2 Burning questions on my mind - Calling all DVC Financial Experts!

[Brianstl]

Add to this the fact that point charts at both these resorts will be going UP! UP! UP!!!

The thing is they don't need to change the point chart at BCV to make as much money as possible. They just charge more per point. They can already charge $225 per point direct for 22 years at BCV. They change the point chart they won't get as much per point, plus they have to wait 20 plus years to get that money. The number crunches at Disney are just as aware of the time value of money as anyone who post on this board.

 

[CanadaDisney05]

I don't disagree with what you've laid out here and I think we both agree that you have chosen the best-case scenario. If you run the same numbers at different pricing/maintenance fee tiers (BWV resale, BCV resale, BLT resale, RIV direct, CCV direct, etc.) I'm sure you will find it gets much grimmer much quicker.

While it is true that using SSR is probably the most economical choice, using $300/night in the summer months for SSR is a pretty low cash rate, 8% growth is pretty optimistic.

 

[CanadaDisney05]

Very interesting perspective. Keeping with your car analogy, I see it differently. I view it more like a lease...you get a brand new car and you return it with three years of wear and tear, a ton of mileage, and some minor dents and dings.

But with a lease, you have to return it with new(ish) brakes, new(ish) tires, etc.... The car (building) will take wear and tear, but the regular maintenance like oil changes, brakes, tires, etc.. (unit furnishings) need to be new (ish)

 

[Brianstl]

While it is true that using SSR is probably the most economical choice, using $300/night in the summer months for SSR is a pretty low cash rate, 8% growth is pretty optimistic.

It is too optimistic. Ask any pension trustee what their actuary would say if they told the actuary they expected 8% growth.

 

[moth72484]

This is my opinion only, but I feel DVD has the right to expect brand new furnishings and renovations when they get the resorts back in 2042. The Members started with brand new, so that’s the way it should be returned.
Sort of like renting a car... they give you a full tank, and you give it back with a full tank.

Wouldn't they be funding the furnishings and renovations from the money raised from selling new deeds? Just like selling points to Riviera right now is funding the construction (among other things) of a new resort

 

[CanadaDisney05]

Wouldn't they be funding the furnishings and renovations from the money raised from selling new deeds? Just like selling points to Riviera right now is funding the construction (among other things) of a new resort

Not if they can legally get us to pay for it

 

[Maistre Gracey]

Very interesting perspective. Keeping with your car analogy, I see it differently. I view it more like a lease...you get a brand new car and you return it with three years of wear and tear, a ton of mileage, and some minor dents and dings.

Yes, but that’s what you paid for with a lease. With DVC mtc fees you pay for upkeep, not depreciation.

 

[Maistre Gracey]

Wouldn't they be funding the furnishings and renovations from the money raised from selling new deeds? Just like selling points to Riviera right now is funding the construction (among other things) of a new resort

As I said, it’s just my opinion that they *can* expect the resort to be returned in new condition.
What will actually happen I have no clue.

 

[Maistre Gracey]

I should not say “return in new condition”, but rather they can keep any left over capital reserves that have accumulated.

Consider that the charge for bringing the rental back with 1/2 a tank.

 

[jkips]

Don’t forget the hotel business is extremely tied into the business cycle. In a downturn every hotel operator is still sitting on large capital investments and a costs that more fixed than variable. Hotel prices and costs will and can go down a lot in recessions. I doubt we’ll see Disney properties rent for less than the MF but the rooms could easily go for less than DVC owners that currently rent their points are currently getting for renting their points.