DVC Right of First Refusal Report (ROFR): May 2023
DVC Exercises Right of First Refusal (ROFR)
Year-to-date (YTD), Disney has exercised their right of first refusal (ROFR) on 4 Disney Vacation Club (DVC) contracts, and DVC Resale Market (DVCRM) has sold 2,243, resulting in a 0.2% buyback rate (Contracts Bought Back in 2023/Contracts Sold in 2023). The 2023 waiver rate is 99.8%.
Key ROFR Updates
Disney Vacation Club (DVC) continued its pause of Right of First Refusal (ROFR) activity for the month of May 2023, effectively making for a smoother process when purchasing DVC Resale Contract. DVC appears to remain focused on prioritizing its direct sales numbers for active properties, including Riviera, Aulani, Grand Floridian, and Disneyland Hotel, as sales numbers have been reported to struggle over the past few months. This proves to be an uphill battle for them, as most of these resorts continue to sell for a significantly lower price per point on the resale market.
As we look forward to June, the launch of sales for both new and existing Members at The Villas at Disneyland Hotel will be interesting to watch to see if DVC’s existing sales strategy pays off. We can also start placing bets on when the first Disneyland Hotel contract will hit the DVC Resale Market, and for what price per point. In the meantime, with the “ROFR Monster” still dormant, those eyeing the DVC resale market continue to have a great opportunity to buy.
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.
Highest Monthly Buy Back Numbers by DVC Resort
Highest Buyback Price Per Point by Resort from May 2022 to May 2023:
Disney Vacation Club Resort Resale Contracts Bought Back in 2023
The graph below shows the total amount of buybacks at each DVC resort for contracts sold by DVC Resale Market in 2023:
Buy Back Rates for Disney Vacation Club Resorts in 2023
The table below shows the percentage of buybacks for the resorts that have had at least one contract bought back in 2023. Note, there have been no buybacks of the following resorts in 2023: Aulani, Grand Californian, Riviera Resort, Grand Floridian, Polynesian, Animal Kingdom, Bay Lake Tower, Beach Club, Boardwalk, Boulder Ridge, Old Key West, Saratoga Springs, Vero Beach, and Hilton Head.
|% Bought Back