It's Not Just Disney World's Rivals Building New Hotels

This post was originally published on this site

Comcast (NASDAQ:CMCSA) isn’t the only Central Florida theme-park operator expanding these days. Disney (NYSE:DIS) announced on Thursday that it will be adding a 15-story tower to its Disney’s Coronado Springs Resort, adding 500 rooms that will include suites and concierge-level services.

The expansion will be transformative for the entire resort, as a series of bridges across its signature lake will connect guests to floating gardens and an island oasis by the time it’s complete in 2019. A popular addition to the new tower will be rooftop dining, offering sweeping vistas of Disney World’s massive resort. It’s going to be a huge draw at night when the fireworks at nearby theme parks kick in.

One can always argue that 500 more rooms is a drop in the bucket for Disney. The resort already has more than 30,000 rooms across its 27 themed resorts; it merely increases its capacity by less than 2%. However, with rival Comcast adding new hotels at a feverish pace and its attendance gains far outpacing Disney World in recent years, every drop in that bucket is incremental. The Coronado Springs expansion will mean 500 more families staying on property, and the new landscaping and entertainment features will make it more magnetic as a destination.

Concept art for Disney's Coronado Springs hotel tower set to open by 2019.

2019 don’t be late

Universal Orlando took a big step in taking on Disney when it built its first three on-site hotels between 1999 and 2001, tacking on 2,400 accommodations for overnight guests. Now under Comcast ownership, ramping up its resort offerings has become a key component of competing against Disney as it woos a captive audience. 

The addition of Cabana Bay Beach Resort in 2014, Sapphire Falls last summer, and Aventura next year will bring its room count up to 6,200. It’s probably not a mere coincidence that the announcement late last year of the 16-story Aventura Hotel featuring a rooftop bar and grill component to the 600 rooms it will be adding to Comcast’s resort follows Disney’s similar chess move three months later. Along with the nearby Legoland Florida gearing up to open its second hotel later this year, Central Florida’s attractions are taking “if you build it, they will come” to the next level.   

Space has been the big limitation for Comcast. Unlike Disney, with more than 40 square miles of land to play with in Central Florida, Aventura is being shoehorned into a six-acre parcel. However, Comcast’s decision to snap up large tracts of land near its resort last year means that Disney’s biggest rival will have more than enough turf to keep dreaming out loud. 

This week the attention rightfully belongs to Disney. The new tower at Coronado Springs and the announcement of refashioning the marketplace at Disney’s Caribbean Beach Resort into a livelier waterfront dining and shopping destination will be big draws for both potential overnight guests as well as folks staying elsewhere looking for something to do.

There’s also been a lot of online chatter surrounding recent Disney permitting requests, suggesting that the theme-park giant will build a cable car system connecting the two resorts with Disney’s Hollywood Studios and EPCOT. Disney has not commented on the chatter, but between Star Wars Land at Disney’s Hollywood Studios and the new hotel tower at Coronado Springs both coming online in 2019, it wouldn’t be a shock if Disney does something to make it easier to move guests in and out of those properties.

The battle is real, and shareholders putting up with the near-term capital expenditures to build out these destinations should be rewarded in the long run as more guests have more reasons to spend more money.

Rick Munarriz owns shares of Walt Disney. The Motley Fool owns shares of and recommends Walt Disney. The Motley Fool has a disclosure policy.

Be Sociable, Share!

Related Posts

 

MarketTamer is not an investment advisor and is not registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory Authority. Further, owners, employees, agents or representatives of MarketTamer are not acting as investment advisors and might not be registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory.


This company makes no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended in this email, and makes no representations or warranties concerning said company or entity’s compliance with applicable laws and regulations, including, but not limited to, regulations promulgated by the SEC or the CFTC. The sender of this email may receive a portion of the proceeds from the sale of any products or services offered by a company or entity mentioned or recommended in this email. The recipient of this email assumes responsibility for conducting its own due diligence on the aforementioned company or entity and assumes full responsibility, and releases the sender from liability, for any purchase or order made from any company or entity mentioned or recommended in this email.


The content on any of MarketTamer websites, products or communication is for educational purposes only. Nothing in its products, services, or communications shall be construed as a solicitation and/or recommendation to buy or sell a security. Trading stocks, options and other securities involves risk. The risk of loss in trading securities can be substantial. The risk involved with trading stocks, options and other securities is not suitable for all investors. Prior to buying or selling an option, an investor must evaluate his/her own personal financial situation and consider all relevant risk factors. See: Characteristics and Risks of Standardized Options. The www.MarketTamer.com educational training program and software services are provided to improve financial understanding.


The information presented in this site is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. Nothing in our research constitutes legal, accounting or tax advice or individually tailored investment advice. Our research is prepared for general circulation and has been prepared without regard to the individual financial circumstances and objectives of persons who receive or obtain access to it. Our research is based on sources that we believe to be reliable. However, we do not make any representation or warranty, expressed or implied, as to the accuracy of our research, the completeness, or correctness or make any guarantee or other promise as to any results that may be obtained from using our research. To the maximum extent permitted by law, neither we, any of our affiliates, nor any other person, shall have any liability whatsoever to any person for any loss or expense, whether direct, indirect, consequential, incidental or otherwise, arising from or relating in any way to any use of or reliance on our research or the information contained therein. Some discussions contain forward looking statements which are based on current expectations and differences can be expected. All of our research, including the estimates, opinions and information contained therein, reflects our judgment as of the publication or other dissemination date of the research and is subject to change without notice. Further, we expressly disclaim any responsibility to update such research. Investing involves substantial risk. Past performance is not a guarantee of future results, and a loss of original capital may occur. No one receiving or accessing our research should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing any applicable prospectuses, press releases, reports and other public filings of the issuer of any securities being considered. None of the information presented should be construed as an offer to sell or buy any particular security. As always, use your best judgment when investing.