Disney World is known for its world-class resorts. From value to moderate to deluxe, Disney has many different hotel options that appeal to all guests. For those who want to own a Disney World resort to live in or rent out, now is the time. Disney World’s Contemporary Resort is listed for sale on Zillow!
The Contemporary Resort was one of the original hotels at Disney World, opening up on October 1, 1971. This is the same day that Disney World opened to the public. The Contemporary is by far one of the most recognized Disney World hotels. Also, not only is the structure unique, but it also has a Monorail that goes through the hotel!
Disney built this resort in a very interesting way. In fact, they fabricated the rooms in a warehouse off-site. Disney then slid these preconstructed rooms into place using a giant crane. This just adds to the allure and excitement of the hotel. Also, it’s worth noting that they recently refurbished and updated the rooms, making the resort even more desirable.
Why is Disney Selling The Contemporary Resort?
Ultimately the decision to sell The Contemporary comes down to money and funding. Disney has been in the news a lot recently due to their poor financial state as well as laying off employees. Currently, Disney is struggling to meet financial goals. This is a combination of poor decisions made by Bob Chapek and a shift in consumer demand.
As we reported here, Disney listed Splash Mountain props on eBay to generate more money. However, with Splash Mountain replacing Pirates of The Caribbean as we reported here, they pulled those down. However, it speaks to how desperate Disney is for money right now. This is why they are selling one of their most popular and well-known resorts.
Disney is looking for ways to generate cash quickly. Selling some of their assets is a great way to make money. In fact, as you can see in the Zillow listing above, The Contemporary is listed at $197,100,000. If Disney can earn almost $200 million in one sale, this will help boost its revenue. While long term, they can generate that revenue from operating the hotel in about a year and a half, they need the money now, so they have resorted to selling the resort.
What Are the Benefits of Buying a Disney Hotel?
Per the Zillow listing, the contemporary has 500 rooms and 550 bathrooms. In fact, it’s 200,00 sqft and on an almost 43-acre lot. This is truly a massive resort and is a golden opportunity for an investor. Also as we mentioned earlier, Disney just recently refubished the rooms, making the hotel even more appealing. On top of all of that, it’s one of the most well-known Disney resorts and it has easy access to The Magic Kingdom!
If you have $197,100,000 to invest, we think this investment is worth making. Or maybe if we all chip in, we can buy it together. Just doing the simple math, if you charge on average $700/night for a room, you can make $350,000 per night. That is about $130,000,000 in revenue per year. After two years, you will make more than your initial investment. Obviously investing $200 million in a Disney hotel is risky, but the math checks out.
The only question that remains unanswered is if you buy Disney’s Contemporary, will it still be a Disney World hotel? We do not know the answer to that. However, it would likely operate like The Swan and Dolphin, which are technically considered Disney Resorts but owned by Westin and Sheraton respectively. Because of that, these hotels don’t have full Disney resort benefits, but are still “Disney Resorts”.
What do you think of Disney selling its famous Contemporary Resort? Let us know your thoughts in the comments below! Also, who wants to chip in and buy it with us?
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