Why doesn't DLR have a value resort?

[Dexican]

Just curious as to why a value resort has never been built..

 

[heymoonkid]

I'm thinking probably because they have less land to work with on their property, also there are quite a few value-priced (non-Disney) hotel options that are walkable, so maybe there isn't that much demand for a DLR value resort.

 

[skiingfast]

I'm thinking probably because they have less land to work with on their property.

I think that is mainly it. Why build a hotel that sells room for half or a third as much as the market rate.

 

[cmwade77]

There are several reasons for this:

• The surrounding hotels are not very competitive between themselves.
• There are plenty of off-site rooms.
• Disneyland doesn't need to sell a single hotel room to make the Disneyland Resort profitable. Bottom line is they could sell all three hotels and still make plenty of money on theme park operations alone.
• Land in the area is at a premium, so creating a value resort would not be a viable option, unless they opened one further away. If they did this though, they would need to run shuttles and develop their own shuttle service. Unfortunately city of Anaheim laws apparently prevent this, which is one of the reasons that ART runs the Toy Story shuttles rather that Disney running the shuttles themselves.

I am sure that there are more reasons as well, these are just the ones that I can think of off the top of my head.

 

[MAH4546]

There are several reasons for this:

• The surrounding hotels are not very competitive between themselves.
• There are plenty of off-site rooms.
• Disneyland doesn't need to sell a single hotel room to make the Disneyland Resort profitable. Bottom line is they could sell all three hotels and still make plenty of money on theme park operations alone.
• Land in the area is at a premium, so creating a value resort would not be a viable option, unless they opened one further away. If they did this though, they would need to run shuttles and develop their own shuttle service. Unfortunately city of Anaheim laws apparently prevent this, which is one of the reasons that ART runs the Toy Story shuttles rather that Disney running the shuttles themselves.

I am sure that there are more reasons as well, these are just the ones that I can think of off the top of my head.

There is no law preventing Disney, or any hotel, from running shuttles. Disneyland can't run parking lot trams on public streets, which is why ART runs the TS shuttles.

 

[cyclenut]

1) Disney would be taking a loss if they tried to build and operate a "value" hotel property anywhere near DLR. Land in SoCal is very expensive.
2) The things that make something Disney are expensive to do. If they tried to make something cheaper then it would not feel much like Disney. They would have to cut back on staff, there wouldn't be much of the custom Disney-themed touches, they'd have to cut back on maintenance, etc. It just couldn't live up to guest expectations.
3) If they were able to pull off the Disney touch for less, it could have an effect of eroding brand value. If you could buy Disney for less then why spend more? Over time, it would decrease the money folks would be willing to pay for the Disney brand.

 

[Malcon10t]

There is no law preventing Disney, or any hotel, from running shuttles. Disneyland can't run parking lot trams on public streets, which is why ART runs the TS shuttles.

Actually there is a law. It has to do with air pollution. As hotels/motels who use their own shuttles apply for building permits, they have to agree to remove their tram service and join ART. There are few independent shuttles left. Candy Cane and Sheraton Anaheim are grandfathered in, however, as soon as they need a building permit, they will lose the ability to have their own shuttle. Further down the road is the Hyatt, and they have their own shuttle as they are outside Anaheim Resort Transit's authority.

 

[bakerudall]

Actually there is a law. It has to do with air pollution. As hotels/motels who use their own shuttles apply for building permits, they have to agree to remove their tram service and join ART. There are few independent shuttles left. Candy Cane and Sheraton Anaheim are grandfathered in, however, as soon as they need a building permit, they will lose the ability to have their own shuttle. Further down the road is the Hyatt, and they have their own shuttle as they are outside Anaheim Resort Transit's authority.

Gotta love politicians creating monopolies under the guise of environmental safety.

In theory, I share the sentiment of the OP. I would love to see Disney buy out the Candy Cane, Alpine, and Desert Palms and turn that corner into a large, contemporary, high-end resort with another private entrance to DCA. GCH and DH would naturally drop slightly in price, and PPH could be priced as a value hotel.

In practice, however, it could be quite difficult to obtain that land. Those three little inns know how strong their position is. The price would be very high, but Disney may be able to wow them into retirement with the right number. That being said, I wouldn't see this happening until years after DLR finishes all of its major renovations.