Market Feasibility Report
What’s the Market Feasibility Process for
Hotel Waterpark Resorts?
A Guide for Owners & Developers
By Bill Haralson & Jeff Coy
Within the past five years, a new concept has developed --- the waterpark resort, a pairing of lodging facilities with an indoor waterpark.
The concept was conceived in the Wisconsin Dells, when the Polynesian Resort added indoor water features in an attempt to improve that property’s occupancy rates. The project was an immediate success and other properties quickly followed suit with indoor water features of their own. At last count, there were 18 properties in Wisconsin Dells with some type of indoor water features. In addition, some 30 waterpark resorts have been developed throughout the
Midwest.
The increasing popularity of the waterpark is illustrated by the concept’s success in the Wisconsin Dells. A study of the Dells lodging industry revealed that 18 hotels with indoor waterparks accounted for 85 percent of the market room revenue, while 44 properties without indoor water features accounted for the remaining 15 percent. As a group, the waterpark resorts in the Dells had a combined occupancy rate that was 26.9 points higher than the other 44 properties. And average room rates were $69 higher for the haves compared to the have-nots. Given the astounding performance of hotel waterparks in
Wisconsin Dells, it is little wonder that the concept is proliferating at an increasing rate. Despite the success of the waterpark resort, as with any venture, there are challenges and pitfalls. Since this is a new industry, data is generally limited regarding waterpark resort planning. Questions abound regarding such issues as sizing of the hotel, the guest rooms and the waterpark “box” or “footprint”.
Lacking solid information, many would-be waterpark developers are making the trek to the Dells to “see how it is done”. Herein lies the problem: What is best for the Dells may not be best for the next market.
Although we
Hotel Waterpark Resorts?
A Guide for Owners & Developers
By Bill Haralson & Jeff Coy
Within the past five years, a new concept has developed --- the waterpark resort, a pairing of lodging facilities with an indoor waterpark.
The concept was conceived in the Wisconsin Dells, when the Polynesian Resort added indoor water features in an attempt to improve that property’s occupancy rates. The project was an immediate success and other properties quickly followed suit with indoor water features of their own. At last count, there were 18 properties in Wisconsin Dells with some type of indoor water features. In addition, some 30 waterpark resorts have been developed throughout the
Midwest.
The increasing popularity of the waterpark is illustrated by the concept’s success in the Wisconsin Dells. A study of the Dells lodging industry revealed that 18 hotels with indoor waterparks accounted for 85 percent of the market room revenue, while 44 properties without indoor water features accounted for the remaining 15 percent. As a group, the waterpark resorts in the Dells had a combined occupancy rate that was 26.9 points higher than the other 44 properties. And average room rates were $69 higher for the haves compared to the have-nots. Given the astounding performance of hotel waterparks in
Wisconsin Dells, it is little wonder that the concept is proliferating at an increasing rate. Despite the success of the waterpark resort, as with any venture, there are challenges and pitfalls. Since this is a new industry, data is generally limited regarding waterpark resort planning. Questions abound regarding such issues as sizing of the hotel, the guest rooms and the waterpark “box” or “footprint”.
Lacking solid information, many would-be waterpark developers are making the trek to the Dells to “see how it is done”. Herein lies the problem: What is best for the Dells may not be best for the next market.
Although we