RippedMan, it seemed to work out quite well for Newsies, which was also considered a relatively risky venture for Disney since it didn't have a huge name. It tried out at Paper Mill, was a sell-out there, and then transferred to Broadway for a nice, healthy run and I'm sure will now make a killing in licensing and on tour.
I could see Hunchback following a similar track. The Paper Mill does have some advantages by being close to New York. If the show is high profile enough, virtually every paper will send critics, which gives a show far more exposure than the average regional production. There's also lots more chatter and excitement among producers and investors since the show is so close to New York that it can be easier to get people to finance the transfer. Furthermore, we all know every show these days needs tourists to really survive and I would hazard a guest that not a single person who treks to NJ 45 minutes outside the city to see a show in a regional theatre is a tourist. Many people who see it at Paper Mill are either NJ residents, subscribers, or theatre nerds who are probably even more likely to want a repeat viewing since they will get to see all the changes made once it transfers.
Scratch and claw for every day you're worth!
Make them drag you screaming from life, keep dreaming
You'll live forever here on earth.
