, CA. They have the land. The recent investments in the parks will hopefully create increased demand. The problem thus far (and the reason they abandoned the project they had considered there - sold to MVC) was that demand never came close to the capacity of the many resorts they built on day 1. That has started to change and should only get better with all the capital investments they've been making in Paris.

100% agree. France, Japan, and China should be the next focus outside of Orlando or California. That would be pretty sweet and certainly would make DVC more elite

The problem with Japan is there is zero land nearby for such an endeavor AND it's a pure licensing/development deal (they don't own the parks). the DCL launch seems like the best alternative here.

China could be interesting, but the geopolitical situation as well as the lack of real "timeshare" products in the local market make it too big a risk (I think).

 

[zavandor]

When the Disneyland Hotel in Paris was in dire need of refurbishment I kept my fingers crossed they would convert half of it to DVC. I was under the impression it was rarely full. Instead they gave it a Princess makeover and increased prices, it seems they have no problem selling it.

 

[Brian Noble]

I vaguely recall that Disney-and-partners had an option on (or maybe owned?) the land on which the Marriott Vacation Club now sits just outside of DLRP, and let it fall to Marriott. I could very definitely be wrong about that, though.

 

[Chuck S]

I vaguely recall that Disney-and-partners had an option on (or maybe owned?) the land on which the Marriott Vacation Club now sits just outside of DLRP, and let it fall to Marriott. I could very definitely be wrong about that, though.

Didn't the planned Newport Beach (CA) property also go to Marriott?

 

[Brian Noble]

Yep. It's a pretty nice one by all accounts, too. But it is also at least 30 minutes from DLR, and that's if you are lucky.