ANALYSIS
Scooops, with an ice cream theme, is GWR’s children’s spa offer
Many properties and brands wilted during the economic downturn, but Great Wolf soldiered through, further solidifying its position as market leader
The transaction was a reset for Great
Wolf. The company stood to benefi t not only from escaping the burdensome glare, costs and requirements of a public company, but also from having a supportive ownership capable of assisting with key strategies. Those included capital improvement projects at existing properties and re-engagement of high-priority (and long-dormant) new developments and opportunities.
STRATEGIC MILESTONES Noteworthy strategic milestones under Apollo’s ownership include: ● The company’s fi rst acquisition and conversion project. In early 2013, GWR acquired Coco Key Water Resort and Convention Centre in Fitchburg, Massachusetts. A year later, and following signifi cant expansion, rebranding and investment, Great Wolf New England opened – a market GWR had long considered to be underserved and thus a strategic priority. ● Re-engagement in Southern California. After several years in pre-development – a result of both fi nancial markets and the State of California’s budget crisis – GWR, together with local joint venture partner McWhinney and the City of Garden Grove, revived plans to build its largest resort – down the road from Disneyland. Set to open
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early in 2016, it will feature a 120,000sq ft (11,148sqm) indoor waterpark and 603- room hotel and conference centre.
CENTERBRIDGE & THE FUTURE In early 2015, after just three years of Apollo ownership, Centerbridge Partners – a New York-based private equity fi rm – acquired GWR in a transaction representing a signifi cant premium to its 2012 valuation. I recently met with executives from both Centerbridge and Great Wolf, and gained some insight into possible pathways for future growth, which will almost certainly involve continued new development projects to strategic markets, supported – for now, at least – by relatively favourable credit markets, increasing consumer confi dence and leisure behaviour, moderating energy prices and other industry-positive trends. The appointment of Rodriguez, who joins GWR from cruise operator Carnival, underlines this new chapter for the indoor waterpark brand. William Rahm, a senior managing director with Centerbridge Partners, recently praised the brand and business model created under the leadership of outgoing CEO Schaefer. In the same statement, Rahm said Rodriguez’s “varied experiences, including most recently at Carnival Cruise Line, will be tremendously valuable as GWR enters
the next phase of its growth strategy and expands its footprint to new markets.” Despite its overwhelming lead in the
sector, GWR needs to be mindful of the impact of a benefi cial development environment on emerging competition in key markets. Most notable is the Poconos, where two new destination indoor waterpark resorts – Camelback Lodge and Aquatopia, which opened in May 2015, and Poconos Kalahari Resort, which opened in July 2015 – will add signifi cant tension to one of Great Wolf’s most profi table markets. However, GWR is occupied with a host of
conversion and pipeline projects (including the recently announced Great Wolf Lodge Colorado Springs, opening 2016). With its growing pack of a dozen resorts and two decades of operations under its belt – from the outset of the industry, through a number of micro- and macro-market challenges, including four iterations of ownership – it’d sure be hard to bet against the Wolf. ●
Nikki Nolan has over 25 years’ experience in business development, planning and analysis. She is founder and principal of Nolan Consulting Services. Nolan served as non-executive board member following Great Wolf’s 2004 IPO, and subsequently as executive vice president and managing director of Great Wolf Resorts.
AM 3 2015 ©CYBERTREK 2015
PHOTO: GREAT WOLF RESORTS
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