I don’t pretend to understand all the financial calculations. But, why close it down? Just rent out the rooms for a more reasonable price. At least then they recoup some of the investment, and not just write off the whole thing.
Possibly because the bean counters determined that the tax benefits of the write-off exceeded potential profits.
CEO’s are about the quick profit, so they can cash their shares.
They could do like Elon and accept low-end profits for years on end before it gets better, like he did with Twitter.
people like “Normal”
Taxes...write off goes to “less income”...they must have been in tax “no man’s land”.
Still...Disney needs to be financially destroyed. Stockholders...time to bail out. Families go somewhere else. End the mouse “Eara”. They be done.
I suspect the number of rooms per overall square foot of the hotel is extremely low relative to a normal hotel because they were building the overall experience. Trying to convert some of the wasted space is probably too expensive. It looks like in the initial design they would have had a plan to convert it into a more normal hotel with a Star Wars theme if the experience didn’t work out. That should have been a question a board member asked during the initial approval presentation. What is the backup plan?
I suspect the Disney board was more focused on woke and also was too arrogamnt at the time of approval thinking they couldn’t fail.
Because the cost of keeping it open almost certainly exceeds the revenue that would be generated by renting the 100 rooms at a more reasonable price.
“why close it down?”
Operating a property comes with certain fixed costs you can’t get rid off. Gotta keep it heated, gotta pay the staff, gotta pay for cleaning, garbage service, exterminators, etc. If those costs you have to pay every month are more than the income you are bringing in, then you are losing money as long as you operate it.
And just lowering the cost probably wouldn’t work. The big mistake is Disney killed off most peoples’ interest in the IP of Star Wars by making horrible movies out of it. So there’s no demand anymore to stay in a Star Wars-themed hotel even if they cut the price in half.
WHAT IS “ACCELERATED DEPRECIATION” ???
Have done accounting for 66 years.
Something new????