I saw it one season when it was playing at the St. James and remember almost nothing about it, other than that it's pretty short.
I think that one of the reasons that it came back every holiday season for 3 or 4 years in a row was that it had brand recognition for tourist audiences, it was short enough to play several performances a day, and that producers were trying to make it into an annual tradition in line with the CHRISTMAS SPECTACULAR and the Ahrens/Flaherty A CHRISTMAS CAROL musical, which also played an annual holiday engagement for a long time starting in the mid-90's (maybe 8 or 10 seasons in a row?).
My sense is that it never really caught on in the way that was wanted, maybe because it didn't have the eye-popping spectacle of the CHRISTMAS SPECTACULAR or the star/stunt casting of A CHRISTMAS CAROL.
But, prior to the HARRY POTTER play, I believe THE GRINCH was the only production to ever make any money in the Ford/Hilton/Foxwoods/Lyric during the season it played there.