Disney plans themed hotels for major U.S. cities

[crazy4wdw]

Disney plans themed hotels for major U.S. cities

Scott Powers | Sentinel Staff Writer
Posted February 7, 2007, 8:03 PM EST

Walt Disney Parks and Resorts is considering putting Disney-themed hotels and nightlife districts into downtown areas of major cities that don't currently have Disney properties.

Disney is not yet making any commitments to "urban Disney hotels" or stand-alone Disney entertainment districts, Disney Parks and Resorts Chairman Jay Rasulo told investors tonight. But he outlined them as "some of the ideas our business team and Imagineers [Disney's term for designers and engineers] are thinking about," as ways to expand Disney's tourism business into new locales.

In addressing investors, Rasulo said Disney is thinking about developing major "flagship" hotels -- such as the Disney Grand Floridian at Walt Disney World -- or themed hotels that could be built in large cities that already are tourist draws.

He did not cite examples.

He also said the Downtown Disney concept has been so successful at both Disney World and Disneyland in California that the idea could be transplanted into major urban areas

 

[MJMcBride]

Makes some sense, but is this a DVC thing?

 

[YoHo]

I don't believe it is, I think it's scaled down. Though, if it takes off, expect DVC to follow.

I find it interesting that they think DTD would work elsewhere. It didn't work for Disneyquest, Do they not realize that most major cities already have shopping districts?

 

[MJMcBride]

true. But I imagine it would do better than the failed Disney Quest deal

 

[raidermatt]

true. But I imagine it would do better than the failed Disney Quest deal

I hope so.

The DTD thing could work I guess, but they would face a lot of serious competition from established retail districts in major cities. I almost think they'd be better off in more suburban areas, where a district like that would be more unique. But is turning the Disney name into a strip mall franchise a great idea? I know it works in the current resorts, and Universal has their CityWalk adjacent to their parks, but this won't have a park to anchor it.

I think the hotel idea is pretty risky. Are tourists going to want that "Disney themed experience" in the middle of Manhattan, San Francisco or D.C.?

I know they want to find different ways to grow their business because they don't feel they can sustain sufficient growth with the current resorts, but to me, stuff like this can be a lot more risky. It's related to what they know, but its also very different.

 

[rodkenrich]

It would a great way for Disney to show the Hotel Industry that they as a whole know how to build and maintain great resorts.

 

[larklynn]

when i saw it on money watch it seemed like they were going to do more then just a dd type of thing it will be interesting to see what happens. One of my coworkers saw it and thought the same thing the impression the news here gave was that it would have smaller parks like a sea world or sixflags type thing

 

[keishashadow]

Received this yesterday in investor newsletter...aka blue sky concepts. Still, very interesting IMO


Disney Parks eyes stand-alone hotels
Wednesday February 7, 10:23 pm ET

LOS ANGELES (Reuters) - The Walt Disney Co. (NYSE:DIS - News) is considering "blue sky concepts" of creating smaller theme parks and stand-alone hotels, retail, dining and entertainment centers, Jay Rasulo, chairman of Disney's Parks and Resorts told analysts at a conference on Wednesday

Building stand-alone hotels in urban areas where families already travel would give Disney the chance to reach out to parents who feel their children are still too young to appreciate a trip to a Disney theme park, Rasulo said.
Along those lines, Disney could locate versions of its Downtown Disneyland, a high-end retail, dining and entertainment district, in urban areas far from its parks, he said. The company also was exploring alternatives to full-size theme parks, including "a smaller, deeply immersive park" that would offer consumers a more interactive experience at higher prices.


These ideas are "blue sky concepts" that will not be executed unless the new businesses could achieve a high return on invested capital, Rasulo said.
Disney also was looking into expanding its water park offerings beyond Typhoon Lagoon and Blizzard Beach and possibly adding ships to its two-vessel cruise lines, Rasulo said.
Rasulo had little to add about the lackluster performance by Hong Kong Disneyland, which opened in September of 2007, and failed to meet first-year attendance target of 5.6 million.
"Hong Kong Disneyland developed a little more slowly than we expected in 1999 when the deal was put together" but the company was confident of its growth trajectory, he said. "We identified some challenges to be addressed in the near future in sales and marketing and seasonality," he added

 

[laceemouse]

I wondered if some of the "Disney is buying land in my state" rumors could be connected to this? I would think a DTD type thing would be tough to sell in some cities, but if it was something more unique or themed that could fly. Like here in north Dallas, maybe they are looking to buy land to build a resort/dude ranch type thing with a Texas theme? Still, would folks take their kids out of school to do this stuff? Would most of them be more adult oriented? I think part of the problem with Disney Quest in Chicago was when kids are in school and the tourist season is over no one would be at an arcade during the school day KWIM?? And locals would only be interested when it is something new and novel. After that you would have to get a LOT of travelers to come.

 

[laceemouse]

Also, outside of a few major tourist destinations in the US, don't most resorts rely heavily on business and convention travel? Even here in Texas, San Antonio is probably the largest tourist draw in the state, and that place practically closes down during the school year, even though temps are mild year 'round. You can always see the Alamo, but Six Flags and Sea World close down for the season down there. I was surprised to learn that when we first moved here!

 

[Chuck S]

Sounds like the MGM Las Vegas theme park mess all over again.

Since this isn't DVC specific, I am moving it to the Rumors & News board.

 

[Lewisc]

The Disney deluxe hotels, including the GF, are only rated 3* by the better rating books. The hotels are way overpriced for what they are. Location in WDW is the only thing that justifies the price premium. I can stay at WL because it's part of my WDW vacation or I can go to a National Park and stay in the "real thing". I'm not sure why I'd stay in a Disney run WL in a major city.

I'm not sure if Disney could compete but something like the Great Wolf Lodge concept would probably work a lot better than thinking they can clone the GF and compete with hotels like the Four Seasons.

DQ didn't work and the Disney Store didn't work. Restaurant chains like Planet Hollywood, Wolfgang Puck and Bongo's need Disney if they want a restaurant on WDW property, accessible to WDW guests by Disney buses. Those chains don't need Disney to put restaurants in other locations.

 

[Plutofan]

I was not sure where this should be posted. Sorry. I thought that this was interesting:

http://www.msnbc.msn.com/id/17045506/

 

[disney-super-mom]

Hmmmmmm, more shopping (and expensive shopping at that)? No thanks!

Smaller, deeply interactive and immersive theme parks at higher prices? Theme parks I like. Higher prices? What, the prices aren't high enough? Who's the target market here?

 

[nuts]

This is consistent with the rumor I mentioned last year. As it relates to DVC, this would be how they move beyond the traditional parks. Concept is to build a mini-downtown with DVC and Resorts partnering on accomodations.

 

[JodyTG]

I feel that the reason DTD "works" is because it's on resort property and used by tourists. I know that the locals go to Pleasure Island on the weekends, but how many of them regularly shop at DTD Marketplace?

Plus, there will always be people that would never go to a "Disney" place near their town because it doesn't belong. I love Disney but even I don't think that I'd shop at a DTD-type place near my home. There's too many other shopping places to choose from. Although, I'm sure that I would hit World of Disney once a month or so.

 

[korbbec]

I love the next headline after that story- "Disney's earnings more than double"

I also like the idea of a new water park, but something different- more along the lines of River Country. Like a Huck Finn/Tom Sawyer type environment.

 

[Mickmse2002]

Interesting idea. I think if they tied-in conceptually with DVC then it could work. If DVC members had the opportunity to use their points at these hotels (at a reasonable level) then it could get traction.

 

[BroganMc]

Smaller, deeply interactive and immersive theme parks at higher prices? Theme parks I like. Higher prices? What, the prices aren't high enough? Who's the target market here?

Doesn't this describe the DTD/SSR area?

Smaller, deeply interactive, immersive theme parks = Disney Quest
Shopping and entertainment area = Marketplace
Dining area partnered with 3rd parties = West Side, La Nouba
Disneyfied hotels = Saratoga Springs, Old Key West, POR/POFG
3rd party hotels = Hotel Plaza Road

FWIW, DisneyQuest is already in Chicago. Maybe they think to put it in more cities around the country. Virtual monorail and virtual Space Mountain. Somehow I doubt it would be viable in a broad deployment. Rather it would dilute the theme park branding of Disney.

I also think DisneyWorld probably has enough theme parks for now. It takes 6 full days to see much of anything as is, and that's commando park touring. 8 if you include the water parks. 9 if you throw in DTD. Most people's vacations are only 7 days long.

 

[Chuck S]

This is not DVC specific, and is moving to the Rumors & News board.