Disney World’s closure of the Star Wars: Galactic Starcruiser in September will enable them to claim a write-off of approximately $300 million, as stated by Disney Parks Chairman Josh D’Amaro during the JP Morgan Global Technology, Media & Communications Conference.
$300 Million Tax Write Off
Disney Parks Chairman Josh D’Amaro spoke during the JP Morgan Global Technology, Media & Communications Conference today. He indicated the Star Wars: Galactic Starcruiser did not perform as well as Disney had hoped, but will ultimately lead to a significant tax break for the company.
Following the hotel’s closure, depreciation is expected to accelerate at a rate of $100 million to $150 million per quarter over a span of two quarters.
I don’t think we’ve talked about this before, but in both Q3 and Q4 as we accelerate depreciation on that Starcruiser, we should expect about $100-150 million acceleration in depreciation.
Josh D’Amaro, Disney Parks Chairman
Josh D’Amaro also spoke on the excellent guest experience found on the Star Wars: Galactic Starcruiser; however, since the Halcyon did not bring in enough guests, the immersive experience will be closing this fall.
Though on the surface, this depreciation may sound negative, the company is pleased with the value reduction because of taxation. According to the IRS, “depreciation is an annual income tax deduction that allows you to recover the cost or other basis of certain property over the time you use the property. It is an allowance for the wear and tear, deterioration, or obsolescence of the property.” By reducing the value of the Galactic Starcruiser hotel, Disney will be required to pay less tax on the property overall.
Star Wars: Galactic Starcruiser Closing
Last week, Disney made the surprise announcement that they’d be closing their themed hotel aimed at immersive storytelling permanently after only one year and a few months of operation. Starcruiser has been burdened since before its opening, shrouded in financial troubles, budget cuts, high prices, low occupancy, and inconsistent levels of satisfaction when individuals compare what was delivered with what was initially promised in conceptual stages. Above all, the struggling resort was prohibitively expensive for the vast majority of potentially interested guests, with costs frequently exceeding multiple thousands of dollars for a brief, two-night stay.
Several days ago, the final voyage in late September sold out.
Star Wars: Galactic Starcruiser also has the distinction of winning the 2022 TEA Thea Award for Outstanding Achievement in Brand Experience.
Curious about the full experience? Check out our guide to everything on the Star Wars: Galactic Starcruiser and our honest, in-depth review.
Take a look at our recent Star Wars: Galactic Starcruiser coverage using the links below:
- BREAKING: Final Voyage of Star Wars: Galactic Starcruiser Sold Out
- BREAKING: Star Wars: Galactic Starcruiser Closing Permanently in September
- Star Wars: Galactic Starcruiser Wins 2022 TEA Thea Award
- BREAKING: Star Wars: Galactic Starcruiser Voyages Now Offering Just One Dinner Service Each Night Due to Low Attendance
What are your thoughts on the Star Wars: Galactic Starcruiser closing? We’d like to see your opinions in the comments below.
For the latest Disney Parks news and info, follow WDW News Today on Twitter, Facebook, and Instagram.
When a person’s business fails, they go bankrupt. When a multibillion dollar corporation’s business fails, its a 300 million dollar write off.
Brief correction, you list the ‘Hyperion,’ but the Star Cruiser ship is called the Halcyon.
Not seeing this error.
Josh says that the Star Cruiser the not perform as well expected. At $6.000 for two nights. Really 🥺 To knock it down now. Why don’t they offer at a way, way better price to stay. I guess it’s all about the money, and a lot of it at once.
It’s stuff like this that makes the American commies go crazy. $300 million tax write off. Normal Americans make investments and if they lose, it’s gone.
Imagine trying to spin this failure as a positive. Nothing has ever been more certain than the final disposition of this project. This is the type of failure that should see many losing their jobs and that starts at the top.
So why can’t they just turn it into a regular themed resort now just like the others without all the immersive stuff?