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Find out the project costs of the new Anaheim Resort 4-Star Hotels

Darkbeer1

Well-Known Member
Original Poster
#1
This just came out, And I found the price tags very interesting.

http://www.anaheimblog.net/2018/05/...-but-unite-here-still-uses-racketeer-tactics/

>>The Radisson BLU project is considerably smaller in scale and cost than the 4-Diamond projects approved in 2016. Cost of the 326-room BLU project is $168 million, compared to Disney’s $624 million, 700-room 4-Diamond hotel. Or even the $225 million for the 600-room Westin Anaheim Hotel project, the $208 million for 580-room 4-Diamond project slated for the Anaheim Plaza Hotel site (both Wincome Group projects).<<

So the new Westin is coming in at $375,000 per room.

But Disney's 4th is coming in at $890,000 per room.

Interesting comparison.
 

TROR

Well-Known Member
#2
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I'll wager the Westin will be higher quality tbh. Disney seems to throw a lot of money at things nowadays but none of it actually goes anywhere.
 

TP2000

Well-Known Member
#3
This just came out, And I found the price tags very interesting.

http://www.anaheimblog.net/2018/05/...-but-unite-here-still-uses-racketeer-tactics/

>>The Radisson BLU project is considerably smaller in scale and cost than the 4-Diamond projects approved in 2016. Cost of the 326-room BLU project is $168 million, compared to Disney’s $624 million, 700-room 4-Diamond hotel. Or even the $225 million for the 600-room Westin Anaheim Hotel project, the $208 million for 580-room 4-Diamond project slated for the Anaheim Plaza Hotel site (both Wincome Group projects).<<

So the new Westin is coming in at $375,000 per room.

But Disney's 4th is coming in at $890,000 per room.

Interesting comparison.
That's interesting!

We all know WDI can't do anything cheap, and we've heard that WDI is a bloated and wasteful design organization. Although it's probably the only design organization that employs archivists, script writers, costume designers, etc., etc. that add a lot to the overhead costs. But it doesn't help that many of those Imagineers on staff are paid giant six figure salaries and glide down to Anaheim in a big Tesla to obsess over color swatches for the latest remodel of a theme park snack bar and repainted Ferris Wheel.

But over double the cost per room from the 4 Diamond hotel being built by Westin a few hundred yards south of where Disney is building their own 4 Diamond hotel?!? That seems to be very troubling, and if I were Bob Chapek I would go look at all the Teslas parked in the WDI lot and wonder what those people actually do all day.

And in a perverse way, it also makes me more sympathetic to Disney for taking advantage of the tax breaks on this hotels construction, and less sympathetic to Westin for taking advantage of the same tax breaks for their much cheaper project.
 
#4
Some questions I had regarding the project cost differences:

I get the per key cost comparison between the new Westin and the new Disney hotel, but is there any info about the SF of each project?

Are all the new hotel builds budgeted with union construction labor? Disney for sure uses union labor, but I don't know if the other ground up projects necessarily have to as well?

What might be the cost delta between the intense foundation and structural work the new Disney hotel will be using to actually raise the hotel above Downtown Disney versus possibly more traditional building foundation systems that might be part of the design of the other properties?

Also--the plaza/retail/restaurant spaces at the new Disney hotel versus what might be going into the other hotel properties?
 

Darkbeer1

Well-Known Member
Original Poster
#5
As part of the TOT 70% Rebate program, a Project Labor Agreement was reached. So yes to Union Labor to build the 4 Diamond Hotels. The Radisson Blu will more than likely be non-union, but no subsidy, and outside the Resort area.

To get a 4 Diamond rating, you do need a quality restaurant and shops on property. The Westin is also building a large Business Center with Multiple Meeting Rooms and Banquet Facilities, since its main draw will be the Convention Center next door.
 

TP2000

Well-Known Member
#6
Some questions I had regarding the project cost differences:

I get the per key cost comparison between the new Westin and the new Disney hotel, but is there any info about the SF of each project?

Are all the new hotel builds budgeted with union construction labor? Disney for sure uses union labor, but I don't know if the other ground up projects necessarily have to as well?

What might be the cost delta between the intense foundation and structural work the new Disney hotel will be using to actually raise the hotel above Downtown Disney versus possibly more traditional building foundation systems that might be part of the design of the other properties?

Also--the plaza/retail/restaurant spaces at the new Disney hotel versus what might be going into the other hotel properties?
Yes, great points. I'd thought that maybe there was some construction issue that would more than double the cost per room for Disney's hotel. But I can't really think of one. The land it is going on is just flat expanse on solid ground, with no basements. The monorail station is on the very perimeter, so it won't affect the engineering of the complex in any substantive way.

I can't think why building this hotel on this flat property would cost any more than the Westin project also built on a flat piece of property.

 

Darkbeer1

Well-Known Member
Original Poster
#7
Actually, the 4th Hotel, like the GCH Expansion, has underground valet parking as part of its project.

What is unclear, is how much of the demolition and pathway changes to DtD is part of the budget.

I did not come up with the number, just found it.

But from 2016....

https://www.ocregister.com/2016/06/08/disneyland-resort-plans-another-luxury-hotel/

>>
To receive the four-diamond rating, Disney must spend at least $225,000 per guest room, including $30,000 in furniture, fixtures and equipment in each room.


“This new flagship hotel would create thousands of jobs and benefit Anaheim with more than $750 million in additional tax revenue over the next four decades, while helping the city reach its stated goal of attracting more high-end visitors,” Disneyland spokeswoman Suzi Brown said.


Disney joins the Wincome Group in proposing developments under the city’s incentive policy.


Wincome affiliates have submitted plans to build two luxury properties: a $208 million, eight-story, 580-room hotel where the Anaheim Plaza Hotel & Suites stands at 1700 S. Harbor Blvd. and a $225 million, 634-room hotel on the site of The Anabella Hotel, next to the Anaheim Convention Center.


Two more luxury hotels are planned at the GardenWalk mall. Those two received a separate $158 million in-room tax subsidy from the city in 2013.


Disneyland officials did not say how much the new project would cost, only that they are investing more than $2 billion in their resort over the next decade. That includes the construction of the “Star Wars” land and a 5,000-spot parking structure and transit center.


The new hotel is not part of the $1 billion investment deal Disney struck with the city last year to ban a gate tax for at least 30 years.<<
 

lazyboy97o

Well-Known Member
#8
That seems to be very troubling, and if I were Bob Chapek I would go look at all the Teslas parked in the WDI lot and wonder what those people actually do all day.
Except that Chapek has no idea of what is necessary work and what is superfluous.

Actually, the 4th Hotel, like the GCH Expansion, has underground valet parking as part of its project.
That could easily skew numbers. Parking garages are very expensive. Underground parking garages are very, very expensive.
 
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NobodyElse

Well-Known Member
#9
To receive the four-diamond rating, Disney must spend at least $225,000 per guest room, including $30,000 in furniture, fixtures and equipment in each room.
I think there might be some almost deceptive paraphrasing here. I'll have to go back and look at the AAA guidelines, but I don't recall there ever being a "minimum dollar amount per guest room" to achieve 4-diamond rating. I believe certain amenities were required. What a developer chooses to spend to get there is ultimately up to them.
 

jmuboy

Well-Known Member
#10
QUOTE="Except that Chapek has no idea of what is necessary work and what is superfluous.”

Can he even spell superfluous? I think he can only Communicate by inserting the word magical Into simply structured sentences with small words.
 

Old Mouseketeer

Well-Known Member
#11
Except that Chapek has no idea of what is necessary work and what is superfluous.


That could easily skew numbers. Parking garages are very expensive. Underground parking garages are very, very expensive.
But land in the Resort area is priceless. Building parking structures and underground garages is the only way to "make" more land.
 
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