jcraycraft said:
Merlin ---
I am not sure about bankrupt thing... but I have read where Disney Co was very tight on cash flow at that time. So much so, that the Disneyland hotel wasn’t owned by Walt... He had acquaintance finance it and Walt give them naming rights to it. Not sure when Disney co bought the hotel. I am at work right now and need to find book with this information in it.
Did find this on net from
http://www.mouseplanet.com/mark/mg040721.htm near bottom of page:
“So now Disney was getting into the hotel business. (The Disneyland Hotel was actually owned and operated by the Wrather Corporation until Disney bought it in 1987.) …………”
Nope. The fact that the Disneyland Hotel wasn't owned by Disney had nothing to do with finances. Walt simply never thought, at the time, that they would ever be interested in getting into the hotel business. But he also knew that people traveling from other parts of the country would want a place to stay when they visited. So he gave his friend, Jack Wrather, exclusive rights to build the hotel and use the name "Disney" on it.
As far as the Disney Company eventually purchasing it, what happened was that Michael Eisner was annoyed that the Wrather Company had exclusive rights to use the name "Disney" on hotels. This meant that Wrather could build other hotels and put "Disney" on them, but Disney couldn't. Additionally, the Disneyland Hotel had become pretty run down over the years. It bugged Eisner that most people assumed that Disney owned the Disneyland Hotel, and it reflected poorly on the company image.
So Disney decided they wanted to purchase the hotel. They used a rather cutthroat method to put Wrather in a position where they basically had no choice but to sell. The contract for use of the monorail was about to expire, so Disney announced they were going to raise the usage fee to an exorbitantly high figure. Since Wrather was in no position to accept, they offered to sell the entire company to Disney, not just the hotel. Disney accepted.
This now meant that Disney could, for the first time, use the name "Disney" on it's own hotels. That's why the names of all their hotels in WDW suddenly changed to "Disney's Contemporary Resort", "Disney's Polynesian", etc. Also, the Golf Resort was changed to the Disney Inn (and later became Shades of Green when it was sold to the military).