Flamingo Crossing Hotels

[MichWolv]

Happening to be on Disney property often means higher rent, which would translate to higher room rates.

Indeed. But I doubt Disney will be getting much, if anything, from those room rates. Disney will get lease payments, and perhaps other payments, but I doubt they will be based on room rates, so there's no need for Disney to offer an incentive for people to stay there.

 

[MichWolv]

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I wouldn't expect any Disney amenities, and certainly not park transportation (unless provided by a third party, as many offsite hotels already do). Remember that these hotels are on Disney property, but located outside the WDW arch which welcomes you to Disney World (and people like to stop in the middle of the road to take a picture of). Many guests likely won't even realize they are technically staying 'in the world', again like Hotel Plaza.

I agree. The only thing I could see the properties having negotiated for, and Disney having been willing to provide, is a single dedicated bus stop (DAK would be my guess if there is one). But I agree with you -- more likely, nothing special.

 

[Gabe1]

My prediction is if the hotels build the rest will follow pretty quickly there after. Walgreens already set their claim in Flamingo but no incentive to actually build until the hotels are nearing completion. Our Walgreens closest to us went up in under 5 months, they are pretty standard, uniform buildings that they have down to a construction science already. The food chain restaurants would likely be similar, easy builds.

What I do like about these particular hotels is the affordable suite style rooms practically on top of the bubble. While AoA does fit that description, that resort is only a Value in Disney's eyes, that place is expensive given the value construction and theming. These hotels would offer families of 5+ a better option and especially a price point that is more palatable, much like Cabana at Uni.

Me, I doubt Disney offers any perks as it will be considered an offsite venture. Flamingo was concocted before the recession. Disney has been struggling with their own occupancy problems since then and still is. I can't imagine what would encourage Disney to offer a white glove to Marriott and pull potential onsight guests to Flamingo.

 

[Merlin0402]

Disney has been struggling with their own occupancy problems since then and still is. I can't imagine what would encourage Disney to offer a white glove to Marriott and pull potential onsight guests to Flamingo.

This is exactly what I don't understand about this project. Why would Disney want cheaper hotels on property as an alternative to their own rooms? With these hotels surely will come a few fast food joints / casual dining restaurants. Won't these pull people away from anyone considering a more expensive meal at Disney Springs? It doesn't seem to make sense...

 

[MichWolv]

This amazes me - it's Disney Suicide.

The WDW Corp is actually AIDING a repeat of the Disneyland disaster - encouraging Hotel growth just outside Park Boundaries. And Hotels with the facilities of DVC properties (!).

Now - this will absolutely HELP some visitors... but as a corporate strategy? Someone (or several someone's) need to put the Tequila bottle DOWN.

As others have noted, this is far enough from anything so that it doesn't impede on the experience for anybody staying on property or visiting the parks. And I can only assume that this is Disney's way to 1) use land it wasn't otherwise using to generate some revenue, and 2) get some revenue from a segment of the market Disney does not intend to serve with it's own hotels. These hotels are competition for Disney hotels only in the broadest sense. These accommodations will be at a price point that Disney won't match for a similar room, and similar accommodations are already located as close to the parks as these will be. So, what will be hurt (to a tiny extent) is some similar properties on 192, not any of Disney's hotels.

 

[Gabe1]

This is exactly what I don't understand about this project. Why would Disney want cheaper hotels on property as an alternative to their own rooms? With these hotels surely will come a few fast food joints / casual dining restaurants. Won't these pull people away from anyone considering a more expensive meal at Disney Springs? It doesn't seem to make sense...

True. But we have to remember it was a different time when Disney went with Flamingo. Right after that infrastructure work was done and Disney was by then committed while things had been going well for Disney. AoA was also still an abandoned project. Disney built AoA without knowledge of Flamingo burners had been turned back on. (Hill said this was happening and most laughed) It would not make sense for Disney in 2014 to go this direction but years ago they believed it was a bright idea. Not that much different from the business decision of Swan & Dolphin.

Disney offers some great perks to UK and Brazil along with China to stay in their resorts. That has helped somewhat with the falling American/Canadian market that hasn't rebounded as well from the recession to justify the over the top expensive vacations to WDW. But the UK is struggling too and a good chunk of the new money wealth in Brazil is also starting to unravel so Disney might be forced over the next few years to offer more perks to Americans/Canadians to help with their occupancy over the years to come. So many of the Brazilian business moguls were investing and living off of zero cash flow and it is one by one biting them in their tushies, a similar analogy to our housing market in the USA with low interest loans, balloon loans, refinancing and a devalued market. Some of those companies are going so far under water that those who had interest in those firms went from over the top wealthy to having nothing, worse owing so much. It is market that maybe coming to an end for Disney at least in the fashion we have seen over the last decade.

 

[MichWolv]

So let's wait & see what the Dollar impact will be to Disney . Give the American Public "cheap"? They will go for it . I have no dog in this fight... no one put ME on the Disney Board. Good luck with those $350 a night WDW Hotels .

But they already have access to cheap. This "cheap" won't be better than the cheap already available.

 

[lazyboy97o]

But they already have access to cheap. This "cheap" won't be better than the cheap already available.

Which is why I said if Disney was smart they would offer an incentive for the hotels. They won't make money on the whole venture offering land that is just more expensive and less convenient to access. What reason is there to go to Flamingo Crossing besides being way too obsessed with Disney?

 

[Disneyhead'71]

Both of these hotels are suites type hotels that accommodate families of 5+, which is a segment TDO intentionally ignored until recently. Disney would rather try and force you into a 2 room purchase. Unfortunately, for Disney other hoteliers jumped on the suites craze and Disney was typically slow to react. With WDW's occupancy rate issues they have no intentions of building more family suite resorts. So this is a way to profit off of that segment without specifically catering to them. And I can tell you, Disney would rather have tourists at Flamingo Crossing than Cabana Bay.

 

[Gabe1]

But they already have access to cheap. This "cheap" won't be better than the cheap already available.

Flamingo will have great access to Disney without having to deal with the highways that bottleneck attempting to reach Disney Parks. And in reverse, all those Disney Resorts that are close to Flamingo will have non Disney options.
Guests will have easy access to Walgreens, beer, pop and water for a very cheap and close taxi ride, same with onsight guests having access to very economical dining options that should come to Flamingo. Too many guests don't want to leave Disney Property 'cause it is a logistic problem and time consuming. Flamingo will not be a problem for off sight guests logistically or a waste of time. Flamingo is likely to be a WIN for guests without an upside for Disney.

Yep it could shake out to be a good option for the Disney Obsessed that don't have the funds to stay onsight and likely the resorts will be more upscale than Disney Values, much cheaper than the moderates with the bonus of accommodating families with more than 4 people. Maybe if this all plays out Disney might consider reviewing their rack rate of their AoA suites as they are not a value.

 

[Next Big Thing]

This amazes me - it's Disney Suicide.

The WDW Corp is actually AIDING a repeat of the Disneyland disaster - encouraging Hotel growth just outside Park Boundaries. And Hotels with the facilities of DVC properties (!).

Now - this will absolutely HELP some visitors... but as a corporate strategy? Someone (or several someone's) need to put the Tequila bottle DOWN.

This is nothing like the "Disneyland Disaster". WDW is going to make money off of these hotels.

 

[El Grupo]

This amazes me - it's Disney Suicide.

The WDW Corp is actually AIDING a repeat of the Disneyland disaster - encouraging Hotel growth just outside Park Boundaries. And Hotels with the facilities of DVC properties (!).

Now - this will absolutely HELP some visitors... but as a corporate strategy? Someone (or several someone's) need to put the Tequila bottle DOWN.

JMO, but I doubt this will hurt Disney. I suspect these hotels are targeting the audience that currently uses many of lodging options on Palm Pkwy. (e.g., Hampton Inn, Clarion, Extended Stay, Embassy Suites, etc.) and International Drive. With this in mind, my guess is that Disney will benefit from having guests switch from those options to Flamingo Crossing where they have a financial interest.

 

[lazyboy97o]

JMO, but I doubt this will hurt Disney. I suspect these hotels are targeting the audience that currently uses many of lodging options on Palm Pkwy. (e.g., Hampton Inn, Clarion, Extended Stay, Embassy Suites, etc.) and International Drive. With this in mind, my guess is that Disney will benefit from having guests switch from those options to Flamingo Crossing where they have a financial interest.

But what is someone's insentive to switch?

 

[Disneyhead'71]

But what is someone's insentive to switch?

I think more people will switch from AoA than a US192 cesspool. Paying less and having access to restaurants and sundries makes sense. Paying more and still being off prop doesn't make sense.

 

[seascape]

Sit back and wait and see what thus means. I am a bit surprised by it but know more people in these hotels the more people in the parks. I wonder how many rooms they are building and if there are still some timeshare properties to go in that were in the original plans.

 

[lazyboy97o]

Sit back and wait and see what thus means. I am a bit surprised by it but know more people in these hotels the more people in the parks. I wonder how many rooms they are building and if there are still some timeshare properties to go in that were in the original plans.

How is Disney going to magically grow the market? People in these rooms doesn't automatically mean more people.

 

[CDavid]

But they already have access to cheap. This "cheap" won't be better than the cheap already available.

I would certainly expect - or at least hope - it will be much better, because Flamingo Crossings is supposed to be a planned development, as opposed to the hodgepodge of hotels, shops, gas stations, and restaurants along U.S. 192. It will also be new and more modern, again opposed to areas which have gradually developed over a span of more than 40 years.

In addition, it has direct access to Disney property with far less traffic than any other direction. It could prove very convenient for people who have cars but still spend their vacation almost exclusively within Walt Disney World.

Guests will have easy access to Walgreens, beer, pop and water for a very cheap and close taxi ride, same with onsight guests having access to very economical dining options that should come to Flamingo. Too many guests don't want to leave Disney Property 'cause it is a logistic problem and time consuming. Flamingo will not be a problem for off sight guests logistically or a waste of time. Flamingo is likely to be a WIN for guests without an upside for Disney.

You make a valid point, again especially applicable to those who drive to Florida or have rental cars. Flamingo Crossings will be especially convenient to the All-Star Resorts, ironically the closest WDW resort to the price point at which these new hotels will be competing.

 

[the.dreamfinder]

What's the arrangement between Disney and the Lake Buena Vista hotels?

 

[-em]

Interesting.. I know the there is a LOT of homes going in on that edge of property and assuming they eventually re-pave Harztog road (road that currently connects flamingo crossing to Seidel/Avalon) I could see more restaurants etc becoming used with locals..

Also rumor is that WDW is moving several cast areas over to that section (property control among others) so itd be interesting to see what happens

 

[maxairmike]

Interesting.. I know the there is a LOT of homes going in on that edge of property and assuming they eventually re-pave Harztog road (road that currently connects flamingo crossing to Seidel/Avalon) I could see more restaurants etc becoming used with locals..

Also rumor is that WDW is moving several cast areas over to that section (property control among others) so itd be interesting to see what happens

Yep, Western Way will be seeing a big uptick in local traffic over the next year or two with some Cast services moving over there plus general local buildup. I've already noticed some slight increases in traffic on 429 south of the Winter Garden Vineland/535 exit over the last year plus.