Disney Hotel COVID-19 Closures Could Cost Company Over $140 million
As we’ve previously reported here at MickeyBlog, the closure of the Disney Parks across the world is definitely something expected to have a masssive impact on revenue for Disney. Just over the past week, we’ve told you about $6 billion bailout as well as the $59 million Disneyland is paying employees during the shutdown.
Today, the OC Register gave us an estimate of just how much Disney is losing in hotel bookings and related revenue during the shutdown – brace yourself, it comes in at about $140 million!
The figure above is based on the company’s annual report and is due to the closure of Disney’s 12 theme parks around the globe amid the COVID-19 pandemic. According to the piece in the register, this has left 37,000+ rooms empty at Disney’s 37 hotels worldwide including US, France, Japan and China.
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 spend an average of $353 per room at Disney’s domestic hotels with a 90% occupancy rate, according to the report. That $353 figure combines the daily cost of a room as well as food, drinks and hotel merchandise.
Just at Disneyland alone, there are 2,400 hotel rooms across three properties Disney’s Grand Californian Hotel, Disneyland Hotel and Disney’s Paradise Pier Hotel. With a typical occupancy rate around 90%, Disneyland’s hotels alone could lose up to $11 million during the INITIAL 15-day COVID-19 closure. Again, these figures are based on the company’s annual report.
The fallout at Walt Disney World is much greater, the Resort boasts over 24,000 hotel rooms as well as Disney Vacation Club facilities which will be closed until the end of the month. The means Walt Disney World Resort stands to lose about $84 million in guest spending during the initial 11-day March Closure.
The US hotel industry is looking for a $150 billion bailout from the federal government due to a massive decrease in travel as a result of the coronavirus.
Readers are encouraged to keep following along with MickeyBlog for the latest Disney news and updates.
Source: OC Register