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 20032002% Change Occupancy60.8%61.2%-0.7 ADR$83.60$84.01-0.5 RevPAR$50.87$51.45-1.1

3. USA Lodging Outlook Hotel room revenues, supply & demand all showing positive growth over last year. July 4 th 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 2003 OCC 2002 OCC % Chg 2003 ADR 2002 ADR % Chg USA60.861.2-0.783.6084.01-0.5 Florida65.164.31.292.5492.420.1 Arizona61.560.41.884.3884.390.0 California65.165.7-0.994.4295.75-1.4 Nevada70.568.33.296.9995.811.2 Hawaii73.471.32.9145.85142.672.2 Wisconsin55.955.60.570.2470.110.2 Minnesota58.659.5-1.574.6876.03-1.8

5. Smith Travel Research Hotel Performance Ytd Aug 2003 OCC 2002 OCC % Chg 2003 ADR 2002 ADR % Chg USA60.861.2-0.783.6084.01-0.5 Anaheim68.667.31.992.6192.68-0.1 Boston60.563.9-5.3114.22122.17-6.5 Chicago60.959.42.5100.53100.91-0.4 New York71.772.0-0.4156.17165.77-5.8 Orlando65.566.7-1.885.3088.74-3.9 Phoenix61.359.53.095.5795.87-0.3 San Francisco62.561.71.3116.94124.71-6.2

6. USA Competitive Supply 20032002% Chg Hotel IWPs625024.0 Rooms9781752030.0 IWP SqFt1,297,929750,90472.8 Meeting Rms28021331.5 Branded272035.0 Independent353016.7

7. USA Competitive Supply These 62 hotels indoor waterparks are located in the following states: 20032002 2825Wisconsin 1410Minnesota 32Michigan 32North Dakota 32South Dakota 21Montana 11 AK, AZ, CA, CO, HI, IA, KS, MO, NE, OH, PA & WY

8. Top 10 Largest Hotel Waterpark Resorts in the USA NameLocationRoomsIndoor WPMtg Space Wilderness HotelWisc Dells WI593161,0007,300 Kalahari ResortWisc Dells WI378125,00029,344 Bavarian InnFrankenmuth MI35730,00017,000 Grand Country InnBranson MO31920,000500 Great Wolf LodgeWisc Dells WI30944,0006,000 Treasure IslandWisc Dells WI30265,0000 Chula Vista ResortWisc Dells WI30030,00014,000 Great Wolf LodgeTraverse City MI28138,0003,780 Great Wolf LodgeKansas City KS28138,0003,780 Great Bear LodgeSandusky OH27133,0006,000

9. Top 10 -20 Largest Hotel Waterpark Resorts in the USA NameLocationRoomsIndoor WP Mtg Space BW Sterling Inn CCSterling Hgts MI25022,76915,905 Hilton City CenterMilwaukee WI25020,00030,000 Polynesian ResortWisc Dells WI23038,0001,800 Hojo Resort CCWisc Dells WI23013,00015,000 BW Ramkota HotelSioux Falls SD2263,00060,000 Timber Ridge LodgeLake Geneva WI22530,00050,000 Grand View LodgeNisswa MN2007,50028,000 Arrowood ResortAlexandria MN20021,00010,600 Grand Harbor ResortDubuque IA19425,000120,000 Ramada PlazaFargo ND18510,00025,000

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 Waterparks by Number of Rooms Avg# Rooms Indoor WP Avg# Slides Avg# Pools Avg# Spas Mtg Space Avg# Mtg Rms Top 539176,0005.43.42.212,0297.4 Top 1033958,4006.13.12.08,7706.8 Top 2027938,7134.22.71.822,2009.8 Top 3023832,3123.62.41.517,1828.5 Top 4020727,0173.22.31.514,7507.5

12. Ratio of Rooms to Waterpark Hotels with Indoor WP Avg # Rooms Indoor WP Avg SF Indoor WP SF Per Room Over 50,000 sf32889,500273 40-49,000 sf23042,000183 30-39,000 sf25733,375130 20-29,000 sf22121,55498 10-19,000 sf11911,944100 5-9,000 sf1036,95568 Under 5,000 sf902,58929

13. Top 10 Hotel Meeting Facilities with indoor waterparks in the USA NameLocationRoomsMeeting Space Indoor Waterpark Grand Harbor ResortDubuque IA194120,00025,000 BW Ramkota HotelSioux Falls SD22660,0003,000 Timber Ridge LodgeLake Geneva WI22550,00030,000 Hilton City CenterMilwaukee WI73030,00020,000 Kalahari ResortWisc Dells WI27229,34467,500 Ramada PlazaFargo ND18525,00010,000 Bavarian Inn LodgeFrankenmuth MI35717,00030,000 Marriott Depot HotelMinneapolis MN13216,00010,000 Hojo Resort CCWisc Dells WI23015,00013,000 Ramada InnNorfolk NE9815,0007,000

14. Profile of Hotel Waterparks by Size of Meeting Facilities Avg# Rooms Indoor WP Avg# Slides Avg# Pools Avg# Spas Mtg Space Avg# Mtg Rms Top 525540,6004.82.21.657,86916.8 Top 1024029,6773.02.41.639,12514.6 Top 2022224,6182.62.11.830,52313.5

15. Under Construction USA NameLocationRoomsIWP SqFt Holiday InnAmana IAConvert8,934 Mountain GrandBoyne Falls MINew20051,000 BW Sterling InnSterling Hgts MIExpand9,000 Ramada NWBrooklyn Park MNNew20,000 Great Wolf LodgePoconos PANew40050,000 Great Wolf LodgeWilliamsburg VANew29738,000 Grand VictorianSheboygan WINew24740,000 MeadowbrookWisc Dells WIExpand7,000 Kalahari ResortWisc Dells WIExpand

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: 38Alberta 20Saskatchewan 13British Columbia 9Manitoba 9Ontario 6Quebec 2Prince Edw Isl 2Nova Scotia

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 NameLocationRoomsIWP SF Jumeirah BeachDubaiUAE619 Hotel El PasoPort AventuraSpain500 Hotel AventuraPort AventuraSpain500 Esperos PalaceFaliraki RhodesGreece416 Dedeman HotelIstanbulTurkey346 Alton TowersStaffordshireUK21640,000 Amipura ResortGujaretIndia81 Ocean DomeMiyazaki CityJapan0322,752 Bergische SonneWuppertal RuhrGermany430,560 Monte MareRheinbackGermany269,100 AlphamarePfaeffikonSwitzerland25,000 De KoploperLelystadNetherlands8,850 Basingstoke IWPBasingstokeUK1,100

25. In Development Rest of World Waterpark Wodny IWPLodzPoland Waterpark Wodny IWPWarschauPoland Suzanne Mela’s IWPBerlin-PostdamGermany Ogmio Astra IWPVilniusLithuania

26. Hotel Waterpark Resort Research & Consulting Jeff Coy 507-289-7404 jeffcoy@aol.com www.jeffcoy.com JLC Hospitality Consulting 3320 Mayowood Road Rochester MN 55902 Bill Haralson 972-231-7444 wharalson@aol.com William L. Haralson & Associates 2405 Mesa Drive Richardson TX 75080