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ROFR Decrease Since Resale Restrictions?

Started by DVCSunDevil1d ago39 views1 reply
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#11d ago
40posts·Joined 4w ago

I was reading the most recent ROFR report, and it feels like the number of ROFR buybacks are trending downward. I was thinking about what could cause Disney to decline ROFR’s at a higher rate. While the ROFR report is more about the last month and year to date results, I wonder what ROFR has looked like over a longer period of time. And more broadly, what are the large changes within DVC that could cause a spike or reduction to Disney exercising ROFR?

So given that, one of the bigger changes to DVC contracts over the last several years was the implementation of resale restrictions. It would be interesting to know if those restrictions have impacted the total percentage of ROFR being exercised by Disney. Since Disney knows a resale buyer is now limited to where they can stay (particularly at Riviera), maybe Disney isn’t focused on those contracts because those owners open up point inventory at the other resorts? Essentially, knowing that an owner can only stay at a select resort(s) offsets the benefit of DVC exercising that ROFR?

I’m sure there are people much more knowledgeable on this than I am. Would love to get your thoughts!

Mike

DVC Member since 2020 (BCV)

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#217h ago
AstroBlastersSupporter
72posts·Joined 8w ago

ROFR was near zero for quite a while….. so it all depends on what you are using as a baseline.

They seem to be in a pattern of ROFRing OKW 2042, “sold out” resorts with strong retail demand (VGC, VGF), and resorts that they decide to put on a time sensative “sale”.

Of course….. they have raised the base price so outrageously high that it makes buying the “sold out” resorts a dubious financial decision.

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