- Loews Hotels & Co. is investing $1B to open three hotels tied to Comcast’s new Epic Universe theme park in Orlando, adding 2K rooms to the market.
- The hotels are expected to capitalize on demand with the park’s May 22 opening, as the Orlando hotel market is forecasted to see nearly 6% revenue growth this year.
- The new theme park will include lands dedicated to Harry Potter, Super Nintendo World, and Universal’s classic movie monsters, aiming to attract longer vacationers.
Loews Hotels & Co. (L) is making its largest expansion ever with a $1B joint venture with Comcast’s Universal Destinations & Experiences (UVV), according to Bloomberg.
Behind The Partnership
The company is set to open three new hotels in Orlando, directly tied to the opening of Comcast’s Epic Universe theme park on May 22.
The combined effort will introduce 2K new rooms to a market where hotel demand and revenue have declined in recent years. Despite this, Loews CEO Alex Tisch expects a major surge in visitors once the theme park opens.
Epic Universe will be the third full-fledged Universal park in the area and is designed to appeal to tourists seeking longer stays.
Unique Themes and Perks
With new themed areas like Harry Potter, Super Nintendo World, and Universal’s iconic movie monsters, the park is set to rival nearby Walt Disney Co. (DIS) parks, enticing visitors to extend their vacations and visit multiple parks in the area.
Meanwhile, the new hotels, including the Universal Helios Grand Hotel and Universal Stella Nova Resort, will offer guests immersive experiences, with the latter featuring a space-themed lobby with a ceiling that sparkles like a starry sky.
These resorts will also provide guests with special perks such as early park access, free shuttles, and merchandise delivery directly to their hotel rooms.
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The Loews-Universal partnership dates back to 1999 when Universal introduced its second park, Islands of Adventure, and Loews opened the Italian Riviera-themed Portofino Bay Hotel.
With the addition of the new hotels, Loews will have 11 properties in Orlando, with over 11K hotel rooms—more than half of Loews’ national room inventory.
Optimistic Outlook
Despite the Orlando hotel market facing challenges, including 1% less air traffic, Loews remains optimistic. Last year, wealthier Americans shifted away from domestic tourism to European vacations, while inflation-sensitive travelers cut back on leisure spending.
Loews is banking on the higher demand spurred by the theme park to boost hotel occupancy and generate returns. With the Epic Universe opening, the Orlando market is projected to see nearly 6% more revenue per available room, reaching $147 in 2025.
With the opening of Epic Universe, many visitors who may have delayed trips to Orlando are expected to show up in force, providing a much-needed boost to the city’s tourism and hospitality market.
