This last part is why Disney would never do it. Forget the legality or who has better lawyers. The small gain would never be worth the cost in reputation or good will towards customers. It's an interesting academic debate but it will never actually happen.
timeshares.
Again, that's the legal loophole. The bigger question: what benefit can come for Disney from closing an entire resort. I thought we started this whole conversation with the idea that some day Disney would buy back some DVC points to make the rooms back into cash hotel rooms. If they close the entire WL to get out of their DVC contracts there then they lose all of the hotel rooms including the DVC rooms. Plus they need to compensate owners for their lost points. It's a lose/lose for Disney. They lose a cash hotel that makes plenty of money plus they alienate a whole group of DVC owners (both those who own at WLV and others who now wonder if their resort is next). From an accounting standpoint aside from the lost cash profit from the hotel, if they just close the resort they would need to accelerate depreciation on all of the remaining fixed assets resulting in a big accounting loss too (buildings and leasehold improvements usually have long depreciation lives, 30+ years in a lot of cases). About the only guys who would be happy are the tax department. They love extra expenses
. It would be a lot easier to just make John Carter 2 if they really need a tax write-off
Again, that's the legal loophole. The bigger question: what benefit can come for Disney from closing an entire resort. I thought we started this whole conversation with the idea that some day Disney would buy back some DVC points to make the rooms back into cash hotel rooms. If they close the entire WL to get out of their DVC contracts there then they lose all of the hotel rooms including the DVC rooms. Plus they need to compensate owners for their lost points. It's a lose/lose for Disney. They lose a cash hotel that makes plenty of money plus they alienate a whole group of DVC owners (both those who own at WLV and others who now wonder if their resort is next). From an accounting standpoint aside from the lost cash profit from the hotel, if they just close the resort they would need to accelerate depreciation on all of the remaining fixed assets resulting in a big accounting loss too (buildings and leasehold improvements usually have long depreciation lives, 30+ years in a lot of cases). About the only guys who would be happy are the tax department. They love extra expenses
Sorry to @andysol for continuing to have a discussion on a discussion forum. Hopefully you stopped reading this thread by now.
Wow, and that's a long expiration date. Is 3+ years typical?
Oh no, a whole new building....could it be the ludicrous concept of tee-pees over water?
