Disney’s Challenges For Hotels

While Walt Disney World is an entertainment capital in and of itself, the Disney name has lent itself to a variety of different endeavors in the hospitality industry.  Namely, Disney has been making a push in recent years to break into the “hotel” and “resort” aspect of the entertainment industry, stepping away from its theme park-based roots.

However, many analysts are saying that recent moves by the company may lend truth to the suspicion that the hotel moves haven’t been going as well for Disney as originally hoped.  There were several problems with the Aluani resort that Disney opened in Hawaii—it turned out that there had been a miscalculation in the amount of money needed to be charged in order to cover the fees associated with the hotel.  The end result was the resort being closed while the adjustments were made, and now Disney has to pay the difference in fees for the early time-share buyers for the next 50 years.

In 2009, Disney purchased 11 acres worth of land in Washington D.C. with the comment that the company was “considering” building a hotel on the land.  Just recently, Disney has come out saying that the “time is not right” for them to continue on with the project.

What does this mean for the future of Disney and hotels?  Nothing, according to many in the higher echelons of the company.  Instead, they are just biding their time and waiting for the right opportunity to arise.  As the famous saying goes, only time will tell.

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