23 Hotel Waterparks Expect to Open in 2011

2011 Construction Report North America
23 Hotel Waterparks Expect to Open in 2011
10 Coco Key Waterparks Bought at Auction for Bargain Prices
By Jeff Coy and Amanda McDaniel
June 15, 2011 --- American families with young kids and resort developers with cash both
delight in the fact that 16 hotel waterpark resorts have already opened for summer peak
season, while 7 more are scheduled for completion by year end. Despite a recession and
lack of construction loans, 23 hotel waterpark resorts are expected to open in 2011. At the
height of growth, 34 opened in 2007, then 24 in 2008, 29 in 2009 and 19 in 2010.
Construction Project Growth
Hotel Waterpark Resorts USA
Open at beginning of year
Openings during year
Total Open at end of year
Percent Change
2011F
247
23
270
9.3%
2010
228
19
247
8.3%
2009
199
29
228
14.6%
2008
175
24
199
13.7%
2007
141
34
175
24.1%
2006
108
33
141
30.6%
2005
82
26
108
31.7%
2004
65
17
82
26.2%
2003
50
15
65
30.0%
2002
42
8
50
19.0%
2001
33
9
42
27.3%
2000
19
14
33
Source: Jeff Coy, JLC Hospitality Consulting, 480-488-3382.
Are hotel waterpark resorts recession-proof? No, but they are recession-resistant as many
families recreate closer to home and spend less money. Are all hotel waterparks winners?
No, but most out-perform the hotel industry’s average occupancy. Ten hotels with Coco
Key Waterparks were bought at auction last February by savvy buyers for bargain prices
that were about 10% to 15% of each hotel’s pre-recession value. Here’s what is happening
in 2011:
Hotel Waterparks In USA Under Construction & Opening in 2011
Name
Aqua Duck on Disney Dream Cruiseship
Budget Host Suites & Caribbean Indoor Waterpark
Celine Dion's Home Waterpark
Trade Winds Resort Adds Floating Inflatable Outdoor Waterpark
Coast Inn Adds $1.3m Barnacle Bill's Outdoor Waterpark
Darien Lake Enlarges Splashtown & Adds Cabins to Campground
Gaylord Texan Paradise Springs Waterpark
Schlitterbahn KCK Adds Slides & Rides & Future HIWP UD
Greek Peak Ski Resort Adds Outdoor Adventure Center
Wings & Waves IWP at Evergreen Air Museum
Mt Olympus Adds Former Luna Inn & Suites
Mt Olympus Adds Former 4 Seasons
Mt Olympus Adds Former RainTree Resort - 155 Rms,10000IWP
Mt Olympus Adds Former Star Motel Resort
Location
Port Canaveral
Lancaster
Jupiter Island
St Pete Beach
Waveland
Buffalo
Grapevine
Kansas City
Cortland
McMinnville
Wisconsin Dells
Wisconsin Dells
Wisconsin Dells
Wisconsin Dells
FL
PA
FL
FL
MS
NY
TX
KS
NY
OR
WI
WI
WI
WI
Rooms
1250
70
584
93
24
1511
0
0
0
72
47
0
93
OWP
SqFt
IWP
Sq. Ft.
10,000
13,000
20,000
65,340
217,800
435,600
1,000,000
0
70,000
Open
Date
201101
201102
201103
201103
201104
201105
201105
201106
201106
201106
201106
201106
201106
201106
Mt Olympus Adds Former River Walk Hotel
Mt Olympus Adds Former American World Resort & Campground
Atlantis Marine World Aquarium Adds Hyatt Place & Ballroom
Splash Lagoon's Addition of Indoor Wave Pool
Quality Inn & Suites Waterpark Hotel
Adrenalina Extreme Store's Flowrider at Xanadu Mall
Maui Sands Hotel & IWP
Schlitterbahn New Braunfels Adds 12 Treehouses & Rapids River
Jay Peak Hotel & Spa & Indoor Waterpark
Total Under Construction & Projected Opening in 2011
Cumulative Projected Total Open Year End 2011
Wisconsin Dells
Wisconsin Dells
Riverhead, LI
Erie
Knoxville
Meadowlands
Sandusky
New Braunfels
Jay
WI
WI
NY
PA
TN
NJ
OH
TX
VT
23
289
55
160
100
0
84
300
12
170
4,625
70,141
32,000
2,500
55,000
1,751,740
8,941,042
60,000
220,500
6,164,747
201106
201106
201107
201108
201109
201112
201112
201112
201112
Source: Jeff Coy, JLC Hospitality Consulting, 480-488-3382.
What Opened in the First Half of 2011?
Aqua Duck on the Disney Dream cruise ship opened in January. The 2,500 passenger
Disney Dream introduced a giant 765-foot long, 4-deck high water coaster called the Aqua
Duck. Riders board a 2-person raft and are propelled by high-powered water jets on a highspeed ride around the perimeter of the ship’s top deck. The Aqua Duck takes passengers
13 feet out over the edge of the ship inside a transparent acrylic tube 150 feet above the
sea. The ride zips past the Tween Kid’s Club and glides through 335 feet to river rapids
before splashing down. Whitewater West of Vancouver BC manufactured and installed the
theme park style water flume which allows Disney to trump all cruise competitors. “There is
definitely a trend to go with larger, faster, more exciting and more experiential rides,”
according to Andrew Mowett, vp of resorts for Whitewater. Home port for the Disney Dream
is Port Canaveral. Call 800-951-3532 or go to www.disneycruise.disney.go.com. Resort
developers wanting more info on the water coaster should go to www.whitewaterwest.com.
Budget Host Inn & Suites in Lancaster PA opened its Caribbean Indoor Waterpark in
February. The 10,000 sf indoor waterpark is attached to the 70-room hotel. It is open year
round on weekends only. The waterpark features two slides, tipping bucket, a lily pad rope
walk, teen activity pool, vortex pool and spa. Guests of the adjacent Wingate Hotel can also
use the waterpark, along with the Economy Inn, ½ block away and the EconoLodge, 1 block
away. For more, call 717-397-7781 or go to www.lancasterbudgethost.com.
Celine Dion's Home Waterpark on Jupiter Island FL was completed in March 2011.
Normally, we ignore residential pools in
our commercial industry report, unless
the sheer size reaches commercial
levels.
The Canadian singer’s outdoor
waterpark is 13,776 sf with two pools
holding a half-million gallons of water,
several waterslides and a lazy river. The
waterpark is attached to her 9,800 sf
house on a 5.7-acre beachfront property
valued at $20 million. Dion drilled 3
wells to supply the necessary water,
which also cools the air-conditioning units. There’s also a reverse osmosis system that
purifies the water to 98% on its way to the waterpark. Building the giant home waterpark
was a 5 year process for the Las Vegas performer.
Trade Winds Resort on St Pete Beach FL added a 20,000 sf floating outdoor waterpark in
March 2011. Not really land-based, the Splash Island outdoor waterpark is a new concept
that consists of inflatable water toys, such as slides, runways, splash mats, trampolines and
an 8-person Rock-It. Splash Island can accommodate about 150 people at one time.
Registered guests reach the island park by wading and/or swimming out to it. Open to the
public on a space available basis, a one-hour pass costs $25 or $16 for guests who pay
with a room key. Life guards are on duty and all guests are required to wear life jackets.
The water equipment is anchored in place and is dismantled each night. Trade Winds, at
6000 Gulf Blvd, has 584 rooms on 20 acres and 1,200 feet of beach front along the Gulf of
Mexico. “Calling it an aquatic Disney World would a stretch, but this is the largest waterpark
of its kind in Florida,” according to Trade Winds president Keith Overton.
In April 2011, Coast Inn in Waveland MS added a 65,340 sf outdoor waterpark costing
$1.3 million. Bill Lady and his brother Steve own the 93room hotel. They decided to build a waterpark to help drum
up revenue. The concept is called Barnacle Bill’s. It
features a children’s pool with a pirate ship, two 25-foot
slides, a 390-foot long lazy river and an 18-hole miniature
golf course. Plus there are covered pagodas to rent for
parties, a snack bar, lockers and first-aid station. Open to
the public for $20 a day or $15 to hotel guests. Great idea
for an economy hotel to build business in the aftermath of
Katrina! To discuss this idea, call Bill and Steve Lady at 228-467-9261.
Darien Lake Theme Park in Buffalo NY, in May 2011, enlarged its Splashtown waterpark,
added 24 cabins to its campground and transformed 10 of its hotel rooms into bunkbed, logcabin style rooms. The $7 million project added 5 acres to the 6.7-acre waterpark. The
addition to the waterpark, called Swirl City Slide Complex, has four different water slides.
The waterpark has a funnel slide, a cannon ball high-speed plunge, dueling slides, lazy river
and a 44,500 gallon wave pool. The Lodge on the Lake offers 160 rooms --- 10 being brand
new forts of fun --- and two high-demand family suites. Hotel rooms start at $170 per night.
The 24 new Brown Bear Cabins, at $280 per night, are part of Cabin Village within the
campground. For more adventurous families, RVs up to 35 feet are also available for rent
starting at $165 per night, according to Christopher Thorpe, general manager. For more,
call 585-599-4641 or go to www.godarienlake.com.
The Gaylord Texan Hotel & Convention Center in Grapevine TX opened its Paradise
Springs Waterpark in May 2011. The 1,511-room hotel, which is focused on the meetings &
convention market, introduced a western-themed outdoor waterpark that offers a 10-acre
pool, 27-foot tall winding water slide, 600-foot lazy river, 3 hot pools and a 6,000 sf lagoon
to compliment its 400,000 sf of meeting space. For the adventure sports enthusiast, the
Gaylord also added a 42-foot long zipline where the rider drops into a pool at the end of the
line. The Pool Bar & Grill offers a suds and grub menu. Private cabanas are available for
rent. Great example of a large upscale convention hotel offering a waterpark for leisure
guests. Now there is a reason for the spouse and children to join the conference attendee -- building occupancy and revenues for the hotel. To discuss this opportunity, call 817-7782000 or go to www.gaylordhotels.com.
In June 2011, Schlitterbahn Vacation Village in Kansas City, Kansas added new rides
and slides to its 1,000,000 sf outdoor waterpark which opened last summer. The $5 million
phase two additions include a simulated surf ride, a mile-long rapids river, 2 head-first mat
slides, an enclosed tube slide, a whitewater tube chute and a ride-up Aqua Veyer (tube
conveyor) to eliminate wait times and the need to climb stairs, according to marketing
director Chris Ozimek. The waterpark already had 2 mat slides, surf rider, rapid river,
torrent river, slow river 3 tube slides, 3 tube chutes, Torrent Beach, Torrent Cove and
Henry’s Hideout when it opened phase one last year. But the new additions bring the total
work force to more than 500 during the Summer 2011 Season. In phase three,
Schlitterbahn will have a hotel with indoor waterpark. The project cost for the fullycompleted attraction is $750 million. Schlitterbahn is a Henry family-owned business with
waterparks in Texas --- New Braunfels, South Padre Island and Galveston --- plus Kansas
City. For more about Schlitterbahn KCK, talk to general manager Keith Fontenot. Dial 913312-3110 or visit www.schlitterbahn.com/kc.
Greek Peak Ski Resort in Cortland NY added a $20 million Outdoor Adventure Center in
June 2011, which includes a zipline, ropes challenge course, climbing wall, tubing center
and a mountain coaster – all open all year. There are 4 ziplines ranging from a 300-foot
training zipline to 500 feet, 900 feet and 1,165 feet. All ziplines have dual lines so you can
race against your friend. The ropes course offers 18
different events and challenges.
The Alpine Mountain Coaster is 4,300 feet long and
reaches speeds up to 25 mph. Greek Peak is helping to
lead a trend where ski resorts are adopting the 4-season
strategy and adding adventure sport facilities. Ski
resorts at Attitash Mountain NH, Park City UT, Crystal
Mountain MI, Okemo VT and Camelback PA all have
Alpine Mountain Coasters.
The 106-room Hope Lake Lodge and 41,000 sf indoor waterpark opened at Great Peak in
October 2009 which attracted families with kids 14 years and younger, but teens needed
more excitement during warm weather, according to Al Kryger, president. “And that’s why
we decided to build the adventure center --- full family participation and more action during
the summer,” he said. A conference center is scheduled to open in September. For details,
call 800-955-2754 or go to www.theoutdooradventurecenter.com or www.greekpeak.net.
Resort owners and developers wanting to know more about Alpine Mountain Coasters, go
to www.aquaticgroup.com.
Evergreen International Aviation in McMinnville OR opened its Wings & Waves
Waterpark in June 2011. A Boeing 747 rests atop the new $30 million indoor waterpark
which bills itself as the nation’s only educational and aviation themed waterpark. In addition
to an aircraft on top of its roof, the 70,000 sf waterpark
features 10 water slides, a 91,703 gallon wave pool
and a children’s museum dedicated to teaching
students about the power of water. It is adjacent to the
Evergreen Aviation & Space Museum, which features
the Spruce Goose and is trying to get one of the
retiring space shuttle orbiters. Looking like no other
waterpark, 4 of the 10 water slides actually depart from
the plane itself before descending down 56 feet
through the roof of the building and into the waterpark
below. Wings & Waves is open daily. Admission is
$30 per person or $25 for those less than 42 inches in height. Entering the museum costs
$10. The waterpark was built by Hoffman Construction with Counsilman-Hunsaker of St
Louis acting as waterpark consultants and Group Mackenzie as lead architects. Anderson
Poolworks supplied the pools and Water Odyssey the play features. A hotel in the planning
phase may start construction in 2012. For more, go to www.evergreenmuseum.org or
www.evergreenairlines.com.
Nick and Eva Laskaris own the Mt Olympus Water & Theme Park in Wisconsin Dells WI,
which includes the 350-room Hotel Rome. But they needed more hotel rooms. By June
2011, they had closed on their purchases of 6 additional hotels and motels in Wisconsin
Dells WI. At first they considered spending $13 million to build a new 200-room hotel, but
had second thoughts. Instead, they bought 1000
rooms for $20 million --- mostly smaller, older
properties whose owners could not afford to upgrade
them. Reflecting national hotel market conditions, the
buy at a bargain price and renovate strategy seemed
a winner for the Laskaris’. Mt Olympus acquired the
Luna Inn & Suites, the 4-Seasons, Raintree Resort,
Star Motel, River Walk Hotel and American World
Resort & Campgrounds. All of the purchases are on
land contracts with 10 to 15 year terms. No one loses
a job and all of the properties will use a single reservation system, according to Laskaris,
who is changing out carpets, bedding and door locks for the summer season. Some of the
hotels will get new Treehouse lodging units and/or campsites. All will get new names to fit
into the Greek & Roman theme. To talk to Nick and Eva Laskaris, call 608-254-2490 or go
to www.mtolympuspark.com.
What’s Scheduled to Open by Year End?
Seven more hotel waterpark resorts are scheduled to open in the USA by year-end 2011.
In July 2011, Atlantis Marine World Aquarium will open its new $21 million Hyatt Place &
Conference Center in Riverhead, Long Island NY. The 100-room Hyatt is adjacent to the
aquarium, which opened in 2000. Typically, an aquarium is not an indoor waterpark, but
there is nothing typical about riding a cage into the shark tank, paddling with penguins and
snorkeling for pirate’s treasure --- making the experience highly interactive. The aquarium
draws 300,000 visitors each year. Currently, management considers its market to be only
Suffolk and Nassau counties because it’s too far for people in New York City to drive for just
a day visit. Most local hotels are filled during peak times, so the new Hyatt Place allows the
Atlantis Marine World to increase its attendance by drawing from a wider market. The hotel,
built by Petrocelli Construction, is slated to open its Sea Star Ballroom in the fall. The
property will offer 9 meeting spaces covering 12,000 sf, according to Bryan DeLuca,
executive director for Atlantis Holdings. Plans to convert an old theater into a performing
arts center, add 14 movie screens, plus the new Hyatt and the aquarium will help to create
an entertainment district for downtown Riverhead. Steve Shauger is the newly appointed
Hyatt general manager. American Resort Management of Erie PA is the management
company. For more, call 631-208-9200 or visit www.atlantismarineworld.com.
Splash Lagoon of Erie PA plans to open its new indoor wave pool in August 2011.
Splash Lagoon opened in 2003 connected to three hotels has hosted 1.8 million guests.
Over the years, the owners, Nick Scott Sr and Nick Scott Jr of Scott Enterprises, wanted to
add an indoor wave pool. “At first, we planned a 41,000 sf wave pool building,” according to
Nick Sr. “We had already bid it when we
tried to finance it during the recession.
We got over that hurdle by keeping the
wave pool the same size and shrinking
the building a little bit.” Instead, the new
building will be 32,000 sf and cost $8 to
$9 million. The expansion will give
Splash Lagoon about 110,000 sf of
water surface. That’s nearly double the
amount it opened with back in 2003.
Weber Murphy Fox designed the
building. Aquatic Pools & Construction
built the indoor wave pool. The 250,000-gallon wave pool will generate waves ranging from
3 feet to 5 feet high with different patterns. If you want to talk to the Scotts, dial 866-3775274 or if you want to see construction update photos, go to www.splashlagoon.com.
Quality Inn & Suites Waterpark Hotel in Knoxville TN is expected to open in September
2011. The 84-room hotel with 2,500 sf water feature is under construction on 18 acres at
323 North Cedar Bluff Road next to Starbucks where the old Budget Inn used to be.
There’s a large indoor pool with water slides and an indoor hot tub. Nearby, Zuma Fun
Center offers miniature golf courses, go-karts, bumper boats, batting cages and an arcade.
Call the hotel at 865-531-8005. The hotel is managed by North Cedar Hospitality LLC.
Website is www.northcedarhospitality.com.
Adrenalina Extreme Stores had always planned to install a Flowrider surf simulator at their
store in Xanadu Mall at the Meadowlands NJ, but construction at the mall stopped when
Lehman Brothers went down. For several years now, the mall has been a political hot
potato. In January 2011, Triple Five, owners of Mall of America and West Edmonton Mall,
met with creditors and signed an agreement to re-develop the stalled mall. Major surgery
was planned along with a name change. In April 2011, Triple Five reached agreement with
lenders and NJ’s governor to take over the mall, now called American Dream Meadowlands.
The developer will invest $1 billion and the state will provide up to $200 million in tax
breaks. Reportedly, Triple Five will continue with original plans to build an indoor waterpark,
indoor snow center and indoor skydiving facility. Adrenalina executive David Malamud says
“we are still opening a store there,” but there’s much work to be done by year end 2011.
Adrenalina has extreme stores in Orlando, Tampa and Plano TX. Flowriders are installed in
the Tampa and Plano stores. To reach Adrenalina, call 305-770-4488.
Maui Sands Hotel & Waterpark in Sandusky OH is expected to re-open in the second half
of 2011. Former Cleveland Browns running back Jamal Lewis and his partner Brownlee
Reagan of Reagan Resort Properties bought the long-stagnant indoor waterpark for $3
million. J Lew Financial is the new ownership entity. The 300-room hotel and 55,000 sf
waterpark originally opened in March 2008, but closed in November of that same year as
contractors claimed then owner Scott Emerson owed them millions of dollars. About $19
million was owed to Charter One Bank. A receiver was appointed to protect the asset and
find a buyer. New owners, Jamal Lewis and Brownlee Reagan are trying to open 160
rooms and portions of the hotel waterpark this summer while also finishing construction. J
Lew Financial also purchased the Fort Rapids Hotel & Waterpark in Columbus OH in July
2010. To reach Maui Sands, call 419-626-6671.
Schlitterbahn in New Braunfels TX expects to add 12 treehouse-themed resort rooms
and a new 3,600 foot long whitewater river by year end 2011. The owners have cut trees
and cleared a site along the Comal River. They say they will use the logs for a dozen resort
houses they plan to build, and they will replant trees. Schlitterbahn Waterpark Resort is an
economic giant in this city founded by German settlers. The New Braunfels park has the
highest attendance of any outdoor waterpark in the USA, according to co-owner Jeff Henry.
Adding lodging means the waterpark resort can attract a larger audience from farther away
who will stay longer and spend more in New Braunfels. At the site of the new section called
Tubenbach, 68 old cabins were removed to make way for a new hotel on site. The 65-acre
park was opened in 1979. It has 7 children’s water playgrounds, 17 water slides, a surfing
machine and 3 uphill water coasters. Soon, it will have lodging. For more, call 830-6252351 or go to www.schlitterbahn.com.
Jay Peak Ski Resort in Jay VT is scheduled to open its 40,000 sf indoor waterpark by year
end and open its new 120-room Jay Hotel by February of 2012. Bill Stenger, president and
co-owner of Jay Peak, has adopted the 4-season strategy for success in the ski business --create revenue-producing activities for winter, spring, summer and fall. Jay Peak will soon
boast a state of the art indoor waterpark with slides,
pools, lazy rivers and water play areas covered by a
massive retractable roof enclosure that opens up in
warmer weather. The indoor-outdoor waterpark promises
to transform Jay Peak from a winter-only spot to a year
round resort destination. Waterpark features include an
Aqualoop, whose trap door drops out, sending riders
plummeting 70 feet down a twisting tube. The waterpark
will also have one of the country’s longest lazy rivers.
Black River Design of Montpelier VT designed the
waterpark built by DEW Construction of Williston VT and OpenAire of Toronto ON.
OpenAire’s retractable roof won’t just look good, it will be good for the environment too.
Unlike traditional structures, it leaves a smaller carbon footprint and saves more energy.
When the enclosure is open, humidity is exhausted naturally through the roof, so
mechanical systems that control the atmosphere can be turned off, saving energy. Plus the
polycarbonate roof and insulated glass lets in lots of sunlight, so no energy is used to light
the building during daylight hours.
Jay opened its new $22 million Tram Haus Lodge in February 2010. The slope-side hotel is
just a snowball’s throw from the Old Hotel Jay, which was demolished to make way for a
new conference center and a second new hotel with 120 units, a spa and 3 restaurants,
rounding off a $125 million 2-year expansion at Jay Peak that also includes a golf
clubhouse, ice arena and outdoor pool. “We have a great location that attracts Montrealers,
New Englanders and New Yorkers,” says Stenger. For more, call 800-451-4449 or go to
www.jaypeakresort.com. To see an animation of the retractable roof, visit
www.openaire.com/jay-peak-ski-resort.aspx.
Hotel Waterpark Resorts Bought & Sold
During 2011, Nick Laskaris, owner of Mt Olympus Water Theme Park in Wisconsin Dells WI,
bought 6 hotels with 1,000 rooms for $20 million.
Percy Pooniwala, owner of Perin Hospitality of Roseville MN, closed on the purchase of the
Ramada Minneapolis Northwest & Grand Rios Indoor Waterpark for $5 million from the
Wirth Companies Inc last July. The property has 224 rooms and a 45,000 sf indoor
waterpark.
And Great Wolf Resorts Inc sold its 182-room Blue Harbor Resort & Waterpark in
Sheboygan WI for $4.2 million to Claremont New Frontier Resort LLC, a joint venture of
Claremont Companies of Bridgewater MA and New Frontiers Capital of Auburn Hills MI.
Claremont owns 13,000 apartments, senior housing and an interest in eight hotels. New
Frontiers has an interest in the Mountain Grand Lodge and Avalanche Bay Indoor
Waterpark at Boyne Mountain Ski Resort in Michigan.
But the real surprise to the industry was the February auction of the 10 Coco Key Water
Resorts. The sellers of the Coco Key waterpark hotels were various partnerships consisting
of Wave Development Inc, Horizon Construction, Hexagon Financial, all of Wisconsin, and
Sage Hospitality Resources of Denver. Here is a list of hotel waterpark resorts sold along
with sales prices and the names of the new owners:
Buyers Find Bargains at Coco Key Water Resort Auction
Name
Location
Marriott Coco Key Resort
Mount Laurel
NJ
Rooms
283
$4,900,000
Start Bid
$7,500,000
$26,502
Willner Realty & Development Co, Ardmore PA
Crown Plaza Coco Key Resort
Danvers
MA
366
$6,900,000
$10,100,000
$27,596
Lightstone Value Plus REITs I & II, NJ
BW Clock Tower Coco Key Resort
Rockford
IL
245
$2,900,000
$4,845,750
$19,779
Beltway Hospitality / Allied Hospitality of Houston
Cherry Valley Coco Key Resort
Newark
OH
200
$2,900,000
$4,970,000
$24,850
Allied Hospitality Inc of Houston
Holiday Inn Coco Key Resort
Omaha
NE
383
$1,900,000
$6,250,000
$16,319
Century Development Co of Rapid City SD
Fairfield Inn Coco Key Resort
Cincinnati
OH
95
$ 500,000
$1,800,000
$18,947
Unavailable
Crowne Plaza Coco Key Resort
Cincinnati
OH
257
$ 600,000
$2,200,000
$8,560
Unavailable
Holiday Inn Coco Key Resort
Kansas City
MO
369
$1,900,000
Holiday Inn Coco Key Resort
Waterbury
CT
282
$1,500,000
Courtyard Coco Key Resort
Fitchburg
MA
245
$2,700,000
$2,000,000
Sold Price
Per Room
$0
$4,400,000
$15,603
$0
Buyer
Willner Realty & Development Co, Ardmore PA
Tejinder Singh of Long Island NY
First auction no serious bidders
Second auction held June 7-9, 2011
Compiled by Jeff Coy, JLC Hospitality Consulting, June 2011.
•
Marriott Mount Laurel’s 283 rooms & 55,000 sf Coco Key Waterpark sold at auction for
$7.5 million to Michael Willner of Willner Realty & Development in Philadelphia-Ardmore
PA --- that’s $26,502 per room. Estimated value of the resort was $50 million based on
new construction costs when it opened in 2008. The 14-acre resort, now called Hotel
ML, was running an annualized 62.7% occupancy at the time of auction.
•
The Crowne Plaza Coco Key Resort with 366 rooms and a 65,000 sf indoor waterpark
sold at auction for $10.1 million or $27,596 per room to Lightstone Value Plus REITs I &
II of New Jersey. The hotel waterpark achieved 50.2% annualized occupancy at time of
sale. The hotel opened in May 2007 in Danvers MA, north of Boston with a new
construction value estimated at $67 million.
•
The 245-room BW Clock Tower Coco Key Resort with its 60,000 sf indoor waterpark
sold at auction for $4.8 million. Estimated value based on cost to build when it opened
in 2007 was $45 million. Annualized occupancy at time of sale was 42.2%. Buyer was
Steve Hsu of Beltway Hospitality, a subsidiary of Allied Hospitality of Houston TX.
•
Cherry Valley Resort & Coco Key Waterpark, east of Columbus OH, with 200 rooms and
a 45,000 sf indoor waterpark, sold at auction for $4.9 million to Steve Hsu of Allied
Hospitality of Houston TX. That’s $24,850 per room for a hotel valued at $36 million and
running 57.7% occupancy.
•
The 383-room Holiday Inn & 60,000 sf Coco Key Waterpark in Omaha NE sold at
auction for $6.2 million to Century Development Co of Rapid City SD. The hotel was
running 45% occupancy.
•
The 95-room Fairfield Inn Coco Key Waterpark in Cincinnati OH sold at auction for $1.8
million or $18,947 per room to a buyer not yet identified.
•
The 257-room Crowne Plaza Coco Key Waterpark in Cincinnati OH sold at auction for
$2.2 million (only $8,560 per room) to an unknown buyer.
•
The 369-room Holiday Inn & 55,000 sf Coco Key Waterpark in Kansas City MO sold at
auction for an undisclosed price to Michael Willner of Willner Realty & Development Co
of Phiadelphia-Ardmore PA. Starting bid was $1.9 million. Estimated value of $55
million when it opened in March 2008.
•
The 282-room Holiday Inn & 55,000 sf Coco Key Waterpark in Waterbury CT sold at
auction for $4.4 million or $15,603 per room to Tejinder Singh of Long Island NY.
•
The 245-room Courtyard & 55,000 sf Coco Key Waterpark in Fitchburg MA had no
serious bidders at the first auction February 2011; the starting bid was reduced from $2.7
million to $2.0 million for the second auction held June 7-9, 2011.
While hotel real estate values dwindled during the Great Recession, these Coco Key
Waterpark hotels were purchased at prices that range from 10% of 17% of their prerecession values. What an easy way for certain hotel owners/developers to enter the hotel
waterpark resort business!
What’s Expected to Open in the USA in 2012?
Hotel Waterparks in USA Under Construction & Opening in 2012
Name
Clarion (former HI) Hotel & Palm Island IWP
Bolivar Indoor Waterpark with Openaire Retractable Roof
Kalahari Resort's Adds to Convention Center, Family Villas
Jay Peak Hotel Adds Conference Center
Fort Hall Casino Adds Hotel CC & P2 Waterpark UD
Holiday Inn Express & Water-Zoo IWP with OpenAire Roof
Ocean's Park Hotel & Indoor Waterpark
Lost Island Waterpark Adds Cabins & Campsites
Soaring Eagle Inn & Waterpark
Bahama Bay OWP & Hotel Indoor Waterpark UD
Great Wolf Lodge at the Galleria Pittsburgh Mills
Riverhead Resort's 4 Hotels, Indoor Ski & IWP, CC, FEC
Indian Ridge Resort & Indoor Waterpark
Lakeland Landing Hotels(2), Indoor Waterpark & Retail
Blue Mtn Ski Area Adds Summit Splash OWP & Hotel UD
Splash Resort IWP
New Hotel (former Oaks demolished) & IWP
Mt Olympus' America World Adds Treehouses & Campsites
Total Under Construction & Projected Opening in 2012
Cumulative Projected Total Open Year End 2012
Location
Batavia
Bolivar
Sandusky
Jay
Pocatello
Clinton
Gulf Shores
Waterloo
Mount Pleasant
Pasco
Tarentum
Riverhead, LI
Branson
Yakima-Ellensburg
Danielsville
Sioux Falls
Sioux Falls
Wisconsin Dells
NY
MO
OH
VT
ID
OK
AL
IA
MI
WA
PA
NY
MO
WA
PA
SD
SD
WI
18
307
Rooms
195
0
30
OWP
SqFt
IWP
SqFt.
12,000
27,000
156
28,000
150
244
45000
522,720
400
1150
300
220
390
80,000
827,640
3,235
73,376
1,350,360
10,291,402
100,000
45,000
Open
Date
201202
201203
201203
201203
201205
201205
201206
201206
201206
201206
201208
201211
201212
201212
201307
201309
201309
201312
337,000
6,481,747
Source: Jeff Coy, JLC Hospitality Consulting, 480-488-3382.
What’s Happening in Canada, Mexico & Caribbean?
Canada has a hotel pipeline of 124 projects in 2011 according to Lodging Econometrics
after bottoming for five straight quarters. Canada has the world’s 6th largest hotel pipeline
after the USA, China, India, UK and Brazil. Most projects are in Canada’s leading cities: 22
in Toronto, 8 in Calgary and 7 in Edmonton --- although not all are hotel waterpark projects.
Baymount Hotel Waterpark at Quinte Exhibition & Raceway in Belleville ON is under
construction with 150 rooms and 22,000 sf indoor waterpark that will open in 2011 --bringing the total to 128 hotel waterparks identified in Canada.
Four Canadian hotel waterparks are scheduled to open in 2012:
•
•
•
•
All-Suites Hotel with 300 rooms at Fallsview Indoor Waterpark in Niagara Falls ON.
Calypso Waterpark’s addition of a hotel, campground and retail in Limoges-Ottawa.
Marriott Hotel with 450 rooms and 70,000 sf indoor waterpark at Wasaga Beach ON.
First Nations 100-room hotel and 30,000 sf indoor waterpark at Millbrook-Truro NS.
If all four properties open, that brings the total to 132 hotel waterparks identified in Canada.
In Mexico, we have identified no hotel waterparks under construction.
In the Caribbean, the $2.6 billion Baha Mar Resort & Eco-Waterpark at Cable Beach,
Nassau, Bahamas is under construction with 1,200 rooms and 871,200 sf of outdoor
waterpark space. There will be 3 hotels operated by Rosewood, Hyatt and Morgan’s Hotel
Group. Sarkis Ismirlian is the visionary developer. China is heavily invested in this project,
which is scheduled to open in 2014.
In Other News
•
Splash Universe hotel indoor waterpark in Dundee MI reopened in March 2011 after 8
months of repairs due to tornado damage.
•
Caribbean Cove Hotel & Waterpark in Indianapolis IN has dropped its Holiday Inn brand
after 30 years of being a Holiday Inn.
•
Watiki Indoor Waterpark, attached to two hotels in Rapid City SD, added a second
retractable roof enclosure by OpenAire. There’s one over the indoor waterpark and a
second sunlit space that covers Slider’s Bar & Grill along with side panels that offer the
ultimate in patio dining.
•
Both Noah’s Ark in Wisconsin Dells WI And Jay Peak Ski Resort in Vermont unveiled the
first Aqualoops in the USA --- a slide/ride by Whitewater West that is like standing in a
phone booth when the trap door suddenly drops open.
•
The Holiday Inn Express & Waterpark in Elmhurst IL has dropped its affiliation with
Holiday Inn. The hotel is now called The Waverton Hotel.
•
Camelback Mountain Waterpark in Tannersville PA is adding two new family raft rides
this summer at a construction cost of $2 million.
•
KeyLime Cove, Chicago’s indoor waterpark resort, was named 2010 eMarketer of the
Year by Travel Click.
•
Avalanche Bay indoor waterpark at Boyne Mountain Ski Resort in Michigan was ranked
among the Top 10 USA Indoor Waterparks by Budget Travel magazine.
•
The Northpointe Inn & Waterpark in Mackinaw City MI was closed, sold and renamed the
Bridge Vista Beach Hotel & Convention Center and reopened in May 2011.
•
Great Wolf remains in talks to rework its Kansas City waterpark loan.
•
Sahara Sam’s Oasis Indoor Waterpark in West Berlin NJ opens the H2O Beach Club for
the Over-21 Crowd.
•
Kalahari Waterpark Resort in Sandusky OH recently added a zipline, rock climbing wall,
ropes course and a small petting zoo.
•
West Edmonton Mall in Alberta, which attracts 28 million visitors a year, is under-going a
2 year multi-million dollar facelift. The mall is adding three new slides to World
Waterpark this summer. Two new extreme slides will replace the existing Skyscreamer
waterslide. “We’re getting a slide called the Aqualoop (by Whitewater West) which will
start from the highest peak in the waterpark and slide inside a clear tube that does an
actual vertical loop like a roller coaster and empties out in a pool down by the bottom,”
said mall president Don Ghermezian.
Hotel Waterpark Resorts In Development
We have identified 317 hotel waterpark projects in the development stages --- from concept
through permitting --- in North America: 3 in Mexico & Caribbean, 21 in Canada and 293 in
the USA. The states with the most hotel waterpark projects in development are:
Wisconsin 23
Michigan
21
New York
21
Illinois
19
Pennsylvania 18
Minnesota 17
California
16
Indiana
15
Texas
12
Florida
10
Iowa
10
Not all of these projects will get funded or break ground, but the volume does show strong
market support for the commercial viability of the hotel waterpark resort concept. If you
have corrections or updates, please email them to [email protected].
That’s what’s happening in the hotel waterpark resort industry in 2011.
Stay positive, work smart and do the right thing!
Jeff Coy, ISHC, is president of JLC Hospitality Consulting based in Phoenix-Cave
Creek AZ. He is certified by the International Society of Hospitality Consultants.
Amanda McDaniel is director of research. For more about market research,
economic feasibility and design-development services for all kinds of resorts,
waterparks, adventure parks and sports facilities, call 480-488-3382 or email
[email protected] or go to www.jeffcoy.com.