Several months ago, Disney shocked fans by quietly cancelling one of the biggest projects announced at last year’s D23 Expo: The Main Street Theater. And while we don’t know exactly why this project got the axe (rumors suggest there was an issue with the land that Disney didn’t have the budget to resolve), it looks like another high-profile project that has been in the works for several years now may just have been cancelled forever as well. But this time, it looks like the government might be to blame…
Luxury Disneyland hotel project now on hold indefinitely
Image: Disney
Back in 2016 Disney officials surprised fans by submitting plans to the city of Anaheim to begin construction on a new luxury hotel at Disneyland Resort, which would be the first Disneyland hotel property built in two decades, and would be the fourth Disney-owned hotel at the resort.
According to the plans submitted to the city government, this new addition to the resort would have been a 700-room, four-diamond hotel (the same as Disney’s Grand Californian hotel) with luxury amenities including two themed pools, a kid’s play area, and a rooftop restaurant that would have overlooked Disneyland park and provide stunning views of the iconic Sleeping Beauty Castle.
Image: Disney
This all sounded really fantastic, and though details about price and opening date were sparse, rumors suggested that Disney was looking to open this new property a year after the opening of Star Wars: Galaxy’s Edge, and was targeting a $450 per room, per night, price point. So what happened? Well, like with any great tragedy, it seems like the local government played a big role in the demise of what could have been Disney’s most ambitious projects to date…
A small move has a big impact on an important city incentive
Image: Disney
Originally, when this hotel was first announced Disney planned to build the luxury resort at the north end of the resort, in an undeveloped area. After this plan was announced, Disney was able to secure a $267-million tax break from the City of Anaheim government to help finance the project.
However, as the plans for the hotel changed, the construction site was moved to Downtown Disney. And while this doesn’t seem like a big deal (the shift is less than 1,000 feet), the City of Anaheim has objected to the change in location, and has recinded the 70% break on Anaheim’s occupancy tax. In response to this development, Disney has released the following statement:
You have given us no other choice than to put construction of the hotel on indefinite hold as the resort reevaluates the economic viability of future hotel development in Anaheim
This was certainly a strong statement, but the City of Anaheim quickly shot back with a statement of their own:
It’s a matter of law, and legally the city cannot pay the subsidy because it’s a fundamentally different project. If Disney wants to build a luxury hotel they should build it with their own money.
Image: Disney
Though its true that Disney could use their own money to develop and build this new property, it looks like the tax incentive was a big part of their overall project budget, and the resort is no longer interested in bringing a fourth hotel property to the Disneyland Resort.
This is definitely a sad development, as this new hotel project looked really impressive, and the Disneyland Resort has been in need of additional hotel room inventory for several years now. This new property could have been the solution to several long-running problems (and help ease strain that will likely follow the opening of Star Wars: Galaxy’s Edge), but it looks like, at least for now, this project has been completely cancelled, and it likely won’t be resurfacing any time soon, unless Disney and the City of Anaheim can somehow come to an agreement. But based on their respective statements, such an amicable solution doesn’t seem possible.
Image: Disney
How do you feel about this project cancellation? Do you think Disney should have still built the property despite the cancellation of the tax break?
