John park hopper
Well-Known Member
Any reports on what effect the closure of WDW, Universal etc is having on the Orlando convention and hotel business
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Covid19 and Universal?
- Thread starter seascape
- Start date
The off property hotels will get killed. The hotels, considered off site by Disney Springs and Bonnett Creek will survive but many of the independently owned hotels will die. The recovery from thid disaster will take a year or more depending on how long these cut back go. People are losing money and going further into debt. Bills will have to be paid before going on vacations. The thing to remember is we are all in this together and need to help each other.
JoeCamel
Well-Known Member
Devastated, occupancy at one of the large convention hotels is down to 15%
John park hopper
Well-Known Member
Whats the breaking point (occupancy rate) for these hotels?
JoeCamel
Well-Known Member
I think 40%
At 40% the hotels will survive but below that they can't. Remember there are expenses, fixed costs, even if they are closed and vcd everything shut off. Now, at 15% only a hotel that has a temporary problem will survive. Hopefully, the convention centers cancellations business will get back to normal by next year but 2020 is lost. There will be a long term cut in business tourism.
There is a part of International Drive that has the convention center and high end and mid grade hotels and many dining options. These areas cannot survive without convention business.
That is why Epic Universe will be delayed. Those who doubt that do not understand business and are only thinking of themselves. Covid19 could be a total disaster for Orlando and we all must give up something to save our favorite vacation location.
lazyboy97o
Well-Known Member
So the hundreds of people working on Epic Universe should give up their full time jobs?
Do you realize Universal Studios is losing billions of dollars in revenues this year? Do you realize with their parks closed they have no money coming in? Do you realize they are doing the right thing and paying their employees? Do you realize they took on 30 billion in debt to by Sky? Where do you think the money will come from to pay all their bills? For anyone to think its reasonable for them to continue to spend money on a new park at the expense of their employees is uncaring and inhuman. We need to care for the team members at Universal and Cast Members at Disney. Giving up temporarily new parks and attractions is not too much to ask. Now if some don't care about anyone but themselves and their future vacations, then I can understand saying let them die, who cares, I want my fun? The answer of course is most of us care and will gladly accept losing some things.
lazyboy97o
Well-Known Member
Not continuing to work on Epic Universe would be at the expense of their employees. You’re trying to play this high and mighty game but theme parks don’t just appear magically. There is a small army of Universal employees working on the new park and resorts. Local architects and engineers doing the documentation to build all of that. Local contractors and their suppliers all getting ready to start major construction. Scenic fabricators are starting to get ready to begin producing show sets and scenery, and if they’re not local they’ll be sending people here to live and work. The same goes for the many other disciplines involved in building a new attraction but now on a much larger scale. Universal continuing to build supports the local economy.
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Okay, so where do you cut? They already were one of the highest leveraged companies? I guess you would rather have them stop paying their current team members. Are you really saying you don't care about them? Please, I read enough of your posts to know that you better than that. Face facts attendance will be down this year and even with WDW's 50th anniversary next year attendance from business travel will be lower than originally predicted. Both Universal and Disney better realize that or they will run major risks and bigger cuts in the future. Bills have to be paid and we will as a result of Covid19 face higher taxes and interest rates, especially since the downturn may cause Trump to lose and the business tax cut to be repealed.
lazyboy97o
Well-Known Member
I’m not the one calling for layoffs as some sort of show of solidarity, you are.
Where does Comcast get the money from? People are not going to movies or themeparks. They budgeted money based on revenues. with much less coming from the studios and the fact that the economy is slowing advertising is shrinking. Bloomberg droped out so there goes 100 million a week in ad sales. So where does the money come from to pay team members, pay interest. etc. etc? If you can't answer that and deny any cuts, what will happen to a business. I can tell you it IS BANKRUPTCY and everyone loses their job! The parks are not opening in April, May is a possibility but even that is not guaranteed.
Josh Hendy
Well-Known Member
Before this virus hit it was already the biggest debt bubble in history. Since at least Y2K the "solution" to every economic shock was to lend everybody more money. Real estate debt, consumer debt, student debt, corporate debt and government debt. It is the most distorted global economy in history.
Nobody can possibly repay all that debt ... and the funny thing is, the "fix" is going to be to print more money and bail out everyone by encouraging the whole world to go even deeper in debt.
I imagine the Epic Universe project was based on debt ... is it going to be bailed out and will Comcast be lent even more money to keep on building? Will it be a high priority compared to bailing out favorite debt queens like big banks, national and state governments and the corporations who have the most "pull"? It might depend on which banks and billionaires hold Comcast's debt ... how much pull do they have?
Nobody can possibly repay all that debt ... and the funny thing is, the "fix" is going to be to print more money and bail out everyone by encouraging the whole world to go even deeper in debt.
I imagine the Epic Universe project was based on debt ... is it going to be bailed out and will Comcast be lent even more money to keep on building? Will it be a high priority compared to bailing out favorite debt queens like big banks, national and state governments and the corporations who have the most "pull"? It might depend on which banks and billionaires hold Comcast's debt ... how much pull do they have?
JoeCamel
Well-Known Member
I'm with you up to EU stopping. It will continue as they know this won't last forever. If it takes longer they can work to a stopping point and suspend construction. The big money for moving dirt and buying dirt has been spent here and the construction heavy costs have not been reached yet.
Far from a given though.
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Animaniac93-98
Well-Known Member
Universal's just lucky their new theme park isn't opening this year or next.
Tony Perkis
Well-Known Member
I don’t think you realize how big of a conglomerate Comcast really is.