Great Wolf Resorts, Inc. (WOLF)

NetscribeServcs (< 20) Submitted: 1/24/07 1:37 AM : Start Price: $14.20 WOLF Score: -47.53

Great Wolf Resorts is a fully integrated resort company, involved in owning, operating and developing family resorts that provides a high quality vacation and entertainment, through its indoor waterparks, at affordable prices. Its resorts are branded under Great Wolf Lodge and Blue Harbor Resort names, with each one featuring a combination of restaurants, ice cream shop, confectionery, full-service spa, game arcade, gift shop and meeting space. Currently it owns nine resorts, which are spread all over US, with two resorts being under construction.

Only a few water parks are opening in 2007 and Great Wolf with a first mover advantage is expected to garner the increasing demand for family oriented leisure activities. The growing portfolio of hotels has made its business model justifiable, by enabling management to pursue high profile locations. The agreement with MagiQuest, a live-action adventure game at the resort, gives the company exclusive use of the popular family oriented high tech and high concept entertainment. This kind of value added amenity couldn’t be replicated by its competing waterparks.

The company has recently opened up a new resort at Manson, Ohio, which has a conference facility. The revenue flow from this conference facility will be seen in second half of 2007. Its forthcoming resorts, one in Grand Mound in Washington, which is likely to open in early 2008 and the other Grapevine at Texas, opening in late 2007, will provide the company with adequate opportunities to nurture.

Strategically moving, the company plans to add more food and beverage offerings in its new resorts to capture a larger share of revenue from them. Increasing brand awareness and having current pipeline of projects in high barrier markets is expected to a serve as a positive catalyst for this stock

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