Hotel & Leisure Advisors Hotels & Waterpark Industry - - PowerPoint PPT Presentation
Hotel & Leisure Advisors Hotels & Waterpark Industry Insights, Trends and Valuation Keys g , y Presented by David J. Sangree, MAI, CPA, ISHC Hotel & Leisure Advisors Presentation by David J. Sangree, MAI, CPA, ISHC Hotel
Presentation by David J. Sangree, MAI, CPA, ISHC
Presentation by David J. Sangree, MAI, CPA, ISHC
Operating Perform ance Forecasts
for the hotel industry. Records were set for supply (more than 1.8 billion room nights) and demand (almost 1.2 billion room nights). Performance metrics were the highest STR has ever benchmarked with occupancy at metrics were the highest STR has ever benchmarked with occupancy at 65.5% , ADR at $120.01 and RevPAR at $78.67.
Overall U.S. Lodging Performance
Occupa ncy % Cha nge ADR % Cha nge Re v PAR % Cha nge 2011 60.0% 4.2% $101.71 3.8% $61.03 8.1% 2012 61.4% 2.3% $105.96 4.2% $65.06 6.6% 2013 62.2% 1.3% $110.09 3.9% $68.49 5.3% 2014 64.4% 3.5% $115.03 4.5% $74.04 8.2% 2014 64.4% 3.5% $115.03 4.5% $74.04 8.2% 2015 65.5% 1.7% $120.01 4.4% $78.67 6.3% Source: Sm ith Travel Research
Presentation by David J. Sangree, MAI, CPA, ISHC
Regional Hotel Overview
The following table shows the performance of U.S. hotels by region for the past four years, based on statistics from Smith Travel Research’s Hotel Review Hotel Review.
2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 Re v P AR U .S . H o te l P e r f o r m a n ce b y Re g io n s O ccu p a n cy AD R N e w En g la n d
6 1 .4 % 6 2 .4 % 6 3 .5 % 6 4 .8 % $ 1 2 7 .1 8 $ 1 3 1 .8 5 $ 1 3 9 .1 5 $ 1 4 5 .8 4 $ 7 8 .1 1 $ 8 2 .2 2 $ 8 8 .3 7 $ 9 4 .4 8
M id d le Atla n tic
6 6 .5 % 6 5 .9 % 6 6 .9 % 6 7 .6 % $ 1 5 0 .6 4 $ 1 5 5 .9 0 $ 1 6 0 .8 7 $ 1 6 2 .1 3 $ 1 0 0 .1 2 $ 1 0 2 .7 3 $ 1 0 7 .5 8 $ 1 0 9 .6 1
S o u th Atla n tic
6 0 .8 % 6 1 .9 % 6 4 .9 % 6 6 .6 % $ 1 0 3 .4 9 $ 1 0 6 .6 3 $ 1 1 0 .7 7 $ 1 1 6 .3 6 $ 6 2 .8 9 $ 6 5 .9 6 $ 7 1 .9 1 $ 7 7 .4 9
Ea st N o r th Ce n tr a l
5 8 .4 % 5 9 .0 % 6 0 .5 % 6 1 .5 % $ 9 2 .4 7 $ 9 5 .5 4 $ 9 9 .6 8 $ 1 0 4 .7 2 $ 5 3 .9 7 $ 5 6 .4 7 $ 6 0 .3 4 $ 6 4 .3 7
Ea st S o u th Ce n tr a l
5 6 .2 % 5 6 .8 % 5 9 .2 % 6 1 .1 % $ 7 9 .4 8 $ 8 2 .0 0 $ 8 5 .9 6 $ 9 0 .6 2 $ 4 4 .6 9 $ 4 6 .5 4 $ 5 0 .9 2 $ 5 5 .3 4
W e st N o r th Ce n tr a l
5 7 3 % 5 7 7 % 5 9 6 % 5 9 7 % $ 8 4 2 0 $ 8 6 5 2 $ 8 9 9 6 $ 9 3 0 6 $ 4 8 2 3 $ 4 9 9 7 $ 5 3 6 3 $ 5 5 5 6
W e st N o r th Ce n tr a l
5 7 .3 % 5 7 .7 % 5 9 .6 % 5 9 .7 % $ 8 4 .2 0 $ 8 6 .5 2 $ 8 9 .9 6 $ 9 3 .0 6 $ 4 8 .2 3 $ 4 9 .9 7 $ 5 3 .6 3 $ 5 5 .5 6
W e st S o u th Ce n tr a l
6 0 .5 % 6 1 .4 % 6 3 .9 % 6 3 .1 % $ 8 8 .8 7 $ 9 3 .0 6 $ 9 6 .0 5 $ 9 8 .2 1 $ 5 3 .7 5 $ 5 7 .1 0 $ 6 1 .3 6 $ 6 1 .9 4
M o u n ta in
5 9 .1 % 6 0 .2 % 6 3 .1 % 6 5 .0 % $ 9 6 .2 0 $ 9 8 .9 7 $ 1 0 3 .0 7 $ 1 0 8 .6 9 $ 5 6 .8 6 $ 5 9 .6 2 $ 6 5 .0 5 $ 7 0 .6 6
P a cific
6 7 .8 % 6 9 .4 % 7 1 .4 % 7 3 .3 % $ 1 2 6 .3 0 $ 1 3 3 .7 5 $ 1 4 1 .9 0 $ 1 5 0 .7 9 $ 8 5 .6 5 $ 9 2 .8 3 $ 1 0 1 .3 2 $ 1 1 0 .5 4
T o ta l U .S .
6 1 .3 % 6 2 .2 % 6 4 .4 % 6 5 .6 % $ 1 0 6 .2 5 $ 1 1 0 .3 0 $ 1 1 4 .9 2 $ 1 2 0 .0 1 $ 6 5 .1 5 $ 6 8 .5 8 $ 7 4 .0 4 $ 7 8 .6 7
So u rce : Sm it h Tra v e l Re s e a r ch
Presentation by David J. Sangree, MAI, CPA, ISHC
Occupancy by Dem and Segm ent
transient business dominates segmentation across all property types (except convention hotels), followed by group/ contract business. Of note is that from 2014 to 2015, transient demand at resort properties decreased while group demand
included in the group segment since those rooms are usually booked by the group sales team. Other demand makes up less than 1.3% in each category.
Hotel Custom er Segm entation 40% 60% 80% 100%
4 % 3 .5 % 4 % 9 4 .7 % %
Other 0% 20%
7 2 . 8 3 7 2 . 9 4 0 .1 % 5 3 .4 %
Group/Contract Transient
Presentation by David J. Sangree, MAI, CPA, ISHC
Source: CBRE Hotels
New Supply of Lodging Room s
a concern; however, current projections point to continued absorption of new supply and steady occupancy rates. In late 2015, Lodging Econometrics reported that new hotel openings will accelerate over the Econometrics reported that new hotel openings will accelerate over the next two years and peak in 2018-19.
Hotel Openings 2 0 1 2 - 2 0 1 7
Ye a r
2012 412 2013 488 2014 557 2015 742 2015 742 2016 845 2017 998 Source: Lodging Econom etrics
Presentation by David J. Sangree, MAI, CPA, ISHC
U.S. Pipeline by Chain Scale Segm ent
% Cha nge % Cha nge Tota l % Cha nge
U.S. Pipeline by Chain Scale Segment
Cha in sca le Pr e lim ina r y Ex isting Supply v s. Pr e v ious Ye a r I n Constr uction v s. Pr e v ious Ye a r Tota l Unde r Contr a ct v s. Pr e v ious Ye a r Lux ur y 108,485 0.4% 7,440 35.0% 11,549 18.7% Uppe r Upsca le 583,906 2.7% 11,524
38,885 23.4% Upsca le 660,640 4.7% 49,203 10.8% 135,580 18.1% Uppe r Midsca le 888,843 1.4% 47,954 36.1% 157,034 23.9% Midsca le 479,040
5,321 1.3% 29,533 17.0% Econom y 784,149 1.3% 1,512 130.8% 6,801 70.0% Una ffilia te d 1,533,422
17,749 13.2% 89,757
Tota l 5 038 485 1 2% 140 703 17 2% 469 139 13 6% Tota l 5,038,485 1.2% 140,703 17.2% 469,139 13.6% Note: Room s under contract includes projects in I n Construction, Final Planning and Planning stages. Source: STR
Presentation by David J. Sangree, MAI, CPA, ISHC
Financial Perform ance
Almanac 2015, derived from income and expense statements of more than 5,300 hotels for year-end 2014 and trend data from more than 30,000 hotels.
$300.00 Revenue Per Occupied Room Night 2010-14
Full Service Limited Service
36.13 40.08 44.76 $271.78 $278.34 $100 00 $150.00 $200.00 $250.00 $23 $24 $2 $ $ $91.01 $92.97 $95.13 $103.33 $105.59 $0.00 $50.00 $100.00 2010 2011 2012 2013 2014
Presentation by David J. Sangree, MAI, CPA, ISHC
Source: STR Host Almanac 2015
Financial Perform ance
50.0% 60.0%
% % % %
Gr oss Oper ating Profit* and NOI 2010-2014 30.0% 40.0% 29.9% 31.5% 34.0% 35.6% 34.5%
48.0% 48.8% 49.8% 50.3% 48.0%
% 6.2% 7.3% 34.2% 34.6% 37.8% 37.8% 39.3% Full‐Service GOP Limited‐Service GOP 0.0% 10.0% 20.0% 2010 2011 2012 2013 2014 2 19.1% 20.8% 24.1% 26 27 Full‐Service NOI Limited‐Service NOI 2010 2011 2012 2013 2014
Note: NOI is "Amount Available for Debt Service and Other Fixed Charges" which is equivalent to "Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)." *Before Management Fees and Franchise (Royalty) Fees Source: Smith Travel Research
Presentation by David J. Sangree, MAI, CPA, ISHC
Hotel Sales In its 2015 Hotel Transaction Almanac STR Analytics reported $27 8 billion In its 2015 Hotel Transaction Almanac, STR Analytics reported $27.8 billion in U.S. hotel transactions occurred in 2014. During the year, $18.5 billion in hotel assets changed hands while the remaining $9.3 billion resulted in new hotel openings.
2013
average cost for construction was $186,000
involving a struggling asset
Presentation by David J. Sangree, MAI, CPA, ISHC
Hotel Sales
Hotel Sales by Chain Scale
Pe r ce nta ge
Tr a nsa ction Av e r a ge Room Av e r a ge Pr ice pe r Room Re v e nue Tr a nsa ctions Tr a nsa ction Activ ity Room Count Pr ice pe r Room Re v e nue Multiplie r Lux ur y 18 4% 366 $462,000 6.53 Uppe r Upsca le 52 11% 381 $214,000 6.92 Upsca le 178 40% 153 $227,000 6.42 Upsca e , Uppe r Midsca le 61 14% 132 $111,000 4.12 Midsca le 30 7% 129 $55,000 2.84 Econom y 21 5% 96 $40,000 3.24 I nde pe nde nt 87 19% 196 $296,000 6.82 p Tota l 447 100% 189 $219,000 5.50 Source: STR Hotel Transaction Alm anac 2015
Presentation by David J. Sangree, MAI, CPA, ISHC
Hotel I ndustry Outlook
PricewaterhouseCoopers (PwC) show similar forecasts. Demand is expected to outpace supply, and ADR and RevPAR growth will remain strong The only noticeable difference between the forecasts is that STR is
forecasting more conservative ADR growth. I ndustry Forecasts 2 0 1 6
STR CBRE PwC Supply 1.5% 1.8% 1.9% Dem and 2.3% 2.1% 2.1% Occupancy 0 8% 0 3% 0 2% Occupancy 0.8% 0.3% 0.2% ADR 4.8% 5.2% 5.2% RevPAR 5.7% 5.5% 5.5% Source: STR/ Hotel & Leisure Advisors
Presentation by David J. Sangree, MAI, CPA, ISHC
Hotel I ndustry Outlook
the steady success it has seen over the past few years
gains for upscale, upper upscale and luxury properties
Occupancy and ADR will start to show slight declines beginning in 2017 or 2018 on a national basis due to supply additions
Presentation by David J. Sangree, MAI, CPA, ISHC
Types of W aterparks:
i d ti f ilit ith i i f 10 000 f t f i d indoor aquatic facility with a minimum of 10,000 square feet of indoor waterpark space and inclusive of amenities such as slides, tubes, and a variety of indoor water play features.
hotel, having a minimum of 10,000 square feet, inclusive of at least three amenities such as slides, tubes, and a variety of indoor water play features.
p play features, such as slides, lazy rivers, or wave pools that require lifeguards.
Presentation by David J. Sangree, MAI, CPA, ISHC
Presentation by David J. Sangree, MAI, CPA, ISHC
Types of I ndoor W aterparks in Lodging Establishm ents
Hotel with Water Features Hotel with Indoor Waterpark Indoor Waterpark Destination Resort Size of aquatic area 1,000 to less than 10,000 square feet 10,000 to 30,000 square feet 30,000+ square feet Possible Amenities swimming pool, slide, toddler area with mushroom, spray gun multiple slides, tree house with slides, spray guns, tipping buckets, Jacuzzi, various pools, lazy river multiple slides, tree house with slides, spray guns, tipping buckets, Jacuzzi, various pools, lazy river, wave pool, water coaster, surfing, outdoor p , y , g, waterpark features Capacity up to 250 people 250 to 750 people 750 to 5,000 people Mi i N b f Minimum Number of Lifeguards 1 3 10 Size 0 to 1,000 square feet 1,000 to 3,000 square feet 3,000 to 10,000 square feet Source: Hotel & Leisure Advisors
Presentation by David J. Sangree, MAI, CPA, ISHC
Grow th in I ndoor W aterpark Resorts in United States and Canada
304OO 345OO 359OO 367OO 366OO 376OO 356OO 368OO 371OO
I ndoor W at erpark Resort Grow t h 2 0 0 0 - 2 0 1 5 , United St ates and Canada
,351,850 3,948,850 4,392,050 4,590,050 4,668,050 4,686,050 4,788,050 4,617,250 4,711,250 195OO 255OO 00 00 1,900 ,900 1,527,600 1,836,600 2,460,350 3, 81 100 116 136 145 147 148 149 146 148 149 64OO 79OO 96OO 121OO 149OO 715,30 782,90 961 1,085, 26 34 42 52 65 81
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Total Resort Square Feet Total Num ber of Resorts Total Num ber of Resort Room s Source: Hotel & Leisure Advisors
Presentation by David J. Sangree, MAI, CPA, ISHC
Sizing of I ndoor W aterparks
square feet of net indoor waterpark space (waterpark area and play area but excluding arcade, gift shop, offices) per guestroom
have approximately 35 to 40 square feet of space per person
this calls for between 105 and 160 square feet of indoor waterpark space per guestroom. Some larger properties have up to 200 square feet of indoor waterpark per guestroom indoor waterpark per guestroom
Presentation by David J. Sangree, MAI, CPA, ISHC
I ndoor W aterparks Occupancy and Average Room Rates Waterpark resorts generally outperform the non-waterpark hotels in the same market. There are several reasons for this premium performance, including:
Wide appeal of water based recreation
Presentation by David J. Sangree, MAI, CPA, ISHC
Great W olf Resort Perform ance Figures
G r e a t W o l f R e s o r t s I n c O p e r a t i n g S t a t i s t i c s f o r 2 0 0 8 2 0 1 2 2 0 1 2 2 0 1 1 2 0 1 0 2 0 0 9 2 0 0 8 A ll P r o p e r t i e s O c c u p a n c y 6 6 . 4 % 6 3 . 3 % 5 9 . 7 % 5 9 . 8 % 6 3 . 6 % A D R $ 2 6 1 5 5 $ 2 6 0 1 0 $ 2 5 2 3 0 $ 2 4 4 7 9 $ 2 5 3 8 5 G r e a t W o l f R e s o r t s , I n c . O p e r a t i n g S t a t i s t i c s f o r 2 0 0 8 - 2 0 1 2 A D R $ 2 6 1 . 5 5 $ 2 6 0 . 1 0 $ 2 5 2 . 3 0 $ 2 4 4 . 7 9 $ 2 5 3 . 8 5 R e v P A R $ 1 7 3 . 6 9 $ 1 6 4 . 5 8 $ 1 5 0 . 6 0 $ 1 4 6 . 3 8 $ 1 6 1 . 3 3 T o t a l R e v P O R $ 3 9 9 . 3 0 $ 3 9 5 . 1 8 $ 3 8 7 . 8 3 $ 3 7 6 . 9 3 $ 3 8 7 . 7 0 T o t a l R e v P A R $ 2 6 5 . 1 7 $ 2 5 0 . 0 5 $ 2 3 1 . 5 0 $ 2 2 5 . 4 0 $ 2 4 6 . 3 9 G e n e r a t i o n I R e s o r t s ( W i s c o n s i n D e l l s , S a n d u s k y , T r a v e r s e C i t y , K a n s a s C i t y ) O c c u p a n c y 5 8 9 % 5 6 1 % 5 2 7 % 5 2 7 % 5 6 6 % O c c u p a n c y 5 8 . 9 % 5 6 . 1 % 5 2 . 7 % 5 2 . 7 % 5 6 . 6 % A D R $ 2 0 0 . 3 1 $ 2 0 1 . 0 9 $ 1 9 8 . 5 6 $ 1 9 1 . 4 5 $ 1 9 6 . 2 5 R e v P A R $ 1 1 8 . 0 5 $ 1 1 2 . 7 7 $ 1 0 4 . 7 0 $ 1 0 0 . 9 2 $ 1 1 0 . 9 8 T o t a l R e v P O R $ 3 0 2 . 8 1 $ 3 0 2 . 7 7 $ 3 0 0 . 4 2 $ 2 8 8 . 8 7 $ 2 9 3 . 8 6 T o t a l R e v P A R $ 1 6 9 . 7 9 $ 1 5 8 . 4 2 $ 1 5 2 . 2 8 $ 1 6 6 . 1 9 G e n e r a t i o n I I R e s o r t s ( W i l l i a m s b u r g , P o c o n o s , N i a g a r a Fa l l s , M a s o n , G r a p e v i n e , G r a n d M o u n d a n d C o n c o r d ) O c c u p a n c y 6 9 . 2 % 6 6 . 0 % 6 3 . 9 % 6 3 . 7 % 6 7 . 0 % A D R $ 2 8 1 . 2 4 $ 2 7 9 . 0 5 $ 2 7 1 . 8 6 $ 2 6 3 . 9 5 $ 2 7 9 . 5 8 R e v P A R $ 1 9 4 . 7 1 $ 1 8 4 . 1 5 $ 1 7 3 . 7 6 $ 1 6 8 . 1 4 $ 1 8 7 . 4 4 T o t a l R e v P O R $ 4 3 0 . 3 3 $ 4 2 4 . 8 4 $ 4 1 9 . 9 2 $ 4 0 8 . 3 6 $ 4 2 1 . 5 0 T o t a l R e v P A R $ 2 8 0 . 3 7 $ 2 6 8 . 3 9 $ 2 6 0 . 1 4 $ 2 8 2 . 6 0 S G W l f R I ( S E C Fi l i )
Presentation by David J. Sangree, MAI, CPA, ISHC
S o u r c e : G r e a t W o l f R e s o r t s , I n c . ( S E C Fi l i n g s )
2 0 1 5 I ndoor W aterpark Openings
I ndoor W aterparks and Resorts City State / Prov New Rooms I ndoor W aterpark Sq. Ft I ndoor W aterpark Additions & I ndoor W aterpark Resorts Opened in 2 0 1 5 Ft.
Holiday I nn Express/ Raptor Reef/ Triple Play Laser Tag Arena and Ropes Course Addition Hayden I D Cam elback Lodge and Aquatopia I ndoor Waterpark Tannersville PA 453 125,000 Kalahari Resort Pocono Manor PA 457 106 000 Kalahari Resort Pocono Manor PA 457 106,000 New Residence I nn at WaTiki I ndoor Waterpark Resort Rapid City SD 144 Brookings Days I nn Waterpark Addition Brookings SD 12,000 Wilderness at the Sm okies Boom erango Addition to Sevierville TN OWP Sevierville TN Tota l 1 ,0 5 4 2 4 3 ,0 0 0 Source: Hotel & Leisure Advisors, LLC Note: Resorts have a m inim um of 10,000 square feet of indoor waterpark space
Presentation by David J. Sangree, MAI, CPA, ISHC
Presentation by David J. Sangree, MAI, CPA, ISHC
Presentation by David J. Sangree, MAI, CPA, ISHC
Presentation by David J. Sangree, MAI, CPA, ISHC
2 0 1 6 I ndoor W aterpark Openings
I ndoor W a te r pa r k Additions & I ndoor W a te r pa r k Re sor ts Ope n or Pr oj e cte d to Ope n in 2 0 1 6 I ndoor W a te r pa r k s a nd Re sor ts City Sta te / Pr ov Ne w Room s I ndoor W a te r pa r k Sq. Ft. Great Wolf Lodge Southern California Garden Grove CA 603 105,000 Great Wolf Lodge Colorado Springs CO 311 65,000 I ndoor W a te r pa r k Additions & I ndoor W a te r pa r k Re sor ts Ope n or Pr oj e cte d to Ope n in 2 0 1 6 Four Points by Sheraton Hotel with an Expanded Form er CoCo Key Waterpark at Arlington Downs * Arlington Heights I L 161 10,000 Ascend Hotel and Parrot Cove I ndoor Waterpark Garden City KS 96 20,000 Expansion of Cape Codder Resort Hyannis MA 20,000 Holiday I nn Express Expansion Baxter MN 25 3,000 Treasure I sland Resort Waterpark Addition Welch MN 30,000 Sahara Sam s Expansion West Berlin NJ 10,000 Great Wolf Lodge addition of Wolf Tail Waterslide Niagara Falls ON Hershey Lodge Water Works Addition Hershey PA 30,000 Valcartier Vacation Village I ndoor Waterpark Resort Valcartier QC 153 102,000 McKinney I ndoor Waterpark & Fitness Center McKinney TX 24,000 Tota l 1 ,3 4 9 4 1 9 ,0 0 0
Presentation by David J. Sangree, MAI, CPA, ISHC
* I n addition to existing 47,000 sf of indoor waterpark space
Outdoor W aterparks
Rank State # of Waterparks* 1 Te as 72
Top Ten States with Outdoor Waterparks
1 Texas 72 2 I llinois 59 3 Florida 44 4 California 39 5 Ohio 44 6 Missouri 49 7 I di 25
Re gion Num be r of Wa te r pa r k s Popula tion Num be r of Pe ople pe r W a te r pa r k Northeast 71 55,317,240 779,116 Midwest 271 66,927,001 246,963 South 267 114,555,744 429,048 West 121 71 945 553 594 591
Outdoor W aterpark and Population Comparison 7 I ndiana 25 8 Pennsylvania 23 9 Minnesota 19 10 New Jersey 17 * with three or m ore slides S H l & L i Ad i
West 121 71,945,553 594,591 Tota l 7 3 0 3 0 8 ,7 4 5 ,5 3 8 4 2 2 ,9 3 9 Source: Hotel & Leisure Advisors 2016 count of waterparks and 2010 U.S. Census
Source: Hotel & Leisure Advisors
Presentation by David J. Sangree, MAI, CPA, ISHC
Outdoor W aterpark Top Attendance
2 0 1 4 2 0 1 3 % Cha nge Ra nk Pa r k Loca tion Atte nda nce Atte nda nce
1 Typhoon Lagoon at Walt Disney World Orlando, FL 2,185,000 2,142,000 2.0% 2 Blizzard Beach at Walt Disney World Orlando, FL 2,007,000 1,968,000 2.0%
Top 2 0 U.S. W aterparks by Annual Attendance
3 Aquatica Orlando, FL 1,569,000 1,553,000 1.0% 4 Wet 'n Wild Orlando, FL 1,284,000 1,259,000 2.0% 5 Schlitterbahn New Braunfels, TX 1,037,000 1,027,000 1.0% 6 Water Country USA William sburg, VA 726,000 726,000 0.0% 7 Adventure I sland Tam pa, FL 644,000 638,000 0.9% 8 Schlitterbahn Galveston, TX 551,000 546,000 0.9% 9 Hyland Hills Water World Denver, CO 527,000 538,000
10 Six Flags Hurricane Harbor Arlington, TX 523,000 518,000 1.0% 11 Six Flags White Water Marietta, GA 510,000 505,000 1.0% 12 Wet 'n Wild Phoenix, AZ 467,000 472,000
13 Raging Waters San Dim as, CA 429,000 423,000 1.4% 14 Six Flags Hurricane Harbor Jackson, NJ 423,000 432,000
15 Splish-Splash Riverhead, NY 421,000 411,000 2.4% 16 Zoom bezi Bay Powell, OH 416,000 360,000 15.6% y , , , 17 Dollywood's Splash Country Pigeon Ford, TN 408,000 400,000 2.0% 18 Wet 'n Wild Em erald Point Greensboro, NC 398,000 398,000 0.0% 19 Knott's Soak City USA Buena Park, CA 372,000 368,000 1.1% 20 Soak City at Cedar Point Sandusky, OH 371,000 379,000
Source: TEA 2014 Them e I ndex, The Global Attractions Attendance Report (released 2015)
Presentation by David J. Sangree, MAI, CPA, ISHC
Outdoor W aterpark 2 0 1 5 Openings
Outdoor W a t e rpa rk 2 0 1 5 Ope nings
Pa r k Tota l Slide s Pr iv a te Splash Kingdom Nacogdoches TX 8 Tota l 8 Municipa l P I l d W k F S i h AR 7 Loca tion Parrot I sland Waterpark Fort Sm ith AR 7 Del Mar Fam ily Aquatic Center Aurora CO 3 Paradice I sland Com m erce City CO 5 Surf Lagoon Pooler GA 4 Freedom Springs Greenwood I N 4 Riv er Run Fam ily Waterpark New Albany I N 5 y p y West Riv er Com m unity Center Dick inson NC 3 Hillside Aquatics Center Bism arck ND 3 Ly ons City Pool Ly ons NE 3 Av on Municipal Aquatic Facility Av on OH 5 Alam eda Waterpar k Butler PA 3 S l h I l d ( t D W Wil C it C t ) T ll h TN 3 Splash I sland (at D.W. Wilson Com m unity Center) Tullahom a TN 3 Doug Russell Pool Midland TX 7 Strawberry Park Pool Pasadena TX 5 Kaiser Pool renov ation Wausau WI 5 Surf 'n Fun Waterpark San Germ an PR 14 Tota l 7 9
Presentation by David J. Sangree, MAI, CPA, ISHC
Source: Hotel & Leisure Adv isors
Outdoor W aterpark 2 0 1 6 Openings
2 0 1 6 Outdoor W a t e rpa rk Propose d Ope nings
Pa r k Ma j or Attr a ctions Pr iv a te Water World Warner Robins GA 11 slides, lazy riv er, wav e pool Laguna Splash @ DelGrosso's Am usem ent Park Tipton PA 9 slides, lazy riv er, wav e pool Lak e Wy lie Aquatic Center Clov er SC Oly m pic-size pool, children's pool with slides Loca tion
2 0 1 6 Outdoor W a t e rpa rk Propose d Ope nings
Sandy Harbor Fam ily Fun Center @Ocean Lak es Fam ily Cam pground My rtle Beach SC Adv enture riv er, 4-lane m at racer, slide Scuttle's I sland North Augusta SC 11 slides, lazy riv er, wav e pool NLand Surf Park Austin TX Surfing wav e pool Splash Kingdom Air Patrol Greenv ille TX 12 slides, wav e pool, lazy riv er Ty phoon Tex as Katy TX 27 slides, wav e pool, lazy riv er Municipa l Batesv ille Aquatic Center Batesv ille AR 2 large slides, lazy riv er, div e pool, wading pool, splash pad Cabot Aquatic Park Cabot AR 2 speed slides, a lazy riv er, a fam ily slide and a zero-depth- entry pool with play structures The Pocahontas City Pool Pocahontas AR 5 slides, m ultiple pools, splash structure Municipal Pool Carlsbad CA 3 slides, children's area with three sm aller slides, lazy r iv er Longbranch Lagoon Dodge City KS 6 slides, wav e pool, lazy riv er Southwest Aquatic Facility Shawnee County KS Zip line (into pool), 5 slides, bow tie pool with wav e feature Am erican Legion Park Aquatic Center Elizabethtown KY 6 slides, lazy riv er, clim bing wall Greenv iew Park Waterpark Colum bia SC 5 slides, childr en's pool, and lap pool Sisters of Mercy Waterpark Laredo TX 2 large slides, lazy riv er , children's area with slides and water features McKinney Aquatic & Fitness Center McKinney TX 4 slides, current channel, leisure and tot pools Victoria Municipal Pool and Waterpark Victoria TX 4 sm aller slides, spray ground, lap lanes
Presentation by David J. Sangree, MAI, CPA, ISHC
Sour ce: Hotel and Leisur e Adv isor s
W aterpark I ndustry Outlook
e ate pa dust y co t ues to e pa d
e ca, t
$500 million of new investment in indoor and outdoor waterparks and their related resorts in 2015.
number of new facilities opening and many expansions of the existing waterparks
f d h d h k
experience.
as investors and lenders perceive the industry to be more risky than more traditional as investors and lenders perceive the industry to be more risky than more traditional real estate investments such as apartments.
which are typically open during the summer season only which are typically open during the summer season only.
Presentation by David J. Sangree, MAI, CPA, ISHC
Appraisals have Unique Challenges
compared to apartments and office buildings which have annual leases
p y leisure real estate and are seasonal
Presentation by David J. Sangree, MAI, CPA, ISHC
Market Analysis
waterpark resort market is an essential component of an hotel or waterpark appraisal
this section
p g g
Presentation by David J. Sangree, MAI, CPA, ISHC
Market Analysis – Econom ics and Dem ographics When gathering economic and demographic data, the appraiser should look within a market of the subject property and gather the following data:
p
p
Presentation by David J. Sangree, MAI, CPA, ISHC
Market Analysis – Econom ics and Dem ographics Understanding the Hotel Market g
Smith Travel Research Trend report profiles the daily, monthly, and annual occupancy, average daily rate, and RevPAR of a market area.
competitive? How have they performed in past years in terms of occupancy, ADR and RevPAR?
p g y p j yp they be? How many rooms? What is their projected impact?
penetration of each competitor in the market? P j ti S th i th d t th d i th i t d j t th f
potential for the subject property. Based on the current market situation, is the subject likely to perform well in terms of occupancy and ADR? What are its potential penetration rates and market segmentation? Presentation by David J. Sangree, MAI, CPA, ISHC
Market Analysis – Econom ics and Dem ographics Understanding the W aterpark Market g p
in the area? How many are proposed in the area? How are existing waterparks performing in terms of attendance? To what degree will existing and potential waterparks be competitive in terms of waterpark size amenities etc ? waterparks be competitive in terms of waterpark size, amenities, etc.?
can the subject property expect, and will these visitors come from hotels or will they be local residents? What is a reasonable rate to charge for admission to the waterpark?
Presentation by David J. Sangree, MAI, CPA, ISHC
Market Analysis – Econom ics and Dem ographics Subject Property Data j p y
Information specific to the subject property is collected in the following areas.
management and obtain historical financial statements from them For a management and obtain historical financial statements from them. For a proposed property, the interview will be with the developer, and the appraiser will need to obtain the financial forecast and the development budget.
reports, usage figures, and other performance statistics are needed.
history, governmental restrictions, environmental regulations and other factors which may affect the subject property should be collected.
Presentation by David J. Sangree, MAI, CPA, ISHC
The Valuation Process: Approaches to Value I ncom e Capitalization Approach The Valuation Process: Approaches to Value I ncom e Capitalization Approach The Valuation Process: Approaches to Value p pp p pp
properties Th i h ld l d ti t i d
departments in determining the projected net operating income and value for the property
pp y p g determining the projected net operating income and value for the property.
Presentation by David J. Sangree, MAI, CPA, ISHC
The Valuation Process: Sales Com parison Approach p pp
with limited sales, such as hotels and waterparks
bl li comparable quality.
spending, financial performance, renovation cost information, amenity offerings of the property, and special circumstances concerning the sale.
values.
circumstances of the sale, etc. , Presentation by David J. Sangree, MAI, CPA, ISHC
The Valuation Process: Cost Approach pp
In this approach, the cost to replace the improvements is estimated. Once replacement costs are determined, a deduction is made for any depreciation. The result is then combined with the estimated value of the underlying land. This approach is most appropriate when appraising a proposed development where development budgets and land appropriate when appraising a proposed development where development budgets and land cost are available. It is typically not appropriate for an older hotel or waterpark due to the difficulty in estimating depreciation.
Presentation by David J. Sangree, MAI, CPA, ISHC
The Valuation Process: Valuation Conclusion All three approaches to are reconciled to a final value conclusion:
pp g y g g , the sales comparison approach and the cost approach support the value conclusion
Presentation by David J. Sangree, MAI, CPA, ISHC
Breakdow n of the Going Concern
Presentation by David J. Sangree, MAI, CPA, ISHC
I ssues Related to Acquisitions
Presentation by David J. Sangree, MAI, CPA, ISHC
14805 Detroit Ave. Suite 420 Cleveland OH 44107 Cleveland, OH 44107 Phone: 216-228-7000 dsangree@hladvisors.com www.hladvisors.com
Presentation by David J. Sangree, MAI, CPA, ISHC
Presentation by David J. Sangree, MAI, CPA, ISHC
Presentation by David J. Sangree, MAI, CPA, ISHC
Presentation by David J. Sangree, MAI, CPA, ISHC
Presentation by David J. Sangree, MAI, CPA, ISHC
Presentation by David J. Sangree, MAI, CPA, ISHC
Presentation by David J. Sangree, MAI, CPA, ISHC