The Army-owned and operated hotel near the Magic Kingdom attraction is 99% occupied and not open to the general public. Hospitality industry analysts agree Shades of Green is the most successful hotel operation in the United States, largely because it caters to a captive audience at below-market room rates.

Room rates vary depending on military rank. A private for example, pays $62 per night; captains, $87. Typical room rates in nearby Disney area hotels generally average $150 per night in season when the economy is bubbling. Current Disney area hotels have dropped prices by 50% to 70% at some locations.

The Army will fund Shades of Green's expansion with funds from private lenders. The Army's four global resort locations use room revenue and no federal funding to pay for daily operations. The 500-person staff of fulltimers and part-timers are on the Army's payroll, not Disney's.

The Army's Community and Family Support Center in Alexandria, VA runs the military hotels. Chief Operating Officer Pete Isaacs heads the center. Isaacs couldn't be reached for comment at GlobeSt.com's publication deadline. But Orlando area hospitality industry brokers tell GlobeSt.com the Army-run hotels always operate at a profit.

Besides the Lake Buena Vista, FL hotel, the Army operates the 816-room Hale Koa on Wakiki Beach, Hawaii; the 401-room Dragon Hill in Seoul, Korea; and four small hotels totaling 335 rooms in Germany near ski locations. All of the inns are at 95%-plus occupancy.

The Army bought Shades of Green, formerly Disney Inn, from Disney in 1993 for $43 million or $149,826 per room. Room rates at the time averaged $160 per night. Disney still owns the land on which Shades of Green sits and charges the Army an undisclosed annual rent for the dirt.

Instant Insights /

Army Plans $50-Mil Expansion at Shades of Green

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