Disney's bet on an ambitious Star Wars-themed hotel may have crashed back to Earth, but the entertainment behemoth's plans to transform the failed property are equally out of this world: convert it to office space.
While other developers are scrambling to convert struggling workspaces into alternative uses, the Burbank-based company confirmed it will overhaul the now-shuttered immersive hotel to become a hub for its Walt Disney Imagineering division. The Star Wars: Galactic Starcruiser hotel, which cost an estimated $1 billion to develop, closed its doors last September roughly a year and a half following its 2022 debut.
The decision to convert to office space lands after several months of the company weighing the future of the building, located in a backstage area of Orlando, Florida's Walt Disney World near Hollywood Studios. Disney mulled alternatives for the site, such as a dinner theatre experience, but ultimately landed on creating workspace for the company responsible for expansion projects across its theme park attractions, retail outposts and cruise ships.
The move throws cold water over any hope that the hotel would be revived in any sort of experiential capacity.
Part hotel, part immersive role-playing experience, the Galactic Starcruiser concept tried to transport guests over a two-night stay with cabins that resembled a spaceship and views of outer space projected on screens designed to mimic windows. Depending on room type and travel dates, the price tag for a group of four started at about $6,000.
While the cost included expedited theme-park admission, entertainment, food and experiences like lightsaber training, many ultimately attributed it to the hotel's demise.
To be clear, the property's transformation plans have yet to materialize. Even so, they stand out against a national backdrop in which more properties are being converted away from office uses rather than towards.
Empty office buildings have become a popular target among local officials, housing advocates and owners who argue that the properties would be more successful as an alternative use such as residential, retail, hospitality or even industrial. The number of office conversions across the country has hit a record high, according to a recent CBRE report, and the pipeline is only expected to widen as cities dole out more incentives and landlords — especially those of older buildings — offload their troubled properties at deep discounts.
Disney's pursuit is a bit more specific, however, and far more insulated from the struggles that plague the rest of the national office market. For starters, the hotel is already closed, and its Imagineering division is working to create new park experiences that are ultimately expected to be more lucrative for the company's long-term growth.