Walt Disney Co. has signed a letter of intent to purchase the 502-room Pan Pacific Hotel near Disneyland from Tokyu Corp., a Japanese conglomerate, according to Pan Pacific executives.
In 1991, Disney attempted to acquire the 15-story hotel as part of an ambitious plan to expand the theme park and build new hotels and parking garages, but the two sides couldn't agree on a purchase price. Since then, Disney has scaled back its expansion plans considerably. The Pan Pacific Hotel is next door to the 1,136-room Disneyland Hotel.
Officials at Disney had no comment on the deal.
Tokyu and other Japanese investors have been selling some of their holdings after seeing property values plummet. Earlier this year, Tokyu sold its Emerald-Shapery Center, a 30-story office and hotel complex in downtown San Diego.