[Question] How Much do You Think the Hotels on Harbor Blvd Cost?

[WDW1971]

I was just wondering how much money do you think the hotels located along Harbor Blvd cost in millions. I am talking about buying the whole hotel, not the cost of a room.

I cannot imagine it being that much money and I do not see as to why any developers have not purchased a couple of these hotels and built new, grand, modern resorts in their place which would rival the GCH. I could see something like the Gaylord Palms, the Hyatt Grand Cypress, or something that is large, has lots of amenities, cool pools, a mini water park, etc. I feel that it would be a gold mine and it would easily offset any land prices.

It is also amazing to me that these hotels have been there for 50 years. I would have thought by now these hotels would be modernized considering the great location. It would be a great spot for a competitor looking to reign in on Disney's operation.

[choco choco]

Re: How Much do You Think the Hotels on Harbor Blvd Cost?

The hotels are always busy, even if the condition is outdated. They were forced to upgrade in the early 2000's during the beautification of Anaheim, otherwise, they'd still look as dilapidated as they did during the 90's.

I think Disney and Anaheim have height requirements for the hotels along Harbor, so that they don't intrude on sight lines both into and out from the resort. This is why the Mega-Vegas sized hotels have had to be built in Garden Grove farther south.

Also, the footprint of each of these hotels is small, so there's no room for the grand hotels.

And one more...most out of town visitors to Disneyland don't stay in Anaheim. They stay in LA somewhere and drive down for the day. There's nothing that can change that, doesn't matter how nice the hotels are, or if they are Disney's or others.

I like it the way it is, no need to make it into International Drive in Orlando.

[WDW1971]

Re: How Much do You Think the Hotels on Harbor Blvd Cost?

The hotels are always busy, even if the condition is outdated. They were forced to upgrade in the early 2000's during the beautification of Anaheim, otherwise, they'd still look as dilapidated as they did during the 90's.

I think Disney and Anaheim have height requirements for the hotels along Harbor, so that they don't intrude on sight lines both into and out from the resort. This is why the Mega-Vegas sized hotels have had to be built in Garden Grove farther south.

Also, the footprint of each of these hotels is small, so there's no room for the grand hotels.

Even though they are busy I know that they only charge around $100 per night which from a business perspective I think it is a steal considering the location.

Even though there is a small amount of land there a developer could have bought three or four of the hotel properties and built a more resort like hotel similar to the Orange County Hyatt down the road where they could pack in more hotel rooms in less space.

[Barbaraann]

Re: How Much do You Think the Hotels on Harbor Blvd Cost?

Most out of town visitors stay in LA, and drive down for the day.

I guess I am the exception, since I always stay in a hotel on Harbor Blvd, or definitely as nearby to Disneyland as I can get.

Walking down Harbor Blvd always reminds me of walking down the neighborhood streets of Chicago, with the different types of establishments. The hotels, restaurants, and the pedestrian crosswalks with the traffic lights, and walk/don't walk signals. I often imagine that Anaheim's Harbor Blvd is my closest street of Irving Park Avenue.

[ShelbyH]

Re: How Much do You Think the Hotels on Harbor Blvd Cost?

Two luxury, 4-star hotels are being built on Gardenwalk property. They are getting a huge tax incentive by the Anaheim city council, despite protests from huge numbers of Anaheim residents arguing that the hotels would be built and be successful anyway and that it would be nice for the city of Anaheim to have things like, oh I don't know, libraries and police officers. When citizens tried to speak out against the subsidy, the three council members who voted for it conveniently didn't show up to that meeting. So for those of you complaining that Anaheim city council never does anything for the resort district, here's your 158 million dollars. You're welcome.

[Michael808702]

Re: How Much do You Think the Hotels on Harbor Blvd Cost?

I live in las Vegas and I can tell you that a mega hotel would not fit in the area. Plus it would stand out and be very tall. We've stayed in some very nice up to date rooms on harbour but most of them are outdated. I old say in today's time probably a couple million dollars for a small modernized hotel

[calsig31]

Re: How Much do You Think the Hotels on Harbor Blvd Cost?

Even though they are busy I know that they only charge around $100 per night which from a business perspective I think it is a steal considering the location.

Ya but you get what you pay for. Those $100/night places are flee bags. They couldn't get away with charging any more than that.

[gary94080]

Re: How Much do You Think the Hotels on Harbor Blvd Cost?

I think one reason it hasn't been done is that the developer would have to have a long time line unless they were willing to pay way above market value for the property. the current sites are making good money now so they probably don't come on the market very often. I know that Disney owns a lot of property for future plans, but there are gaps where the current owner wants more than Disney is willing to pay. look at the south east corner DCA that isn't owned by Disney or the couple of motels north of the parking structure/cast lots. I'm sure Disney wants them but not if it cost too much.

[Barbaraann]

Re: How Much do You Think the Hotels on Harbor Blvd Cost?

Many of the hotels on Harbor Blvd are actually nice comfortable establishments. It is nice to stay that close, and wake up, and Disneyland is just a short walk or an ART Bus ride away.

[swampymarsh]

Re: How Much do You Think the Hotels on Harbor Blvd Cost?

Buy a Harbor hotel for about 5 Million. This number is an estimate based on the resort occupancy rates, times the amount of rooms that are sold for pure profit over a year, times a business valuation, plus the cost of land and building. This is based on a 100 room hotel that has an average $100 per night rate.

The existing hotels are very valuable to continue operating for hoteliers, rather than tear down to redevelop. To build a big hotel you have to aquire the profitable hotel, pay to destroy it and develop a new hotel. All these added costs don't pay for themselves overnight. A new hotel isn't a golden goose like the old hotel.

A number of new hotels have been approved, none have been built. This indicates there is not much value to build new hotels.

[Retrocool]

Re: How Much do You Think the Hotels on Harbor Blvd Cost?

The 67-room Anaheim Carriage Inn Hotel, which is at 2125 S Harbor Blvd (south of Katella, about a mile from the Esplanade), is currently on the market with a price tag of $5,595,000.

2125 S Harbor Blvd, Anaheim, CA, 92802 - Full Service Property for Sale on LoopNet.com

Does that help?

[WDW1971]

Re: How Much do You Think the Hotels on Harbor Blvd Cost?

Buy a Harbor hotel for about 5 Million. This number is an estimate based on the resort occupancy rates, times the amount of rooms that are sold for pure profit over a year, times a business valuation, plus the cost of land and building. This is based on a 100 room hotel that has an average $100 per night rate.

The existing hotels are very valuable to continue operating for hoteliers, rather than tear down to redevelop. To build a big hotel you have to aquire the profitable hotel, pay to destroy it and develop a new hotel. All these added costs don't pay for themselves overnight. A new hotel isn't a golden goose like the old hotel.

A number of new hotels have been approved, none have been built. This indicates there is not much value to build new hotels.

I see where you are coming from because I know that these hotels are not falling apart and can hardly keep up with demand. However, if these hotels were located in the middle of no where, they would not still be around. The only reason they are successful is because they are one of the few hotels that are actually within walking distance to Disneyland.

In my opinion, I see the hotels being valued at $10 million on the high end. Probably some of them could be purchased for a little less. Even if they were not sold to a developer, Disney could have bought all of the hotels located along harbor between Disney Way and the Freeway to build their third park. Perhaps Disney does already own them and is just leasing them so they do not sit as empty lots until they are ready to build.

The hotels along Harbor average about $100/night. If a brand new modern resort hotel with lots of amenities such as pools, restaurants, and other entertainment tore down three or four of these hotels then they could probably fit in more hotel rooms in the land allocated and instead of charging $100/night, they could charge $250+/night.

Also I do not see them built a highrise hotel with 25 stories like in Las Vegas or even like the Paradise Pier. A hotel of 4-8 stories should be sufficient and would not intrude into the parks. Also it would allow for more rooms than the two story hotels presently there.