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Why all DVC resorts will eventually be rebranded and rebuilt

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  • Why all DVC resorts will eventually be rebranded and rebuilt

    As many may not know, DVC contracts come with an expiration date. In the case of Old Key it is 2042. Thus, anyone who purchased a DVC contract at OKW can use the resort until January 31, 2042. After that date, the owner no longer has an interest in the property. Early in the days of the DVC, Disney offered its owners a paid extension to 2057. That experiment didn't go well, with very few owners opting for it. As such, Disney has locked themselves into maintaining an older resort for a few owners or buying those owners out after 2042.

    Disney would be crazy if they ever offered this at a DVC again.

    As we seeing at Caribbean Beach, a portion of which is now being turned into DVC Rivera Resort, it is better for Disney to revamp a portion of a resort and rebrand it totally. Thus when contracts expire we will likely see the wrecking ball come out and a shiny new resort emerge.

    Disney is on path to build a new DVC resort every 2-3 years. By 2042, when several resorts expire, Disney may be running out of prime spots where DVC resorts would go. In addition, there will be a tipping point at which time the rush to buy DVC contracts slows. An endless number of them does not make sense, but making them nicer and nicer, and selling them over and over when they are branded again does make sense. When Disney reaches this DVC saturation point, they can continuously make money off of the DVC properties by knocking them down, rebuilding and reselling in an endless cycle.