Is this a real rumor? Hotel management to Marriott?

[disney-inspired]

I could see them hiring them on as a managed service provider (MSP). I think the hotels would benefit from it but they'd never give up full control.

 

[RivShore]

Exactly, it's no different then the golf courses. Disney still owns all the golf courses on DisneyWorld property there just run by Arnold Palmer Golf Management. Disney isn't in the golf business so you offload the day to day operations to a company that is. Personally I don't find it any different playing now then when Disney ran it.

The only difference I see is in the volume - they have what 4 or 5 courses and over 30k hotel rooms - completely different animal, in that respect. They are already a heavy hitter in hospitality.

 

[tjkraz]

Just my two cents but the cost to manage 30,000 hotel rooms and villas is significant. Marriott (or whomever) would expect a lot in return, and Disney would have to make up that revenue elsewhere.

Yes, there are headaches involved with managing every segment of a business. But with those headaches come control and revenue maximization. Bring in someone else and you surrender control and $$$.

The hotels and their guests could stand to benefit. It's not something I'd be fearful of. I just don't see how Disney would view it as a win.

 

[lowlight]

Just my two cents but the cost to manage 30,000 hotel rooms and villas is significant. Marriott (or whomever) would expect a lot in return, and Disney would have to make up that revenue elsewhere.

Yes, there are headaches involved with managing every segment of a business. But with those headaches come control and revenue maximization. Bring in someone else and you surrender control and $$$.

The hotels and their guests could stand to benefit. It's not something I'd be fearful of. I just don't see how Disney would view it as a win.

Yeah I think the would it be better or worse discussion is different than the would it ever happen discussion. It’s definitely a rumor put out to scare the collective bargaining unit during contract negotiations even though that would be against NLRB rules.

 

[gottalovepluto]

I wouldn’t mind this actually. Not sure about DVC but I think I would prefer this with the regular hotels.

Not much experience being #bonvoyed eh?

 

[gottalovepluto]

I vote made up. There’s no logical reason to do that currently, they’d be giving away profit margins they can’t be giving away right now.

 

[lowlight]

Not much experience being #bonvoyed eh?

Oh man that term always makes me laugh. I think most former SPG'ers agree, we wouldn't let Marriott manage our dirty laundry.

 

[0FF TO NEVERLAND]

Well all their renovations look like regular marriot type rooms so it all comes together

 

[gottalovepluto]

Well all their renovations look like regular marriot type rooms so it all comes together

This is true

 

[wkrainey]

With that number comes all the cost/maintenance/aggravation to run said hotel or you could get 10-20% of that number and ultimately do nothing. Why do you think property management companies or franchising even exist? It's a way a company can make money without doing any work.

Yeah, but 10-20% is a drop in the bucket compared to what they actually make themselves without any downside risk of giving up control of a vital part of their business in Florida. It doesn't cost $500,000 a day to run a hotel, even one the size of Disney. Even if things got so bad at a hotel that they had to demo it and rebuild, the profit is there to justify it for them. These hotels aren't in some random place that is subject to seasonal travel. They're busy all year, and the main attraction that they are going to is owned by Disney. Meaning if it is slow, Disney can lower prices to inflate demand.