It sound like it would be a sale of the whole division. I think it probably is only in the discussion stage at this point. Len Testa brought it up at the 51 minute mark of today's Disney Dish podcast.Do you have a link to the podcast? Haven’t heard anything.
Seems odd. Why would they be thinking of selling it when they’re about to start selling again at GFV? Or was it talking about them maybe selling Vero Beach and Hilton Head properties when they expire?
@lentesta might.Does anyone have any insight on the story Testa had on his podcast today about there at least being talk about Disney selling their timeshare business?
What do you think about this Cast? I am thinking probably just Disney option exploring at this point. That said, if a potential buyer wants a wider range of inventory to sell when they take over, that could explain the buck back letters Disney has been sending out.@lentesta might.
The only part they could really "sell" would be the management side. Almost all of the resorts are built with current resorts, so would be a nightmare to try and separate the two. Can you imagine 2 different owners for BWV and the Boardwalk Inn? Who mans the front desk? Who pays for Bell Services? 2 different cleaning and maintenance crews. Total nightmare.Does anyone have any insight on the story Testa had on his podcast today about there at least being talk about Disney selling their timeshare business?
Nothing would surprise me. I haven’t seen their internal data, they may feel they’ve come close to market saturation in which case, from a cold, calculated business standpoint, in a vacuum, they should unload. Certainly a previously leadership team did that with parts of Celebration.What do you think about this Cast? I am thinking probably just Disney option exploring at this point. That said, if a potential buyer wants a wider range of inventory to sell when they take over, that could explain the buck back letters Disney has been sending out.
You just sign a services contract with Disney Resorts which is exactly what happens now with the separate Disney subsidiaries.The only part they could really "sell" would be the management side. Almost all of the resorts are built with current resorts, so would be a nightmare to try and separate the two. Can you imagine 2 different owners for BWV and the Boardwalk Inn? Who mans the front desk? Who pays for Bell Services? 2 different cleaning and maintenance crews. Total nightmare.
The only thing I could see is HH and/or VB, as those can be sold as seprate properties.
I have no idea what you mean by this.You just sign a services contract with Disney Resorts which is exactly what happens now with the separate Disney subsidiaries.
Yes but this "rumor" is being floated as an idea for Disney to raise cash. Nobody is going to front hundreds of millions of dollars for an arrangement like that.You just sign a services contract with Disney Resorts which is exactly what happens now with the separate Disney subsidiaries.
DVC/DVD/DVMC currently pays Disney Resorts for the services you described. If, they were sold I would expect the same arrangement to remain in place.I have no idea what you mean by this.
That isn't their "timeshare" business. Selling their timeshare business means selling all of the resorts as well. I did say that the only thing they could "sell" is the management portion, and that would simply look like an outsourcing. That would still be a total cluster that would destroy any goodwill left for a lot of DVC owners, as we've already seen Disney outsourcing being a total cluster (read - IT for instance). And again. Since most of the resorts are also regular Disney CRO resorts, who is going to pay for everything? Since both parts are owned by Disney, the parent - TWDC - can dictate everything, and both have to tow the line. You outsource DVD to a third party company and they can argue (and they will argue) over anything and everything that isn't spelled out to the most minuscule level in a contract. They will do even less than the current Disney does in order to make the most money on the contract.DVC/DVD/DVMC currently pays Disney Resorts for the services you described. If, they were sold I would expect the same arrangement to remain in place.
In Chapek's defense..........Nothing would surprise me. I haven’t seen their internal data, they may feel they’ve come close to market saturation in which case, from a cold, calculated business standpoint, in a vacuum, they should unload. Certainly a previously leadership team did that with parts of Celebration.
They don’t operate in a vacuum and every decision has consequences to the brand’s image and people’s advocacy for the parks. Selling out their most loyal several hundred thousand customers to a PE firm strikes me as something only a desperate, insane person who doesn’t understand how brand equity works would do, as it will take brand advocates and turn them against them.
Anyway, Bob Chapek is in charge so
They will if they get to sell the new Disneyland site, a future Poly tower and if Disney has stockpiled a bunch of points at existing resorts with buybacks over the last year.Yes but this "rumor" is being floated as an idea for Disney to raise cash. Nobody is going to front hundreds of millions of dollars for an arrangement like that.
@lentesta might.
Thank you, Len.There are 3 financial firms involved in the discussions. Based on who those are, and who they've worked with in the past, I don't think the conversation is coming from inside Disney. I think it's another company with lots of real estate holdings that's interested in the DVC business.
I'm not sure how a deal would be structured. I thing that in Last Vegas, MGM has sold off a lot of its physical properties and is just going to run the operations (here's a recent article about the Cosmopolitan).
My initial thought was that Disney would sell off the hotels (but not the land under them), and perhaps the contracts? And then someone(?) would run the hotels on a day-to-day basis.
Disney loves to be the landlord - Maximum income with minimum costs.There are 3 financial firms involved in the discussions. Based on who those are, and who they've worked with in the past, I don't think the conversation is coming from inside Disney. I think it's another company with lots of real estate holdings that's interested in the DVC business.
I'm not sure how a deal would be structured. I think that in Last Vegas, MGM has sold off a lot of its physical properties and is just going to run the operations (here's a recent article about the Cosmopolitan).
My initial thought was that Disney would sell off the hotels (but not the land under them), and perhaps the contracts? And then someone(?) would run the hotels on a day-to-day basis.
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