Disney Will Receive Tax Break for New Hotel in Anaheim

Earlier this year it was officially announced that Disneyland Resort in Anaheim, CA will be building a fourth hotel on property. This seems to be a wise decision, as construction of Star Wars Land broke ground in April of this year, ticket sales are sure to soar once the new expansion opens. In addition, it was speculated that the main reason Disney made plans to create a new hotel was due to the city of Anaheim allowing a 70% tax break on their transient occupancy tax for any new four diamond-rated hotel.

Concept art from Disney on the proposed luxury hotel's lobby — Concept art of the hotel lobby.

The new hotel, though without a name at this point, already has concept art developed, and plans for a restaurant that would have view of the fireworks. The hotel would be placed where the Lilo parking lot is now at the Downtown Disney District.

On Tuesday July 13th, the Anaheim City Council met for a lengthy debate on whether or not Disneyland’s planned luxury hotel would make the cut to receive the proposed tax break, which would equate to about $267 million over a span of the next 20 years. In a 3-1 vote, it was confirmed that the new 700-room hotel would indeed receive the tax break.

Concept art of one of the pool areas, two pool areas are proposed for the hotel.

However, not everyone in the City Council was for it. Anaheim’s Mayor Tom Tait was against it, feeling that Disneyland was not in need of the tax incentive. While others felt the incentive would greatly benefit the city of Anaheim, since it would be giving Disney a $267 million tax break, but the hotel would bring in about $400 million in taxes. As opposed to now, wherein the parking lot where the future hotel would stand is only bringing in $1.1 million taxes for Anaheim.

The new Disneyland hotel would open sometime in 2021.

Photo Credit: Disneyland

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