GardenWalk defaults on $210 Million loan

Discussion in 'Disneyland News, Rumors and General Discussion' started by See Post, Dec 22, 2009.

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    Originally Posted By SuperDry

    <<< My partner works front desk for GWL and they do indeed use discount sites. >>>

    The key word you dropped is "opaque" discounting sites. These are the ones where you don't know exactly which hotel you'll get until after you've committed to the purchase and paid for it.
     
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    Originally Posted By SuperDry

    <<< K2M - this commercial ran in the UK a few years ago (for a credit card company) - I'm sure this is some people's idea of heaven!

    <a href="http://www.youtube.com/watch?v...RcXIO5ik" target="_blank">http://www.youtube.com/watch?v...RcXIO5ik</a> >>>

    That looks like a lot of fun!
     
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    Originally Posted By doombuggy

    The key word you dropped is "opaque" discounting sites.

    Cause I've never heard of them before. A discount site is a discount site.
     
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    Originally Posted By doombuggy

    OK just looked it up and you do know what hotel your getting just not what price.

    This link told what they are. <a href="http://www.videojug.com/expertanswer/hotel-deals-tips-and-tricks/what-is-an-opaque-site" target="_blank">http://www.videojug.com/expert...que-site</a>

    And the sites talked about in the vid are what GWL uses.
     
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    Originally Posted By socalkdg

    <<<<The only issue is price-point - GWLs are very expensive compared with far better comparable hotels in the area. The Anaheim Resort has a glut of 3*/4* hotels and the price-point is very low compared with other tourist markets. Even DLR is discounting the Grand for the rest of the year. I just don't see how they can make it profitable being in Garden Grove.>>>>

    GWL would be considered a "Resort" based off its offereings of movies, food, entertainment and activities all onsite. Plus it discounts to $200 in the off season. Stay one night and you have use of the water park for two days. Thats 8 tickets to a water park. Plus from Sept. to April its the only water park that will be open.

    I'd expect occupancy rates to be higher than the hotels that will be around it, even at the steeper price.

    When you use a travel site to book hotels like Hotwire, Expedia, etc. and choose Anaheim, you get Orange, Buena Park and Garden Grove thrown in with Anaheim.
     
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    Originally Posted By socalkdg

    If GWL does well, I'd expect Disney to develop an indoor water park for its guests. Its the one thing missing from its So Cal offerings.
     
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    Originally Posted By Sport Goofy

    << I'd expect occupancy rates to be higher than the hotels that will be around it, even at the steeper price. >>

    Why would you expect that? The occupancy rates for GWL across the country are not substantially higher than the national average for hotel chains -- at least according to the occupancy figures they cite in their financial disclosures. Why will GWL in Anaheim perform differently than the hotels in the rest of the chain?
     
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    Originally Posted By Dr Hans Reinhardt

    Hotel rates are based on supply and demand. How else do you think that Disney can charge what it does for its properties? GWL might be able to charge a bit more because if its amenities, but by attraction mostly families with kids (vs Disney's properties who clearly attract adults without children in tow) they are going to always be forced to offer value for their pricing but keep the rates high enough to cover expenses. That water park can't be cheap to operate. I really don't see how this place is going to work in that market.
     
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    Originally Posted By Dr Hans Reinhardt

    attracting. sorry.
     
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    Originally Posted By Dabob2

    I would see it as just the opposite. If GWL can attract families with kids to some fairly out of the way areas, they shouldn't have too much difficulty attracting families with kids in a destination that's already crawling with them.
     

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