As a part of a blockbuster actual property transaction, the 4 Seasons Orlando at Walt Disney World Resort bought as a part of a $1.1 billion deal. This information caught my consideration–it’s a giant quantity! What I actually discovered fascinating was the occupancy price, given its location a stone’s throw from Magic Kingdom and standing as probably the most luxurious on-site lodge and one of many priciest properties per evening.
That led me to do some digging, trying into SEC filings from 2019 by means of current and the unique acquisition deck ready by the father or mother firm after they first acquired. Then I did additional analysis into common occupancy charges for luxurious inns, and continued down that rabbit gap.
Fairly than letting that hour-plus go to waste, I believed it could be value sharing a number of the “fruits” of that effort. Earlier than we get into the precise level of this article, let’s begin with a (summarized/paraphrased) model of the press launch from Host Motels & Resorts in saying their sale of the 4 Seasons Orlando.
As primary background, Host Motels & Resorts, Inc. is an S&P 500 firm, the most important lodging actual property funding belief and one of many largest homeowners of luxurious and upper-upscale inns. Host Motels & Resorts at present owns 71 properties in the US and 5 properties internationally totaling roughly 41,700 rooms.
Host Motels & Resorts has bought the 444-room 4 Seasons Resort Orlando at Walt Disney World Resort in Orlando, Florida and the 125-room 4 Seasons Resort and Residences Jackson Gap in Teton Village, Wyoming for a sale value of $1.1 billion.
Host Motels & Resorts bought the 2 4 Seasons inns in 2021 (Orlando) and 2022 (Jackson Gap), for a complete of $925 million with no important capital expenditures required over its possession interval. The corporate purchased the 4 Seasons Orlando for $610 million in 2021 from 4 Seasons Motels & Resort, Dune Actual Property Companions, and Silverstein Properties Inc. It bought the Jackson Gap property for $315 million.
James F. Risoleo, President and Chief Government Officer, stated: “The sale of those two iconic properties represents one other essential step in advancing our capital allocation technique. The $1.1 billion sale value for these resorts represents an 11.0% unlevered IRR over our possession interval and an EBITDA a number of that’s considerably increased than our Firm’s current buying and selling a number of.”
“We’re happy with our potential to monetize two lately acquired inns at a pretty revenue and an accretive a number of, and we’ll proceed to make use of our aggressive benefits to create worth for our shareholders.”
Mr. Risoleo continued, “The proceeds will additional solidify Host’s fortress stability sheet, which can proceed to be an essential aggressive benefit for the Firm. Our important monetary flexibility supplies optionality to pursue the very best return alternatives and concurrently return capital to shareholders by means of dividends and share repurchases, reinvest in our geographically various portfolio, and benefit from inclinations whereas prudently pursuing accretive acquisitions. We’ll proceed to be opportunistic in our capital allocation technique whereas positioning Host to outperform over the long run.”
The sale excludes the continued condominium growth on the 4 Seasons Resort Orlando at Walt Disney World Resort. Based mostly on a separate SEC submitting, the corporate has bought 16 condominium items on this growth.
Twelve extra items have been bought or are underneath contract to-date in 2026, together with eight villas which are scheduled to finish building within the first half of 2026, bringing the entire contracted to twenty-eight of 40 items.
4 Seasons Orlando Occupancy
Extra attention-grabbing to us is the “revelation” that the 4 Seasons Orlando’s occupancy within the final fiscal 12 months was 63%. This isn’t actually a revelation. Host Motels is publicly traded and these stats have been accessible in SEC filings for years; we simply by no means thought to look them up. Form of like after we “found” the wonderful fried rooster at Olivia’s Cafe, though it’s in all probability been on the menu for the reason that Nineteen Nineties.
The 63% quantity struck me as surprisingly low. Luxurious inns usually have decrease occupancy charges and a decrease break-even level than different chained-brand inns; international knowledge suggests a median occupancy price of round 60%, which is a quantity that’s seen as completely wholesome. Main home markets are usually increased, starting from 70% to above 90% in high-demand, low-inventory areas. Regardless, we’re not suggesting that the 4 Seasons Orlando had main issues or there’s extra to the story right here that was the impetus for the sale. Simply including context primarily based on analysis.
For reference, the 4 Seasons Orlando Resort at Walt Disney World had an occupancy price of 74.5% in 2019 per the Host Motels report ready as a part of its acquisition of the property again in 2021. The typical occupancy price on the time of the sale was solely 58%, however that was additionally throughout COVID. The report mentioned pent-up demand and Walt Disney World’s then-upcoming fiftieth Anniversary, indicating the lodge ought to see occupancy returning or exceeding to 2019 ranges.
That by no means occurred. Per the corporate’s SEC filings, its Orlando occupancy has been on regular decline since 2023, peaking at underneath 70% and dropping in every of the final two years. I’d argue that that is notable, and clearly underneath the corporate’s personal projections (in addition to the competitors in Central Florida).
It’s additionally a divergence from all of Host Motels’ home properties, which have held regular at proper round 70% occupancy for every of the final three fiscal years (70.7% in 2023 and 2024, 70.1% in 2025).
It’s removed from the worst market, a distinction that goes to San Antonio, but additionally far under the 87% occupancy boasted by the corporate’s three NYC properties.
It’s not as if the Central Florida market is oversaturated with luxurious lodging. Per that very same 2021 acquisition report, one of many issues that was most engaging in regards to the property was that solely 4% of the entire room stock was luxurious; thought-about a really low provide.
In contrast, New York, San Francisco and Miami had been all at 10%. (That proportion has doubtless elevated with the opening of the Conrad Orlando and build-out of Evermore Resort, so maybe this can be a story of elevated competitors within the luxurious sphere?)
Now we’ll check out how this compares and contrasts with Walt Disney World occupancy and the broader Central Florida market. Let’s begin by discussing Walt Disney World occupancy statistics. For those who dig by means of the Walt Disney Firm’s financials, that is one thing you’ll be able to truly discover buried within the paperwork on their Investor Relations web page.
Walt Disney World Resort Occupancy By 12 months
- 2013: 79%
- 2014: 83%
- 2015: 87%
- 2016: 89%
- 2017: 88%
- 2018: 88%
- 2019: 90%
- 2020: 43%
- 2021: 42%
- 2022: 82%
- 2023: 85%
- 2024: 85%
- 2025: 87%
A few issues are value noting right here. The primary is that 2020-2021 are apparent outliers because of the COVID closure and phased reopening. I’d be actually curious to see occupancy for January and February 2020, as a result of my intestine is that Walt Disney World set a document then. The previous couple of months of 2019 into early 2020 had been the busiest we’ve ever seen Walt Disney World.
Second, these numbers are home occupancy as an entire, which incorporates Disneyland Resort. Nevertheless, Disneyland has underneath 3,000 lodge rooms whereas Walt Disney World has ten occasions that quantity. So for all intents and functions, these numbers mirror Walt Disney World.
Third, all of those numbers are increased than the Orlando market as an entire. Occupancy was 71.6% in 2024 based on VisitOrlando, which was down 1.1% from 2023, however nonetheless traditionally excessive and regarded an trade win. Orlando occupancy was 66.1% in 2019.
There have been 130,464 lodge rooms in Orlando as of 2024; that quantity nearly definitely elevated in 2025 resulting from new openings (and given document tax collections). Final 12 months’s occupancy knowledge has not but been reported; it was up year-over-year by means of the primary half.
Central Florida barely outperforms the nationwide common, which is notable given the aggressive market on the decrease finish. That is in all probability why, in our expertise, you may get rather more bang in your buck in Orlando than random areas of the nation. This could be an unpopular opinion, however given the placement close to main vacationer points of interest, however Central Florida inns as an entire are very moderately priced relative to their counterparts elsewhere.
This isn’t the case with the 4 Seasons Orlando. Per the above-referenced filings, the typical nightly room price for the lodge was $1,241.70 final 12 months. The resort achieved a complete income per accessible room of $1,300, rating it #3 out of the highest 40 inns owned by Host Motels & Resorts.
That eye-popping quantity can be why there’s in all probability no trigger for alarm with the low occupancy price. Though Host doubtless would’ve most well-liked that nightly room price and increased occupancy, it was clearly a concerted determination to sacrifice occupancy for the sake of charges.
These per room revenues aren’t an enormous shock, both. We as soon as visited a collection that rents out for $20,000 per evening and affords butler service. The ‘bespoke’ customizability for the discerning visitor is off the charts at 4 Seasons, and sure high-profile purchasers are identified to hire out complete flooring only for themselves.
Though Walt Disney World doesn’t launch the sort of property-by-property breakdown and we’re not conscious of it for every other third events, we strongly suspect this makes the 4 Seasons Orlando the objectively most-expensive resort at Walt Disney World. Given the <$600/evening discounted charges we’ve noticed on the Grand Floridian, it’s unlikely even the rack price rooms and suites are sufficient to drive up the typical sufficiently.
From our perspective, it’s fascinating to see the divergent approaches between the 4 Seasons Orlando and Walt Disney World. Regardless of being utterly totally different, each are profitable and work properly for the spheres during which every exist.
As we’ve identified repeatedly, it was attainable to pay the bottom costs for Walt Disney World holidays in over 6 years by stacking accessible summer season offers final 12 months. (See The right way to Get the Least expensive Walt Disney World Journey Since 2019.) This was exactly how Walt Disney World elevated occupancy regardless of a lower in attendance.
This was a uncommon ‘everybody wins’ situation for Walt Disney World. Resort rooms are a perishable good, so pushing up occupancy meant fewer rooms went unfilled (win for Disney), even when they bought at decrease charges (win for shoppers). That also boosted total per visitor spending since inns are one of many largest line-item bills for holidays, as a result of off-site stays shifted to on-site.
That is primarily the reverse of what the 4 Seasons Orlando has been doing, attaining spectacular per room income regardless of a decrease occupancy quantity.
The apparent distinction between Walt Disney World as an entire and the 4 Seasons Orlando is that the previous targets center to higher center class Individuals, whereas the latter is a luxurious model. The 4 Seasons would reasonably have rooms sit empty than supply drastic reductions as a result of luxurious manufacturers commerce on exclusivity and perceptions.
Drastic value cuts can devalue the model, signaling a drop in high quality or catering to an, ahem, totally different clientele. There are additionally considerations about value anchoring; if the 4 Seasons had been to supply deep reductions throughout the August and September low season to fill unsold rooms, shoppers would possibly balk at paying double or triple these charges sooner or later…resulting in unsold rooms down the highway.
Suffice to say, it’s not fairly the identical for the Grand Floridian to promote a room for $543 one evening (an actual price accessible Might 12, 2026) after which flip round and promote it for $1,200+ a few months later. Though it’s Walt Disney World’s flagship resort and closest factor to a Walt Disney World-owned luxurious resort, it’s buying and selling on location and Disney branding (and many others) versus luxurious or exclusivity.
In the end, I’m undecided what you’re speculated to do with all of this info. I discovered it fascinating and likewise a bit stunning to distinction the divergent enterprise methods of the 4 Seasons Orlando and Walt Disney World as an entire.
My takeaway was a way of aid. I get why the 4 Seasons Orlando and different luxurious manufacturers value their merchandise as they do, as perceptions and exclusivity are every little thing. That doesn’t imply I’ve to love it. I don’t. It’s unhealthy for shoppers, because it inflates pricing.
Walt Disney World may simply try the identical with its Deluxe Resorts. (I’m undecided it might be a viable technique for the reason that merchandise are essentially totally different, however fortunately, we haven’t discovered.) As a substitute, they’ve elected to do the other and get extra aggressive with reductions to extend occupancy to a properly above-market stage.
That’s good for shoppers, because it (clearly) decreases charges. In order a lot as all of us complain about Walt Disney World’s runaway pricing, the truth is that it may very well be worse. Generally a little bit of added context might be useful for anchoring expectations and opinions, I suppose.
Planning a Walt Disney World journey? Find out about inns on our Walt Disney World Motels Critiques web page. For the place to eat, learn our Walt Disney World Restaurant Critiques. To economize on tickets or decide which kind to purchase, learn our Suggestions for Saving Cash on Walt Disney World Tickets publish. Our What to Pack for Disney Journeys publish takes a novel take a look at intelligent objects to take. For what to do and when to do it, our Walt Disney World Trip Guides will assist. For complete recommendation, the very best place to begin is our Walt Disney World Journey Planning Information for every little thing you might want to know!
YOUR THOUGHTS
Any ideas on the occupancy charges and pricing methods of the 4 Seasons Orlando vs. Walt Disney World resort inns? Stunned to see the 4 Seasons having such a low occupancy price, or does that make sense given the upper nightly room charges and income outcomes? Do you agree or disagree with our commentary? Any questions we may also help you reply? Listening to your suggestions–even if you disagree with us–is each attention-grabbing to us and useful to different readers, so please share your ideas under within the feedback!
