Knott's Soak City Palm Springs Acquired by CNL Lifestyle Properties

[Leland Wykoff]

Knott's Soak City in Palm Springs has been acquired by CNL Lifestyle Properties and will be operated by Premier Attractions Management LLC a unit affiliated with former Six Flags CEO Kieran Burke.

See the press release here:

http://www.prweb.com/releases/2013/8/prweb11023510.htm

[CoastersRZ]

So I wonder how much they sold this property for and if they will use the money to pay down debt or put it towards their hotel refurbishments.

[mullimann]

Wildwater Kingdom is next... Maybe SeaWorld Entertainment will buy it!

Seems like seperate gates are going away, the One Park, One Price may come to CP and KBF.

[The Interpreter]

At the last conference call, Mr. Ouimet said separate gates work well at resort parks like Cedar Point and Knott's.

[Diamondback96]

After this and the other Soak City sell, I wouldn't be surprised if Geauga Lake was sold off. Well, Wildwater Kingdom. I'd be surprised if the former dry side does anything but rot at this point.

[Leland Wykoff]

In the conference call CEO Ouimet foreshadowed the limited value of stand alone water parks to Cedar Fair:

"...Worlds of Fun was our last park it didn’t take advantage of two parks for one price which is an incredibly compelling consumer messaging and we’ve seen exactly that happen at World of Park as we had anticipated. It’s also a strongly defensible position against water park – standalone water parks because the value proposition is great for the consumer. And then the third thing is water parks play a disproportionate role in driving season pass sales because people see themselves going into the water park more times than they go to the amusement parks."

Matt Ouimet in response to a question from Jeffrey Thomison of Hilliard Lyons, please see transcript, page six, from Seeking Alpha:

http://seekingalpha.com/article/1620642-cedar-fairs-ceo-discusses-q2-2013-results-earnings-call-transcript

Cedar Fair seeks to expand via combined gates and grouped gate revenue streams such as leveraging resorts, hotels, campgrounds, adjacent or attached water parks, go-cart attractions, restaurants, and other related businesses.

Watch to see how Ouimet develops the auto industry property acquired near Cedar Point.

Proceeds from the sale will likely be deployed to the hotel refreshment program, point of sale roll out, and arm band payment systems.

[Maverick00]

I really hope Wildwater Kingdom isn't sold... It's closer to my house than Cedar Point and its nice to go for a day.

[Diamondback96]

Even if it's bought by Schlitterbahn?

I know, won't happen, but what if?

[BB1]

So let's take in what we already have.

1. GL was shut down, WK stuck around

2. Both off site Soak Cities are now sold off in the Knott's area.

3. 2 p-o-p now being installed to many FUN parks.

What can happen in the near future.

1. WK sold off

2. Cedar Point will have 2 pop pricing for admissions to CP/SC.

3. Dual Park pricing could arise for those parks in 30 minute- 49 minute radius i e CP KI if can be done.

[The Interpreter]

Uh, let me say it again. Mr. Ouimet made very clear at the last conference call that separate gates for the dry and waterparks work well at Knott's and Cedar Point. I would NOT expect two parks (wet and dry) at one low price at either resort area.

[shark6495]

but a season pass would work for both places correct? Forgive me, but I have only been to CP 2 times and both have been to the dry side...

[The Interpreter]

A Platinum Pass, yes.

A Cedar Point season pass, no.

[malem]

Since they're distinguishing resort properties from non-resort properties, perhaps it's time to acknowledge this with season pass tiers. A gold pass from a non-resort property could be honored at other non-resort properties, for example.

For people in many markets, the current platinum pass is a terrible value. (when compared to other season pass tiers)

[faeriewench]

A Platinum Pass, yes.

A Cedar Point season pass, no.

A Knott's Gold Pass now offers admission to both dry park and water park.

[The Interpreter]

And is priced accordingly.