DVC Right of First Refusal Report (ROFR): February ’21 Report
Year-to-date (YTD), Disney has exercised their right of first refusal (ROFR) on 97 Disney Vacation Club (DVC) contracts, and DVC Resale Market (DVCRM) has sold 959, resulting in a 10.1% buy back rate (Contracts Bought Back in 2021/Contracts Sold in 2021). The 2021 waiver rate is 89.9%.
Polynesian is Now on ROFR Alert
Until this past February, DVCRM had only two Polynesian contracts ever purchased back through ROFR going back to when Polynesian first entered the resale market in 2016. This past month, there were nine Polynesian contracts bought back. This is a dramatic uptick for a resort that went mostly untouched in ROFR.
Importantly, Polynesian was one of just five “sold-out” properties to receive a Disney direct price increase in February, taking its direct price increase from $245/pt. to $250/pt. The average resale price for Polynesian is approximately $151/pt. At these prices, the Polynesian now has the biggest percentage gap between resale and direct price of any Walt Disney World DVC property. At roughly a 40% differential the Polynesian is representing one of the best financial opportunities for Disney in buying back a DVC resort at WDW.
Highest Monthly Buy Back Numbers by DVC Resort
Highest Buy Back Price Per Point by Resort from February ’20 to February ’21
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 2021
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 2021:
Buy Back Rates for Disney Vacation Club Resorts in 2021
The table below shows the percentage of buy backs for all 7 different resorts that have had at least one contract bought back in 2021. Note, there were no buy backs of the following resorts in 2021: Aulani, Beach Club, Boulder Ridge, Copper Creek, Grand Californian, Hilton Head, Riviera Resort and Vero Beach.
|Resort||Buy Backs||Number Sold||Percentage Bought Back|
|Bay Lake Tower||30||90||33.3%|
|Old Key West||21||79||26.6%|