Disney’s Global Hotel Closures Could Cost Company $140 Million Dollars

(Image credit: Disneyland)

It’s no secret that the Walt Disney Company is losing money and they have already had their “credit rating” downgraded by Fitch. Now we are getting estimates that just the hotel closures around the world, due to the Coronavirus pandemic, could cost the company $140 million dollars.

Disney has about 37 hotels across all of their theme parks and according to the Orange County Register there are over 37,000 rooms that are now empty. Only Aulani remains open and they announced that they were starting to close some things as well.

Disney had approximately 13 million room nights available at its domestic and international hotels in 2019, according to the company’s annual report. At the time, guest spending averaged $353 per room at Disney’s domestic hotels with a 90% occupancy rate, according to the report.

That $353 rate consists of the average daily cost of a hotel room as well as guest spending on food, drinks and merchandise at the hotels, according to the annual report.“-OC Register

I’m sure they are going to take a hit when they are getting that much money from guests staying at a hotel. And they kept raising prices on top of that in recent years.  The questions now are “Are they going to continue the price gouging when they reopen?” or “Is Disney going to offer better prices in an attempt to get their crowds back?”

I’m sure each location that hosts a Disney park is taking a huge hit from the loss in revenue. Disney has indicated that they will pay their employees, well until the end of March anyway, and that helps I’m sure, but the losses are piling up. I do believe Disney will pull through, but I think it will be very different on the other side.

What do you think? Comment and let us know.

Source: OC Register


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