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by Jeff Coy and Bill Haralson October 2, 2003. Although the USA hotel industry is still recovering
from 9/11, War in Iraq, SARs and troubled airlines, hotel occupancy reached
a respectable 60.8% for year to date as of August 31, 2003 --- just slightly
under the 61.2% of a year ago. Hotel room prices averaged $83.60, which
is less than a dollar below a year ago. Revenue per available room reached
$50.87 compared to $51.45 a year ago.
Revenues, supply and demand all showed positive growth. Hotel industry room revenues were up 0.2% in 2003 over 2002 for the period January through August. Hotel developers continued to build new hotel rooms as the supply was up 1.4%. Hotel room demand growth of 0.7% still lagged supply growth, but it does indicate that more room nights were occupied so far in 2003 than the same period last year. The July 4th Weekend in 2003 was the turnaround
point for the USA hotel industry. In July, August and through the final
days of September, both hotel occupancy and average room rates were up
over the same period last year. In fact, almost all the indicators are
pointing up and it appears we are in a slow recovery.
The USA hotel industry is likely to finish the Year 2003 equal to or slightly better than 2002 --- due to a poor first half and a better than expected second half, according to the 80 hotel experts from around the world who attended the International Society of Hospitality Consultants Meeting in September 20. The real improvement will come in 2004, they said. The award for keeping the hotel industry alive and well during the last two years goes to consumers and leisure travelers who continued to spend and take short vacations albeit closer to home. Business travelers still haven�t come back to hotels in any great numbers. However, resorts are running a higher occupancy in 2003 than 2002 and higher than any other type of lodging. Many families that declined to board an airplane got in their cars and drove to a regional resort --- and some of these were resorts with indoor waterparks. Building the Hotel Waterpark Resort Database The hotel industry measures the performance of different types of hotels including ski resorts and golf resorts. But no one tracks the performance of waterpark resorts. Recently, hotels and resorts with indoor waterparks have experienced rapid growth outside Wisconsin Dells, where the concept originated. Neither the hotel nor the theme park industries provide any benchmarks or statistics for this new phenomenon. Jeff Coy and Bill Haralson formed Hotel Waterpark Resort Research & Consulting, a collaborative effort of JLC Hospitality Consulting Inc of Rochester MN and William L. Haralson & Associates Inc of Richardson TX. Coy, a hotel consultant, and Haralson, an attractions consultant joined forces for the purpose of building an industry database for this product sector. Both were appointed co-chairs of Resort Task Force by the World Waterpark Association in October 2002. Their second annual industry report focuses on supply trends, sizing components, construction costs and operating ratios while future reports will incorporate demand trends. USA Competitive Supply of Hotel Waterparks Sixty-two (62) hotel indoor waterparks are open and
operating in the USA. The hotel waterpark resorts are located in the following
states:
These properties have a total of 9,781 rooms, nearly 1.3 million square feet of indoor waterpark space and 280 meeting rooms covering 567,779 square feet of meeting space. Of these 62 hotels, 35 are independent while 27 are affiliated with a national hotel brand name. Hotel brand names include AmericInn, Best Western, Comfort Suites, Country Inn & Suites, Days Inn, Hawthorn Suites, Hilton, Hojo, Holiday Inn, Marriott, Microtel, Quality Inn, Ramada, Sleep Inn and Wingate. The following chart illustrates the growth in 2003 over 2002. .
Fourteen new hotel waterparks opened in 2003 These new facilities are larger than average with more guest rooms, larger meeting spaces and bigger indoor waterparks. New additions include: Quality Inn & Suites, Casper WY; Best Western Apache, Rochester MN; Great Wolf Lodge, Traverse City MI; Scotts Hotels & Splash Lagoon in Erie PA; Days Inn & Conference Center, Moorhead MN; Great Wolf Lodge, Kansas City KS; Wilderness On the Lake, Wisconsin Dells WI; Wingate Inn in Missoula MT; Country Inn & Suites, Prairie du Chien WI, Tundra Resort & Waterpark, Green Bay WI; Sleep Inn & Suites in Minot ND; Super 8 in Thief River Falls MN; Arrowood Resort & Conference Center in Alexandria MN and the H2Oasis in Anchorage AK. Five of the 14 new additions were waterpark expansions at existing hotels while seven were total new construction projects; two properties were deleted from last year�s report for a net gain of 12 new hotel indoor waterparks. The H2Oasis, which opened in February 2003 in Anchorage AK, is the only privately-owned, commercial indoor waterpark in the USA that is not attached to a hotel. All other stand-alone indoor waterparks are publicly-owned aquatic centers that are typically subsidized by municipalities. The economics of indoor waterparks favor those attached to hotels where they add substantially to room revenues --- making the H2Oasis in Anchorage a first of its kind situation to watch over time. Top 20 Largest
Hotel Waterpark Resorts in the USA
The largest hotels with indoor waterparks are concentrated in Wisconsin Dells, where 18 hotels with indoor waterparks now exist. The Polynesian Resort in Wisconsin Dells WI is generally credited with being the first hotel indoor waterpark in 1994. The number three ranked Bavarian Inn Lodge in Frankenmuth MI opened the first of its five indoor pools and 30,000 square feet of indoor water features in 1986 but did not install any waterslides. The answer to who was first depends upon your definition of an indoor waterpark. A waterpark resort task force is establishing definitions and standards for waterparks. . 
Wilderness Resort 511 East Adams Street Wisconsin Dells, Wisconsin wildernessresort.com Most of the 42 other hotels with indoor waterparks are concentrated --- In Wisconsin: Green Bay, Madison, Minocqua, Lac du Flambeau, Tomah and Prairie du Chien. In Minnesota: Moorhead, Thief River Falls, Rochester, Minneapolis, Owatonna, St Cloud, Baxter, Detroit Lakes, Orr and Shoreview. In North Dakota: Minot, Bismarck. In South Dakota: Aberdeen, Watertown. In Montana: Anaconda, Missoula. In other areas: Erie PA, Casper WY, Norfolk NE, Colorado Springs CO and Anchorage AK. Profile of USA Hotel Waterpark Resorts by Number of Rooms Among the top five largest resorts by room count,
the average number of hotel rooms is 391 with an indoor waterpark of 76,000
sf or 194 sf per guest room. These top five resorts have an average of
5.4 waterslides, 3.4 pools and 2.2 spas. Eighty percent of them have a
lazy river, 33% have a wave pool and 20% have a water coaster. The top
five resorts have 12,029 sf of meeting space and an average of 7.4 meeting
rooms.
Among the top ten hotel waterparks, the average number of rooms is 339 with a 58,400 sf indoor waterpark, which is 172 sf per guest room. Among the top 20 largest, the average number of rooms is 279 and the rule of thumb is 139 sf of indoor waterpark per guest room. Among the top 30 largest, the average room count is 238 and the average indoor waterpark is 32,312 sf or 135 sf per guest room. Among the top 40 largest, the average number of hotel rooms is 207 and the average indoor waterpark is 27,017 sf, --- a ratio of 131 sf per guest room. This is only one of several methods the hotel waterpark developer should use to determine the size of a proposed indoor waterpark and its components. Profile of USA Hotel Waterpark Resorts by Size of Waterpark Sizing the indoor waterpark and choosing the right
components is a difficult task for the developer. Hotels with the highest
number of guest rooms don�t always have the largest waterparks, so we sliced
the data another way.
A direct relationship exists between the number of hotel rooms and the size of their indoor waterparks. For example, hotels with waterparks more than 50,000 square feet average 328 rooms and 89,500 square feet of indoor waterpark --- a ratio of 273 sf of waterpark per guest room. That ratio decelerates as waterparks get smaller. To illustrate, hotels with waterparks 40,000 to 49,000 sf average 230 rooms and 42,000 sf of indoor waterpark --- a ratio of 183 sf of waterpark per guest room. Use the chart above to help size your project. Top 15 Hotel Meeting Facilities with Indoor Waterparks in the USA Many of the largest hotel waterparks are also in
the meetings business. However, the amount of meeting space drops off dramatically
within the Top 15.
Other hotel waterpark resorts with more than 10,000 square feet of meeting space are located in Anaconda MT, Minot ND and Tomah WI. The other forty-three hotel waterparks in the USA tend to be designed primarily for the individual leisure traveler segment. Profile of USA Hotel Waterpark Resorts by Size of Meeting Facilities The Top 5 hotel meeting facilities with indoor waterparks
average 255 guest rooms, 57,869 sf of meeting space, 16.8 meeting rooms
and a 40,600 sf indoor waterpark with 4.8 waterslides, 2,2 pools and 1.6
spas. Of the Top 5, about 67% have a lazy river, 25% have a wave pool and
20% have a water coaster.
Among the Top 10 hotel meeting facilities with indoor waterparks, the average number of guest rooms is 240 with 39,125 sf of meeting space, 14.6 meeting rooms and a 29,677 sf indoor waterpark. Among the Top 15 hotel meeting facilities with indoor waterparks, the average is 222 guest rooms, 30,523 sf of meeting space, 13.5 meeting rooms and a 24,618 sf indoor waterpark. This is only one of several methods a developer should consider using to estimate the size of meeting facilities. Hotel Waterpark Resorts Under Construction in USA Nine (9) hotels with indoor waterparks are currently
under construction in the USA:
Boyne Mountain Ski Resort is constructing a 200-room condominium hotel called the Mountain Grand Lodge, bringing its total units to 439, along with building its 51,000 sf Avalanche Bay indoor waterpark. Best Western Sterling Heights is expanding its 22,000 sf indoor waterpark by 9,000 sf --- bringing its total square footage to 31,000. Kalahari Resort is under construction with an 80,000 sf addition to its 45,000 sf Convention Center. When the expansion is complete in the summer of 2004, the center will have 42 meeting rooms, 16 suites, 18 small group rooms, 14 theaters that double as meeting space, 4 company board rooms and a ballroom that measures 21,000 square feet. Kalahari Resort will be able to handle conventions with 5,500 attendees and trade shows with 300 exhibit booths. USA Hotel Waterpark Resorts In Development Forty-six (46) hotel indoor waterpark projects are
in the planning stages as of October 2, 2003, compared with 28 projects
in the pipeline this same time last year. Michigan, Wisconsn and Minnesota
are leading the way in new developments. The following numbers of projects
are slated for the following states:
These 46 projects account for an estimated 11,400 rooms and 1.2 million square feet of indoor waterparks in the development pipeline --- although specifics are lacking on some of these projects. Hotel Waterparks Out-Perform Regular Hotels In a recent survey, we discovered that hotels WITH indoor waterparks performed at 26.9 points of occupancy higher than hotels WITHOUT indoor waterparks at Wisconsin Dells. The survey also revealed that hotels WITH indoor waterparks captured $69 higher average room rates than hotels WITHOUT indoor waterparks. Annually, the eighteen (18) hotels WITH indoor waterparks capture 85% of the total market room revenue while forty-four (44) hotels WITHOUT indoor waterparks capture only 15% of the total market room revenue. Indoor waterparks increase hotel occupancy, increase average room rates and increase annual room revenues. Hotels with indoor waterparks extend their peak season from 100 days to 365 days. Hotels with indoor waterparks are almost filled 100% every weekend and school holiday break all year long. In the current economy, hotel owners that want more visitors are thinking cars instead of airplanes. They are shifting their gears away from far away feeder markets. Instead, they are focusing on backyard marketing within 200 miles of their hotel. The drive-to regional resorts performed much better than the fly-to resorts during 2003. Hotel waterpark developers are focusing on new markets for new construction, while owners of existing hotels are thinking about enclosing their pools, raising their roofs to install 30 to 50 foot high structures that include waterslides, lazy river, activity pools, kiddie pools and adult spas. The indoor waterpark is a growing phenomenon what some experts think will become as common as the free continental breakfast. Canadian Supply of Hotel Waterparks In Canada, we have identified 99 hotels indoor waterparks
that are opening and operating in 2003 as compared with 82 properties last
year. Most are located in the western provinces.
Top 15 Canadian Hotel Waterparks by Number of Rooms World Waterpark promotes itself as the largest indoor
waterpark in the world. It is part of the West Edmonton Mall in Alberta,
which also boasts being the largest shopping center in the world, according
to the Guinness Book of World Records. The Fantasyland Hotel at West Edmonton
Mall was built in 1986 with 355 rooms. It wouldn�t be totally accurate
to call Fantasyland Hotel a hotel waterpark, but it is closely connected.
You can walk from the hotel through the mall to the 217,800 sf World Waterpark
without going outside. So, the largest hotel in Canada by room count associated
with an indoor waterpark is the Fantasyland Hotel. The rest of the Top
15 Hotels, ranked by number of rooms, with indoor waterparks, are as follows:
In Canada, hotel waterparks are different than in the USA. Many are really indoor pools that have been enlarged and enhanced with waterslides, water playthings and geyser guns --- raising the question of what is a waterpark. Many of the indoor waterparks in Canada are under 10,000 sf while many in the USA are over 10,000 sf. Top 15 Canadian Hotel Waterparks by Size of Waterpark The 217,800 sf World Waterpark is not really a hotel waterpark, technically, but it is an indoor waterpark that is located in the West Edmonton Mall. And the 355-room Fantasyland Hotel is part of that same mall --- making a connection between the hotel and the waterpark. The second-largest indoor waterpark connected to a hotel in Canada is the Ramada Hotel & Suites in Lethbridge AB with 13,000 sf of park and 119 rooms. The third largest hotel waterpark is the Medicine
Hat Lodge with 193 rooms and 6,000 sf of indoor waterpark. The size of
the indoor waterpark declines rapidly in the Top 15, as shown below:
In Canada, the largest concentration of hotel indoor waterparks is in the Economy Hotel sector, where the room counts average 69 rooms and indoor waterparks average 2,918 sf. That�s a ratio of only 42 sf per guest room for determining the size of an average indoor waterpark in Canada. However, when you look at what is under construction and in the planning stages, bigger hotel waterparks are coming to Canada. Canadian Hotel Waterpark Resorts Under Construction The Travelodge World Hotel in Ottawa ON is adding
a 13,000 sf indoor waterpark to its 177 guest rooms. Other hotel indoor
waterpark projects of less than 10,000 sf are under construction in Drumheller
AB, Edmonton AB, High Level AB, Fort Nelson BC, Fort St John BC, Portage
La Prairie MB and Moose Jaw SK.
Canadian Hotel Waterpark Resorts In Development Four major hotel waterpark resorts in the planning
stages are targeted for the Niagara Falls ON market. The Great Wolf Lodge
will likely be the first break ground in 2004.
Mexican Supply of Hotel Waterparks We have identified eleven (11) properties in Mexico
that have a combination of hotel rooms, indoor waterparks and outdoor waterparks.
We are in the process of surveying owners and managers to develop a profile
of hotel waterpark resorts in Mexico.
Rest of the World Supply of Hotel Waterparks We have identified thirteen (13) properties in the rest of the world that have a combination of hotel rooms, indoor waterparks and outdoor waterparks. We continue to survey owners and managers to build
a profile of hotel waterpark resorts around the world.
Although World Waterpark in West Edmonton, Alberta, Canada claims to be the largest indoor waterpark in the world with 217,800 sf, there are three larger properties in Japan and Germany. Ocean Dome in Miyazaki City Japan is the largest indoor waterpark in the world. It has underground caves, restaurants, entertainment and a wave-making system. It measures one football field wide by three football fields long. It has a retractable roof that opens to 193,752 sf or 60% of its full capacity. Ocean Dome is able to accommodate 10,000 people at the same time. It is certified to be the World�s Largest All Weather Indoor Waterpark by the Guinness Book of Records. Bergische Sonne has a 430,560 sf indoor-outdoor waterpark in Wuppertal Ruh Germany. Monte Mare Adventure Spa has 269,100 sf indoor-outdoor waterpark in Rheinback Germany. Some are claiming that Alton Towers/Spash Landing in Staffordshire England is the first hotel waterpark resort in Europe with its 216 rooms and 40,000 sf indoor waterpark. Rest of the
World Hotel/Indoor Waterparks In Development
Worldwide, the hotel waterpark resort concept is growing in popularity with developers and leisure travelers. No doubt, the projects will get bigger, and the claims to fame will intensify. Hotel Waterpark Resort Research & Consulting is a collaboration of Jeff Coy & Bill Haralson. Coy is certified by the International Society of Hospitality Consultants. Haralson is a Hall of Fame member of the World Waterpark Association. For more info, contact Jeff at 507-289-7404 or email [email protected]. Website is www.jeffcoy.com. Reach Bill at 972-231-7444 or email [email protected]. |
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