Does Disney regret Aulani?

[SL6827]

With Aulani still not sold out, do you think Disney regrets building that resort? Did they ever think sales would go the way they have? Will they hang on to the resort when it expires? Any good insight?

 

[bwvBound]

Timing is a difficult element with Aulani. How could DVC have foreseen Japan's significant earthquake just months before the official opening?

 

[tjkraz]

I mean, that's a ridiculously broad question. We all have regrets.

I don't think it's fair to declare whether or not Disney regrets the entire Aulani project. In hindsight, maybe they regret the timing, or the location, or the size, or the budget, or the amenities, or 100 other things. But at the time, what they did made sense. And even though the DVC points have sold slower than projected, it has left them with more cash rooms to rent for a profit. Even if some of those rooms sit empty and others are discounted.

DVC apparently doesn't regret it enough to offer the points at fire sale prices.

 

[TikiRob]

No. I'd actually expect them to lean in with Cruise Line once their fleet expands.

 

[wnielsen1]

I don't think they do. They've sold roughly 2/3 or more of the resort and from what I've heard, they have no problem booking the portion that they still need to sell.

 

[SL6827]

No. I'd actually expect them to lean in with Cruise Line once their fleet expands.

They should.

 

[RivShore]

DVC apparently doesn't regret it enough to offer the points at fire sale prices.

I think that is the key, if demand was so much lighter than they wanted, the first thing they should have done is lower the price.
But maybe the normal economic principles don't apply because of how a fire sale price would effect the WDW resort sales??

 

[DisTravels]

Will they hang on to the resort when it expires?

I believe that Aulani deed expiration is 2062, lots of time to go before they worry about that.

DVC Off-property destinations do not have a great track record (Vero & Hilton Head both 2042 deed expiration), although I expect the Aulani location will help a lot over the long run (beachfront, next to Four Seasons and near Marriott Ko Olina timeshare)

 

[BayTower2010]

Disney is just not a good Hotelier. But this resort is just plain beautiful. Cannot wait to visit it next year. If Disney decides they no longer wish to own, I am sure there are Multiple companies that would open up their check books to purchase.

 

[hhisc16]

I mean, that's a ridiculously broad question. We all have regrets.

I don't think it's fair to declare whether or not Disney regrets the entire Aulani project. In hindsight, maybe they regret the timing, or the location, or the size, or the budget, or the amenities, or 100 other things. But at the time, what they did made sense. And even though the DVC points have sold slower than projected, it has left them with more cash rooms to rent for a profit. Even if some of those rooms sit empty and others are discounted.

DVC apparently doesn't regret it enough to offer the points at fire sale prices.

What % do you think Aulani is sold so far in DVC points?
50%?

 

[tjkraz]

What % do you think Aulani is sold so far in DVC points?
50%?

The 2024 budget is based upon 330 vacation homes. There are 467 total vacation homes in the DVC component, suggesting it's about 70% sold out.

 

[CastAStone]

With Aulani still not sold out, do you think Disney regrets building that resort?

No. I think they regret building it as large as they did, and not keeping a portion as hotel rooms. I think a resort just 20% smaller would have been a smashing success.

Did they ever think sales would go the way they have?

No. They undercalculated the MFs and they didn’t anticipate the failure of the Japanese economy to keep pace with the US.

Will they hang on to the resort when it expires?

It’s so hard to say. Hawaiian resorts rarely last more than 40-50 years. It wouldn’t surprise me if they did massive, massive renovations on it though, potentially including shrinking it, and resold it as Aulani 2 if DVC still exists then.

 

[WinterSolider]

Selling Aulani was never primarily about selling Aulani contracts. Aulani being in the DVC inventory helps Disney sell the other DVC resorts. It's one of the crown jewels they can point to in their sales presentations and say "look at this wonderful place you can go to if you Become a Member and Stay Magical Year After Year.

It doesn't matter if they're selling Aulani or Riviera or Fort Wilderness, those guides are still going to show you Aulani and Bungalows and Cruise Line and Adventures by Disney and Riviera 3BR GV.

 

[hhisc16]

The 2024 budget is based upon 330 vacation homes. There are 467 total vacation homes in the DVC component, suggesting it's about 70% sold out.

wow! thanks for the info!

 

[disneyfan123]

Selling Aulani was never primarily about selling Aulani contracts. Aulani being in the DVC inventory helps Disney sell the other DVC resorts. It's one of the crown jewels they can point to in their sales presentations and say "look at this wonderful place you can go to if you Become a Member and Stay Magical Year After Year.

It doesn't matter if they're selling Aulani or Riviera or Fort Wilderness, those guides are still going to show you Aulani and Bungalows and Cruise Line and Adventures by Disney and Riviera 3BR GV.

As they should; Aulani was a significant reason we bought into DVC. It is a fantastic resort and the only reason we can stay there is because of DVC. No way we can afford cash rates!

 

[BruinEd03]

With Aulani still not sold out, do you think Disney regrets building that resort? Did they ever think sales would go the way they have? Will they hang on to the resort when it expires? Any good insight?

No, they make tons of $$$ to cash paying guests. They're in no hurry to sell out the Resort.

 

[J-Dog]

As with most things in life, I am doubting that Aulani has gone exactly how DVD expected it to, with factors that have already been alluded to, such as the off-the-cliff drop-off of Japanese tourists.

But other things are still going fine - the Ko Olina area is trendy and the second-most popular resort area on Oahu. And the most recent rumor is that a large shopping area (i.e. tourist trap) will be replacing the Paradise Cove luau when it sunsets next year. So potentially the draw to things close-by but other than just Aulani itself will continue to increase.

However, having said that, I was just there last week, and I was surprised at how many NON-DVC pool wristbands I saw - probably about 60-70% of people by my estimation - considering how many villas there are compared to hotel rooms, which I think suggests that there are tons of rentals going on. Because of that, I agree with @CastAStone that that Disney probably regrets not putting in more hotel rooms.

 

[that1jeff]

I don't see Disney regretting it at all. Seems to me they are just fine with the status quo. Seems like a no-lose situation for them actually...

-Oh, Aulani didn't sell out this year? Oh well! I guess we'll just charge an arm and leg to book the rooms at rack rate.
-Oh, you want to buy DVC points at Aulani...yes, we're happy to take your money that way as well.

So as long as cash bookings offset the the unsold points and they keep those rooms occupied, Disney will be happy as an clam. They won't care if it never sells out till it expires. Not to mention you rarely hear bad reviews about Aulani in general. It's a home run! I never really understood the idea that Aulani is a "failure" because it hasn't sold out. If they keep the rooms occupied at the rate their charging, they're good. Disney doesn't care how they get our money, just that they do.

And I actually think Disney is going to apply this same logic to The Cabins at Fort Wilderness. The die hard cabin fans will keep coming back year after year as they've always done for decades, and will book the cabins at rack rate. And some will buy DVC points. Either way, it's good for Disney.

 

[bwvBound]

It's a home run!

LOL, I see what you did there! Nice!

 

[that1jeff]

LOL, I see what you did there! Nice!