Disney Canceled a BIG Project for Downtown Disney and Is Still Living with the Fallout

The Disneyland Resort may have big plans for its future, but that doesn’t mean we’ve forgotten about a recent failure.

Downtown Disney

Disneyland’s Downtown Disney District is coming along quite nicely with tons of new offerings and a slight expansion. Throw in plans for the Resort’s decade-long, multi-billion-dollar expansion, and Disneyland is looking pretty great these days in terms of its future. With that said, we can’t forget a massive canceled project that has left lingering effects felt even to this day.

Downtown Disney doesn’t have a massive list of recently-canceled projects of significant magnitude, but it does have one that continues to stand out more than half a decade after its cancellation.

©Disney

In 2017, Disney announced that a fourth resort hotel would be coming to the property. The hotel was to be situated in front of the Disneyland Hotel and take up most of the westernmost portion of Downtown Disney.

Disneyland Hotel

The new hotel would’ve featured 700 rooms, and construction was so real at one point that Downtown Disney permanently closed the AMC Theatres cinema, ESPN Zone, and Rainforest Cafe in the summer of 2018. Smaller stores like Earl of Sandwich and Starbucks closed but would later reopen elsewhere.

ESPN Zone building

If you’ve been to Downtown Disney recently, you’ll notice that ESPN Zone, Rainforest Cafe, and the movie theater are all still gone, and there is no fourth hotel. That’s because a disagreement between Disney and the City of Anaheim over the subsidy and the prospective hotel’s location ultimately led to a pause. 

The former ESPN Zone building

Eventually, in late 2018, Disney canceled the hotel project and left the area vacant. The Rainforest Cafe turned into the Star Wars Trading Post (the exterior of the building was slightly altered but still looks very similar to the old tenant’s theme) in 2021, while the former ESPN Zone began installing new shops in 2025.

Star Wars Trading Post in Downtown Disney

While Downtown Disney has recovered well, it hasn’t been until recently that the stink of the failed 2018 project has started to wear off. The ESPN Zone building was mostly left unused and a reminder of what once was. Star Wars Trading Post also only takes up a small portion of the Rainforest Cafe building, leaving much to be desired. And with no movie theater, that whole area of the district felt simply abandoned.

Vista Parkside Market entrance

Parkside Market, new shops, and Din Tai Fung now reside in the space, along with a new entrance and small park, bringing much-needed life to Downtown Disney. As Disneyland continues to evolve and make better use of its property, it moves further and further away from the disaster that was this failed hotel project.

Still, we can’t help but pine for the good ol’ days of ESPN Zone.

Downtown Disney stage

We’ll continue to keep you posted on all things Disneyland, so stay tuned right here at AllEars for the latest updates!

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One Reply to “Disney Canceled a BIG Project for Downtown Disney and Is Still Living with the Fallout”

  1. My primary concern down at that end of town is STEAKHOUSE 55!!!
    Why is it still closed? What on Earth are they planning to do with the space?
    And what the heck was wrong with keeping it open (reopened) after the Covid pause???