The History of the Disney Vacation Club (DVC)

Disney's Newport Coast condo project is a welcome economic development

March 10, 1994 | Pitchmen for time-share resorts too often resemble old-time carnival barkers, with buyers later cursing the failure to keep their wallets shut. Now the Walt Disney Co. may help change the industry's image.

For an estimated $25 million, Disney has bought 35 acres at Newport Coast, midway between Newport Beach and Laguna Beach and not too far from Disneyland. The company is expected shortly to buy another 35 acres of this stretch of undeveloped ocean-view property.

Plans call for 650 condominiums ranging in size from studios to three-bedroom units, with buyers getting the right to stay in units for specified periods. The project, which will also include shops and restaurants, may be marketed as part of the Disney Vacation Club, which lets members buy time at the company resort in Orlando, near Disney World, and others planned in Vero Beach, Fla., and Hilton Head, S.C.

The time-share development still needs federal, state and local approval, but the condominiums have not drawn public opposition because they replace a planned hotel whose backers could not obtain financing. If the Disney project goes forward, it could be a refreshing display of confidence in the regional economy, especially in tandem with the possible expansion of Disneyland.

.

Groundbreaking at Vero Beach

July 28, 1994

.

Disney Vacation Development breaks ground for second Disney Resort outside theme parks

December 14, 1994

HILTON HEAD, S.C.-- With an oversized paint brush in hand, Minnie Mouse put the finishing touches on Disney's Hilton Head Island Resort sign, while Mickey Mouse turned the first shovel of dirt, marking the beginning of construction for Disney Vacation Development's (DVD) second resort located beyond Disney's theme-park boundaries.

Bill Ernest, general manager of DVD's Hilton Head Island Resort project, and Paula Harper Bethea, chairman of the board for the Hilton Head Island Chamber of Commerce, assisted Mickey and Minnie in the ceremonial ground breaking, which was held at the future site of the South Carolina resort.

DVD's construction plans include the development of a 102-unit resort on a 15-acre site near Shelter Cove and a beach club on a three-and-a-half-acre oceanfront site nearby.

"Hilton Head Island has a proven track record as a premiere destination spot in America. We see this trend continuing, and this is the reason we have chosen to build our resort here," said Ernest. "The natural beauty and relaxed lifestyle of Hilton Head Island combined with DVD's attention to quality and detail will make for a first-class resort that should add to the long-term popularity of the island."

Themed to reflect classic Carolina island-style architecture, the premium resort will offer predominately two-story, cottage-style villas nestled into a live-oak canopy. Just minutes away from the resort will be an oceanfront beach club, which is being planned to provide Disney guests with access to pristine beaches, a snack bar with ocean-view seating, a themed pool, common living room area, an arcade and other recreational offerings for young and old alike.

Disney's Hilton Head Island Resort will be located within the beautiful master-planned community of Palmetto Dunes on Longview Island in Shelter Cove Harbour and will be near both shopping and attractions, including within walking distance to the proposed cultural center.

"We are excited about Disney building a resort on Hilton Head Island," said Harper Bethea. "Our island has built its reputation on being a destination noted for its quality vacation experience and lifestyle. We feel that Disney's planned resort will be an ideal match to our community."

Disney's Hilton Head Island Resort is intended to become part of the Disney Vacation Club, contingent upon obtaining all necessary government approvals. Completion of the resort is tentatively scheduled for spring 1996.

The new Hilton Head Island development is part of DVD's planned resort network expansion into quality vacation destinations. Construction also is underway on Disney's Vero Beach Resort, which is the company's first resort being built away from the Disney theme parks.

This oceanfront resort will be located near Vero Beach, Fla. and is scheduled to open in fall of 1995. In addition, DVD has announced plans to develop a resort in Newport Beach, Calif., with its opening targeted for early 1997.

Disney Vacation Development, a subsidiary of The Walt Disney Co., currently has one resort -- the award-winning Disney Vacation Club at Walt Disney World.

. . . . . . . . . . . . . . . . . . . . . . .

DISNEY'S HHI BEACH HOUSE

When the plan for 68 oceanfront villas in Hilton Head was killed in November 1993, Disney built a single beach house that guests staying in the villas on the island could use.

Here is a photo of the beach house under construction.

The villas on the island were also built.

. . . . . . . . . . . . . . . . . . . . . . .

VB EARLY PROMOTIONAL MATERIAL

Early VB promotional material

. . . . . . . . . . . . . . . . . . . . . . .

Disney Unveils Newport Resort Plans

February 23, 1995 | NEWPORT BEACH — A $250-million time-share resort that Walt Disney Co. wants to build along the Newport Coast would offer sweeping ocean vistas, gondola rides along quiet man-made canals and overnight camping for kids, according to plans released Wednesday.

The 76-acre hillside resort would be designed as an Italian-style Mediterranean village of 650 condominiums where visitors could dine at either of two restaurants, hang out at several tennis courts, volleyball nets, poolside or at a golf course.

The main entrance will feature a six-story "main estate" building flanked by twin 109-foot towers. Designed by Italian architect Aldo Rossi, the earth-tone buildings will have tile roofs and a fake Roman aqueduct that spills into the swimming pool.

"The resort looks like it has been built over time," said Douglas M. Moreland, who is Disney's project director.

Set to open as early as 1997, Disney's Newport Coast Resort will employ about 700 people and offer restaurants, banquet halls and shopping that will be open to the public, as well as owners of the studio, one- and two-bedroom time-share units.

The project is already gaining support among local officials. Supervisor Marian Bergeson, whose district includes the Newport Coast, called Disney's plans "a first-class project" that is "impressive in scope and beautiful."

"I kind of had a preconceived notion on time shares, and I was very, very much impressed that this departs considerably," Bergeson said. "They have not always been that successful."

Irvine Co. Vice President Carol Hoffman, whose company sold the land to Disney and is coordinating the master plan for Newport Coast, said the project will complement the planned mix of homes and brushland in the area.

"We are delighted to be partners with a company that maintains high standards of development. The resort is another important part of the overall planned community that is the Newport Coast," she said.

But first the project, which would have to be approved by the Orange County Planning Commission, must past regulatory muster. An environmental impact report was filed with the state Friday, which began a 45-day period in which the public or interested groups can offer comments. Copies of the environmental plan are available in public libraries or from the county, Moreland said.

The project's habitat management plan also must be approved by the U.S. Fish and Wildlife Service and the California Department of Fish and Game.

Disney's Newport Coast Resort is the fifth in the company's fledgling time-share empire, and its first in California. The Disney Vacation Club already has 12,000 members who have paid from $13,000 to $25,000 to spend a week at a Disney time-share resort once each year for the next 50 years, according to a Disney time-share spokeswoman. The price range reflects different types of accommodations and the time of year selected. Prices for the Newport Coast resort have not yet been set.

Disney touts its program as offering more flexibility because guests don't have to book their vacations during the same week every year.

Disney's entry into the time-share business is being closely watched within the industry, which in the past has been dogged by bad press because of shady operators. The company started its first time-share venture, Disney Vacation Club resort in Orlando, Fla., three years ago and is now building two additional resorts in Vero Beach, Fla., and one in Hilton Head Island, S.C.

As such, the resort is being designed so that Disney's guests would not have to venture outside its gate to stay entertained. It will have four tennis courts, an "activity lawn" featuring sports like volleyball or crochet and Venetian gondolas that guests would row themselves.

Children would be able to visit a crafts barn for pottery or cooking classes, and overnight camping.

"There are lots of activities on-site, and we will also have off-site activities like day trips to Temecula wineries," Moreland said. And, of course, there will be many daily shuttles to Disneyland.

The resort is directly above the Pelican Hill Golf Course, with the main entrance at Pelican Hill Road and Newport Coast Drive in the environmentally sensitive hills south of Newport Beach.

The project will be terraced with a 200-foot elevation difference from the top to the bottom level, yet will be wheelchair accessible through an elaborate series of ramps. Most of the rooms will have ocean views.

. . . . . . . . . . . . . . . . . . . . . . .

Construction of BoardWalk Villas underway in 1995.

. . . . . . . . . . . . . . . . . . . . . . .

Disney Magazine covers the construction of Disney's new Boardwalk

. . . . . . . . . . . . . . . . . . . . . . .

EARLY HHI PROMOTIONAL MATERIAL

Early promotional material for HHI.

. . . . . . . . . . . . . . . . . . . . . . .

DVC Logo revised in 1995

3 mountains reduced to 2 mountains

The 2-mountain logo introduced in 1995

. . . . . . . . . . . . . . . . . . . . . . .

Disney Takes Resorts To The Beach

Vero Beach Resort Is An Expansion Of Disney's Vacation Club, A Time-share Resort

September 30, 1995 | Sentinel Staff

Walt Disney Co. will debut its first resort outside of a theme-park setting on Sunday when it opens Disney's Vero Beach Resort.

The new resort is the first expansion of the Disney Vacation Club, Disney's version of time-share resorts. The club was launched in 1991 with a resort of nearly 500 units at Walt Disney World.

Like the Disney World project, the Vero Beach Resort will eventually accommodate as many as 20,000 time-share owners when the company finishes additional phases of construction. So far, Disney has signed on about 500 owners at Vero Beach, on the coast in Indian River County.

The resort is opening with a 115-room inn and 60 villas, all of which can be rented like a standard hotel room. When complete, the resort is expected to have 436 units.

Disney officials said they'll wait a year to gauge how business is going before starting additional construction.

Although sales at Vero Beach have been slow, Disney officials said that's because they've concentrated on marketing to people who want to book a trial stay. For the first few weekends of October, the resort is 90 percent booked.

"A big part of our strategy in selling the product is renting accommodations," said

Michael Burns, vice president and general manager in charge of Disney Vacation Club's Florida operations. "We think that if people experience it, that's truly the best way to sell them."

The Vacation Club will open a third resort, with 102 cottages, at Hilton Head Island, S.C., in March. Next summer, it will open 383 villas as part of the accommodations available at Disney World's BoardWalk Resort, which will also have a hotel and entertainment district.

Burns said he's optimistic about the Vero Beach Resort, in part because the company's market research shows that up to 40 percent of Walt Disney World's summer visitors also want to go to the beach.

He said he also expects the new resort to be popular with Central Florida residents, who would be unlikely to join the Vacation Club at Disney World.

"We know that there's a big market out there," he said. "The challenge is to figure out how to communicate this new product and target those people."

. . . . . . . . . . . . . . . . . . . . . . .

Early promotional material for BWV

. . . . . . . . . . . . . . . . . . . . . . .

Disney's Boardwalk A Blend Of 1900's And 1990's

June 10, 1996 | Sentinel Staff

Renowned architect Robert A.M. Stern envisioned the resort as a ''village across the water,'' a place where frazzled tourists could take a day off from the theme parks or spend a romantic evening.

For Walt Disney World, it's the finishing touch to the Epcot resort area, and yet another opportunity to keep visitors on Disney property when they come to Orlando.

Disney's BoardWalk resort complex opens for business July 1, adding another dimension to the company's rapidly growing collection of hotels, restaurants and entertainment and shopping areas. In a first for Disney, the Stern-designed complex combines all of those elements in a single location.

''It is a unique, one-of-a-kind resort on our property,'' said Al Weiss, president of Walt Disney World.

It includes a high-end hotel called the BoardWalk Inn and the BoardWalk Villas, part of the Disney Vacation Club's time-share holdings. It has a 20,000-square-foot conference center, shops and the usual mix of pools, tennis courts and other amenities.

The complex also has a lakefront entertainment district with restaurants, nightclubs and a ''brewpub'' serving beer made on site - all located on a wooden boardwalk. In addition to the people staying at BoardWalk, the entertainment strip is expected to draw heavily from four other hotels around the lake - the Walt Disney World Swan and Dolphin hotels, which do a large convention business, and the Yacht Club and Beach Club resorts.

BoardWalk opens at a time when Disney's hotels and theme parks are busier than they have been in years. There has been so much demand for hotel rooms this year that the company has had to refer business to other hotels during peak periods, Disney executives say.

Though Disney won't provide numbers, Alan Gould, an entertainment analyst with the New York investment banking firm Oppenheimer & Co., estimates Disney's hotel occupancy at close to 90 percent, ''way above the national average.''

''What makes it even more impressive is the fact that they keep adding so many hotel rooms,'' he said.

Disney has added about 4,500 rooms in the past two years, with the opening of the Wilderness Lodge and the budget-priced All-Star Sports and Music resorts. Counting the BoardWalk Inn, Disney has 14,715 hotel rooms. In comparison, the entire International Drive tourist area, has about 20,600 rooms.

Company officials won't discuss where BoardWalk's bookings stand, except to say they are very strong. Some compare the resort's outlook to that of Wilderness Lodge. When that hotel opened in May 1994, ''it took off like a rocket,'' said Lee Cockerell, senior vice president of operations at Disney World. ''It was packed.

''With the theming today being so strong, people just want to get in and see these new places,'' he said.

The theme of Disney's newest resort will be familiar to anyone who grew up with summer vacations in Mid-Atlantic and New England beach towns. Stern - who also designed the Yacht and Beach Clubs and is known for his books on architecture and his role as host of the 1986 PBS series Pride of Place: Building the American Dream - modeled BoardWalk after seaside towns from the early 1900s. Architectural touches are reminiscent of Cape May, N.J., with a Coney Island feel to the boardwalk.

Disney officials say the resort has been an easy sell, especially with New Yorkers and others from that region.

''Anybody from New York, New Jersey, Philadelphia - you'd be amazed,'' said Charlie Hardiman, BoardWalk's general manager. ''The Northeast is kind of enamored with it.''

As Hardiman walks the dusty corridors of the BoardWalk Inn, where workers are racing the clock to finish the interior in time for its opening, he describes its place in Disney's hotel empire.

He opens a door to a large room that's nearly ready, with an eclectic mix of furnishings that give it the look of a fancy bed and breakfast.

''It's not supposed to have that brand new feel,'' he explained. He pointed to an ornate brass mirror on the wall. ''This is like something you would have taken from your grandmother's house.'' The hotel, with just 378 rooms, will be the smallest and one of the more expensive on Disney property, comparable in price to the nearby Yacht and Beach Clubs. Room rates start at $225, off-season. Those that don't have a view of the water look out on the gardens of enclosed courtyards.

The hotel is connected to 532 time-share units by a large lobby. In the evening, guests will be able to sit in the lounge and listen to 1930s radio programs such as Burns and Allen or The Untouchables on an old radio. By day, they can walk around the lake to the back entrance of Epcot, or take a boat ride to Disney-MGM Studios.

The main distinction of these accommodations, however, is outside their doors.

Disney's BoardWalk entertainment district is nothing like Pleasure Island, a gated, nighttime area in the Disney Village complex that tends to draw a younger crowd. BoardWalk doesn't charge admission, which should make it more popular with local residents.

. . . . . . . . . . . . . . . . . . . . . . .

Disney Scraps Plan to Build $250-Million Newport Resort

Company will sell 45-acre coastal parcel, focus instead on its time-share projects out of state.

February 19, 1997 | Bowing to competitive pressures within the rough-and-tumble time-share industry, Walt Disney Co. executives said Tuesday that they've scuttled plans to construct a $250-million time-share resort along Orange County's Newport Coast.

Company spokesman Bill Warren said Disney has abandoned its vision for a 650-unit Mediterranean-style village near Newport Beach to concentrate on its four existing Disney's Vacation Club resorts in Orlando and Vero Beach, Fla., and Hilton Head, S.C.

"We've had a lot of rapid growth in the last few years," Warren said. "We just made a decision to focus on what we've got."

Disney plans to unload the vacant 45-acre parcel for which it paid more than $24 million, and has been talking with several brokers about handling the sale, Warren said.

With its high-end products and low-pressure marketing techniques, Disney has been credited with improving the image of the time-share industry.

But industry watchers say Disney overpaid for the Newport Coast property and is having a tough time replicating the early success of its two time-share resorts in Orlando, where the company's theme parks have provided instant marketing muscle and a steady stream of potential buyers.

"In Orlando, they had people coming to them . . . but it has been a tougher sell in Hilton Head and Vero Beach," said David Matheson of the Criterion Group, an Atlanta-based advertising company that specializes in the time-share industry. "Pulling the plug in California isn't a red flag. But they are going to have to take a couple of caution laps before they move forward."

Announced with much fanfare in 1994 and anticipated to open this year, Disney's first West Coast time-share resort was designed to mimic classic Italian architecture, including Venetian-style canals and a faux Roman aqueduct.

But construction was delayed by repeated design changes as Disney worked to make the project economically feasible.

Part of the challenge was the cost of the land. The company reportedly paid the Irvine Co. $24 million for the first 35 acres of the 70-acre project--a sum that some observers felt was too pricey for a time-share development. Disney purchased an additional 10 acres in 1994 and holds an option to buy an additional 25 acres from the Irvine Co..

"Disney would have had to ask a lot [for its time-share intervals] to justify that land cost," said Brad Benson, director of marketing for the 142-unit Peacock Suites time-share resort in Anaheim. "If the costs are too prohibitive you just can't do it."

Newport Beach officials, who had been eyeing the time-share project as part of a proposed annexation effort, expressed regret at losing a major new development, particularly one bearing the vaunted Disney name.

"I'm extremely disappointed," said Newport Beach Mayor Janice Debay. "We were looking forward to having an association with Disney and having this project become a part of Newport Beach. It was going to be a showplace."

In January of 1998, Marriott announced plans for a California Coast Vacation Ownership resort located on the former Disney site. In June of 2000, Marriott’s Newport Coast Villas opened its first 55 units, with plans for 595 more, bringing the total up to 650 units.

Here's what the Disney Newport Coast Villas could have been like:

. . . . . . . . . . . . . . . . . . . . . . .

Below are some DVC promotional materials from 1998.

. . . . . . . . . . . . . . . . . . . . . . .