News Star Wars Galactic Starcruiser coming to Walt Disney World 2021

[MisterPenguin]

At a JP Morgan Q&A (in which the questions were softballs and the questioner didn't do any follow-ups), Josh mentioned that the Starcruiser was closing because it wasn't performing as they would like.

He also mentioned it got high guest satisfaction.

And here's the interesting part. Josh added without any prompting that the cost of the starcruiser's depreciation would be accelerated so that it falls in Q3 and Q4 of this year.

That may explain why they didn't want to try a lower price point, they need to make up millions in this year's financials.

Pretty much the same reason a few dozen pieces of content is being removed from streaming.

 

[kingdead]

At a JP Morgan Q&A (in which the questions were softballs and the questioner didn't do any follow-ups), Josh mentioned that the Starcruiser was closing because it wasn't performing as they would like.

He also mentioned it got high guest satisfaction.

And here's the interesting part. Josh added without any prompting that the cost of the starcruiser's depreciation would be accelerated so that it falls in Q3 and Q4 of this year.

That may explain why they didn't want to try a lower price point, they need to make up millions in this year's financials.

Pretty much the same reason a few dozen pieces of content is being removed from streaming.

So it's a tax write-off?

 

[MisterPenguin]

So it's a tax write-off?

An accelerated one.

Depreciation for a capital expense usually takes years (like 8-10). By closing it, they can take it all at once.

Depreciation is a tax benefit. So, yes, it's a tax write-off. But one that would have happened anyway over time.

Iger needs in the next two quarters to show significant positives on the financials to overcome Wall Street's new found reticence about streaming (even tho they're all agreeing the linear/cable is dying, and streaming will eventually take over the home entertainment market, so they're dinging Disney for not having a more profitable streaming and for having a decreased revenue from linear/cable).

He also needs to build up a few Billion dollars to buy out Comcast from Hulu and not have that freak out Wall Street... who just want their dividends back.

 

[DCLcruiser]

Rooms are smaller than normal
Lacks basic amenities like parking
Lacks scale to reduce overhead costs

Would be expensive to run and would be an inferior hotel room

So what do you do with it? Does it become a Star Wars walk-through and restaruant?

 

[DCLcruiser]

Not directed at your post personally, but this idea made me chuckle: "I don't see the problem. It's like any other resort, just without windows."

At any rate, I assume it's not cost-effective to keep such a small hotel running without the show unless they continued to charge an exorbitant price. Not sure also how you would integrate such a small, boutique hotel into the WDW transportation network. All I can think of is a dedicated shuttle to the DHS transportation hub.

I think of it like inside-staterooms on a cruise. They have no windows. On the newer DCL ships they have digital portholes that show a video image with interactive starfish. So, the same idea could be used here. Just put a screen, that looks like a window (might already exist, I have not been) that looks out onto Batuu from orbit, etc. Think Space 220 in each room.

 

[MisterPenguin]

So what do you do with it? Does it become a Star Wars walk-through and restaruant?

They're taking full depreciation on it for Q3 and Q4.

To me: That says it will sit empty for a few years.

 

[DCLcruiser]

They're taking full depreciation on it for Q3 and Q4.

To me: That says it will sit empty for a few years.

This is like WoL all over again. They could easily use the building for something related. The high cost is the actors, right? So, just use normal cast members from the Contemporary. They are already used to a more futuristic hotel.

 

[MisterPenguin]

This is like WoL all over again. They could easily use the building for something related. The high cost is the actors, right? So, just use normal cast members from the Contemporary. They are already used to a more futuristic hotel.

I posted a likely rationale just four posts up.

 

[kingdead]

An accelerated one.

Depreciation for a capital expense usually takes years (like 8-10). By closing it, they can take it all at once.

Depreciation is a tax benefit. So, yes, it's a tax write-off. But one that would have happened anyway over time.

Iger needs in the next two quarters to show significant positives on the financials to overcome Wall Street's new found reticence about streaming (even tho they're all agreeing the linear/cable is dying, and streaming will eventually take over the home entertainment market, so they're dinging Disney for not having a more profitable streaming and for having a decreased revenue from linear/cable).

He also needs to build up a few Billion dollars to buy out Comcast from Hulu and not have that freak out Wall Street... who just want their dividends back.

Thanks for the business lesson! So the Starcruiser hotel is like my car, only less valuable in use. (I wonder if they can use it for storage or a crash pad for tired employees?)

 

[some other guy]

Thanks for the business lesson! So the Starcruiser hotel is like my car, only less valuable in use. (I wonder if they can use it for storage or a crash pad for tired employees?)

eventually some cms start stashing creepy stuff there like the dead snakes in jars at Discovery Island

 

[MoonRakerSCM]

Some reports going around that imagineers were actively trying to suggest fixes for the starcruiser leading up to it's cancellation. Good to see smarter people made the call to shut it down. Having Mandolorian themed cruises likely would have only seen a minimal speedbump in the downward spiral of the concept.

 

[GimpYancIent]

Kylo Ren was not happy with the Galactic Star Cruiser and the rebel scum frequenting it .........

 

[RoadiJeff]

I read on another forum that the remaining cruises before they close this sold out within 12 hours of the announcement.

 

[GimpYancIent]

I read on another forum that the remaining cruises before they close this sold out within 12 hours of the announcement.

It really does not matter what venue it is once there is an announcement, what ever the venue is, will be closed, shuttered or shut down there will be a rush, sudden desire, a significance to being on the last ride, experience or voyage.

 

[Alanzo]

Maybe they can turn this building into a daycare for Disney parents to leave their kids for a day (or .. more?) so they can enjoy their Disney vacation.

 

[Disstevefan1]

I think they must bulldoze it to get the 300 million write off.