Disney Parks Eyes Stand-Alone Hotels

LOS ANGELES (Reuters) – The Walt Disney Co. is considering "blue sky concepts" of creating smaller theme parks and stand-alone hotels, retail, dining and entertainment centers, Jay Rasulo, chairman of Disney's Parks and Resorts told analysts at a conference on Wednesday. Building stand-alone hotels in urban areas where families already travel would give Disney the chance to reach out to parents who feel their children are still too young to appreciate a trip to a Disney theme park, Rasulo said. Along those lines, Disney could locate versions of its Downtown Disney, a high-end retail, dining and entertainment district, in urban areas far from its parks. The company also was exploring alternatives to full-size theme parks, including "a smaller, deeply immersive park" that would offer consumers a more interactive experience at higher prices. These ideas are "blue sky concepts" that will not be executed unless the new businesses could achieve a high return on invested capital, Rasulo said. Disney also was looking into expanding its water park offerings beyond Typhoon Lagoon and Blizzard Beach and possibly adding ships to its two-vessel cruise lines.