Disney Vacation Club is once again making headlines with its recently proactive approach to Right of First Refusal (ROFR), this time targeting both Disney’s Polynesian Villas & Bungalows as well as Disney’s Old Key West Resort. This strategic move represents a significant shift in the way DVC has managed its property interests when compared to recent history.
Understanding ROFR and Its Impact
Right of First Refusal (ROFR) is a clause in Disney’s contracts that allows them to purchase memberships before they are sold on the secondary market, and the recent focus on Old Key West contracts is a notable change for Disney. Over the past year, the average resale value of these contracts experienced about a 15% decrease, making them particularly attractive for resale buyers, and now for Disney as well.
These buybacks, usually conducted at prices below the current average market value, suggest a strategic approach to acquiring contracts at lower costs. This could potentially allow Disney to extend their expiration dates to 2057, and offer them to new buyers as part of their on-going promotions.
Right of First Refusal Activity – 5/17/24
OKW200LBF1
2022: 181 pts | 2023: 200 pts
OKW216LBF1
2023 & beyond: 100 Points
OKW217LBF1
2024 & beyond: 190 points
OKW227LBF
2022: 181 pts | 2023 & beyond: 220 pts
POLY284i
2024: 59 pts | 2025 & beyond: 100 pts
POLY291Y
2025: 28pts | 2026 & beyond: 150 pts
The Role of Promotions and New Developments
Disney’s decision to resume ROFR activities at Old Key West also coincides with an ongoing promotional incentive for points at this resort, which is set to run through June 24, 2024. This timing suggests that Disney could be preparing for further promotions or is simply looking to replenish its point inventory for current sales.
It’s also worth noting the parallel increase in buyback activities at Disney’s Polynesian Villas & Bungalows. With the Island Tower set to open its doors in December, this approach of purchasing inventory at Polynesian not only boosts the resale value of these contracts, but also enhances the overall appeal of the Polynesian ahead of the Island Tower’s upcoming debut.
Despite buybacks possibly driving prices higher for Polynesian resales, when compared to the expected direct price which is likely to start around $250 per point, resale contracts still expected to represent an incredible value.
The Significance of Recent Buybacks
The recent buybacks extend beyond Old Key West, as Disney has also targeted contracts at the Polynesian Villas & Bungalows and Grand Floridian Resort & Spa. With many additional contracts being bought back in a short period of time, this surge in ROFR activity marks a significant increase in Disney’s engagement in the resale market. This move raises questions about a potential shift in DVC’s buyback strategy, suggesting an increased focus on building inventory at these resorts.
For owners at these resorts, the good news is that as Disney buys back more inventory, it could mean a shift upward in pricing. This could be caused by demand outstretching supply, or possibly the minimum price that triggers a buy back being raised by Disney as more inventory is needed.
Looking Ahead
The recent uptick in ROFR activity by DVC, especially at Old Key West Resort, underscores the dynamic nature of the DVC resale market. Whether Disney’s aim is to bolster their inventory ahead of the launch of the new Island Tower at Polynesian, or is looking to buy up low cost Old Key West contracts for their promotions, this development is a clear indicator of an evolving landscape. It will be interesting to see how this new strategy unfolds in the coming months.
For those interested in buying or selling a DVC membership, staying informed about these trends is crucial for making knowledgeable decisions. We’ll be sure to keep you up to date on the DVC Shop blog, so be sure to check back often!
Disney’s Old Key West
Disney’s Polynesian Resort
Written by
Rachel Van Norman
Contributing Writer
Rachel fell deeply in love with all things Disney as a little girl. Now as a wife and a mother herself, she shares this Disney obsession with her son and everyone around her. From her love of princesses to eating all the Disney food, Rachel spends her time radiating Disney magic and keeping everyone up to date on Disney news.
