DVC Right of First Refusal Report (ROFR): May ’19 Report
Year-to-date (YTD), Disney has exercised their right of first refusal (ROFR) on 359 Disney Vacation Club (DVC) contracts, and DVC Resale Market has sold 1,764, resulting in a 20.4% buyback rate (Contracts Bought Back year-to-date / Contracts Sold year-to-date). The year-to-date waiver rate is 79.6%.
The Two Biggest ROFR Takeaways So Far in 2019
In 2019, we have observed record-breaking buyback numbers, and the buybacks are very resort specific. DVC Resale Market’s buyback rate has climbed from 6.9% in 2017 to 10.5% in 2018 to a staggering 20.4% YTD buyback rate in 2019.
The eight DVC Resorts bought back have YTD buyback rates of anywhere from 16% to 48% (shown in a chart towards the bottom of page). Those eight resorts in order of buyback percentage: Beach Club, Bay Lake Tower, Animal Kingdom, Hilton Head, Old Key West, Saratoga Springs, Grand Floridian, and Boardwalk. The remaining six DVC Resorts that we have not had any buybacks thus far in 2019 are: Aulani, Boulder Ridge, Copper Creek, Grand Californian, Polynesian, and Vero Beach.
What is Right of First Refusal (ROFR)?
For those new to the concept of Right of First Refusal, it 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 2019
Please refer to the graph below for the total amount of buybacks at each DVC resort for contracts sold by DVC Resale Market YTD in 2019:
Details on DVC Buybacks
In May, with 81 buybacks, rather than providing details of every contract and significantly delaying the delivery of the ROFR report, we thought we would summarize the details by providing the selling price range per point along with the volume by DVC Resort for all contracts bought back.
The selling price range and volume summary for all buybacks in May:
|Resort||Selling Price Per Point Range of Buy Backs in May||Number of Buy Backs in May|
|Animal Kingdom||$99 – $113||18|
|Bay Lake Tower||$132 – $144||12|
|Beach Club||$126 – $142||10|
|Boardwalk||$100 – $119||4|
|Grand Floridian||$140 – $153||3|
|Hilton Head||$60 – $60||1|
|Old Key West||$86 – $94||7|
|Saratoga Springs||$87 – $102||26|
Buyback Rates for Disney Vacation Club Resorts
The table below shows the percentage of buybacks for all 8 different resorts for January through May of 2019. Note, the buyback rate for Aulani, Boulder Ridge, Copper Creek, Grand Californian, Polynesian and Vero Beach in 2019 has been 0%.
|Resort||Buy Backs||Number Sold||Percentage Bought Back|
|Bay Lake Tower||67||173||39%|
|Old Key West||28||110||25%|