How Hotels and Resorts in Asia-Pacific Enhance Value and Revenue with Water Park Amenities
What happens as tourists increase their spending power? They raise their expectations, everywhere.
More than ever, when it comes to choosing accommodations, the quality and the types of amenities on site are becoming more important. Looking at the Asia-Pacific region, we are not surprised to find hotels and resorts with water parks appearing in many travel guides and recommendations.
But do hotels and resorts with water parks actually do better than those without? We needed research to find out.
Occupancy, ADR, RevPAR: the Impact of Water Park Equipment on Hotels and Resorts
Having recognized the immense potential of the hospitality segment early on, WhiteWater has so far completed over 300 projects for hotels and resorts worldwide. To determine if and by how much aquatic amenities benefit these properties, we partnered with Hotel & Leisure Advisors (H&LA) to conduct research and compile the report, “Global Analysis on the Impact of Water Park Equipment on Hotels and Resorts” in 2021.
Three years later, we wanted to see if the results of the research still hold true, so we worked together again to follow up on the first findings. As with the initial report, H&LA obtained occupancy rates, average daily rates (ADR), and revenue per available room (RevPAR) data from STR, a hospitality data benchmarking company, for six groupings of hotels and resorts across the globe, which found that these metrics indeed are higher for properties with water park equipment.
Overall, North America has the most mature market in this sector. In 2023, the RevPAR of all hotels with WhiteWater equipment in North America was 111.3% higher than the overall average for U.S. resorts and hotels, with resort RevPAR 29.1% higher. The data proves that adding aquatic attractions effectively enhances the value and revenue of hotels and resorts in local markets.
This trend is also emerging in the Asia-Pacific region, with several forward-thinking properties already benefitting.
The data shows that hotels and resorts with WhiteWater equipment in Asia-Pacific and the Middle East have a RevPAR level 119.6% higher than the local average. With the company’s extensive experience collaborating with leading hospitality brands in the Asia-Pacific, let’s take a look at some examples of success.
Helping to Change the Tourism Driver for a City
Long known for its gaming scene, the government of Macau has been actively promoting the city’s transformation into a tourism and leisure hub in recent years. Against this backdrop, Studio City invested in an expansion of its resort that included the construction of a water park—Macau’s first—covering over 26,000 square meters indoor and outdoor, with water slides and aquatic play structures 100% supplied by WhiteWater.
The ability to operate the water park year-round not only gives Studio City a unique competitive advantage, it also extends its guests’ length of stay and increases their spending, thereby taking Macau’s leisure and entertainment offering to another level—in Asia as well as internationally.
“Macau’s new focus now is on food and shopping, so attractions are naturally a must,” said Melissa Chung, Director of Spa, Leisure & Aquatics at Studio City. “The city’s first water park is not only very valuable for our hotel guests, it also serves other visitors as well as the community at large and creates new job opportunities for the locals.”
Since opening its outdoor section in 2021 and the indoor section in 2023, Studio City Water Park has been very popular with in-house guests and non-hotel tourists alike and has won several industry awards.
Attracting Consumers Who Prioritize Experiences: Cheval Blanc Randheli
It’s no secret that consumers don’t value material goods as much as they used to. Instead, more and more prioritize making memories, especially unique ones. For hotels and resorts, that means standing out from the competition, and aquatic amenities are a great way to do just that.
Take Cheval Blanc Randheli for example. Located in the Maldives, this 7-star hotel is known for its pristine white beaches and clear turquoise waters, offering luxurious overwater villas and island villas with specious living areas, private infinity pools, and direct access to the sea.
As if that wasn’t enough, the hotel recently looked to differentiate itself and upgraded its amenities to include a FlowRider® Wave-in-a-Box surf simulator and two Pool Siders to enhance guests’ stay and attract new visitors seeking exciting experiences outside of the relaxation the property offers. Guests can enjoy the exciting sensations of surf and water slides right at their doorstep, enticing them to stay on site longer, which leads to more revenue for the hotel.
Attracting More Family Visitors: Rydges Resort Hunter Valley
Located in the heart of Australia’s wine country, Rydges Resort Hunter Valley offers 150 hotel rooms and 268 villas, along with facilities such as a large conference center, golf course, and a water park. The resort’s guest mix is 60% corporate and group and 40% leisure, with an annual occupancy between 60% and 70%, weekends being the busiest. Weekday occupancy relies mainly on group and corporate business while weekends and school holidays shift to leisure guests.
“Our water park is in the middle of the hotel facilities adjacent to the pool and, certainly from a family point of view, it has been good for servicing the family leisure market. And so, without a doubt, we are glad we put it in,” said General Manager Robert McGufficke.
Photo Credit: Rydges Resort Hunter Valley
The hotel’s water park, provided by WhiteWater, includes an AquaPlay 650 structure with three slides, a tipping bucket, and several interactive play features, complemented by beautiful Life Floor foam-rubber safety tiles. The play area and structure are themed around local vineyards. The water park is open year-round and exclusive for hotel guest use, making it a unique differentiator in the area.
“The AquaPlay installation has been a fantastic addition to the resort’s amenities, helping to increase family travel to Rydges Resort Hunter Valley and to the Hunter Valley wine region itself,” concluded Robert.
Enhancing a Large Entertainment Complex: SnowStar
In the past decade in Asia, we’ve been seeing more and more large entertainment complexes being developed together with lodging and a water park. The latest example is SnowStar in Shanghai, featuring the world’s largest indoor ski hall at 90,000 square meters. Within the 350,000-square-meter complex is a hotel, convention center, shopping street, and an indoor/outdoor water park with over 15 attractions.
With such rich experiences that extend the operating season, the combination of these offerings will make SnowStar a one-stop destination for a family vacation, setting a new international benchmark for the leisure and hospitality industry.
The Perfect Addition When Rebranding a Property
Like many other businesses, it is not uncommon for hotels and resorts to be sold or rebranded. This creates a great opportunity for renovations and additions, and a new water park is certainly a great way to entice guests to visit a property under new ownership or partnership.
Grand Mercure Okinawa Cape Zanpa Resort on southern Japan’s paradise island is a good example. With a new name and management comes a brand-new water slide tower tastefully coloured to match the luxury hotel’s look and feel. Offering two body slides and WhiteWater’s iconic Boomerango water slide, the resort is definitely setting itself apart from competing properties.
Get the Research to Support Your Investment Decisions
Delve into more case studies and data in APAC and around the world about how—and by how much—water park amenities add value to the hospitality segment. Download the “Global Analysis on the Impact of Water Park Equipment on Hotels and Resorts 2024” here.