Disney Revealed How Much Money It Lost On That Failed Star Wars Hotel And It's A Big Yikes
There are three things that, at this point, most people can probably agree on as it pertains to Walt Disney World’s Star Wars: Galactic Starcruiser. It was an incredible piece of themed entertainment, the likes of which we’d never seen before. It also was really expensive, but did not go well. The Starcruiser is shutting down in September after months of struggles, but now we know exactly how bad it all was for Disney as the company has revealed it’s taking a hit of $250 million in accelerated depreciation.
The number was revealed during this week’s quarterly earnings call for the Walt Disney Company. Accelerated depreciation means the company will be reducing its tax liabilities on the Galactic Starcruiser for the next few years, in exchange for paying more later on, but the number of $250 million is just massive. It gives us an indication of what it cost to build the Starcruiser, but it’s likely only a fraction of what Disney World actually spent since one has to believe that the closure was due to costs of operation exceeding revenue.
It was clear from the beginning that the Star Wars: Galactic Starcruiser was going to have difficulties. It was built to be a multi-day Star Wars adventure that guests could take part in, interacting with characters, and choosing sides in a battle between the First Order and the Resistance. It was a dream come true for any Star Wars fan. And the Starcruiser only had about 100 rooms, meaning that the number of people taking part in the adventure was fairly limited, meaning unlike your average Disney World theme park, crowds wouldn’t be too much of an issue.
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Unfortunately, the expense of creating such an experience, combined with the limited occupancy, meant that being able to experience the Galactic Starcruiser was not cheap. A night at the Galactic Starcruiser, even with accommodations and food included, was one of the most expensive days you could spend at Disney World.
It’s not a question of whether it was worth it. Most of those that actually experienced the Starcruiser seemed to feel it was. The issue was that it was unclear how many people who would have wanted to experience it, could actually do so. Were there enough people to sustain this undertaking? The answer, we would now confirm, is no.
The writing was on the wall when Galactic Starcruiser shifted its calendar so that it wasn’t open seven days a week anymore. Then, earlier this year, as part of a massive cost-cutting play at Disney, it was announced the Glactic Starcruiser would close at the end of September. The experience is sold out through the end of its run, something that we haven’t seen since its first few months of Galactic Starcruiser open.
And of course, even after the financial bleeding stops and the Starcruiser is closed, Disney World almost certainly won’t be done spending money, as it’s all but impossible that the building will remain vacant forever. It’s been implied that Disney World already has ideas for what to do with the building, and several million more dollars will need to be spent transforming it into whatever comes next.
