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True or False? The tower under construction next to Disney’s Contemporary Hotel will be a new Disney Vacation Club resort?
Imagine on your next vacation rolling out of bed, hopping on the monorail, and jumping off at dozens of fun resorts and exciting attractions. If rumors prove true, you may soon be able to do this at the Contemporary Hotel’s under-construction tower.
Disney is playing their information card close to the chest regarding the Contemporary Hotel addition. But the new tower has already soared to five stories and is expected to be completed in 2009.
The Tower is on 14 acres a little north of the resort’s icon; the A-frame Contemporary Hotel. This was only the second hotel at Disney World when it opened several months after the Big Mouse himself first welcomed guests on October 1, 1971.
Rumors persist, supported by growing evidence, that Disney plans to use the new tower for Disney Vacation Club timeshares. Rumors are speculation and hearsay, but consider the following factual evidence.
EVIDENCE: Building-permit applications filed with Reedy Creek Improvement District identify the owner of the property as a company called JMSRM Inc. State records show this as a fictitious name created in August 2006 by Celebration-based Disney Vacation Development, parent company of the Disney Vacation Club timeshare company.
EVIDENCE: In a pair of letters, an environmental consultant hired by Disney calls the new tower “a proposed Disney Vacation Club (DVC) Resort at the Contemporary Hotel.”
EVIDENCE: In a recent filing with the U.S. Securities and Exchange Commission, Disney revealed that it has about 680 more timeshare units under construction at Disney World. Disney has publicly acknowledged only one ongoing timeshare construction project in Orlando: Kidani Village, an extension of the partially completed Disney’s Animal Kingdom Villas. That project is expected to have 340 units when finished in spring 2009, leaving another 340 or so unaccounted for. A magical mystery or Contemporary construction?
Construction records for the Contemporary expansion call for 295 three-bedroom suites. Some could be sold as separate two- and one-bedroom units by using a “lock-off” design often used in timeshare resorts.
But the Mouse remains mum about the Contemporary addition.
“We have plans to expand our Disney Vacation Club business both on Walt Disney World property and at other vacation destinations in the future. However, we don’t have anything formal to announce today,” a Disney Vacation Club spokesperson was reported to have said.
Reasons to Remain Quiet for Now
Expert industry analysts say Disney may have strategic reasons for not now releasing a Contemporary Hotel timeshare announcement.
Disney has invested deeply in the profitable timeshare business in recent years. Announcing future Disney timeshares in the Contemporary Hotel, which are likely to be very popular, given their jump-on-the-monorail and vacation location, could slow current sales at Animal Kingdom Villas and Saratoga Springs Resort & Spa, both at Disney World.
Disney timeshare buyers [http://www.edisneytimeshare.com] must purchase Disney Vacation Club points from a “home” resort, and there are a limited number of points available at each DVC resort. Owners can be very picky about their home resort. They are given priority in making reservations at that particular resort when booking a vacation. Every owner has plenty of reasons for picking their home resort and then promoting and defending the delights of home.
“If you’re trying to make a sale at Saratoga Springs or the Animal Kingdom, and a potential buyer is aware that a year from now there’s going to be Disney timeshare available in the Contemporary Hotel; that might hurt your other sales,” say Disney timeshare marketing experts.
Disney could decide against marketing the Contemporary addition as timeshares. The new tower could just add more hotel suites to the Contemporary. Company executives reportedly said recently that Disney World hotels are averaging 90 percent occupancy. The Contemporary commands nightly rates as high as $1,310 a night for a one-bedroom suite.
Whatever the real and actual use, the Contemporary addition is sure to be lavish and posh. Records show the crescent-shaped tower will include a host of amenities, including a swimming pool and water-play area with an outdoor bar and a water slide; a spa; tennis courts; a barbecue pavilion; and a 499-person lounge on the 15th floor featuring a restaurant and bar. The new tower will be connected to the main building by a pedestrian bridge.
The Contemporary Hotel construction coincides with Disney’s major timeshare building efforts elsewhere. Last fall, Disney announced that it will build an 800-room resort in Hawaii where about half of the rooms will be Disney timeshares. Also, Disney will add 50 two-bedroom villas to Disneyland’s Grand Californian Hotel & Spa, which will be the first timeshares at the Main Man Mickey’s original resort.
E. Lee Reid is a hospitality, travel and leisure, vacation real estate, and construction industry expert. He and his companies have successfully managed thousands of vacation resort condos at multiple resorts in North Carolina and Florida. In recent years he converted several hotels to condo hotels in the Disney World area of Central Florida. He is a widely quoted author and speaker. Reid holds a Master of Business Administration degree and will complete Cornell University’s Master of Essential Hospitality Management in 2008. Reid is also a certified General Contractor, Realtor, and Certified Commercial Investment Member (CCIM) candidate. Visit Lee at http://www.eleereid.com or http://www.reid4florida.com
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