More bad news for those waiting for a DVC expansion to DL

[newfamilyman]

This is from a recent Laughing Place article:

The Disney Vacation Club (given a more prominent role within Parks & Resorts with the recognition of the division’s first President in Jim Lewis as previously the division did not require a cast member higher than a Senior Vice-President) is also looking at real estate deals both inside and outside the existing resorts. DVC wants a Disneyland Resort hotel but is experiencing significant push-back from Team Disney Anaheim that (rightly) believes the resort’s precious land is better allocated to boutique five-star hotels (which is their preferred route to future development). Disneyland Resort President Ed Grier is backing a project instigated by his predecessor Matt Ouimet to add a new deluxe hotel to Disneyland Resort property but ultimately the decision will rest with Jay in Burbank. Either way there will be future DVC movements with the distinct possibility of DVC-branded lodgings in cities across North America either owned and operated by Disney or under license.

It makes perfect sense to me because with the increasing expenditures, rumored to be $700 million, that will be used to improve DCA, it makes sense that they will be able to get more money from higher priced hotel rooms, given the high occupancy rate of the DLR hotels. While I would still buy into Grand California Villas in a second, I have to agree with the logic of this article and therefore, my hope of this add-on is growing dim.

 

[Snookies]

I think you're right. I would also add-on at DLR in a second, but given the usual occupancy levels of the Disney hotels in Anaheim and the cost of area real estate, I think it likely that the DVC option in Anaheim will continue to be using points to stay at DLR hotels.

 

["Got Disney"]

Heres something to add to that....

http://www.latimes.com/news/printed....story?page=1&coll=la-headlines-pe-california

 

[Granny]

It makes perfect sense to me because with the increasing expenditures, rumored to be $700 million, that will be used to improve DCA, it makes sense that they will be able to get more money from higher priced hotel rooms, given the high occupancy rate of the DLR hotels. While I would still buy into Grand California Villas in a second, I have to agree with the logic of this article and therefore, my hope of this add-on is growing dim.

I don't disagree with your comments, but I do think this is very short-sighted of Disney.

Who is to say that current demand/high occupancy will be maintained for the next 50 years? As demand ebbs and flows, so will park visitations and tourist expenditures.

With DVC, they lock in a customer base for 50 years with repeat visits. I think that having people you can count on year after year is pretty sweet, not to mention that everything gets paid for up front so the return on investment is immediate.

I think Disney is missing the boat if they look at today's situation to make long-term decisions.

Just my thoughts. YMMV.

 

[bwvBound]

With DVC, they lock in a customer base for 50 years with repeat visits. I think that having people you can count on year after year is pretty sweet, not to mention that everything gets paid for up front so the return on investment is immediate.

Indeed!

In the meantime ... there are other timeshares near DL. I'm glad to have one w/in walking distance that allows night-by-night stays so I can visit on weekends.

 

[mwehttam]

Can DLR support a second high end hotel? Possibly with the rumors of a third park but if that doesn't pan out two high end hotels seems a little overkill.

Now, however, if they take rooms away from GCH to convert to DVC ala AKV, then I can see a second high end hotel to make up for the lost rooms.

What I see in the article seems to say no to a DVC exclusive hotel. But nothing is mentioned about a conversion like they are doing at AKV. So in my optimistic eyes (or rose colored glasses ) I can still see the possibility of a GCH conversion.

-Matt

 

[dwelty]

Laughing place is the only site with these negative rumors about a DVC at DLR. The LA Times seems to think otherwise, as well as MiceAge, and Mouseplanet. DVC's are highly profitable. Just wait and see.

 

[tjkraz]

I think the article does make sense in at least one regard: which of these would be easier to put on land geographically isolated from the current DL complex:

New theme park
New water park
New resort hotel
New DVC timeshare

My money is on the DVC.

If push comes to shove and Disney needs to make some hard decisions about how best to use the land available, a DVC resort seems to be the easiest to put "off-site" and still attract guests. It may take a bit longer to fully sell than it would if on-site, but it still WOULD sell. And DVC members who own elsewhere would still go crazy to be able to use points at DL, even if a 10-minute shuttle ride was required to reach the parks.

Disney actually went down this road before and acquired land a few miles away from DL. They ultimately pulled the plug on the project and sold the land to Mariott.

I'm not saying this will happen, but building a DVC off-site seems a lot more sensible than a theme park or another Disney resort that's not connected to the current complex. One of my big reservations about predicting a DL DVC has always been the short supply of land and its corresponding value.

 

[mwehttam]

While I agree that putting DVC off site is the easiest, isn't part of the appeal of DL the fact that everything it there in walking distance? When I went in the summer of 05, my DW and I loved that we were able to walk everywhere. While a bus ride in WDW is the least Magical mode a transportation you are still on-site and the like. On the other hand, a shuttle through downtown Anaheim is not my idea of Magic.

I still put my money on a GCH DVC. It is on existing land and you can still do a 3rd park and/or high end hotel.

-Matt

 

[tjkraz]

While I agree that putting DVC off site is the easiest, isn't part of the appeal of DL the fact that everything it there in walking distance?

Absolutely! But like I said, if push came to shove, I can't see Disney sacrificing park space or additional cash rooms for DVC. Off-site DVC units may take a little longer to sell, but once they are sold you've got the captive audience. Members would even be the ones to foot the bill for the shuttle.

If Disney can find room for everything they want to do out in California, so be it. I guess that depends a lot on how expansive their plans really are for Anaheim.

 

[dwelty]

Can DLR support a second high end hotel? Possibly with the rumors of a third park but if that doesn't pan out two high end hotels seems a little overkill.

Now, however, if they take rooms away from GCH to convert to DVC ala AKV, then I can see a second high end hotel to make up for the lost rooms.

What I see in the article seems to say no to a DVC exclusive hotel. But nothing is mentioned about a conversion like they are doing at AKV. So in my optimistic eyes (or rose colored glasses ) I can still see the possibility of a GCH conversion.

-Matt

With GCH at an astounding 93% occupancy rate (Higher than any WDW property), I think that DLR can definately support another high end hotel. If they add DVC to GCH, it will not be a conversion, but an expansion. They have an area to the south of the existing hotel for this.

 

[dwelty]

Remember guys that DLR has a large parking lot next to the exisiting 10,000 space parking garage. It is called the Pinnochio Lot. It is about the same foot print size as the existing garage. Another 10,000 car garage, would free up about 65 Acres of parking lot elsewhere on property. (this is not even counting the 3rd gate property). There is more room than you think. (You have to stop thinking in the context of WDW where there is alot of room. Think more in the context of Tokyo Disney, where land is at a premium, and they can cram alot of stuff into a little space).

 

[mwehttam]

With GCH at an astounding 93% occupancy rate (Higher than any WDW property), I think that DLR can definately support another high end hotel. If they add DVC to GCH, it will not be a conversion, but an expansion. They have an area to the south of the existing hotel for this.

Is there much land to the south? If I am not mistaken to the south is the Pier section of DCA. My room faces west when we stayed, looking at DLH. If I looked to my left (south) I could see the big orange ball of one of the rides.

Looking at the local.live map (what a great little site) there is a small parking lot and a small grassy area. It would be a small DVC build there. Here is the link (if I did it right, lol):

http://local.live.com/default.aspx?...&lvl=1&tilt=-90&dir=0&alt=-1000&scene=6773112

I love speculating!

-Matt

 

[Dean]

If the occupancy is high enough consistently, Disney will make more money on hotels than on DVC in the long run. What DVC offers is a steady stream of patrons as a buffer.

 

[newfamilyman]

I also think that DLR can definitely support another deluxe resort. Prior to the 50th, $99 AP rates at DLH were extremely frequent; since then, $129 AP rates there have been announced maybe twice? Plus, even at astronomical rates, the GCH is frequently sold-out or nearly sold-out. Based on their intended investments in DLR, much more than they will be spending on Orlando, executives seem to feel that they can keep the momentum going.

 

[squidmo]

Over at MouseInfo, Marcie (who appears to be a pretty reliable insider) says that DVC will come to DL. Last month she said that it will come before CRV, and she just posted a bunch of updates today giving a bit more info on DVC, and here are a couple of quotes:

WDW has no new hotels planned by the company. The only new hotel planned for now on WDW property is being financed, designed and built by an outside hotel company. The only other properties under construction in WDW are DVC units, which that division of the company will soon begin focusing elsewhere off of WDW property such places like DLR and non-traditional Disney resort sites.

There are plans for up to 3-4 new hotels and several DVC unit over the next 10 to 15 years at DLR.

At the current time there are no plans to change out any of the current hotel rooms at DLR into DVC units. The plan as it stands now is to have all-new DVC units built on property here in Anaheim. We simply cannot afford to lose any of our current hotel rooms.

I'm still optimistic that construction of a DL DVC will be announced in the next year.

 

[spiceycat]

With GCH at an astounding 93% occupancy rate (Higher than any WDW property), I think that DLR can definately support another high end hotel.

before the problems in 1999 - the WDW resorts were generally at 95% - why do you think they were building Pop Century.

the suites in the MK hotels stay sold out. So yes a high demand hotel (that actually might get 5 stars) could also be at WDW.

AKL was too far from MK to be a draw for the Whotel crowd.

 

[lenshanem]

Either way there will be future DVC movements with the distinct possibility of DVC-branded lodgings in cities across North America either owned and operated by Disney or under license.

What would UNDER LICENSE mean?!?

 

[dwelty]

before the problems in 1999 - the WDW resorts were generally at 95% - why do you think they were building Pop Century.

the suites in the MK hotels stay sold out. So yes a high demand hotel (that actually might get 5 stars) could also be at WDW.

AKL was too far from MK to be a draw for the Whotel crowd.

You are correct, before 1999 that was the case, now it is not, In large part because WDW has been building at a furious pace. However, part of POP Century is still unoccupied. I was not knocking WDW. DLR's Occupancy rates will always be High, 3 hotels cannot keep up with the demand of 20 million visitors a year.

 

[mwehttam]

What would UNDER LICENSE mean?!?

If the article was talking about outsourcing some non-theme park resorts, I can't see that happening. I think members like those of use here on the DIS would be very skeptical of any DVC resort nor operated by DVC/DVD itself. I know I would.

-Matt