Construction Report 2005
52 Are Under Construction or Will Break Ground in 2005
|By Jeff Coy and Bill Haralson
October 3, 2005 --- Hotels with indoor waterparks are growing from 28% to 36% annually while the overall hotel industry expects new supply to grow less than 1.0% in 2005 and 2006. In 2000, there were only 18 hotel waterpark resorts. Today, over 100 are open nationwide. Twenty-five new additions and expansion projects are expected to open by year end. Hotel waterpark projects under construction have grown from 8 in 2000 to 52 that are under construction or will break ground during 2005.
Clearly, hotel waterpark resorts are not a fad but here to stay. Projects in the development phase grew from 19 in 2002 to 46 in 2003, 69 in 2004 to 121 in 2005.
Construction Project Growth
The number of hotel rooms attached to indoor waterparks is expected to grow from 5,400 in 2000 to a forecast of over 24,000 in 2006, which is an increase of 4.4 times over six years.
Room Supply Growth
The total square footage of indoor waterparks attached to hotels was 732,100 in Year 2000. That number grew to more than 2.3 million square feet in 2005 and is expected to grow to nearly 3.6 million square foot by the end of 2006. The supply of hotel indoor waterpark space grew 24% in 2004, 38% in 2005 and a forecasted 51% in 2006.
Indoor Waterpark Square
Hotel waterpark resorts grew out of Wisconsin during the 1990s, and then spread to adjacent states in the Upper Midwest. The growth pattern is spreading across the northern tier of the USA, with new properties stretching to states in the Pacific Northwest and New England. Many seasonal hotels and resorts now have or will soon open indoor-outdoor waterparks to build revenues on a year round basis. In the future, indoor waterparks will spread to the Sunbelt where desert resort guests and their kids will look for protection from the sun, hot temps and humidity.
Recent Openings: USA
In January 2005, Holiday Inn Grand Forks ND opened a 7,000 sf indoor waterpark which was converted from a pool in its atrium. GM Deb Steding said the waterpark conversion cost $1 million plus another $600,000 was spent on hotel renovations. United Management of Grand Forks purchased the hotel two years and wanted a indoor waterpark to keep up with national trends. Steding said many Holiday Inn franchisees have embraced the indoor waterpark concept with little help from parent company, InterContinental Hotel Group. However, InterContinental has recently received so many requests for waterpark exemptions from franchise holders that it has had to develop several waterpark conversion prototypes for its old holidome concept.
In March 2005, Great Wolf Lodge in Williamsburg VA opened with 301 rooms, 6,500 sf of meeting space and a 64,000 sf indoor waterpark. The waterpark consists of 8 waterslides, 6 pools, 2 hot tubs, lazy river and a wave pool. The 48-foot Fort MacKenzie has over 60 interactive geysers and sprays and tipping bucket that drenches everyone gathered below with 1,000 gallons of water. Total cost was $48 million. Contact General Manager Curtis Brown at 757-229-9700.
In April 2005, Grand Bear Lodge near Starved Rock State Park in Utica IL with 92 lodging units and a 24,000 sf indoor waterpark.
In May 2005, seven new hotel waterpark resorts opened:
Developers Doug Rohde and Joel Cairy opened their Lodge at Brainerd Lakes & Paul Bunyan Waterpark in Baxter MN in August. The lodge has 102 units and 10,000 sf of meeting and convention space for groups of 12 to 500. The 30,000 sf waterpark is state of the art. It is the first in Minnesota and second in the nation to use advanced interactive virtual reality technology. The VR provides slide-riders with a variety of lights, sounds, videos and holographic images that simulate log jams, thunderstorms and Paul Bunyan swinging his ax. Go to www.lodgehotels.com.
Under Construction & Opening in 2005: USA
As of September 29, 2005, we identified six properties that are still under construction which we expect to open before the year ends:
Best Western Edgewater Duluth MN with 282 rooms will open its indoor waterpark addition within the next 30 days. The 23,000 sf waterpark has two waterslides and a lazy river. The property is owned and managed by ZMC Hospitality. Contact Ken and John Goldfine at 218-723-8433 for more information.
The 171-room Best Western Pzzazz in Burlington IA is expected to open its 20,000 sf indoor waterpark, Fun City, in November 2005. Owner Randy Winegard built the indoor waterpark for about $10 million. The waterpark features 2 slides, 3 pools, 1 hot tub, climbing wall and tipping bucket. You can talk to Allison Hanson, director of aquatics, by dialing 319-753-2223. The indoor space also features a family entertainment center with bowling, arcades and electric go-karts. Winegard also negotiated with the city to build a 50,000 sf outdoor waterpark, which will open near his hotel in June in 2006 The outdoor waterpark will feature 4 pools, including a wave pool.
The 78-room Thumper Pond Golf Resort in Ottertail MN will open its 11,000 sf indoor waterpark in November 2005. The owner is Doug Balaha. Phone is 218-367-2431.
Great Escapes Hotel & Waterpark in Lake George NY is expected to open with 200 rooms and a 38,000 sf indoor waterpark in December 2005.
Plan B Development Inc expects to open a yet unnamed 150-unit Condo-Hotel & Indoor Waterpark in Auburn IN before the year ends.
Jeff Henry and the NBGS Group own the Schlitterbahn on South Padre Island TX, voted the Best Waterpark in America by The Travel Channel. On December 10, 2005, Henry plans to open the Schlitterbahn Indoor-Outdoor Waterpark on Galveston Island TX. The $28 million project will feature a retractable roof that can be closed in winter and opened in summer. Sherry Bramson said Hurricane Katrina caused miminal damage and slowed them down only a few days --- the project still plans to open on schedule. The outdoor portion of the project will open in Summer of 2006.
Growth in the Size of Hotel Waterpark Resorts
The number of hotels with indoor waterparks grew from 18 in 2000 to a forecast of 104 open & operating at the beginning of 2006. The average sized hotel waterpark has about 170 rooms. The average number of rooms stays at about 170 rooms while many smaller properties and a few mega-giant waterpark resorts are under construction or in the development process. Total indoor waterpark square footage grew from 487,000 in 2000 to more than 2,370,000 at the start of 2006. See chart.
Growth in Average Size
Indoor waterparks are getting bigger in relation to the number of hotel rooms. In 2000, the big hotel waterpark resorts in Wisconsin Dells dominated the whole industry with an average of 137 square feet of waterpark space per guest room.
In the Years 2001, 2002 and 2003, more and more hotels were built with smaller indoor waterparks compared to the mega-resorts in The Dells, so the waterpark square footage per guest declined to 133, 125 and 125. However, in 2004, 2005 and 2006, the trends are up for larger and larger waterparks in comparison with hotel room counts. It seems that bigger is better for the first entry in a new market.
Under Construction & Scheduled to Open in 2006: USA
Twenty-seven hotel waterpark resort projects are currently under construction with scheduled opening dates throughout 2006:
|Hotel Waterpark Resorts USA||Location||.||Rooms||Indoor Water
|Holiday Inn Pool Conversion to IWP||Grand Forks||MN||142||7,000||200406||200501|
|BW Grand Season Hotel & CC & IWP||Waupaca||WI||90||200401||200501|
|Great Wolf Lodge||Williamsburg||VA||301||64,000||200403||200503|
|Grand Bear Lodge at Starved Rock SP||Utica||IL||92||24,000||200504|
|Kalahari Resort Sandusky||Sandusky||OH||596||80,000||200403||200505|
|Mountain Grand & Avalanche Bay IWP||Boyne Falls||MI||220||83,000||200505|
|Interlaken Resort & Spa Rm Exp WP Add||Lake Geneva||WI||414||50,000||200501||200505|
|Country Springs Hotel Waterpark Add||Waukesha||WI||187||40,000||200405||200505|
|Holiday Inn Express & IWP at 3Play||Hayden||ID||96||25,000||200502||200505|
|Holiday Inn Express & Waterpark||Milwaukee-Oak Creek||WI||115||6,000||200505|
|Bridgewood Conference & Aquatic Center||Neenah||WI||95||5,500||200405||200505|
|Nickelodeon Suites & OWP by Holiday Inn||Orlando||FL||200505||200505|
|Zehnder’s Splash Village Hotel||Frankenmuth||MI||152||30,000||200409||200506|
|Holiday Inn & Suites||Baxter||MN||98||18,000||200407||200506|
|Massanutten Resort IWP Addition||McGaheysville||VA||0||42,000||200507|
|Hotel Condos & Indoor Waterpark||Ocean Shores||WA||60||8,000||200501||200507|
|Comfort Inn & Splash Harbor Glass Atrium||Bellville-Mansfield||OH||100||6,500||200501||200507|
|Holiday Inn & Wild Woods Waterpark||Otsego||MN||125||30,000||200306||200508|
|Lodge at Brainerd Lakes & PB Waterpark||Baxter||MN||102||30,000||
|Great Wolf Lodge||Pocono Mountains||PA||401||90,000||200409||200510|
|Best Western Edgewater IWP Add||Duluth||MN||282||23,000||200510|
|Best Western Pzzazz & IWP/FEC & OWP||Burlington||IA||151||20,000||200411||200511|
|Thumper Pond Golf Resort Expansion||Ottertail||MN||78||11,000||200511|
|Great Escapes Hotel & Waterpark||Lake George||NY||200||38,000||200409||200512|
|Hotel Condos & Indoor Waterpark||Auburn||IN||150||200501||200512|
|Holiday Inn East Rm Exp & IWP Add||Columbus||OH||338||58,000||200410||200601|
|Canad Inns Destination Center||Grand Forks||ND||192||40,000||200503||200603|
|Big Horn Resort (Wingate) & Waterpark||Billings||MT||250||35,000||200503||200603|
|Lake Lawn Resort Condo Expansion P1||Delavan||WI||222||200411||200603|
|Grand Lodge & Waterpark of America||Bloomington||MN||403||70,000||200501||200604|
|Great Wolf Lodge Waterpark Expansion||Wisconsin Dells||WI||0||44,000||200504||200604|
|Mt Olympus I-O Waterpark & Lodging||Wisconsin Dells||WI||387||200502||200605|
|Chula Vista Resort Expansion||Wisconsin||WI||166||80,000||200507||200606|
|Hotel & SplashUniverse & CC/Car Museum||Shipshewana||IN||153||30000||200504||200606|
|Holiday Inn Express Add & SplashUniverse||Dundee||MI||150||30,000||
|Holiday Inn Holidome Conversion to IWP||Elmhurst||IL||250||25,000||200506||200606|
|River Bluff Resort||McGregor||IA||345||49,000||200508||200608|
|Randall's Island Indoor Aquatic Complex||New York City||NY||133,000||200609|
|Sheraton Resort IWP Addition||Danvers||MA||367||60,000||200509||200609|
|Hotel Waterpark Resort||Belvedere||NY||100||30,000||200509||200609|
|Ron Jon Surfpark at Festival Bay Mall||Orlando||FL||0||200510||200609|
|Great Wolf Lodge at Kings Island||Cincinnati-Mason||OH||404||78,000||200508||200610|
|Great Wolf Lodge Suites & IWP Expansion||Williamsburg||VA||100||200510||200610|
|Jellystone Park Exp OWP Add IWP Hotel||Warrens-Tomah||WI||48,000||200511||200611|
|Sheraton Chicago Northwest Add IWP||Arlington Heights||IL||429||46,240||200511||200611|
|Hotel Waterpark Resort||Wausau||WI||125||57,000||200512||200612|
|Double JJ Ranch & New Frontier IWP||Rothbury||MI||50||50,000||200509||200612|
|Holiday Inn & Suites||Maple Grove||MN||150||25,000||200512||200612|
|Hawthorn Suites Midlane Golf IWP Add||Wadsworth||IL||80||25,000||200512||200612|
|Northern Bay Golf Resort & Waterpark||Arkdale/Castle Rock Lake||WI||0||20,000||200512||200612|
|Hotel Condos & Indoor Waterpark||Kent||IN||150||200512||200612|
|Scotts Hotels & Splash Lagoon Expansion||Erie||PA||0||200512||200612|
|Under Construction in Canada
Great Wolf Lodge in Niagara Falls, Ontario, is under construction with a planned opening in Spring 2006. Ripley Entertainment Inc, a Jim Pattison Company, is spending $200 million on the family resort destination that will include a Ripley-owned Great Wolf Lodge and a state of the art 115,000 sf Ripley’s Aquarium of Canada on a 25-acre parcel along the Niagara River, just north of downtown Niagara Falls, Canada. Ripley’s is the first license ever granted for a Great Wolf Lodge by the Great Lakes Companies of Madison WI. Ripley’s Aquarium of Canada will be the third sea life attraction following Ripley’s Aquariums in Myrtle Beach SC and Gatlinburg TN. The northwoods-style hotel will have 404 rooms and 90,000 sf of indoor waterpark. Other features include a themed family restaurant, huge arcade, gift shop, confectionery, Aveda Spa, meeting rooms, fitness center along with outdoor pool and recreation area. Contact Ripley Entertainment at 615-646-7465.
Hotel Waterpark Resort Research & Consulting is a collaboration of Jeff Coy & Bill Haralson. Coy heads JLC Hospitality Consulting and is certified by the International Society of Hospitality Consultants. Haralson heads William L. Haralson & Associates and is a Hall of Fame member of the World Waterpark Association. For more info, contact Jeff at 480-488-3382 or email [email protected]. Website is www.jeffcoy.com. Reach Bill at 972-231-7444 or email [email protected]. Website is www.wlha-inc.com.
|Also See:||Hotel Industry Consultant Opens Michigan Office; MSU Grad Rides Wave of Indoor Waterpark Growth / August 2005|
|12 Predictions On the Future of Ski Resorts / Jeff Coy and Bill Haralson / January 2005|
|17 Predictions On Future Resort Development / Jeff Coy and Bill Haralson / January 2005|
|18 Predictions About the Future of Hotel Waterpark Resorts / Jeff Coy and Bill Haralson / January 2005|
|Condominium Hotels: The Latest Strategy for Hotel Waterpark Resorts / October 2004|
|What Is a Waterpark --- Really? Blending Swimming Pools, Amusement/Theme Parks, Hotels & Resorts Calls for New Definitions / October 2004|
|Hotel Waterpark Resort Industry Report 2004; 14 New Hotel Waterparks Open, 32 Under Construction / October 2004|
|Hotel Waterpark Resorts - Construction Report 2004; 32 Are Under Construction or Breaking Ground in 2004 / Aug 2004|
|Ski Resorts Expand Year Round Revenues, Add Outdoor & Indoor Waterparks / Jeff Coy & Bill Haralson / May 2004|
|Jeff Coy and Bill Haralson Find a Way to Get Waterparks Flowing at Hotels and Resorts / April 2004|
|Hotel Waterpark Resort Industry Report - 2003 14 New Hotel Waterpark Resorts Open / October 2003|
|What’s It Going to Cost to Build a Hotel With an Indoor Waterpark? A Guide to Cost Allocations for Developers / Jeff Coy and Bill Haralson / May 2003|
|Hotel Waterpark Resort Industry Report - 2002 / Jeff Coy and Bill Haralson / Nov 2002|
|So You Want to Build a Hotel Indoor Waterpark / Jeff Coy and Bill Haralson / Sept 2002|
|Hotel Waterparks Grow Throughout Midwest, Product Ready for National Expansion / Bill Haralson and Jeff Coy / April 2002|
|Hotel Indoor Waterparks Boost Revenues, Extend Peak Season to Year Round / Jeff Coy, ISHC / January 2002|
|Wisconsin Dells Becoming a Land of Haves and Have-Nots; Waterpark Hotels Achieved 26 Points Higher Occupancy Than Regular Hotels in 2001 / April 2002|