Massively over priced for not much....

Disney to take hit of $2.5M per room at failed Galactic Starcruiser hotel

By Katie Dowd

Scrapping the infamous Star Wars: Galactic Starcruiser hotel cost Disney $250 million, the company announced in its quarterly earnings call last week. With only 100 guest rooms, that breaks down to $2.5 million per room for the failed venture.

The Galactic Starcruiser in Disney World was billed as a one-of-a-kind “Star Wars” experience. Each two-night booking was meant to feel like boarding a cruise ship in outer space, and guests were given a “mission” involving characters from the most recent “Star Wars” trilogy. It was a gamble on a relatively niche — and expensive — concept. 

But at about $4,800 for a two-person “cabin,” the cheapest tier offered, Disney fans complained that it was simply too much for two days. In May, barely one year since opening, Disney announced it was shuttering the Galactic Starcruiser.

The company is now in the midst of writing off the expensive flop. At Wednesday’s earnings call, Disney attributed a dip in the theme park division “to a decrease at Walt Disney World, primarily due to higher costs (inflation and accelerated depreciation related to the planned closure of Star Wars: Galactic Starcruiser) and lower volumes.”

Interim Chief Financial Officer Kevin Lansberry said the company is looking at an “accelerated” depreciation of $250 million for the Starcruiser, which is in line with the earlier numbers given by Disney Parks Chair Josh D’Amaro; in May, D'Amaro estimated $100 million to $150 million in depreciation in both of the final two quarters of 2023. 

Revenue is still up in the Disney Parks, Experiences and Products division, however. For the third quarter, which ended July 1, the division posted $8.3 billion in revenue.

It’s not clear what will happen to the warehouse-like building where the Starcruiser was housed. In May, a Disney spokesperson told SFGATE that there were no immediate plans for repurposing the space or integrating any of it into the “Star Wars”-themed land in Hollywood Studios. 

The planning webpage for the Starcruiser shows no availability for the remainder of its existence. The last day for the hotel is Sept. 30.