Disney begins working on massive hotel project

Richard Verrier
of The Sentinel Staff

Published in The Orlando Sentinel on Dec 8, 1999.

Walt Disney World is moving ahead with plans to develop one of its largest-ever resorts.

Disney executives confirmed Tuesday that the company would develop a 5,760-room economy-style resort spread across 20 buildings near Disney-MGM Studios.

The resort, northeast of Osceola Parkway and Victory Way and south of Disney's Caribbean Beach Resort, will depict different stages of American popular culture in the 20th century.

The project will be built in two phases, with the first phase of 2,880 rooms opening in 2002. Work crews have begun clearing land.

The resort will be similar in scale and price range to Disney's popular All-Star Resorts, which offer rooms in the $74-to-$104 range. The All-Star Resorts, completed earlier this year, have movie, sports and music themes.

"We are excited to add to the success of our All-Star Resorts," Walt Disney World President Al Weiss said in a statement. "Guests have really responded to the whimsical architecture and fun atmosphere of the All-Star, and they really appreciate all the extras that come with staying at a Disney resort."

The resort will be Disney's 19th, bringing the total number of hotel rooms at Walt Disney World to more than 33,000. The hotels enjoy occupancy rates in the 90 percent range, almost 20 percentage points higher than the average for other Orlando-area hotels.

The 20 four-story buildings will be grouped in pairs, each themed to a different decade, from the 1900s to the 1990s. Cultural symbols from each era, such as a giant jukebox for the 1950s and a huge yo-yo for the 1960s, will mark the entrances. The walls of each building will be adorned with silhouettes illustrating popular dances from each decade.

The as-yet unnamed resort also will have two main entrances, each with its own food court.

The fate of the project seemed uncertain last month after Reedy Creek planners tabled a plan to provide electrical and gas service to the resort, saying the project had not yet received final corporate approval. At the time, Disney officials said it was too early to discuss details of the project.

The Reedy Creek Home Improvement District reviews land-use decisions and supervises developments on Disney property.

Disney also has started work on a 1,307-room upscale hotel called the Animal Kingdom Lodge, near the Animal Kingdom theme park. The hotel is set to open in spring 2001.

The flurry of hotel construction at Disney comes as the Central Florida hotel market is struggling from declining occupancy, in part because of so many new hotel rooms opening up.

But Kelly Repass, director of research for the Orlando/Orange County Convention & Visitors Bureau, said Disney's huge new resort would not create a glut of hotel rooms. "It does add to the mix of the properties in the community," Repass said.

Though their occupancy rates are down from a year ago, Orlando's hotels are still doing better than most hotels around the country, Repass said. Orlando hotels had an average occupancy rate of 74 percent in September, well above the national average of 65 percent.

"We need to look at the long term," she said. "We have a lot of inventory coming on line, but within a few years demand should catch up with supply, and things should even out a little more."

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