I’m thinking hotel too, but being that it shares space with Isle of Curiosity, it could be a deal where it’s accessible to both park and hotel guests. Like maybe it’s shared space, in that when the park is closed, it’s open to hotel guests, and when the park is open, it’s closed to hotel guests. Otherwise, it would be a major PITA to check park tickets every time.
This could be one of those safe cool down calm down spaces. Air conditioned and heated, hopefully calm, where guests can sit down or lie down and relax, experiencing universal IPs via film. I don’t know if they plan on only showing IP tied to the park itself, or universal cartoon shorts, or classic Universal kid franchises like The Land Before Time, and An American Tail, possibly classic DreamWorks 2D films as well.
Yes, “if we wanted to watch a movie from 20-40 years ago, we could do that for free at home!” But “isle of curiosity” seems more than just flex space that could easily change if and when Gabby is no longer relevant to young kids. It looks like a place that wants to encourage and cater to that curiosity. A parent probably won’t want to stay for an entire movie, especially if it’s already 30 minutes in, but may if the kid falls asleep, or if the child is interested enough, they will decide to watch it later at home, possibly even together as a family. Sounds a bit crazy, but it’s possible.