Hotel Waterpark Resort Industry Report 2003

• USA Lodging Starts Upward Trend• USA Hotel Waterpark Resort Supply• USA 14 New Hotel Waterpark Resorts Open• USA Top 20 Largest Hotel Waterpark Resorts• USA Top 15 Largest Meeting Facilities with WPs• USA Under Construction & In Development• Canada Hotel Waterpark Resort Supply• Canada Top 15 Largest Hotel Waterpark Resorts• Canada Under Construction & In Development• Mexico• Rest of the World

USA Lodging Outlook

2003 2002 % Change

Occupancy 60.8% 61.2% -0.7

ADR $83.60 $84.01 -0.5

RevPAR $50.87 $51.45 -1.1

USA Lodging Outlook

• Hotel room revenues, supply & demand all showing positive growth over last year.

• July 4th Weekend was the turnaround.• Last 3 months Occ & ADR up over same

month a year ago.• We are in a slow upward recovery.• 2003 will end like 2002. Better in 2004!• Resorts did better than last year and better

than other types of lodging.

Hotel Performance Ytd Aug

2003

OCC

2002

OCC

%

Chg

2003

ADR

2002

ADR

%

Chg

USA 60.8 61.2 -0.7 83.60 84.01 -0.5

Florida 65.1 64.3 1.2 92.54 92.42 0.1

Arizona 61.5 60.4 1.8 84.38 84.39 0.0

California 65.1 65.7 -0.9 94.42 95.75 -1.4

Nevada 70.5 68.3 3.2 96.99 95.81 1.2

Hawaii 73.4 71.3 2.9 145.85 142.67 2.2

Wisconsin 55.9 55.6 0.5 70.24 70.11 0.2

Minnesota 58.6 59.5 -1.5 74.68 76.03 -1.8

Smith Travel Research

Hotel Performance Ytd Aug

2003

OCC

2002

OCC

%

Chg

2003

ADR

2002

ADR

%

Chg

USA 60.8 61.2 -0.7 83.60 84.01 -0.5

Anaheim 68.6 67.3 1.9 92.61 92.68 -0.1

Boston 60.5 63.9 -5.3 114.22 122.17 -6.5

Chicago 60.9 59.4 2.5 100.53 100.91 -0.4

New York 71.7 72.0 -0.4 156.17 165.77 -5.8

Orlando 65.5 66.7 -1.8 85.30 88.74 -3.9

Phoenix 61.3 59.5 3.0 95.57 95.87 -0.3

San Francisco 62.5 61.7 1.3 116.94 124.71 -6.2

USA Competitive Supply

2003 2002 % Chg

Hotel IWPs 62 50 24.0

Rooms 9781 7520 30.0

IWP SqFt 1,297,929 750,904 72.8

Meeting Rms 280 213 31.5

Branded 27 20 35.0

Independent 35 30 16.7

USA Competitive Supply

• These 62 hotels indoor waterparks are located in the following states:

2003 2002

28 25 Wisconsin

14 10 Minnesota

3 2 Michigan

3 2 North Dakota

3 2 South Dakota

2 1 Montana

1 1 AK, AZ, CA, CO, HI, IA, KS, MO, NE, OH, PA & WY

Top 10 Largest Hotel Waterpark Resorts in the USA

Name Location Rooms Indoor WP Mtg Space

Wilderness Hotel Wisc Dells WI 593 161,000 7,300

Kalahari Resort Wisc Dells WI 378 125,000 29,344

Bavarian Inn Frankenmuth MI 357 30,000 17,000

Grand Country Inn Branson MO 319 20,000 500

Great Wolf Lodge Wisc Dells WI 309 44,000 6,000

Treasure Island Wisc Dells WI 302 65,000 0

Chula Vista Resort Wisc Dells WI 300 30,000 14,000

Great Wolf Lodge Traverse City MI 281 38,000 3,780

Great Wolf Lodge Kansas City KS 281 38,000 3,780

Great Bear Lodge Sandusky OH 271 33,000 6,000

Top 10 -20 Largest Hotel Waterpark Resorts in the USA

Name Location Rooms Indoor WP

Mtg Space

BW Sterling Inn CC Sterling Hgts MI 250 22,769 15,905

Hilton City Center Milwaukee WI 250 20,000 30,000

Polynesian Resort Wisc Dells WI 230 38,000 1,800

Hojo Resort CC Wisc Dells WI 230 13,000 15,000

BW Ramkota Hotel Sioux Falls SD 226 3,000 60,000

Timber Ridge Lodge Lake Geneva WI 225 30,000 50,000

Grand View Lodge Nisswa MN 200 7,500 28,000

Arrowood Resort Alexandria MN 200 21,000 10,600

Grand Harbor Resort Dubuque IA 194 25,000 120,000

Ramada Plaza Fargo ND 185 10,000 25,000

USA Competitive Supply

• 42 other hotels with indoor waterparks are located: In WI-Green Bay, Madison, Minocqua, Lac du Flambeau, Tomah, Prairie du Chien; In MN-Moorhead, Thief River Falls, Rochester, Minneapolis, Owatonna, St Cloud, Baxter, Detroit Lakes, Orr, Shoreview; In ND-Minot, Bismarck; In SD-Aberdeen, Watertown; In MT-Anaconda, Missoula; In other areas- Erie PA, Casper WY, Norfolk NE, Colorado Springs CO and Anchorage AK.

Profile of Hotel Waterparksby Number of Rooms

Avg#

Rooms

Indoor

WP

Avg#

Slides

Avg#

Pools

Avg#

Spas

Mtg

Space

Avg#

Mtg Rms

Top 5 391 76,000 5.4 3.4 2.2 12,029 7.4

Top 10 339 58,400 6.1 3.1 2.0 8,770 6.8

Top 20 279 38,713 4.2 2.7 1.8 22,200 9.8

Top 30 238 32,312 3.6 2.4 1.5 17,182 8.5

Top 40 207 27,017 3.2 2.3 1.5 14,750 7.5

Ratio of Rooms to Waterpark

Hotels with

Indoor WP

Avg #

Rooms

Indoor WP

Avg SF

Indoor WP

SF Per Room

Over 50,000 sf 328 89,500 273

40-49,000 sf 230 42,000 183

30-39,000 sf 257 33,375 130

20-29,000 sf 221 21,554 98

10-19,000 sf 119 11,944 100

5-9,000 sf 103 6,955 68

Under 5,000 sf 90 2,589 29

Top 10 Hotel Meeting Facilities with indoor waterparks in the USA

Name Location Rooms Meeting Space

Indoor

Waterpark

Grand Harbor Resort Dubuque IA 194 120,000 25,000

BW Ramkota Hotel Sioux Falls SD 226 60,000 3,000

Timber Ridge Lodge Lake Geneva WI 225 50,000 30,000

Hilton City Center Milwaukee WI 730 30,000 20,000

Kalahari Resort Wisc Dells WI 272 29,344 67,500

Ramada Plaza Fargo ND 185 25,000 10,000

Bavarian Inn Lodge Frankenmuth MI 357 17,000 30,000

Marriott Depot Hotel Minneapolis MN 132 16,000 10,000

Hojo Resort CC Wisc Dells WI 230 15,000 13,000

Ramada Inn Norfolk NE 98 15,000 7,000

Profile of Hotel Waterparksby Size of Meeting Facilities

Avg#

Rooms

Indoor

WP

Avg#

Slides

Avg#

Pools

Avg#

Spas

Mtg

Space

Avg#

Mtg Rms

Top 5 255 40,600 4.8 2.2 1.6 57,869 16.8

Top 10 240 29,677 3.0 2.4 1.6 39,125 14.6

Top 20 222 24,618 2.6 2.1 1.8 30,523 13.5

Under Construction USA

Name Location Rooms IWP SqFt

Holiday Inn Amana IA Convert 8,934

Mountain Grand Boyne Falls MI New 200 51,000

BW Sterling Inn Sterling Hgts MI Expand 9,000

Ramada NW Brooklyn Park MN New 20,000

Great Wolf Lodge Poconos PA New 400 50,000

Great Wolf Lodge Williamsburg VA New 297 38,000

Grand Victorian Sheboygan WI New 247 40,000

Meadowbrook Wisc Dells WI Expand 7,000

Kalahari Resort Wisc Dells WI Expand

In Development USA

• 46 hotel waterpark projects are in the planning stages compared to 28 last year.

• Michigan, Wisconsin & Minnesota are leading the way in new projects.

• 11,400 rooms and 1.2 million sf of IWPs are in the pipeline.

Bill & Jeff Go to Canada

Canadian Competitive Supply

• We have identified 99 hotel indoor waterparks, typically smaller properties averaging 3200 sf of indoor waterpark. Located in the following provinces:

38 Alberta

20 Saskatchewan

13 British Columbia

9 Manitoba

9 Ontario

6 Quebec

2 Prince Edw Isl

2 Nova Scotia

Canadian Competitive Supply

• Often, these are hotels that have enhanced their indoor swimming pools with the addition of play structures and waterslides with minimal theming.

• In Canada, the largest concentration of hotel indoor waterparks is in the Economy Hotel sector with an average of 69 rooms and 2,917 sf of indoor waterpark.

Major Canadian Hotel Waterparks

• Fantasyland Hotel with 355 rooms at West Edmonton Mall’s World Waterpark with 217,000 sf.

• Ramada Lethbridge AB with 119 rooms and 13,000 sf indoor waterpark.

• Medicine Hat Lodge AB with 193 rooms and 6,000 sf indoor waterpark

• Others have 2500-5000 sf IWPs.

Under Construction Canada

• Travelodge World Hotel in Ottawa is adding 13,000 sf indoor waterpark to its 117 rooms.

• 7 other projects of less than 10,000 sf IWP are underway in Drumheller AB, Edmonton AB, High Level AB, Fort Nelson BC, Fort St John BC, Portage La Prairie MB and Moose Jaw SK.

In Development Canada

• 11 hotel waterpark projects are in the planning stages, including four major projects in Niagara Falls ON.

• Great Wolf Lodge will likely be first to break ground in 2004.

Mexican Competitive Supply

• We have identified 11 properties in Mexico that have a combination of hotel rooms, indoor waterparks and outdoor waterparks.

• We are in the process of surveying owners to build a profile.

Rest of the World Supply

Name Location Rooms IWP SF

Jumeirah Beach Dubai UAE 619

Hotel El Paso Port Aventura Spain 500

Hotel Aventura Port Aventura Spain 500

Esperos Palace Faliraki Rhodes Greece 416

Dedeman Hotel Istanbul Turkey 346

Alton Towers Staffordshire UK 216 40,000

Amipura Resort Gujaret India 81

Ocean Dome Miyazaki City Japan 0 322,752

Bergische Sonne Wuppertal Ruhr Germany 430,560

Monte Mare Rheinback Germany 269,100

Alphamare Pfaeffikon Switzerland 25,000

De Koploper Lelystad Netherlands 8,850

Basingstoke IWP Basingstoke UK 1,100

In Development Rest of World

Waterpark Wodny IWP Lodz Poland

Waterpark Wodny IWP Warschau Poland

Suzanne Mela’s IWP Berlin-Postdam Germany

Ogmio Astra IWP Vilnius Lithuania

Hotel Waterpark ResortResearch & Consulting

Jeff Coy

507-289-7404

jeffcoy@aol.com

www.jeffcoy.com

JLC Hospitality Consulting

3320 Mayowood Road

Rochester MN 55902

Bill Haralson

972-231-7444

wharalson@aol.com

William L. Haralson & Associates

2405 Mesa Drive

Richardson TX 75080