Anaheim approves US$550m tax break for luxury Disneyland hotels
by Tom Anstey | 15 Jul 2016
Tax incentives were granted for three hotels – two being constructed by Wincome and one by Disney
Disney and property developer Wincome Group will receive a combined US$550m (€493.5m, £411.3m) tax break to build three new four-star hotels at Disneyland in California.
Following a 3-1 vote by the Anaheim City Council, the tax incentives were granted for three hotels – two being constructed by Wincome and one by Disney.
Wincome’s developments include a US$208m (€186.6m, £155.5m) 580-bedroom hotel close to Disney California Adventure, and a 630-bedroom hotel adjacent to the Anaheim Convention Centre valued at US$225m (€201.9m, £168.2m). Disney’s development will be a 700-bedroom luxury hotel and parking structure, which covers 10 acres on Disneyland Drive. The three developments will bring the number of luxury hotels in Anaheim up to five.
“Although we knew the demand was there, this proposed hotel was not part of Disney’s long-term plans until the city put this incentive in place,” said Mary Niven, senior vice president of Disneyland Resort Operations,” addressing the City Council.
She then said in a later statement: “We applaud the City Council for creating this hotel policy and approving our plans for bringing a new Disney four-star hotel to the resort area. Disney’s flagship hotel will generate US$$750m (€673m, £560.8m) in new revenue to the city over 40 years, create thousands of construction and permanent jobs, and drive a new and long-term revenue stream to the general fund for decades to come.”
In 2012, Disney’s California Adventure underwent a US$1bn (€897m, £748m) expansion, which included the addition of Cars Land. Disney now has about 28,000 workers in Anaheim, making it the largest employer in Orange County.
An independent study on Disneyland California last year suggested that resort is responsible for more than US$5.7bn (€5.1bn, £4.2bn) in economic activity across the south of the state.
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Disney and property developer Wincome Group will receive a combined US$550m (€493.5m, £411.3m) tax break to build three new four-star hotels at Disneyland in California. Following a 3-1 vote by the Anaheim City Council, the tax incentives were granted for three hotels – two being constructed by Wincome and one by Disney. Wincome’s developments include a US$208m (€186.6m, £155.5m) 580-bedroom hotel close to Disney California Adventure, and a 630-bedroom hotel
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