DVC Right of First Refusal Report (ROFR): February ’20 Report

Olivia's Cafe at Disney's Old Key West Resort

Year-to-date (YTD), Disney exercised their right of first refusal (ROFR) on 36 Disney Vacation Club (DVC) contracts, and DVC Resale Market (DVCRM) sold 758, resulting in a 4.7% buy back rate (Contracts Bought Back in 2020/Contracts Sold in 2020). The 2020 waiver rate was 95.3%.

2 DVC Resorts Dominating the Buy Back Volume

So far, in 2020, Old Key West and Animal Kingdom are dominating the volume of buy backs. YTD, 75% (27 out of 36) of the buy backs from DVCRM have been from those 2 resorts.

From time to time we do see certain resorts get very high on the ROFR radar, and to observe these 2 resorts at the top of the buy back volume is not a big surprise. Historically, 4 DVC Resorts have dominated buy back volume and these are 2 of them. The other 2 resorts we historically see high on back volume, despite few buy backs YTD in 2020, are Saratoga Springs and Bay Lake Tower.

Highest Monthly Buy Back Numbers by DVC Resort

The DVC Resorts that have experienced buy backs YTD are as follows: Old Key West, Animal Kingdom, Beach Club, Grand Californian, Bay Lake Tower, Boardwalk, Saratoga Springs, Vero Beach and Boulder Ridge.

With the overall YTD buy back rate much lower than this time last year (4.7% vs. 15.8%) it is no wonder we are seeing lower buy back highs. If Disney is going to buy back less, it only makes sense to target lower priced contracts. This of course helps current buyers in the resale market looking for the best prices and avoiding ROFR.

Highest Buy Back Price Per Point by Resort for 2020

Disney Vacation Club (DVC) Highest Buy Back Price Point by Resort 2020

What is Right of First Refusal (ROFR)?

For those new to the concept, Right of First Refusal is the option Disney Vacation Club has to purchase any resale contract after a sales price has been agreed upon, and the contract has been executed. Each contract must be forwarded to DVC for review.

DVC typically takes no more than 30 days to review the contract. At their discretion, Disney may step in and purchase the property themselves at the terms agreed upon by the seller and original buyer. DVC then becomes the Buyer, and the purchase is complete. Once DVC is the buyer there is not an opportunity to come back with a better offer in hopes of still purchasing the contract.

Disney Vacation Club Resort Contracts Bought Back in 2020

Please refer to the graph below for the total amount of buy backs at each DVC resort for contracts sold by DVC Resale Market in 2020:

Number of Contracts Disney Exercised ROFR on Sold by DVC Resale Market 2020

Summary on DVC Buy Backs in February

In February, we observed buy backs from 8 different DVC Resorts, but the majority of buy backs (11 of 19) still came from 1 DVC Resort, Old Key West.

The selling price range and volume summary for all buy backs in February:

Resort Selling Price Per Point Range of Buy Backs in Feb. Number of Buy Backs in Feb.
Animal Kingdom $99 – $102 2
Bay Lake Tower $128 1
Beach Club $111 1
Boardwalk $105 1
Grand Californian $170 1
Old Key West $82 – $100 11
Saratoga Springs $85 1
Vero Beach $53 1

Buy Back Rates for Disney Vacation Club Resorts in 2020

The table below shows the percentage of buy backs for all 9 different resorts that have had at least one contract bought back YTD. Note, there were no buy backs of the following resorts in January or February: Aulani, Grand Floridian, Hilton Head, Polynesian, Riviera Resort, and Copper Creek.

Resort Buy Backs Number Sold Percentage Bought Back
Animal Kingdom 12 134   9%
Bay Lake Tower 1 78   1%
Beach Club 2 28   7%
Boardwalk 1 43   2%
Boulder Ridge 1 16   6%
Grand Californian 2 14 14%
Old Key West 15 70 21%
Saratoga Springs 1 121  <1%
Vero Beach 1 16   6%


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