The Present & Future of Hotels Near Disneyland
Over the next couple of months, we’ll be adding several new hotel reviews from spots near Disneyland. Places with forthcoming reviews before the end of September include SpringHill Suites Anaheim Maingate (in addition to the other SpringHill we just reviewed), Clarion Hotel Anaheim Resort, Residence Inn at Anaheim Resort/Convention Center, and Best Western Plus Park Place Inn (finally!).
In addition to those, we’ll likely be doing a few others, with an emphasis on knocking out all remaining “across the street” hotels on Harbor Boulevard. Places like Camelot Inn, Best Western Anaheim Inn, and maybe even the HoJo. We also have a lot to change in our existing Disneyland Area Hotel Rankings & Reviews post.
We originally published this two years ago, and have updated it numerous times since. However, it is in need of further refinement, as the hotel scene in Anaheim continues to change. In this post, we’ll a look at the current state of Anaheim’s hotel scene, along with what to expect going forward…
In the case of hotels near Disneyland, I think the phrase “a rising tide lifts all boats” is apt. There has been continuous new development in the Anaheim Resort district, and that has caused many of the older hotels to refurbish their facilities to keep up.
The downside of this is rising prices pretty much across the board, especially during peak tourist seasons. (In fairness, I think a lot of those prices would’ve increased irrespective of refurbishments, so at least visitors are getting more bang for their buck.) This started 5 years ago with the opening of Cars Land, has not slowed down.
In that time, some hotels have close to doubled their rates. Even in the last 2 years since first creating that list, I would estimate that prices have increased by around 10% to 20% at most of the hotels. (Since my rankings are heavily weighted based upon average nightly rates, I need to re-analyze prices at each of these hotels.)
As of last year, the average nightly rate at Anaheim hotels was $180.75. Even assuming this number has not increased for 2017 (and I’d hazard a guess that it has), that’s an astronomical amount for what mostly amounts to upscale motels that would cost around half that if the hotels were not located near Disneyland. In fact, half that is about what we paid before the Cars Land bump.
Parking fees are also a lot more common than 5 years ago. Now, you’re very lucky to find free parking at the hotels that are a short walk from the park. Honestly, it’s tough to blame the hotels for this–with nonstop development over the last few years, real estate is worth more and is in shorter supply.
I would not expect prices to level out anytime soon. Although there are several hotels in development near Disneyland, some of these projects are stalled (thanks, local unions!) and demand will only increase when the Convention Center completes its expansion and Star Wars: Galaxy’s Edge opens. Occupancy rates in Orange County are at an all-time high, with numbers being especially strong near Disneyland.
While there are a number of hotel projects in various stages of development, I suspect even those will not be enough to fulfill demand in Anaheim during tourist seasons. Between Star Wars: Galaxy’s Edge and the kinda-sorta-announced Marvel Land, Disneyland Resort is poising itself to become a bona ride destination resort.
Given what Cars Land did for the off-site hotels, it’s almost scary to think about what lands based upon Star Wars and Marvel will do. Personally, I think the current amount of hotel development is insufficient for what the Anaheim hotel market will need come 2020 and beyond.
A lot of the development that is occurring is in the luxury tier. While this may not appeal to readers looking for budget accommodations, I’d argue that the most under-served market in Anaheim is the luxury one. Aside from the Grand Californian and Disneyland Hotel, there’s not really anything luxury-caliber in the area.
Some of the hotels near the convention center come close, but those are more business class than they are luxury. Anaheim needs more rooms across the board, but I think there’s more unsatisfied demand in the luxury market than anywhere else.
For what it’s worth, there are people who disagree. In an article on the topic of luxury hotels in Anaheim, Daniel Lesser said, “I can’t say enough that I don’t see Anaheim as a luxury market.” Lesser heads a New York-based hotel real estate firm.
Given his location, there’s the possibility he doesn’t have intimate knowledge of the Anaheim market, and where development is taking it. (I wonder whether experts thought Orlando could sustain luxury hotels before Walt Disney World came along and built out its parks…and a dozen-plus luxury hotels were added?)
Lesser believes those who can afford luxury price points would rather stay in Newport Beach than Anaheim. To his credit, Newport Beach is way nicer than Anaheim, and I think most people would prefer Newport, all things being equal. The problem is that all things are not equal.
Based upon his comment, I’m guessing Lesser has never driven in rush hour traffic from Newport Beach to Mickey & Friends in an effort to get to Disneyland in time for rope drop. I have, and it’s not exactly a fun way to start the day. If your primary motivation for a trip is Disneyland or a convention, staying in Newport or Laguna and doing that commute for 4-5 days is not convenient.
Moreover, during peak seasons, the luxury hotels in the beach cities are near capacity with guests who are taking beach vacations. Unless several luxury hotels are added between Huntington Beach and Dana Point, there is not sufficient room inventory to satisfy demand for those visiting the beach, attending conventions, and going to Disneyland. There’s only so much redevelopment than can be done on the coast, so adding several more luxury hotels there is not really a possibility.
So, luxury hotels in Anaheim it is. The good news is that even if luxury hotels near Disneyland don’t interest you, more room inventory added to the market is a net positive for everyone. Whether it causes a ripple effect of decreased demand at mid-tier properties (and so on), causes other hotels to step up their game, or simply absorbs some of the increased demand that Star Wars: Galaxy’s Edge brings with it in a couple of years remains to be seen.
Whatever the case may be, already there is greater variety among the hotels near Disneyland. Recent additions have offered more family-friendly accommodations, nicer amenities, and other upside beyond just the basic motel style that was once the staple of hotels in the area. One thing I’ve noticed from reader comments is that many of you are big fans of the new hotels that offer family suites and rooms of that sort.
Along those lines, I’m curious as to whether my methodology in ranking the hotels near Disneyland makes sense to you. While various factors are considered in those rankings, proximity to Disneyland (minutes by foot), room quality, and price were what I weighted most heavily.
My personal preference is being <15 minutes from the Esplanade by foot, and not having to rely on ART or Uber, so the list skewed towards hotels between Harbor and Katella. While I’ve started to give more thought to room variety based upon your feedback, it was not something that was emphasized when originally creating the rankings.
As I prepare to refine the list, I’d be curious as to the weight each of the following variables plays in determining which hotel near Disneyland to book:
- Walking distance from the parks
- Ability to comfortably sleep 3-4 adults
- Room quality and size
- Quality of amenities (pool, fitness center, etc.)
- Overall cost (rate + fees)
- Other (please specify)
It would be incredibly helpful to me if those of you who are interested in off-site Disneyland hotels could rank these factors in order of importance in the comments, with #1 being the most important, and so on. If something does not matter to you at all, there’s no need to rank it.
I know a lot of this is ‘inside baseball’ type of stuff that doesn’t really matter to you if you’re just planning a Disneyland vacation and want practical advice. I find it pretty fascinating, but I’m a geek for stuff like this. In any case, hopefully this post has provided you with some insight about why you’ve encountered higher hotel prices than before, what you might expect in the future, and how we can improve our Disneyland-area hotel rankings to make them more useful to you.
If you’re preparing for a Disneyland trip, check out our other planning posts, including how to save money on Disneyland tickets, our Disney packing tips, tips for booking a hotel (off-site or on-site), where to dine, and a number of other things, check out our comprehensive Disneyland Vacation Planning Guide!
Your Thoughts
Do you agree or disagree with our assessment on the Anaheim hotel market? Are you looking forward to more luxury hotels in Anaheim, or do you wish more family suites and budget accommodations would be added? Care you share your rankings for what factors matter most when we re-rank the Anaheim hotels? Hearing your feedback about your experiences is both interesting to us and helpful to other readers, so please share your thoughts or questions below in the comments!
Proximity
Family suites (separate sleeping/living areas) available
Quality
Cost
I agree completely with Amy!
1) Proximity – a reasonable walk to the parks without having to rely on ART or shuttles is necessary for mid-day breaks/naps with the kids.
2) Family Suite – our kids don’t sleep well if we are up and moving around and I don’t sleep well if I hear their every movement. Separate sleeping areas are a must and separate living area is a nice to have.
3) Quality is a relative term but we just appreciate a room and hotel that is clean and well arranged with good service and a welcoming atmosphere. Disney theming is a plus but not necessarily a requirement.
4) Cost – we don’t have a fortune to spend but I’m willing to spend a little more for the above.
I would add a couple of convenience things as #5 – free breakfast is a nice to have as are proximity to a drug store or shopping options and a refrigerator/microwave.
Tom – I’m very curious to read your review of the new Residence Inn Anaheim Resort/Convention Center because we are booked there later this year (we chose them because of their seeming adherence to 1-5 above) and we seem to agree completely on all things Disney!
1. Room configuration. At least 3 beds, including at least one queen or king. We’re just a family of 4, but my kids both kick in their sleep and wake each other up if they have to sleep in the same bed. I love the bunkbed trend! This also relates to room configuration. Bunkbeds should not be right next to the door, where if someone comes in while a child is sleeping it will wake them up. Fully separated 1-bedroom suites are ideal (although I’d put the bunks in the bedroom and the bigger bed in the main room, but no hotel does it that way).
2. Room quality
3. Walking distance from the parks
4. Other amenities (fridge in the room, nice pool)
5. Overall cost
Capacity (family of 6 so limited to suites)
Walking distance to parks
Room quality
Cost
Amenities don’t matter much to us. Free breakfast is nice but we don’t use other hotel amenities at all during Disney vacations – just places to sleep.
1. Cost (esp. on little things like wifi/breakfast/etc.)
1a. cost as compared to DLR hotels (as in- if you start to see a shift to make it more worth staying on site, like WDW)
2. Walking Distance (to both the parks and parking lots)
3. Room quality/size
4. Amenities – esp. fridges, shuttles, and spa tubs
5. comfort for adults and/or families
This is great- your site is my go-to for so much of my planning. Are you interested in collecting information/recent reviews from guests to add to your data, since I imagine staying even once at all these properties is a chore, much less multiple times?
1. Cost. (dont pad your low price with “resort fees” “wifi fees” and high parking fees. )
2. Walking Distance
3. clean rooms.
Bugs mean you are disqualified.
Breakfast is a nice plus.
Tom, I think it’s time to finally review the Discovery Inn and Suites. That bed bug incident was years ago! The current reviews are fairly positive, and the price and location are decent. I’ve been tempted to roll the dice there for our upcoming Disneyland trip but I’d love to see your opinion on it!
I just looked at TripAdvisor, and I find it very hard to believe all those 5-star reviews are authentic. I’ve walked past that hotel *in the last two weeks* and it still looks sketchy from the outside. Even going back a year in the traveler-uploaded pictures, you can see cockroaches.
I’ll probably stay there eventually if we need a hotel for a runDisney event or something, but I’m in no rush to stay there. I’ve already stayed at many shady hotels in Anaheim without incident, but I feel like continuing to do that is just tempting fate…
Walking distance
Room size/quality
Amenities
Cost
Cost is pretty important for us budgeters but I’m willing to pay more to be closer…
I would rank the same way as Angela.
I love your blog. You always have such great info. As a somewhat local AP holder, we still find ourselves staying in a hotel near the park. We don’t go very often, but when we do we try to go 2 or 3 days in a row. We live almost 2 hours away so driving home each night isn’t practical.
On a side note, I am getting really tired of seeing people complain about AP holders. Disneyland started as a park for locals. We have just as much right to be there as do people from far away. My family tries to go once a month, but often we don’t go that frequently, and we never go during the summer because it is chaos. We spend money in the parks and on hotels. Anyway… just as personal frustration.
What matters to me when making a reservation for a hotel is
1. Quality and cleanliness of hotel. Do they have good beds? I am handicapped and need a good quality mattress.
2. Price. I agree with another one of the commenters that I would prefer a flat rate. Add in parking, etc even if it is a higher rate. I hate all the extra fees. Make me feel that parking is free.
3. Amenities. Especially a pool and free breakfast. With small kids, it can be helpful to take a chunk of one day off from the park and go swimming at the hotel. And free breakfast is a plus for a family with kids.
4. Closeness to park
“On a side note, I am getting really tired of seeing people complain about AP holders. Disneyland started as a park for locals.”
I just look at it this way: people are projecting their frustrations about not living out here. It’s simple envy–everyone knows the west coast is the best coast. If anything, you should feel sorry for them. 😉
Personally we would like to see more “luxury” hotels in Anaheim but I think the market has shifted and Disney and the others should focus on medium prices and lower.
We use to go a lot and always stayed in a suite at the California resort but we haven’t been back in over a year. We go to WDW or Disneyland Paris simply because it’s a better experience. Most of our Disney traveling friends do the same thing now.
Disneyland has a problem with their cheap AP’s with monthly payments the park gets too crowded. Why should many of us pay for a high end room or suite and have to spend our entire time shoulder to shoulder with someone that payed far less than us to be there…
If anything, the shift in the market is *from* Annual Passholders towards tourists and convention guests. There are still a ton more APs and locals at Disneyland than any other Disney park (save for maybe Tokyo), but that’s in large part due to its origins and long history as a locals’ park. It takes a long time to change that.
I think we will further see this in the lead-up to Star Wars: Galaxy’s Edge, with lower-tier APs and payment plans eliminated, and other APs sharply increasing in price.
1. Cost (isn’t admission and food pricy enough? !)
2. Walking distance
3. Room size
As a family with 3 little ones we try to do Disney in as frugal a manner as we can while not overly inconveniencing ourselves. We spend very little time in our hotel room so we really don’t care about extra amenities, but I’d like to know my kiddos feet won’t turn black (had this happen so often! ) and the room won’t stink of bleach (or worse things). We also need space as most rooms max out at 4 people. Adjoining rooms are a great bonus as we like to travel with our extended family. Walking distance is a must cuz Disneyland parking is exorbitant. Which reminds me. I also look for hotels that don’t charge for parking. Give me a flat per night rate without any extra fees pls (even if it’s all rolled into a higher rate! ).
1. proximity, walking distance
2. Separate sleeping area for kids
3. Quality, cleanliness of rooms
4. Cost
We usually stay at the Camelot Inn and Suites in a 1 bedroom suite for less than a regular room on property.
1. Walkability to the parks
2. Quality (especially safety and cleanliness)
3. Room size
4. Cost
1. Walking distance to parks
2. Cost
3. Bed quality (firm, medium or soft)
Thanks for the rankings. I love your blog!
Walking distance from the parks
Room quality and size
Overall cost (rate + fees)
Good free wifi
I’m another WDW regular with occasional DL trips. Early entry and proximity has driven me to the resort hotels more often than not, but the DL Hotel (not to mention the GC) is a pretty staggering cost given the level of the hotel room and service–very nice, sure, but not at the level they charge.
We have frequent Disneyland since 2007! Definitely seen changes in hotels! We love the Spring Hill suites by the convention center! Bunk beds, spacious suites and free hot breakfast! We used to stay at Portofino Inn and Suites, but the hotel needs a refurbishment! It’s nice to have better Hotel, within walking distance! I think more cost efficient suites is what we prefer! In the 10 years going to Disneyland, we have not stayed on site! We are a family of 5, we get more bang for our buck staying off site hotel! 400 bucks a night for paradise pier is too much!
Portofino Inn and Suites has definitely fallen behind the competition in that area. I wouldn’t be surprised to see that hotel sold and torn down, or have a large-scale refurbishment and relaunch.
It’ll be interesting to see how some of the older, independent hotels in Anaheim change (or don’t) as this area continues to develop.
Walking distance to park
Room quality/value
Larger family room/suite
Quick breakfast
Safe area
I’m seriously considering a trip to Disneyland next spring. It’ll be me as a solo parent with a 9 year old and 5 year old. We hike a lot as a family, and they are hearty little souls. We have the financial means to afford the Grand Californian, but over and over I come back to the fact that it just doesn’t pay off in value. My list as I consider options:
1) walking distance to the park — I’ve essentially limited myself to the across the street hotels.
2) Amenities — we often take a break in the afternoon so having something to do has value
3) Room Quality and Size — I have to admit that some of the across the street hotels just seem more worn than I like to see.
4) Overall cost — I’m pretty flexible on this, and thought that if I was getting a lot of bang for my buck I’m comfortable with going higher with cost. However, there is a ceiling — rack rate for On property hotels just doesn’t quite do it for me, though if I was going on super crowded days I might consider it for the daily early entry option. Honestly the addition of Maxpass makes it more likely that I will stay off property as I think I can use it to have a more efficient experience.
Walking distance from the parks
Overall cost (rate + fees)
Other (please specify) – WiFi
Quality of amenities (pool, fitness center, etc.)
Room quality and size
Ability to comfortably sleep 3-4 adults
Family of 3 with teenagers, cost is a concern.
1. Overall cost
2. Walking distance from the parks
3. Ability to comfortably sleep 3-4 adults
4. Wifi. Good signal, preferably free. This is more important now, due to Maxpass.
5. Room quality and size
1. Early Entry / Magic Mornings: I adore knocking out E ticket rides before the park opens, so I’ll pay a premium price to be at a Disney hotel in order to do so. We live in Washington so we only go once each year; maximizing our time is key.
2. Walking distance from the parks: Waiting for a shuttle is more than I can take after queuing up all day. I like the flexibility of going to and fro easily.
3. Room quality and size: Quiet rooms are the key for me in this category. I’m pleased to see hotels adding more family-sized rooms.