How Would Disney Close a DVC Property?

[the.dreamfinder]

(This is NOT about what happens when contracts, like at OKW, expire)

So a question I’ve been thinking about lately. What if Disney decides they are done with a DVC resort? What if they decide Vero Beach doesn’t make sense anymore or they need to tear down a property to revamp a resort like the Disneyland Hotel? Do they buy everyone out? Can the DVC owners buy Disney out? Is there even language in the contracts to explain how it would work?

Curious to see what we might find out!

 

[CastAStone]

There is language allowing DVC to sell it, for example, if Hyatt wanted to buy it for their timeshare program.

Vero also has an out for DVC to abandon it in its POS, I believe it’s on a 3 year cycle. I don’t recall ever seeing that in another resorts POS. What would happen in that scenario is that new management would be hired by membership to serve until January 2042.

Disney could also sell the land under the property but the new owner would remain obligated to maintain the leases until January 2042 so long as owners upheld their end of the agreement.

Disney can NOT unilaterally end the resort. While Disney has voting control in nearly all scenarios, there are 7 specific scenarios in all of the Florida based POS that require a 60% vote of all members, and one of those scenarios is shutting it all down early.