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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 & Amanda
McDaniel

July, 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

 

2011F

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

Open at beginning of year

247

228

199

175

141

108

82

65

50

42

33

19

Openings during year

23

19

29

24

34

33

26

17

15

8

9

14

Total Open at end of year

270

247

228

199

175

141

108

82

65

50

42

33

Percent Change

9.3%

8.3%

14.6%

13.7%

24.1%

30.6%

31.7%

26.2%

30.0%

19.0%

27.3%

 

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

Location

 

Rooms

OWP

SqFt

IWP

Sq. Ft.

Open

Date

Aqua Duck on Disney Dream Cruiseship

Port Canaveral

FL

1250

 

 

201101

Budget Host Suites & Caribbean Indoor Waterpark

Lancaster

PA

70

 

10,000

201102

Celine Dion's Home Waterpark

Jupiter Island

FL

 

13,000

 

201103

Trade Winds Resort Adds Floating Inflatable Outdoor Waterpark

St Pete Beach

FL

584

20,000

 

201103

Coast Inn Adds $1.3m Barnacle Bill's Outdoor Waterpark

Waveland

MS

93

65,340

 

201104

Darien Lake Enlarges Splashtown & Adds Cabins to Campground

Buffalo

NY

24

217,800

 

201105

Gaylord Texan Paradise Springs Waterpark

Grapevine

TX

1511

435,600

 

201105

Schlitterbahn KCK Adds Slides & Rides & Future HIWP UD

Kansas City

KS

0

1,000,000

0

201106

Greek Peak Ski Resort Adds Outdoor Adventure Center

Cortland

NY

0

 

 

201106

Wings & Waves IWP at Evergreen Air Museum

McMinnville

OR

0

 

70,000

201106

Mt Olympus Adds Former Luna Inn & Suites

Wisconsin Dells

WI

72

 

 

201106

Mt Olympus Adds Former 4 Seasons

Wisconsin Dells

WI

47

 

 

201106

Mt Olympus Adds Former RainTree Resort - 155 Rms,10000IWP

Wisconsin Dells

WI

0

 

 

201106

Mt Olympus Adds Former Star Motel Resort

Wisconsin Dells

WI

93

 

 

201106

Mt Olympus Adds Former River Walk Hotel

Wisconsin Dells

WI

55

 

 

201106

Mt Olympus Adds Former American World Resort & Campground

Wisconsin Dells

WI

160

 

 

201106

Atlantis Marine World Aquarium Adds Hyatt Place & Ballroom

Riverhead, LI

NY

100

 

 

201107

Splash Lagoon's Addition of Indoor Wave Pool

Erie

PA

0

 

32,000

201108

Quality Inn & Suites Waterpark Hotel

Knoxville

TN

84

 

2,500

201109

Adrenalina Extreme Store's Flowrider at Xanadu Mall

Meadowlands

NJ

 

 

 

201112

Maui Sands Hotel & IWP

Sandusky

OH

300

 

55,000

201112

Schlitterbahn New Braunfels Adds 12 Treehouses & Rapids River

New Braunfels

TX

12

 

 

201112

Jay Peak Hotel & Spa & Indoor Waterpark

Jay

VT

170

 

60,000

201112

Total Under Construction & Projected Opening in 2011

 

23

4,625

1,751,740

220,500

 

  Cumulative Projected Total Open Year End 2011

 

289

70,141

8,941,042

6,164,747

 

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 high-speed 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 93-room 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, log-cabin 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 817-778-2000 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 fully-completed 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 913-312-3110 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 866-377-5274 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 830-625-2351 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

 

Rooms

Start Bid

Sold Price

Per Room

Buyer

Marriott Coco Key Resort

Mount Laurel

NJ

283

$4,900,000

$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

 

$0

Willner Realty & Development Co, Ardmore PA

Holiday Inn Coco Key Resort

Waterbury

CT

282

$1,500,000

$4,400,000

$15,603

Tejinder Singh of Long Island NY

Courtyard Coco Key Resort

Fitchburg

MA

245

$2,700,000

 

$0

First auction no serious bidders

 

 

 

 

$2,000,000

 

 

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 pre-recession 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

Location

 

Rooms

OWP

SqFt

IWP

SqFt.

Open

Date

Clarion (former HI) Hotel & Palm Island IWP

Batavia

NY

195

 

12,000

201202

Bolivar Indoor Waterpark with Openaire Retractable Roof

Bolivar

MO

0

 

27,000

201203

Kalahari Resort's Adds to Convention Center, Family Villas

Sandusky

OH

30

 

 

201203

Jay Peak Hotel Adds Conference Center

Jay

VT

 

 

 

201203

Fort Hall Casino Adds Hotel CC & P2 Waterpark UD

Pocatello

ID

156

 

 

201205

Holiday Inn Express & Water-Zoo IWP with OpenAire Roof

Clinton

OK

 

 

28,000

201205

Ocean's Park Hotel & Indoor Waterpark

Gulf Shores

AL

 

 

 

201206

Lost Island Waterpark Adds Cabins & Campsites

Waterloo

IA

150

 

 

201206

Soaring Eagle Inn & Waterpark

Mount Pleasant

MI

244

 

45000

201206

Bahama Bay OWP & Hotel Indoor Waterpark UD

Pasco

WA

 

522,720

 

201206

Great Wolf Lodge at the Galleria Pittsburgh Mills

Tarentum

PA

400

 

80,000

201208

Riverhead Resort's 4 Hotels, Indoor Ski & IWP, CC, FEC

Riverhead, LI

NY

1150

 

 

201211

Indian Ridge Resort & Indoor Waterpark

Branson

MO

300

 

100,000

201212

Lakeland Landing Hotels(2), Indoor Waterpark & Retail

Yakima-Ellensburg

WA

220

 

45,000

201212

Blue Mtn Ski Area Adds Summit Splash OWP & Hotel UD

Danielsville

PA

390

827,640

 

201307

Splash Resort IWP

Sioux Falls

SD

 

 

 

201309

New Hotel (former Oaks demolished) & IWP

Sioux Falls

SD

 

 

 

201309

Mt Olympus' America World Adds Treehouses & Campsites

Wisconsin Dells

WI

 

 

 

201312

Total Under Construction & Projected Opening in 2012

 

18

3,235

1,350,360

337,000

 

  Cumulative Projected Total Open Year End 2012

 

307

73,376

10,291,402

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 jeffcoy@jeffcoy.com
 
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 jeffcoy@jeffcoy.com or go to www.jeffcoy.com. 


 
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Contact: 

HOTEL WATERPARK RESORT
Research & Consulting
JLC Hospitality Consulting
PO Box 4090, 39401 N. 67th Place
Cave Creek, AZ 85327-4090
480-488-3382 tel
480-488-3382 fax
480-458-8050 cell
Email jeffcoy@jeffcoy.com
Website www.jeffcoy.com
 

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Also See: 19 Hotel Waterpark Resorts Open in USA in 2010; Twenty-Five More Launch Outside North America / Jeff Coy / June 2011

15 Hotel Waterpark Resorts Are Under Construction, Opening in 2010 Outside North America / Jeff Coy and Amanda McDaniel / July 2010

Cruise Ships Add Waterslides & Aqua ParksFloating Hotel Waterpark Resorts Race to Compete for Families / Jeff Coy / July 2010

24 Ziplines Open in USA in 2010; A New, Less Expensive Way to Add the WOW Factor to Resorts, Parks / Jeff Coy & Amanda McDaniel / May 2010

Waterpark Construction Report: North America;Eight Hotel Waterparks Coming in 2010 / Jeff Coy and Amanda McDaniel / April 2010
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