Disneyland Resort’s Luxury Hotel Plan on Hold Amid Feud With Anaheim Over $267M in Subsidies

The new hotel was set to open at the west end of the Downtown Disney District in 2021. (Credit: Disneyland Resort)

The new hotel was set to open at the west end of the Downtown Disney District in 2021. (Credit: Disneyland Resort)

Walt Disney Co. has put a hold on plans to build a luxury hotel in Disneyland Resort’s shopping district, citing a feud with Anaheim officials over tax subsidies that the Burbank media giant was expecting to get from operating the hotel.

The dispute centers on a $267-million tax break that the Anaheim City Council approved in 2016 for a 700-room hotel — the fourth hotel at the Disneyland Resort and the first high-end property built in 20 years.

But since the tax break was approved, Disney has changed the location of the hotel. The city now says the subsidy applies only to the project as it was proposed at the previous address.

Disney says the project may not be financially viable without the tax break.

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