The question has been asked on many forums and all over social media: What effect will Riviera’s restrictions have on their resale value and will those restrictions affect sales?
If you’re not familiar with what I’m talking about, Disney’s Riviera Resort will be the first DVC resort where contracts sold on the resale market can only be used at that resort. So, for example, if you purchase a 100 point contract at Riviera, then decide to sell it – that contract can only be used by the new buyer at Riviera, and not at any of the other 14 DVC properties. Also, points purchased via resale after January 2019 can not be used at Riviera.
So, what impact will these restrictions have on sales at Riviera? We are a long way from a definitive answer on that. Some reports have it that Riviera sales are in line, or even ahead, of other DVC resorts at this point in their sales cycle. That would be good news for DVC.
However, there are indications that suggest it might not be going as well as some think. Let’s look at some facts:
- A recent Riviera contract went on the resale market. The price offered was $133, and it ended up selling at $100 p/pt. That’s an $88 per point LOSS off the current retail price. By any measure, that’s excessive. Now, to be fair – Riviera hasn’t opened yet. Once it does, depending on how well-received it is (and I have a feeling the reviews will be better than good), it’s resale value may improve. Keep in mind – this is only one resale contract, so as I said before, I can’t make any definitive statements about what the norm will be, but it certainly isn’t good news.
- Disney has started offering incentives on fixed week contracts at Riviera. This is the first time that Disney has offered any kind of incentive on fixed weeks. Fixed week contracts are normally sold at a premium. If you’re not familiar with them, these contracts guarantee you a room during a set week every year. So, let’s say you always travel from Dec 12-19 every year. You can purchase a fixed week contract and a reservation is automatically made for you every year. If you decide you want something different, you just need to call member services, cancel the reservation then you can use those points the same as any member. Disney has always charged a premium for this, but some people have received calls offering a sales incentive for fixed weeks, which would indicate that they are not selling as many contracts as they hoped.
- Conversations I’ve had with people inside DVC have suggested that sales are not meeting expectations. One person inside DVC confided to me that he felt they needed to re-visit the resale restrictions because “Riviera isn’t selling as well as we expected”
Now, it is very important for me to reiterate this point: ALL of this is happening BEFORE Riviera opens its doors. It is possible that all of this changes once people are able to see the property. However, if sales don’t improve after the grand opening, DVC will be forced to consider amending their resale restrictions. I’ve taken the tour of the Riviera rooms and LOVED them, and everything I’ve seen in the marketing material is really appealing to me. I’ve considered purchasing a contract at Riviera several times, but it comes back to those restrictions. If the time comes that I want to sell the contract, I’m afraid it won’t be worth anything. That may all change after I step foot inside the finished product – only time will tell.