The Diz Biz
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The Future?
At a first glance, most would expect that the Walt Disney Studios Paris (“WDSP”)
will be the driving force for future revenue growth as the second gate will attract more
visitors to the DLRP as a whole and also increase the length of stay for most guests.
However, there are several other initiatives that will assist, particularly real estate
revenues.
DLRP has positioned itself as one of Paris’ most prestigious developers with the Val D’Europe expansion featuring a giant mall and discount outlet center that had a excellent freshman year. The DLRP decided not to invest in further hotel expansion itself despite the new second gate. If hotel occupancy rates remain the same as 2001, that leaves only 300,000 additional possible stays at a Disney hotel before full capacity is reached. Although I strongly believe that the investment in a new 1,000 room Disney hotel would have been beneficial to DLRP immediately, the management team have signed several new hotel deals with partners.
Away from the Parks
All bar one of the hotels will be at the Val D’Europe complex, just one subway stop
from the two theme parks and the Disney Village. The DLRP will benefit from the excellent
European marketing muscle of brands such as Holiday Inn, Airtours and Envergure. A
Marriott Vacation Club will be built on the fairways of the Disneyland Resort Paris golf
course in an attempt to attract more American vacationers to the Resort. The three new Val
D’Europe hotels will add 1,100 rooms in 2003. Therefore, expect hotel occupancy to
increase several percentage points this year as the DLRP is unlikely to be able to cope
with demand for Disney hotels with the new WDSP park opening in March.
(c) Euro Disney SCA
In addition, the DLRP has signed an agreement with a U.K.specialist developer to build a business park on the site that will eventually cover 150 hectares and will attract major multinational tenants to the Ile-de-France. In addition, 2002 will herald the opening of the town centre of the Val D’Europe with 600 housing units (predominantly apartments), three giant office buildings and a small 150 room hotel due to premier in April. Although the architectural team are not similar, those familiar with the Celebration concept will note the striking similarities in design and layout.
(c) Euro Disney SCA