On June 7, 2016, the Disneyland Resort announced that it is planning a fourth on-property hotel, with construction slated to start in 2018, and an opening slated for 2021 in preparation of Walt Disney World's 50th anniversary celebration and Disney California Adventure's 20th anniversary celebration. The proposed luxury hotel property would have approximately 700 guest rooms, and would be built to satisfy AAA's Four Diamond Award rating, a rating also held by the neighboring Disneyland Hotel and Disney's Grand Californian Hotel & Spa. The hotel's theme, if any, has yet to be announced.
In 2015, the Anaheim city council voted to offer a tax incentive to developers to attract the construction of more luxury hotels in the city. In November of that year, developer Wincome Group submitted plans to construct two luxury hotels on the sites of the current Anaheim Plaza Hotel & Suites and Anabella Hotel under the city's incentive policy. In June 2016, Disney announced it would be constructing a luxury hotel under this incentive as well, prompting both praise and opposition from Anaheim city council members. Councilwoman Lucille Kring stated, "At this time, we’re getting about $35,000 in property tax from the Downtown Disney parking lot. If the Disney luxury hotel is built, we will get multiple times the revenue for the city. [...] That’s entirely new income and we’re always trying to pay down our debt and provide more services for the residents." Mayor Tom Tait expressed disappointment with Disney, stating, "I don’t think Disney needs a subsidy. They do quite well without one. Our city needs that tax revenue to provide basic services to our residents. [...] The council already voted to not tax them for 45 years, and that’s not enough. So, they want us to write them a check every year for 20 years. I think it’s outrageous." Disney struck a deal with the city in 2015 to ban a main gate tax on theme park tickets for at least 30 years in exchange for $1 billion in investment by Disney into the resort. However, Disney has stated that this hotel is not included in that investment plan.
On October 25, 2017, the hotel was announced to be located at the western end of Downtown Disney, on property currently occupied by Rainforest Cafe, ESPN Zone, AMC Downtown Disney 12, and Earl of Sandwich, and previously occupied by the original phases of the Disneyland Hotel. The current Disneyland Monorail System platform will be replaced with a dedicated station inside the hotel. A previous station in this location served the Disneyland Hotel complex from 1961 to 1999. There are no plans to reroute the monorail track to accommodate this change.