Disney May Open Smaller Parks, Standalone Hotels

The Walt Disney Co., Los Angeles, is considering creating smaller theme parks and standalone hotels, retail, dining and entertainment centers, according to Reuters.com. Jay Rasulo, chairman of Disney's Parks and Resorts, also told analysts at a conference on Wednesday that building standalone hotels in urban areas where families already travel would give Disney the chance to reach out to parents who feel their children are still too young to appreciate a trip to a Disney theme park. Along those lines, Disney could locate versions of its Downtown Disneyland, a high-end retail, dining and entertainment district, in urban areas far from its parks. The company also is exploring alternatives to full-size theme parks, including "a smaller, deeply immersive park" that would offer consumers a more interactive experience at higher prices. Rasulo said these ideas are "blue sky concepts" that will not be executed unless the new businesses could achieve a high return on invested capital. Disney also may expand its water park offerings beyond Typhoon Lagoon and Blizzard Beach, and may add ships to its two-vessel cruise lines. Rasulo did not speak much about Hong Kong Disneyland's poor performance, which opened in September of 2005, and failed to meet its first-year attendance target of 5.6 million.