Disneyland Resort's Luxury Hotel Scrapped In Anaheim

ANAHEIM, CA — Anaheim is reeling after an announcement by Disneyland Resort saying that the property will no longer break ground on their fourth hotel, a luxury brand scheduled to start construction in 2018.

In August, the city told Disney that the project meant that promised tax incentives would be lost.

“We’ve taken the time to review the economics of our proposed four-diamond hotel for Anaheim and have made the final decision to cancel the project,” Disneyland Resort spokeswoman Lisa Haines said in a statement. “While this is disappointing for many, the conditions and agreements that stimulated this investment in Anaheim no longer exist and we must therefore adjust our long-term investment strategy."

Though the Anaheim Chamber of Commerce, and others, are blaming Measure L for the decision, Haines said the timing of the hotel cancellation is a business decision unrelated to the election.

Todd Ament, CEO and President of the Anaheim Chamber issued the following statement on behalf of the No on Measure L campaign:

“Measure L contributed to the harsh political rhetoric and poor business climate in Anaheim, and that led to the cancellation of Disney’s 4th hotel. The jobs lost and future tax revenue eliminated from this news is devastating to Anaheim, and a direct result of special interests trying to pit too many in Anaheim against each other. Let’s vote No on Measure L and send a message that we all want to work together for an Anaheim in which we all win together, not at each other’s expense."

As for the shuttered restaurants, Earl of Sandwich, ESPN Sports Zone and the Rainforest Cafe, their future is uncertain.

Disney officials told Patch they will be returning food and entertainment venues to the southern portion of Downtown Disney, however immediate details were not available.

“We would have loved to have seen this hotel go forward, but we understand that the company needed to evaluate whether it was feasible for them,” Anaheim spokesman Mike Lyster told the Orange County Register. “We look forward to whatever they may end up doing with the space.”

This is a developing report. Refresh for latest updates.

Ashley Ludwig, Patch Editor Photo