The Lost Episode: Disneyland Hotel's Tumultuous History and Future Development

Disneyland Hotel Development and Future Plans

• 🏨 A new five-star resort is planned for the Downtown Disney short-term parking area, which was originally designated for a dedicated Disney Vacation Club hotel.
• 🎯 This five-star resort aims to attract convention business and cater to a wealthier clientele, potentially at the expense of DVC member plans.
• 🏞️ The hotel's restaurant will offer spectacular views of New Orleans Square, Frontier Land, and nighttime fireworks.
• 🗺️ Disney has also acquired properties near the Anaheim Convention Center and the Toy Story themed parking structure to facilitate park access and future expansion.

Early Disneyland Hotel Acquisition Attempts

• 💡 Walt Disney initially convinced Jack Wrather to build the Disneyland Hotel by leasing him land for 100 years, as Disney lacked funds.
• 🏢 Disney made its first attempt to acquire the Disneyland Hotel in 1973, following the opening of Walt Disney World and the realization that they needed to operate their own hotels.
• 🏗️ Roy Disney had to buy out US Steel's involvement in building the Contemporary and Polynesian Village hotels due to delays, demonstrating Disney's growing commitment to hotel operations.

The 1973 Stock Offer and the Oil Embargo

• 💰 In 1973, Disney offered Wrather $250,000 and a large block of Disney stock (185,653 shares) for the Disneyland Hotel, aiming to integrate it into their growing portfolio.
• 📺 Wrather was tempted by the stock, seeing potential to leverage Disney's film library for a pay-TV service, similar to early HBO concepts.
• 🛢️ The deal collapsed in October 1973 due to the Arab oil embargo, which caused a severe drop in Disney's stock price, making the offer significantly less attractive.

Subsequent Acquisition Efforts and the Wrather Corporation Takeover

• ✈️ In 1980, Disney made another cash offer for the hotel, but it was rejected by Wrather, who was also acquiring the Spruce Goose and Queen Mary.
• 💔 Jack Wrather died in November 1984, shortly after Michael Eisner took over Disney. His wife attempted to run the Wrather Corporation, but it became vulnerable.
• ⚔️ In 1987, corporate raider Ronald Lauder targeted the Wrather Corporation. Disney, already holding 28% of Wrather's shares, partnered with Lauder to acquire the company.
• 💰 Disney ultimately bought out Lauder for $85 million, gaining full ownership of the Disneyland Hotel and Long Beach attractions after a complex negotiation involving underpriced services and a thin stock premium.
• 📈 This acquisition allowed Disney to finally consolidate control over the Disneyland Hotel and advance their goal of turning Anaheim into a multi-day resort destination.