DVC Right of First Refusal Report (ROFR): November ’21
DVC Exercises Right of First Refusal (ROFR)
Year-to-date (YTD) through November 2021, Disney has exercised their right of first refusal (ROFR) on 525 Disney Vacation Club (DVC) contracts. DVC Resale Market (DVCRM) has sold 4,182, resulting in an 12.5% buyback rate (Contracts Bought Back in 2021/Contracts Sold in 2021). The 2021 waiver rate is 87.5%.
Key ROFR Updates
- On the year, DVCRM has seen a 92% increase in buybacks, surpassing 2020 by over 251 contracts thus far. Leading the way are Saratoga Springs (121), Old Key West (119), Animal Kingdom (107), and Bay Lake Tower (60), totaling 78% of contracts bought back in 2021.
- Saratoga Springs has now surpassed Old Key West for the highest number of contracts bought back in 2021, with 27 bought back in November 2021.
- Copper Creek (34) continued to see a considerable increase in ROFR activity in November 2021, with 14 contracts taken this month.
- A continued storyline is the significant increase in the price at which Disney is willing to exercise its ROFR. Saratoga Springs has seen this price jump from a low of $96 per point in February 2021 to a high of $133.80 per point in October 2021. This represents a 35% increase.
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 November 2020 to November 2021:
Disney Vacation Club Resort Resale Contracts Bought Back in 2021
The graph below shows the total amount of buybacks 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 buybacks for all 11 different resorts that have had at least one contract bought back in 2021. Note, there were no buybacks of the following resorts in 2021: Aulani, Grand Californian, Riviera Resort, and Vero Beach.
|Resort||Buybacks||Number Sold||Percentage Bought Back|
|Bay Lake Tower||60||373||16.1%|
|Old Key West||119||344||34.6%|