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.
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Disney Parks made a surprising announcement in May: its Star Wars: Galactic Starcruiser experience in Orlando, Florida, will close in September after just ~18 months. During the Walt Disney Company's Q3 earnings call, the company revealed that the closure would result in a $250m loss.
Staffing alone was a huge cost, but that's not it. Starcruiser had far more 'moving parts' than a standard hotel, so maintenance and upkeep also would've been significant costs. It's also probable that $300 million does not represent the entire cost of Star Wars: Galactic Starcruiser.
Billed as an immersive experience where guests can interact with characters from the “Star Wars” franchise, the 100-room hotel requires guests to book a minimum of two nights, priced at about $5,000 per couple and closer to $6,000 for a family of four. The cost of a “tricked out” suite jumps to $20,000.
Another of their articles cites 100 cabins, which consists of 94 Standard cabins, 4 Suites, and only two Grand Captain Suites. That equates to 506 possible guests, so basically the same number. It's important to note that both of these calculations are with every bed of every room filled to capacity.
And while it received glowing reviews from guests, ultimately it performed below Disney's expectations, according to Disney Parks, Experiences and Products Chairman Josh D'Amaro. “It didn't perform exactly like we wanted it to perform, so we decided that we were going to sunset this in September,” D'Amaro said.
But the Starcruiser was also said to be immensely costly to operate, primarily because it employed a cast of about a dozen core actors who had to perform and interact with guests in full-day shifts. The Galactic Starcruiser features about a dozen core actors who interact with guests throughout the two-day experience.
But the Starcruiser was also said to be immensely costly to operate, primarily because it employed a cast of about a dozen core actors who had to perform and interact with guests in full-day shifts.
Pushing Buttons: Why the closure of Disney's Star Wars hotel isn't the end of immersive gaming. Next month, Disney's immersive Galactic Starcruiser “Star Wars hotel” in Florida will shut down, less than two years after opening.
Disney has not commented on just how much Galactic Starcruiser took to construct, although the Washington Post estimated a cost of close to $1 billion. Now, the company can add another $250,000,000 to that total, according to Disney's interim CFO Kevin Lansberry on the August 9 earnings call.
Alcoholic drinks on board the Star Wars: Galactic Starcruiser are not included in the vacation package and must be paid for separately. Some non-alcoholic drinks are included (like soda and coffee), but alcoholic and non-alcoholic specialty drinks require additional payment.
What happened to the widely heralded attraction? Turns out the galaxy doesn't contain enough Star Wars die-hards willing to pay for such a high-touch, high-cost experience, industry observers and experts say.
Disney promised investors they'd be cutting costs by $5.5 billion, but with stock prices continuing to fall, and streaming continuing to operate at a loss, the company doesn't have room to be running more operations at a loss right now.
Another thing to consider here is that the Star Wars: Galactic Starcruiser Resort is essentially an all-inclusive boutique hotel plus an interactive live entertainment experience.
One of the reasons a stay at the Galactic Starcruiser is so expensive is that it's more like a cruise experience rather than a hotel. Most meals and activities onboard are included in the price.
– Walt Disney World's Star Wars: Galactic Starcruiser is beginning its final voyage Thursday before closing permanently. Walt Disney World announced back in May that the immersive Star Wars hotel experience would be closing after nearly two years in operation.
The company said that its Star Wars: Galactic Starcruiser hotel at Walt Disney World in Florida, which costs nearly $5,000 per couple for a two-night stay, will take its final voyage Sept.28. Travel better with news, tips and guides that make you feel like a local wherever you go.