Hotel Waterpark Resort Industry Report 2003

1. Hotel Waterpark Resort Industry Report 2003 • USA Lodging Starts Upward Trend • USA Hotel Waterpark Resort Supply • USA 14 New Hotel Waterpark Resorts Open • USA Top 20 Largest Hotel Waterpark Resorts • USA Top 15 Largest Meeting Facilities with WPs • USA Under Construction & In Development • Canada Hotel Waterpark Resort Supply • Canada Top 15 Largest Hotel Waterpark Resorts • Canada Under Construction & In Development • Mexico • Rest of the World

2. USA Lodging Outlook

3. USA Lodging Outlook • Hotel room revenues, supply & demand all showing positive growth over last year. • July 4th Weekend was the turnaround. • Last 3 months Occ & ADR up over same month a year ago. • We are in a slow upward recovery. • 2003 will end like 2002. Better in 2004! • Resorts did better than last year and better than other types of lodging.

4. Hotel Performance Ytd Aug

5. Hotel Performance Ytd Aug Smith Travel Research

6. USA Competitive Supply

7. USA Competitive Supply • These 62 hotels indoor waterparks are located in the following states:

8. Top 10 Largest Hotel Waterpark Resorts in the USA

9. Top 10 -20 Largest Hotel Waterpark Resorts in the USA

10. USA Competitive Supply • 42 other hotels with indoor waterparks are located: In WI-Green Bay, Madison, Minocqua, Lac du Flambeau, Tomah, Prairie du Chien; In MN-Moorhead, Thief River Falls, Rochester, Minneapolis, Owatonna, St Cloud, Baxter, Detroit Lakes, Orr, Shoreview; In ND-Minot, Bismarck; In SD-Aberdeen, Watertown; In MT-Anaconda, Missoula; In other areas- Erie PA, Casper WY, Norfolk NE, Colorado Springs CO and Anchorage AK.

11. Profile of Hotel Waterparksby Number of Rooms

12. Ratio of Rooms to Waterpark

13. Top 10 Hotel Meeting Facilities with indoor waterparks in the USA

14. Profile of Hotel Waterparksby Size of Meeting Facilities

15. Under Construction USA

16. In Development USA • 46 hotel waterpark projects are in the planning stages compared to 28 last year. • Michigan, Wisconsin & Minnesota are leading the way in new projects. • 11,400 rooms and 1.2 million sf of IWPs are in the pipeline.

17. Bill & Jeff Go to Canada

18. Canadian Competitive Supply • We have identified 99 hotel indoor waterparks, typically smaller properties averaging 3200 sf of indoor waterpark. Located in the following provinces:

19. Canadian Competitive Supply • Often, these are hotels that have enhanced their indoor swimming pools with the addition of play structures and waterslides with minimal theming. • In Canada, the largest concentration of hotel indoor waterparks is in the Economy Hotel sector with an average of 69 rooms and 2,917 sf of indoor waterpark.

20. Major Canadian Hotel Waterparks • Fantasyland Hotel with 355 rooms at West Edmonton Mall’s World Waterpark with 217,000 sf. • Ramada Lethbridge AB with 119 rooms and 13,000 sf indoor waterpark. • Medicine Hat Lodge AB with 193 rooms and 6,000 sf indoor waterpark • Others have 2500-5000 sf IWPs.

21. Under Construction Canada • Travelodge World Hotel in Ottawa is adding 13,000 sf indoor waterpark to its 117 rooms. • 7 other projects of less than 10,000 sf IWP are underway in Drumheller AB, Edmonton AB, High Level AB, Fort Nelson BC, Fort St John BC, Portage La Prairie MB and Moose Jaw SK.

22. In Development Canada • 11 hotel waterpark projects are in the planning stages, including four major projects in Niagara Falls ON. • Great Wolf Lodge will likely be first to break ground in 2004.

23. Mexican Competitive Supply • We have identified 11 properties in Mexico that have a combination of hotel rooms, indoor waterparks and outdoor waterparks. • We are in the process of surveying owners to build a profile.

24. Rest of the World Supply

25. In Development Rest of World

26. Hotel Waterpark ResortResearch & Consulting