Marriott/ Nick teaming up

[Browntggrr]

http://www.washingtonpost.com/wp-dyn/conte...95.html?sub=new

Slides, Slime and Suites

Marriott, Nickelodeon Team to Create Water Park Resorts

By Michael S. Rosenwald

Washington Post Staff Writer

Friday, June 1, 2007; Page D01

NEW YORK, May 31 -- Marriott International announced Thursday that it is joining with Nickelodeon, the children's TV network, to create a chain of upscale water park resorts aimed at catapulting the hotel chain known primarily for business travel into the family-themed vacation business.

By 2020, Marriott plans to open 20 such resorts, which will feature state-of-the-art pools and towering water slides for children (and adventurous parents), as well as interactive attractions featuring Nickelodeon's cartoon characters Dora the Explorer and SpongeBob SquarePants.

Nickelodeon's SpongeBob SquarePants covers Marriott International chief Bill Marriott with slime as the companies announce a partnership to create a chain of upscale, family-themed resorts. (Getty Images)

Bill Marriott, the Bethesda company's 75-year-old chairman and chief executive, demonstrated his enthusiasm for the new business opportunity by standing on a stage next to Mr. SquarePants as Nickelodeon's trademark green slime was dumped over his head. Marriott's cheek took on a green finish, as did much of his suit -- albeit an old one, as he had previously consented to the sliming.

Entering the family-themed vacation business with Nickelodeon helps Marriott further tap into travel dollars being spent by Generation X -- people now in their 30s and early 40s, many with families. The company has been trying to deepen its appeal to that demographic with new technology in rooms and upgrading its bar scene. GenXers came of age with the Nickelodeon brand, which traces its origins to 1979. A Nickelodeon generation is well heeled and traveling.

"They've grown up with these characters and with this Nickelodeon programming," Bill Marriott said in interview after a brief disappearance to change suits. "They have the kind of respect for it that we had for Disney when we were growing up. So there's a lot of allegiance here."

Cyma Zarghami, Nickelodeon's president, said some parents take their children to Disney theme parks out of nostalgia for family vacations of their youth. However, she said her company is seeing a new trend, with children persuading parents to share experiences that are important to them.

That phenomenon lets Nickelodeon deploy a new strategy by extending its brand through the lodging business while not necessarily competing with behemoth theme park operators, she said.

The deal, which was announced in a news conference at the Marriott Marquis in Times Square, also enters Marriott into the fast-growing water theme park business. Attractions such as Great Wolf Lodge, which has a location in Virginia, Water World in Colorado, Schlitterbahn Waterpark in Texas and Disney's Blizzard Beach in Orlando have become popular vacation spots.

But Marriott and Nickelodeon say they have come up with something different. For starters, their resorts have a connection to a popular children's network. Also, Marriott has an extensive customer-rewards program, which borders on obsession for some business travelers, and the hotel chain hopes those travelers will turn to the Nickelodeon resorts when the family takes a road trip.

Also, Marriott is making the resorts as much a playground for adults as for kids, offering the latest in-room technology; flat-panel, high-definition TVs; ultra-modern furnishings; spa facilities; and sprawling meeting spaces for companies that want to host work and play events for their employees and families.

"We want them when they are traveling on business, and we want them when they are traveling with their families," said Richard S. Hoffman, an executive vice president in Marriott's development group.

Instead of capturing business travelers on the road, this gives Marriott a chance to catch them when they're on the road with young children in tow, Hoffman said. "We don't have a product that's directed to this kind of traveler," he said.

The company does have an extensive network of high-end vacation ownership resorts.

The first family-oriented resort is scheduled to open in early 2010, in San Diego's Liberty Station area. Designed by the Gensler architectural firm, the property is to feature 650 rooms, most of them large suites including character themes for children, and a 100,000-square-foot water park and activity deck. There will also be an adults-only lap pool and poolside cabanas.

Marriott is considering other locations around the country -- even in cool climates, where pool facilities would be indoors -- as well as in the Caribbean, Mexico, Europe, Asia, Australia and the Middle East. The hotels would each cost $200 million to $300 million to build.

Nickelodeon has a pilot resort in Orlando in partnership with Holiday Inn. That deal will end in 2009. As part of the new deal, the network, which is owned by Viacom, will be paid an undisclosed licensing fee. Miller Global Properties, a developer in Denver, is to develop and own the resorts, paying Marriott management fees to run the properties.

Marriott stock closed at $46.05, up 1.6 percent.

[jzarley]

Very interesting...bad news for Great Wolf on the macro level. GWL's results have been so/so since their IPO a few years back, and they're not exactly rolling in cash. Marriott has deep pockets, and could become a major competitor in that space pretty quickly. (They also seem to be jumping into that segment before Disney has a chance to get their ideas off the ground...)

I wonder if Marriott would consider acquiring GWL and converting the properties to this Nick concept? I've thought for a long time now that they (GWL) would be a great takeover target for someone...

[The Interpreter]

Something tells me that before the last chapter is written, Cedar Fair WILL rue the day they turned down the CBS interest in Great Wolf Lodge in Mason, Ohio. I've always shook my head at that decision.