Saturday, October 6, 2007

Disney Hotel Project to be Built in Hawaii by 2011

News sources are a buzz about Disney’s plan to build a "mixed-use" family resort on the Island of Oahu in Hawaii. The Florida Today reports that Disney will build the hotel on the western side of the island near the Ko Olina resort area. The hotel will include traditional hotel rooms and time share units on 21 acres of land. The hotel is expected to be completed in 2011.

The Motley Fool speculates that the hotel will meet formidable challenges, including barriers to competition in a market with large chain hotels, Disney’s lack of experience in the Hawaii market, and the possibility of brand dilution. However, the $144 million dollar price of the property is a drop in the bucket for Disney. The Wall Street Journal reports that although Disney had some trouble branching out from its parks in the past, recently its vacation villas and cruise ship business has faired well.

Here at home, the Honolulu Advertiser reports that the 800 unit resort will create 1000 jobs, and it is Disney’s first mixed use hotel outside of a theme park. According to the Star Bulletin, Hawaii residents are currently not able to purchase timeshares in Disney’s Vacation Club (of which the new hotel will be a part). However, because of the proposed hotel, Disney will file the necessary paperwork so that Hawaii residents can become Disney Vacation Club members.

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