Earlier this year, Disney made an announcement that shocked both Star Wars and Disney fans alike. After opening in early 2022, in May 2023, it was revealed that the Star Wars hotel would permanently close. Despite its short run in Disney World, the hotel managed to attract a lot of attention when it first opened. Fans described it as an entirely new “experience” where guests were fully transported to another galaxy (there weren’t even any real windows inside the hotel) to live out a Star Wars adventure.

That’s not to say the hotel wasn’t met with criticism. From the start, many Disney fans were disappointed in both the concept and the price (voyages start at around $1,200 per guest per night for two guests in a cabin). After the first few voyage dates sold out, the hotel eventually began to face some vacancy issues. Now that the dust has settled and Disney has commented on its decision to close the hotel, was it all worth it?  

The Star Wars Hotel offered a special two-day, two-night itinerary where guests participated in various activities meant to fully immerse them in the Star Wars universe. It was treated more like a cruise than a hotel, despite the fact that the hotel is located next to the large Hollywood Studios parking lot. Some described the Starcruiser as a part role-playing, part themed environment, part live theater experience, with some Star Wars-themed dining sprinkled in there, too.

Shortly after announcing that the Starcruiser would close, Chairperson of Walt Disney Parks and Resorts Josh D’Amaro participated in the JP Morgan Global Technology, Media, and Communications Conference. D’Amaro sat down for a Q&A session with Phil Cusick to address The Walt Disney Company’s decision to close the hotel.

Specifically, Cusick asked D’Amaro, “You’re closing Starcruiser — What drove that and how should we think about the impact?” D’Amaro stated that the Galactic Starcruise hotel is “a pretty stunning asset.” He went on to say, “It’s essentially a spaceship that guests board, themed out to feel exactly like Star Wars. Our Imagineers did an incredible job pulling this asset together, and our guests gave it very high ratings.”

Although the hotel received high ratings among guests, D’Amaro admitted, “It didn’t perform exactly like we wanted it to perform.” The final voyage for the Star Wars Hotel will be September 28th-30th, 2023.

Disney has remained positive when speaking on the Star Wars hotel’s closure. For example, while addressing the closure, D’Amaro stated, “We did decide that, despite the fact that this was a never-before-seen type of experience, and I think it’s raised the bar from a creativity perspective on where we can go next, we thought it was time to sunset this beginning in September.” From its very first statement, Disney lauded the Starcruiser as “One of our most creative projects ever and has been praised by our guests and recognized for setting a new bar for innovation and immersive entertainment.”

Disney’s first statement about the hotel’s closure read, in part, “This premium, boutique experience gave us the opportunity to try new things on a smaller scale of 100 rooms, and as we prepare for its final voyage, we will take what we’ve learned to create future experiences that can reach more of our guests and fans.”

That said, is it fair to reduce this historic closure down to just a “lesson” that Imagineers can take into future projects? Can we really downplay the significance of losing millions of dollars just to find out how to “reach more guests and fans”? This experience was not cheap. Is anyone really surprised that interest ultimately subsided?

D’Amaro confessed, “I will note […] in both Q3 and Q4, as we accelerate depreciation on that Starcruiser, we should expect about $100 to $150 million acceleration in depreciation.” Basically, Disney expects to lose about $100 to $150 million in value in both Q3 AND Q4 with the Star Wars hotel’s closure.

If Disney was trying to prove that an undertaking of this scale was possible, they succeeded. As mentioned, guests gave it high ratings. For the most part, things ran smoothly. But ultimately, Disney was unable to reach its core audience. The cost of this experience was almost $5,000 for a 2-person, 2-night vacation. That’s not including alcoholic beverages or additional Disney World park tickets. The prices only increased for families and large parties. Right off the bat, Disney priced out a large portion of its fanbase for a 2-night experience. 

Even some serious Star Wars fans were turned off by the very idea of this hotel. Not everyone was thrilled with the idea of live-action role-playing with new Star Wars characters created specifically for the hotel.

This all is not to say we don’t appreciate creativity. Seeing this hotel come to life was a truly unique experience, and every last detail was accounted for onboard the ship. Can we blame Disney for being too ambitious? Or was it seen as greedy?

Disney is paying the price for its big gamble to the tune of about $250 million. Critics and supporters have voiced their opinions, so was it all worth it? Could that money have been better spent on something that would appeal to everyone? Does such a thing exist? It’s tough to say. Maybe this failure taught Disney a lesson about its audience. Maybe, going forward, Disney will listen to its fans. If, after all is said and done, Disney figures out what we want, maybe it was worth it after all.

We have a LOT to share when it comes to the Star Wars Hotel, and you can read more about it right here:

• See our full review of EVERYTHING on the Dinner Menu for Night ONE aboard the Halcyon!
• And find our full review of EVERYTHING on the Dinner Menu for Night TWO aboard the Halcyon!
• What to eat (and what to AVOID) for BREAKFAST aboard the Halcyon!
• We ate EVERYTHING for LUNCH on the Galactic Starcruiser!
• One of our FAVORITE Disney World snacks showed up on the Kids’ Menu on the Starcruiser!
• Are you traveling to space with a picky or less adventurous eater? See the options HERE. 
• Is the exclusive Captain’s Table experience worth the extra money? We talk about that here.

Why the Star Wars Hotel Closed in Disney World

 

Did you ever stay at the Star Wars hotel? Tell us what you thought about it in the comments!

The post Disney Is Losing 0 MILLION on Its Newest Hotel — Was It Worth It? first appeared on the disney food blog.