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b. Expenses
i. Costs for a Water Park
c. Investors
i. How Are Investors Getting Into Hotel Water Park Resorts?
ii. Water Park Finance; What Investors Require
d. Seasons
i. Summer
ii. Fall
iii. Winter
iv. spring
e. Investments
i. What is the Return on Investment?
ii. Hotel Water Park Resorts: are they a good investment?
f. Older properties
i. Market for Updating Older Properties
g. Development
i. Theme Park Development
h. Risk factors
i. Seasonality
ii. Weather
iii. Location
i. Room occupancy
i. Average room rates
j. Revenues
i. Water park admission prices
ii. Profitability
80,000 410,000
90,000
40,000
512,560
Parking Space
Rooms
Lobby
Hallways
Water Park
Total 1,132,560
Water Park Adventures & Hotel
60th Street North & Wes
Westport Avenue
(123) 456-7891
April 20, 2010
David Kampmann
Instructor
Southeast Technical Institute
2320 North Career Avenue
Sioux Falls, SD
Mr. Kampmann,
Water Park Adventures and Hotel is the ultimate experience in luxury, service, and fun. Start
your adventure off in our luxurious lobby where a free cookie and warm cup of Joe are always
available. You can then head over to our massive water park, kept at a constant 86 degrees. You
may be awestruck at the sheer amount of slides, rides, pools, and hot tubs all in one water park
area. And there’s much more.
Cordially,
David Otamendi
President, Waterpark Adventures and Hotel
Enclosure
David Otamendi
Kalahari Resort Wisconsin Dells WI 378 125000 2000 Size of Indoor Waterpark 2720 Sq Ft HVAC 40800 Bavarian Inn Lodge* Grand Country Inn
Bavarian Inn Lodge* Frankenmuth MI 357 30000 1986 Pools & Mechanical 134200 180,000 Great Wolf Lodge Treasure Island
160,000
Grand Country Inn Branson MO 319 20000 2001 Spa Pools 15400 140,000
120,000 Chula Vista Resort Great Wolf Lodge
100,000
Great Wolf Lodge Wisconsin Dells WI 309 44000 1997 Snack Bar 17000 80,000
60,000 Great Wolf Lodge Great Bear Lodge
40,000
Treasure Island Wisconsin, Dells WI 302 65000 1999 Support Areas 15390 20,000
0 Hilton Center City (730)** BW Sterling Inn & Conference Center
Chula Vista Resort Wisconsin Dells WI 300 30000 1999 Theming 50000
Polynesian Resort Hojo Resort Conference Center
Waterslides & Recreation
Great Wolf Lodge Traverse City MI Equipment BW Ramkota Hotel & Conference Timber Ridge Lodge
281 38000 2003 115000
BW Sterling Inn & Conference Center Sterling Heights MI 250 22769 2001 http://hotel-online.com/News/PR2003_2nd/May03_HotelWaterParkStudy.html
•
• Indoor Water Park
• Over 120 rides and attractions
• Hotel and accommodations right on site
• $25 admission fee or $50 for an all year pass
• Room costs average
In order to have a profitable Water Park, you have to think of some very important
questions. One of those questions would be something along the lines of is the property
within a 120 to 180 mile radius of a town that has an increasing population? Or another
good question to look into would be transportation. The next question to look at would
be the risks involved in setting up an indoor water park, and if it is going to be worth the
effort of having a hotel with the Water Park. Then it would be a good idea to look at the
finances that will be needed to start up and keep up an indoor Water Park/Hotel. Next a
good thing to consider would be looking into investors, and what the return on the
investments would be. Then it would be a good time to consider marketing factors and
Now going back to the first question asked. Is the property within a 120 to 180 mile
radius of a town that has an increasing population? If so then the next step would be to
look at family households and how many of them have children. Simply because water
parks, indoors or out, are typically places that attract people with a more average income
level then those with a higher income level and most of the popularity comes from pre-
teens and teens. And this would then be considered your target market for you marketing
strategy. (Heuertz).
Another important factor to look into would be the transportation available in the
town. Checking out the bus routes, and how much it would cost to take a taxi from say
the other side of town. This would be worth knowing because, then you need to plan out
if you are going to pay to have your own transportation from different points within the
Catherine Baker
David Kampmann April 22, 2010
town to your Water Park; and if so how much you are going to charge the customer for
A good question to start looking at would be the risks indoor Water Parks avoid
and the risks involved in opening a Water Park/Hotel. That way you know if it is worth
the trouble. The growth of indoor Water Parks and Hotels is annually within the range of
23 to 29 percent. Now days there are over 60 nationwide indoor Water Park/Hotels.
Normally most tourist attractions have to worry about seasons. Like how they are
going to make the budget work when they only have a good business year of around 100
days. However indoor water parks no longer have this risk involved. Because they are
indoors and have a hotel built right in they are generally 100 percent full every weekend
and every school brake. Thus they just expanded their good business season from around
100 days to a full year round season. It is proven that hotels with indoor water parks have
better profits and have a more successful room rate than those without. Hotels with an
indoor water park typically do not have to worry about the weather factor simply because
the group of people attending the event can stay the night if the weather gets too bad
(Haralson).
In the year 2,000 indoor water parks took a full 75 percent of the total revenue in
the hotel market. By the year 2,003 they took a complete 18 percent of the total profits. A
lot of hotels with indoor water parks are combining the admission price of the water park
into their room rates. This can boost their ADR, or average daily rates, as much as 25
Catherine Baker
David Kampmann April 22, 2010
dollars per person, per night. Thus having the 25 dollars be your admission price to enter
the water park. Most hotels with indoor water parks do not open their water park doors
to the public. However there are a few, they generally have day passes for that purpose.
But they would need to oversize their water park while still in the design phase
(Haralson).
The next risk to look at is expenses. Investors will generally insist that the person
running the hotel and water park have two teams running the expenses of the hotel and
water park separately. Thus there is less room for error. Or in a sense have someone else
running the water park for them. A few of the expenses that go with the water park are:
To finance a hotel and indoor water park you need to read the reports that others
have. They might want to consider looking at banks that specialize in hospitality rather
than just traditional banks. Then figure the cost of land, construction, labor, and time
into the design. Once all of that is done the owner will need to figure the cost of energy,
up-keep, water production, and food supplies into your design (Sangree).
Now would be a good time to look into investors. Maybe looking into family
members or getting donations. There are a lot of ways to get the money you need. It is
just a matter of coming up with them, because the banks will not give the entrepreneur
all of the money they are going to need. Another factor to look into is the unexpected.
After all of these things are done, it will be time to get started on the makings of the hotel
Catherine Baker
David Kampmann April 22, 2010
and water park. This helpful information would be just the thing needed for someone to
get started.
Catherine Baker
David Kampmann April 22, 2010
Work Cited
Haralson, Jeff Coey & Bill. "What are the risk factors in a Hotel & Water Park invesment." Condo
Hotel Center. 10 April 2010 <http://www.condohotelcenter.com/articles/a96.htm>.
Heuertz, Daniel A. "Summary of Water Park Research." Business Interest Inc. 21 April 2010
<http://www.sugar-grove.il.us/Dept_CD/SDD5.pdf>.
Sangree, David J. "Financing Challenges for Indoor Waterpark Resorts." U.S. Realty Consultaints,
Inc. 22 April 2010
<http://www.usrc.com/files/Financing%20Challenges%20for%20Indoor%20Waterpark%20Resort
s.pdf>.
Joel Gutierrez
208 N. Hillside Pl. Sioux Falls, SD, 57107
joel.gutierrez@southeastteh.edu
Cell: 605-413-9323
Objective: Seeking a position as an M3 Accounting
Education:
• The University of Texas, Austin, Texas, BBA Degree August 2012-May 2014
• Southeast Tech, Sioux Falls, SD, Associates Degree in Accounting, December 2011
• Roosevelt High School, Sioux Falls, SD, May 2010
Experience:
Skills:
• Speak Spanish
• Proficient in Microsoft Office and Excel
• Using M3 in a hotel, making it easy for the business
References:
• Available upon request