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Hotel Waterparks Construction Report 2008

33 Hotel Waterparks Opened in 2007,
55 Scheduled for 2008

By Jeff Coy and Bill Haralson, February 2008

February 4, 2008 --- During 2007, thirty-three (33) hotels with indoor waterparks opened, including new additions and expansion projects, bringing the total to 169 hotels with 28,888 rooms and 4,132,469 square feet of indoor waterpark space. The room supply at waterpark hotels grew 20.9% in 2007 compared to room supply growth of 1.4% at ordinary hotels.

Eighty-three (83) new hotel waterpark additions and expansion projects are under construction or expected to break ground during 2008. A total of 55 hotel indoor waterparks with 14,615 rooms and 2,287,840 square feet of waterpark are expected to open by year end 2008. Another 33 properties already are scheduled to break ground in 2008 with opening dates in 2009 and 2010.
 

 Construction Project Growth
 Hotel Waterpark Resorts USA
 
2008 F
2007
2006
2005
2004
2003
2002
2001
2000
Open at beginning of year
169
136
104
81
65
50
41
32
18
Openings during year
55
33
32
23
16
15
9
9
14
Total Open at end of year
224
169
136
104
81
65
50
41
32
Percent Change
32.5%
24.3%
30.8%
28.4%
24.6%
30.0%
22.0%
28.1%
 
 
 
Under Construction
83
93
73
52
32
9
10
9
8
In Development
 
166
108
121
69
46
19
 
 
Source: Jeff Coy & Bill Haralson, Hotel Waterpark Resort Research & Consulting. Feb 4, 2008.

Hotel Waterpark Resorts That Opened in 2007

Of the 33 properties that opened in 2007, a few have special features worth mentioning:

Westgate Resorts, a division of Central Florida Investments, opened a 60,000 sf indoor waterpark, Wild Bear Falls, at their Westgate Smokey Mountain Timeshare Resort in Gatlinburg TN. Wild Bear Falls features a state of the art retractable roof and showcases the artistic creations of local artist W. R. Fannin. Other features include a lazy river, body slide, tube slide, zero entry pool, toddler play area and a treehouse with tipping water bucket. Westgate has timeshare properties in Las Vegas, Orlando, Branson, Williamsburg, Mesa, Park City, Miami and Myrtle Beach. You can reach company president, David Siegel, at 877-584-0012.

Owners of the Mt Olympus Water and Theme Park in Wisconsin Dells WI purchased the neighboring Treasure Island Resort and four other properties that have been repositioned as a single Greek-themed entertainment complex. The 156-acre resort features 358 rooms, the 65,000 sf Bay of Dreams indoor waterpark, numerous outdoor water facilities and one of the world’s largest surf pools called Poseidon’s Rage. The $7 million surf pool is similar to Disney World’s 2.7 million gallon Typhoon Lagoon, the largest in the country. However, Poseidon’s Rage, the second largest at 1.5 million gallons, makes a wave that can be adjusted from 5 feet to 9 feet high. To make the waves, manufacturer Whitewater West explained that eight chambers are filled with a combined 160,000 gallons of water. The waves are created when doors on the chambers release a surge of water. "Poseidon’s Rage is the closest thing to ocean surfing and allows surfers to use their own surf boards," according to the sole proprietors of Mt Olympus, Nick and Eva Laskaris.

Harrah’s Atlantic City Casino Hotel opened The Pool, part of a $550 million expansion featuring a walk-up bar under a 90 foot high glass dome, which provides UV protection. The 172,900 sf water entertainment complex features an Olympic-size indoor adult pool amid a tropical setting, 12 cabanas and 7 hot tubs. Not exactly an indoor waterpark, it is one of the largest indoor leisure pools in the country. "It really turned out beautifully," according to Gary Loveman, ceo of Harrah’s Entertainment Inc of Las Vegas.

Wave Development LLC of Milwaukee purchased the 367-room Sheraton Ferncroft in Danvers MA, completed a major renovation and opened a new 65,000 sf indoor waterpark called Coco Key in May 2007. Coco Key cost $20 million and features 4 waterslides that range from 286 to 353 feet in length, 320-foot long rapid river and a tipping water bucket. The company partners with Horizon Construction Group of Verona WI and Sage Hospitality Resources of Denver CO for construction and management.

In November 2007, Wave Development opened a 50,000 sf Coco Key waterpark resort at the 357-room Sheraton in Cincinnati-Sharonville OH, a hotel it acquired and renovated. The company has a strategy of acquiring under-performing hotels in good markets, renovating them and constructing its own brand of indoor waterparks to balance the business-leisure customer mix and achieve higher occupancies and revenues. Wave Development LLC has hotel waterparks in Chicago-Arlington Heights IL, Rockford IL, Newark OH, Danvers MA, Omaha NE and Cincinnati-Sharonville OH. New developments are underway in Kansas City MO, Mt Laurel NJ, Waterbury CT and Fitchburg MA. The company is expected to surpass industry leader Great Wolf Resorts in terms of the number of properties owned/managed. You can reach the partners, Mark Flaherty, Ed Carow and Chuck Heath, at 608-848-4500.

Chula Vista Resort owner Mike Kaminski embarked on a 4-year $200 million expansion plan that started in 2005. When the expansion is completed in 2009, Chula Vista Resort in Wisconsin Dells WI will have about 1000 condos and hotel rooms, 100,000 sf of waterpark and 200,000 sf of convention space. In 2007, Kaminski opened 150 new condos and an 80,000 sf sports dome that can handle conventions and major sporting events. Future plans call for a 150,000 sf conference center, a second 80,000 sf sports dome and major additions to his existing 80,000 sf indoor waterpark. Chula Vista is now positioned among the top three largest hotel waterpark resorts in the nation along with Kalahari Resort and Wilderness Hotel & Golf Resort. You can reach Mike at 608-254-8366.

In December 2007, Great Wolf Resorts Inc opened its 402-room Great Wolf Lodge and 80,000 sf indoor waterpark in Grapevine TX. Called Bear Track Landing, the indoor waterpark features 6 pools, 9 waterslides, a 12-level climbing structure, a 1000-gallon tipping water bucket and an enclosed 6-story Howlin Tornado extreme funnel ride. For the first time, Great Wolf will offer its teenage guest a dedicated tech center with a Tech Jockey concierge to help with internet stations, karaoke staging, movies and musical entertainment. The resort also offers an 84,000 sf outdoor waterpark. Great Wolf Resorts Inc will open its next property at Grand Mound WA in March 2008 in partnership with the Chehalis Tribe of Indians. Future projects have been announced for Charlotte NC, Bloomington MN, Mashantucket CT and Lake Lanier GA. Talk to John Emery, ceo of Great Wolf Resorts Inc, at 608-251-6400.

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In December 2007, Todd Nelson more than doubled the size of his Kalahari Resort in Sandusky OH --- making it the nation’s largest hotel indoor waterpark. Nelson added 288 new rooms, bringing the total to 884 and making it the largest hotel in Ohio. The indoor waterpark more than doubled in size from 80,000 sf to its current 173,000 sf. Features include 12,000 sf wave pool, a 4-lane Mat Racer slide where racers can compete with fellow racers, a bowl funnel slide and a second FlowRider, where surfers can ride a sheet of water flowing under them. Kalahari Resort Sandusky OH is the site of a Developer’s Workshop, called Developing & Financing Hotel Waterpark Resorts, scheduled for February 28 & 29, 2008. To register, go to www.hotelwaterparkworkshop.com. Kalahari owner Todd Nelson recently announced the construction of his third waterpark resort in Fredericksburg VA. You can reach Todd at 608-254-3750. 

Here is a completed list of all hotel indoor waterparks and resorts that opened during 2007, along with locations, room counts and waterpark size:
.


Todd Nelson 
Kalahari Resort

Hotel Waterpark Resorts Opened in 2007

USA
Number
Indoor WP 
Open 
Opened During 2007
Location
Of Rooms
Sq. Ft. 
Date 
Clock Tower Resort Add IWP Rockford IL
252
60,000 
200701
IWP at Sea Island on the Beach Myrtle Beach SC
149
10,000 
200701
Holiday Inn & Suites & IWP Maple Grove MN
136
25,000 
200702
Westgate Smokey Mtn Resort's Wild Bear Falls IWP Gatlinburg TN
0
60,000 
200703
Holiday Inn West Holidome Conversion Topeka KS
197
11,000 
200703
HI Express Splash Universe Add Rooms & IWP Dundee MI
176
25,000 
200704
Bridges Bay Resort & IWP Spirit Lake IA
141
19,800 
200704
Mt Olympus (former Capt Quarters) Wisconsin Dells WI
200704
Mt Olympus (former Familyland OWP) Wisconsin Dells WI
200704
Mt Olympus (former Pleasant View) Wisconsin Dells WI
200704
Harrahs Casino Hotel & Domed Pool Atlantic City NJ
172,000 
200705
Sheraton Resort Add Coco Key IWP Danvers MA
367
65,000 
200705
Canad Inns Splashers at Alerus Center Grand Forks ND
192
40,000 
200705
Flying L Ranch Add Rooms & OWP Bandera TX
76
200705
Lodge & IWP at Northern Bay Golf Resort & Marina Arkdale WI
225
20,000 
200706
Quality Inn & Suites Rain IWP Addition Sandusky OH
89
5,000 
200706
Chula Vista P2 Add Condominiums Wisconsin Dells WI
150
200706
Chula Vista P2 Add Dome Sports Center Wisconsin Dells WI
0
200706
Glacier Canyon Lodge Add Golf Course Wisconsin Dells WI
0
200706
Hotel Condos & Indoor Waterpark Seattle-Woodinville WA
150
200706
BW Ramkota Hotel Convert IWP Casper WY
229
200706
Isle of Capri Casino Hotel at Lost Island OWP Waterloo IA
200
200707
Holiday Inn Suites & Dome Waterpark Toledo-Maumee OH
106
22,000 
200708
Lodge at Storm Lake & Kings Point Waterpark Storm Lake IA
100
20,000 
200708
Holiday Inn Central Add IWP Omaha NE
383
60,000 
200709
Splash Universe Waterpark Resort Shipshewana IN
154
25,000 
200709
Radisson Resort & Waterpark Albuquerque NM
314
23,000 
200709
Best Western Ramkota Aberdeen Convert IWP Aberdeen SD
154
11,000 
200709
Glacier Canyon Lodge Add to Conference Center Wisconsin Dells WI
0
200709
Sheraton North Add Coco Key Waterpark Cincinnati-Sharonville OH
357
50,000 
200711
Great Wolf Resort Add Conference Center Traverse City MI
200711
Great Wolf Lodge at Grapevine Grapevine TX
404
80,000 
200712
Kalahari Resort Additions IWP, Condos Sandusky OH
288
93,000 
200712
Source: Jeff Coy & Bill Haralson, Hotel Waterpark Resort Research & Consulting. Feb 4, 2008. 

USA Lodging Industry Performance Was Good in 2007

Year 2007 hotel industry occupancy was 63.2%, down 0.2 percent versus 2006. However, average room rates increased 5.9 percent to $103.64, and revenue per available room (RevPAR) gained 5.7% to $65.50, according to Mark Lommano, president of Smith Travel Research. "The US lodging industry turned in another good performance in 2007. We expect another good year in 2008. Room supply growth will reach the long term trend number of just over 2 percent. Demand (rooms sold) growth should continue but will likely be lower than supply growth, resulting in declining occupancy," said Lommano. Average room rate growth will totally drive RevPAR gains of 4.0 percent to 4.5 percent in 2008.

PriceWaterhouseCoopers expects that the US hotel occupancy will drop only slightly to 62.9% in 2008 compared to 63.2% in 2007, according to PWC’s principal Bjorn Hanson. This is "within a few tenths of an occupancy point of the highest occupancies in 10 years," he said. PWC expects 2008 supply growth will be greatest in the upscale hotel tier.

During 2007, the cost of materials rose between 3 percent and 5 percent, pushed by cement and steel, while increases in copper also are expected, according to a June 4th article in Hotel & Motel Management. The increased prices on copper as well as freight increased about 15 percent for hotel chains in the northeastern region. Higher fuel prices affected both the manufacturing and delivery of goods, such as hotel furniture, fixtures and equipment.

What’s Ahead for 2008?

While there are signs of a slowing economy --- due to higher fuel costs, higher construction costs and a residential mortgage crisis that is affecting hotel lending --- there are also positive signs for the hotel industry, especial regional resorts with indoor waterparks.

A weaker US dollar attracts hundreds of thousands of international visitors to the USA, which is good for the hotel, travel and attractions industry. The merging of lodging, recreation and entertainment concepts are making drive-to regional resorts very competitive with the fly-to national resort destinations. And hotels with indoor waterparks typically out-perform the hotel industry in terms of higher occupancy, higher room rates and higher revenues.

Hotel Construction Is Increasing

Smith Travel Research reports 211,000 hotel rooms in the development pipeline in December 2007 compared to 156,000 in December 2006 --- a 35.5% increase.

The 2008 Lodging Industry Construction Pipeline stood at 5,438 projects and 718,387 hotel rooms at the end of 2007 --- representing a 36% increase over last year, according to Patrick Ford, president of Lodging Econometrics of Portsmouth NH. New hotel openings were increasing in 2007 with a growth rate of 2.2%. New hotel supply growth is forecast at 2.8% for 2008 and 3.4% for 2009 taking into account anticipated market conditions. However, "2009 could decline slightly if economic and lending conditions worsen more than expected," says Ford.

Will Money Be Available for Hotel Lending?

At America’s Lodging Investment Summit (ALIS) a few days ago, 3000 attendees met to discuss future hotel deals. Jubilation faded, but most insiders felt that while some hotels would get financed, others would find it more difficult --- primarily due to the negative news of home foreclosures spilling over to hotel lending. Most experts are sitting on the fence regarding the economy in 2008, but say that hotel room rates will remain strong throughout the year. Upsets in the financial markets usually do not cause a dip in the hotel industry until six months later, that is, even if one occurs. Developers may experience a longer wait in 2008, but things will be fine in 2009.

For years, leisure travelers and families with kids have sustained the hotel industry, while the business traveler segment was up and down. Consumers represent 2/3rds of the American economy, and history has shown that families continue to getaway on weekends and mini-vacations --- even during economic downturns --- so recreational regional resorts are expected to do well. Hotel waterpark resort developers will continue to analyze markets and determine economic feasibility. And while it may take a little longer to find the money, the best deals will get financed.

Here is a list of hotel waterpark resort projects that are already under construction and expected to open during 2008.

Hotel Waterpark Resorts Scheduled to Open in 2008

USA
Number
Indoor WP 
Open 
Under Construction & Opening in 2008
Location
Of Rooms
Sq. Ft. 
Date 
Silverleaf's The Villages Resort at Lake Palestine Flint-Tyler TX
19,000 
200801
Double JJ Ranch Add Phase 2 Rooms Rothbury MI
137
200801
BW Timber Creek CC + Detached Waves of Fun Sandwich IL
100
200801
Bluegreen Odyssey Dells at Mt Olympus Resort Wisconsin Dells WI
24
200801
Red Jacket Mountain View Add IWP North Conway NH
162
40,000 
200802
Grand Sierra Resort & Casino Expansion Reno NV
2000
150,000 
200803
Lake Lawn Resort Additions Phase 2 Delavan WI
800
130,000 
200803
Wingate + 2ndHotel WP & Action Sports Park Syracuse-VanBuren NY
287
90,000 
200803
Great Wolf Lodge Grand Mound WA
390
67,000 
200803
Marriott Resort Add Coco Key IWP Mt Laurel NJ
285
65,000 
200803
KeyLime Cove Resort & IWP Phase 1 Gurnee IL
414
64,500 
200803
Silver Mountain Resort's Silver Rapids IWP Kellogg ID
268
45,000 
200803
The Water Resort Condo Hotels Pigeon Forge TN
336
35,000 
200803
Deadwood Mountain Resort & IWP Deadwood SD
10,000 
200803
Borgata Casino Resort & Water Club Atlantic City NJ
800
172,000 
200804
Maui Sands Family Suites & IWP Sandusky OH
310
55,000 
200804
Ron Jon Surfpark at Festival Bay Mall Orlando FL
0
26,000 
200804
Big Horn Resort (Wingate) & Waterpark Billings MT
109
23,000 
200804
Wilderness Resort #1Hotel & Event Center Sevierville TN
236
52,000 
200812
Comfort Inn & Suites Pool Conversion Omaha NE
169
5,000 
200804
Timberlake Lodge & Grand Splash Waterpark Grand Rapids MN
84
200804
Volente Beach Add Hotel & Indoor WP Leander-Cedar Park TX
250
38,340 
200805
Legacy Grand East Gate Condo-Hotel Waterpark Kissimmee FL
200805
Sheraton CC & Paradise Bay Waterpark Fishers IN
250
80,000 
200806
Ramada Add Rooms, IWP & Conference Center Urbandale IA
200
40,000 
200806
Valley of Springs Resort & Big Splash Island French Lick IN
156
40,000 
200810
WanaWaves Resort & Waterpark St Louis MO
160
25,000 
200806
Comfort Inn & Suites Indoor Waterpark Somerset OH
98
20,000 
200806
Metropolis Hotel & Waterworks Eau Claire WI
107
30,000 
200806
Honey Creek Resort State Park & IWP Rathbun Lake IA
105
200806
Great Adventure Water Resort (Days) Bellevue-Omaha NE
129
30,000 
200807
Lodge at Schlitterbahn Vacation Village Kansas City KS
650
200807
Legend at Bergamont GC Add Clubhouse & I-OWP Wales-Oregon WI
0
200807
Randall's Island Aquatic Center New York City NY
0
182,000 
200808
Frontier Lodge Conference Center & IWP LaSalle IL
464
61,000 
200808
Splash Universe Waterpark Resort at Mills St Louis-Hazelwood MO
150
30,000 
200808
Inn at Okoboji Add IWP, CC & Condo Hotel West Lake Okoboji IA
243
20,000 
200808
Sheraton Coco Key at Truman Sports Complex Kansas City MO
374
60,000 
200810
Hilton Garden Inn & Aqualand Waterpark Fargo ND
110
17,000 
200810
Wilderness Resort #2 Condo Hotel & I-OWP Sevierville TN
233
80,000 
200811
Glacier Lakes Resort Aquazonia IWP Farmington NY
275
70,000 
200811
Volcano Island Resort CC & I-OWP P1 Fairmont WV
300
50,000 
200811
Split Rock Resort IWP Addition Lake Harmony PA
500
48,000 
200811
Sahara Sam's Oasis West Berlin NJ
0
72,000 
200812
Sun Island Waterpark Resort Hoffman Estates IL
506
70,000 
200812
Grand Cambrian Resort Wisconsin Dells WI
350
50,000 
200812
Greek Peak's Hope Lake Lodge IWP Syracuse-Virgil NY
106
40,000 
200812
Mackinaw Bay Lodge & IWP Mackinaw City MI
235
200812
Wyndham Garden Hotel & Condo & IWP Kent WA
144
6,000 
200812
Bluegreen Odyssey Dells at Mt Olympus Resort Wisconsin Dells WI
75
200812
Belle Island Village Hotel Waterpark Resort Pigeon Forge TN
200812
Hilton Waterpark Resort Near Briggs Ranch San Antonio TX
350
200812
Great Wolf Lodge Room & Mtg Room Additions Grapevine TX
200
20,000 
200812
Splash Universe Waterpark Resort near Cabela's Greenwood IN
100
20,000 
200812
Hotel I-OWP at Wild Escape Theme Park Wheeling-Dallas Pike WV
700
200812
Source: Jeff Coy & Bill Haralson, Hotel Waterpark Resort Research & Consulting. Feb 4, 2008. 

What’s Ahead for 2009 & 2010?

Here is a list of hotel waterpark resort projects that are under construction or expected to break ground during 2008 and scheduled to open during 2009 and 2010. Realistically, not all of these projects will get funded.

Hotel Waterpark Resorts Scheduled to Open in 2009 & 2010


USA
Number
Indoor WP 
Open 
Under Construction & Opening 2009-2010
Location
Of Rooms
Sq. Ft. 
Date 
Holiday Inn & Proposed Add IWP Waterbury CT
284
65,000 
200901
Canad Inn & IWP Bismarck ND
260
40,000 
200902
BW Timber Creek& CC & Detached Waves of Fun Sandwich IL
100
69,000 
200903
Hampton Inn & Hilton Garden Inn & IWP Chicago-Bridgeview IL
300
60,000 
200903
Sheraton Paradise Bay at Fishers Marketplace Fishers IN
300
80,000 
200903
Shipwreck Falls Lodge IWP West Warwick RI
347
65,000 
200903
Chula Vista Phase 2 Add Conference Center Wisconsin Dells WI
0
200903
Chula Vista Phase 2 Add 2nd Dome Sports Center Wisconsin Dells WI
0
200903
Grand Empire Resort & IWP Atlanta-Lithonia GA
450
150,000 
200906
KeyLime Cove Resort IWP Phase 2 Gurnee IL
611
80,000 
200906
BW Timber Creek & Waves of Fun IWP Add OWP Sandwich IL
0
200906
Splash Universe Waterpark Resort Hammond IN
160
22,000 
200906
Courtyard Renovation Add CoCo Key IWP Fitchburg MA
245
60,000 
200906
Great Wolf Lodge Charlotte NC
409
81,000 
200906
Chula Vista P2 Additions to IWP Wisconsin Dells WI
0
200906
Legacy Hotel Waterpark & Biodome Sault Ste Marie MI
300
200907
Hollister Waterpark Resort Branson-Hollister MO
908
100,000 
200907
Abbey Resort & Spa IWP Addition Lake Geneva WI
334
20,000 
200910
Crowne+3 at Grand Isle Resort CC & IWP Linthicum-BWI MD
130,000 
200910
Boone Crossing Hotel Waterpark Resort I-65 & 334 Indianapolis IN
250
50,000 
200912
Grand Isle Resort (4 hotels) & Crosswinds IWP Baltimore MD
1100
145,000 
200912
Wildwood Beach Condo Hotel & Waterpark Resort Wildwood NJ
340
30,000 
200912
Las Vegas Wet Hotels(2), I-OWP & I-Snow Dome Las Vegas NV
1200
350,000 
200912
Splash Resort & CC at Redstone Village Sioux Falls SD
200912
Nickelodeon Resort by Marriott San Diego CA
650
100,000 
201001
Chula Vista Phase 2 Add Condominiums Wisconsin Dells WI
534
201001
WB Resort & Waterpark Seaport Pier North Wildwood NJ
425
90,000 
201002
Main Street Themed I-OWP Grayling MI
0
201006
Source: Jeff Coy & Bill Haralson, Hotel Waterpark Resort Research & Consulting. Feb 4, 2008. 

What’s the future?

In the long term, here are our predictions about the future of hotel waterpark resorts:

  • Hotel waterpark resorts are not a fad.
  • Hotels with indoor waterparks will continue to grow faster than the hotel industry.
  • Hotel waterpark resorts under construction will continue to rise each year.
  • Indoor waterparks will increase hotel occupancy, increase room rates and increase room revenues over typical hotels without indoor waterparks.
  • Resorts are excellent candidates for indoor waterparks.
  • Recreational locations with interstate highway access within 200 miles of a major metro area are excellent targets for hotel waterpark development.
  • Ski resorts will continue to be prime candidates for indoor waterpark development.
  • The first hotel with an indoor waterpark to open in a new market will become first choice among leisure travelers.
  • Almost all major markets will attract a hotel waterpark developer in the next few years.
  • Almost all future hotel waterpark resorts will be designed as indoor-outdoor combinations.
  • Every hotel owner and developer will DO SOMETHING with water.
In the short term, hotel construction will increase during 2008 causing occupancies to soften slightly, but hotel room rates and revenues per available room (RevPAR) will remain strong. Negative news from residential foreclosures may spill over to hotel lending. It may take longer to find the money, but the best deals will get financed.

Jeff Coy is president of JLC Hospitality Consulting based in Cave Creek AZ. You can reach him at 480-488-3382 or email jeffcoy@jeffcoy.com or go to www.jeffcoy.com. Bill Haralson is president of William L. Haralson & Associates of Alto NM. You can reach him at 505-802-1522 or email wharalson@aol.com or go to www.wlha-inc.com.

.
Contact:

Jeff Coy
HOTEL WATERPARK RESORT
Research & Consulting
JLC Hospitality Consulting
PO Box 4090, 39401 N. 67th Place
Cave Creek, AZ 85327-4090
480-488-3382 tel
Email jeffcoy@jeffcoy.com
Website www.jeffcoy.com 
 

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Also See: Hotel Waterpark Resort Industry Report 2007; 48 Hotel Waterparks Opening, 97 Under Construction / Jeff Coy and Bill Haralson / July 2007
Hotel Waterpark Resorts - Construction Report 2006; 73 Are Under Construction, Another 108 are planned / Jeff Coy and Bill Haralson / July 2006
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