MADISON, WISCONSIN Waterpark resort operator Great Wolf Resorts Inc. is working to modify a US$67 million loan on its properties in Traverse City, Michigan, and Kansas City, Kansas. If unable, the company is prepared to surrender the properties to its lender.
Citing “severe regional economic declines,” Great Wolf says the two resorts are worth “significantly less” than the loan principal.
For the third quarter, Great Wolf reduced its results substantially, improving to a net loss of US$1 million compared to a loss of US$37 million a year ago. Sales rose 5.6% as consumer demand picked up and ADR climbed 2.2%.
“Demand was solid in our seasonally important third quarter as consumers continue to enjoy a Great Wolf getaway,” says CEO Kim Schaefer. “We were able to improve RevPAR and total revenue per occupied room as a result of higher average daily rates and an increase in guest spending on the wide range of amenities we offer at our resorts. As the consumer recovery is progressing slowly, we continue to work to enhance our brand and our operations. The operating efficiencies we have been implementing are starting to be evident in our results and we anticipate further leveraging these improvements as the economy improves.”
Great Wolf is the 229th largest hotel company in the world, according to HOTELS’ 325, the annual listing of the world’s hotel companies that was published in the October issue.