New Future Disneyland Hotel

[planningjollyholiday]

Also now reportedly a delay with subsidies from Anaheim...

http://www.latimes.com/business/la-fi-disneyland-hotel-subsidy-20180815-story.html#

I don't understand why it matters that they changed locations. They happily gave other companies the subsidy, why can't disney have it? The relationship between disney and council has become more and more strained these last few years.

 

[LYSE]

I would stay there, though I'm miffed this is all in DLH's space.

I was also hoping it would have DVC cause I'm not really about paying those cash rates.

 

[Nonsuch]

http://www.latimes.com/business/la-fi-disneyland-hotel-subsidy-20180815-story.html

 

[rteetz]

I don't understand why it matters that they changed locations. They happily gave other companies the subsidy, why can't disney have it? The relationship between disney and council has become more and more strained these last few years.

Its the City Council trying to stick it to Disney. Their relationship like you said has been worse and worse over the last couple years. Anaheim needs Disneyland though as its the biggest revenue maker in that city and drives their tourism.

 

[Malcon10t]

From my understanding the new hotel will come first before they start remodeling the existing Disneyland Hotel.

You didn't say "remodel", you said tear down.

I don't understand why it matters that they changed locations. They happily gave other companies the subsidy, why can't disney have it? The relationship between disney and council has become more and more strained these last few years.

Because they placed a parcel number on the subsidy, and they aren't building there. And because it is Disney, this mayor is doing everything to prevent it. I believe he was against Disney getting the subsidy, and now has something to hang his hat on. Aug 20, there will be a council meeting that could change it all.

I would stay there, though I'm miffed this is all in DLH's space.

I was also hoping it would have DVC cause I'm not really about paying those cash rates.

From what I have heard, there is supposed to be a DVC section.... (Really think DIsney is going to build this nice new hotel and NOT sell it!!?)

 

[rteetz]

Aug 20, there will be a council meeting that could change it all.

Could yes but I think the council will continue to try and play hard ball. Both sides may come to a compromise though.

 

[DLgal]

Anaheim has a solid argument here. The parking lot land is owned by the city, to my knowledge. I think Disney pays a lease for the parking structures and surface lots. Anaheim required that the new luxury hotel be built on city owned land, which was in the original plan for the hotel. When Disney moved the location to DtD, which is land they own, they no longer quality for the subsidies. Dumb idea, Disney. I expect whoever made that call will be fired here shortly.

 

[rteetz]

Anaheim has a solid argument here. The parking lot land is owned by the city, to my knowledge. I think Disney pays a lease for the parking structures and surface lots. Anaheim required that the new luxury hotel be built on city owned land, which was in the original plan for the hotel. When Disney moved the location to DtD, which is land they own, they no longer quality for the subsidies. Dumb idea, Disney. I expect whoever made that call will be fired here shortly.

Well everything would be different had Disney been allowed to do the Eastern Gateway project like originally intended. This is really both sides trying to one up each other. Disney and Anaheim are not on good terms.

 

[DLgal]

Well everything would be different had Disney been allowed to do the Eastern Gateway project like originally intended. This is really both sides trying to one up each other. Disney and Anaheim are not on good terms.

I agree. But Disney is really pushing things. The Eastern Gateway project was a huge middle finger to all the tenants on Harbor. And this hotel idea shoehorned into Downtown Disney is a logistical nightmare. I'm glad they are putting it on hold. They could very easily go back to the plan to build on the DtD lot and be done with it.

The loss of those tenants in those huge buildings where they were just taking in tons of rental income for doing nothing is a huge blow. They will have a hard time finding new tenants to take over those spaces, given the uncertainty of that section of DtD.

 

[rteetz]

I agree. But Disney is really pushing things. The Eastern Gateway project was a huge middle finger to all the tenants on Harbor. And this hotel idea shoehorned into Downtown Disney is a logistical nightmare. I'm glad they are putting it on hold. They could very easily go back to the plan to build on the DtD lot and be done with it.

The loss of those tenants in those huge buildings where they were just taking in tons of rental income for doing nothing is a huge blow. They will have a hard time finding new tenants to take over those spaces, given the uncertainty of that section of DtD.

If this hotel doesn't get built in this spot anymore what happens to that area is really the big question now. Do they attempt to get some of those tenants back or do they build something completely new there? We will have to wait and see I guess.

 

[Captainkidd76]

From my understanding the new hotel will come first before they start remodeling the existing Disneyland Hotel.

Why would they need to remodel the DLH? It just had a huge remodel about 8 years ago. Short of tearing the entire thing down (which would be ridiculous), what would they want to change? It looks fantastic.

We've only been to Disneyland once, so obviously, no experts. But from staying at the DLH and walking by that area of DTD every day, I always thought it was the most absurd place for a new hotel. That section of DTD seemed like it would have been great as is, with RFC, ESPN, AMC and EoS.

 

[OneThree]

I’d be ok if the new hotel was not built in DTD. DL has always been space constrained but jamming a new hotel so close to the DLH just seems bizarre.

Yes, the loss of the tenants on the western side of DTD is a problem but I have to believe new tenants would gladly fill the space if given the opportunity.

 

[pkrieger2287]

Just a general question... Is the market really there for a luxury hotel of this type? I know in my case there are plenty of good neighbor hotels in the surrounding Anaheim area that are significantly lower in price and seem to be just as great in terms of quality. This week on the podcast they were discussing the significance of perks you get for the added price but I feel those have even diminished over the years with good neighbor hotels getting Magic Morning, etc.

Obviously there is money in the hotel business but I just have to question whether this is truly the best hotel option to build at this point. Does anyone know at what percentage of occupancy do the current Disneyland hotels run?

 

[rteetz]

Just a general question... Is the market really there for a luxury hotel of this type? I know in my case there are plenty of good neighbor hotels in the surrounding Anaheim area that are significantly lower in price and seem to be just as great in terms of quality. This week on the podcast they were discussing the significance of perks you get for the added price but I feel those have even diminished over the years with good neighbor hotels getting Magic Morning, etc.

Obviously there is money in the hotel business but I just have to question whether this is truly the best hotel option to build at this point. Does anyone know at what percentage of occupancy do the current Disneyland hotels run?

Disney wouldn’t look to add a luxury hotel if there wasn’t a market for it.

Domestic occupancy for Disney owner resorts is about 90% which is pretty good. That includes both WDW and DL though. Disney doesn’t release specific numbers on that.

 

[tvguy]

As a Disney stockholder I have found the whole California Adventure/Downtown Disney thing to have been mishandled. And seems to continue.
Disney is big enough that it hasn't sunk them, but man the problems they have had since that all opened in 2001.

 

[rteetz]

As a Disney stockholder I have found the whole California Adventure/Downtown Disney thing to have been mishandled. And seems to continue.
Disney is big enough that it hasn't sunk them, but man the problems they have had since that all opened in 2001.

Well this hotel moved to the DTD location because the Eastern Gateway plan was blocked. Disney wouldn't be in this situation had that plan gone forward.

 

[tarheelalum]

Disney has put their new hotel plans on ice. It seems they are arguing with the city over subsidies. Anaheim apparently does not consider Disney's revised plans adequate for luxury hotel subsidies. Disney disagrees and has decided to put the whole thing on the shelf as result.

I'm sure the cities plan to allow the citizens of Anaheim to vote for a increase in Disneyland employees wages has something to do with it. Also the fact Disney is paying a lot more for Fox studios than it had planned also probably is a factor.

Whatever the case might be, downtown Disney is going to be an eyesore for years to come with no end in sight.

Here is tweet showing the initial plans for Disney's new hotel and the revised plans.

https://mobile.twitter.com/cabel/status/1029874680021233664?s=21

http://www.latimes.com/business/la-...html?outputType=amp&__twitter_impression=true

 

[kylie71]

I'm so Happy the plan is on hold... and the rumor of the original Disneyland Hotel getting torn down does not sound to true!
I think Disney corp has lost sight of what the Disney fans and park goers want, nor do they seem to care. Very sad!

 

[ParkHopper1]

Just a general question... Is the market really there for a luxury hotel of this type?

In Anaheim, yes. Even though the Anaheim Convention Center is a great facility, it gets passed up on millions of dollars of convention business every year because the district is lacking available business level or higher hotel occupancy...and what few there are give up a large chunk of their occupancy to the resort patrons.

That is why the City introduced the tax break to lure more developers to build four star properties. It was never intended for Disney specifically, but they jumped on the bandwagon making their next hotel a four star to take advantage of those tax breaks.

 

[ExcitedMama]

What do you think is going on with DTD? It seems unlikely they’d kick out moneymakers and then just leave the place an eyesore. Is this just a ploy before the elections?