Hotel Waterpark Resorts Construction Report 2006 | By By Jeff Coy and Bill Haralson

Hotels with indoor waterparks will grow to a forecast of 144 by year end 2006, up 33% from 108 in 2005. Meanwhile, ordinary hotels add less than 1.0% growth to the overall hotel industry room supply.

Seventy-three (73) new hotel waterpark additions and expansion projects are under construction or will break ground during 2006. Thirteen have already opened during the first half of the year. A total of 36 hotel indoor waterparks with 6,004 rooms and 1,095,440 square feet of waterpark are expected to open before year end 2006. Another 37 are under construction and scheduled to open in 2007.

What’s behind the phenomenal growth?

• Leisure travel patterns favor the drive-to regional resort or the urban hotel with a major indoor waterpark. Indoor waterparks and other recreation-entertainment concepts are a part of almost every new hotel and resort development today.
• While indoor waterparks can be expensive to build, the positive impact on hotel revenues and profits is even more impressive. Hotels with indoor waterparks achieve higher occupancy, higher revenue per room (revpar) and higher net operating income than comparable hotels without indoor waterparks.
• Almost every hotel waterpark resort project includes the condo-hotel concept.
• Several new projects have opened with the new technology domed structures and enclosures that let in the light and keep out the weather --- extending peak season to year round. And while most hotel waterpark resorts focus on families with young children, a few new projects include surf-quality wave parks and whitewater river courses to add a little more adventure.
• Hotel waterparks are here to stay.