Disney's Hawaiian Resort Issues

[KeithS]

Some interesting reporting coming out of the US today in relation to Disney's new Hawaiian resort and its Disney Vacation Club (DVC) component.

It would appear that someone's accounting hasn't been very good and the fees being charged for the new resort DVC villas wouldn't cover the cost of running the actual resort...

The result is they have suspended sales today and fired the President of the DVC, the CFO of Disney Cruise Line, and the former director of DVC!

The Orlando Sentinel has the scoop here:
http://articles.orlandosentinel.com/201 ... ime-shares

[mushu mama]

Wow... interesting that their sackings were so swift and so heavy handed... considering their exeplary record with the company. It kind of begs the question what else was going on? You hear of much worse actions getting not much more than a demotion or smack on the wrist. These guys didn't even get severence. Very interesting indeed .

[KeithS]

You hear of much worse actions getting not much more than a demotion or smack on the wrist.

That's exactly what I thought - the damage must be pretty significant. I'm guessing that Disney will have to steeply increase everyone's bills even before they've begun using the facility - it is a very embarrassing situation for the company and will likely result in law suits etc - we'll have to watch this one with interest!

[ajp]

I agree, there has to be more than just a simple mis-calculation for the drastic action. The article talks about having to go back to the Hawaiian government and regulators, which must be a big deal. It will also cost them a packet in compensation. This could be a multi million dollar "oops".