Great Wolf Resorts, Inc. announced recently in a press release that it has signed License and Management Agreements related to the development of a new Great Wolf Lodge resort in Southern California. The propperty will be located less than two miles from Disneyland, near Anaheim and Los Angeles, and will be developed by McWhinney, a diversified real estate company based in Loveland, Colo.
Once complete, Great Wolf Lodge in Garden Grove's International West Resort, will be a full-service, family destination resort with 600 suites, 30,000 square feet of meeting space, 100,000 square feet indoor water park and additional indoor entertainment areas and amenities. Development is expected to begin in 2011.
The project is contingent on obtaining construction financing, typical due diligence, and permit and license approvals. The resort will be owned by a joint-venture, with Great Wolf Resorts receiving a minority equity interest for its development-related services. Additionally, the City of Garden Grove will contribute cash and bond proceeds to the resort, as well as establish a financing district to develop an adjacent parking structure.Great Wolf Resorts will receive license fees for use of the Great Wolf Lodge brand name and other intellectual property at the resort, and management fees to operate the resort on behalf of the owner. It will also advise on certain development-related matters.
"I am very excited about this license and management agreement. With a sizable population within a three hour drive along with the close proximity to Disneyland, we have an attractive location for Great Wolf's first California resort," said Kim Schaefer, Chief Executive Officer of Great Wolf Resorts. "The area is already established as a vacation destination with domestic and international travelers so it allows us to continue to monetize the value of the Great Wolf Lodge brand, business model and infrastructure. Utilizing joint ventures to grow our brand footprint with minimal capital requirements will help us to maximize the value of the company for shareholders."
Chad McWhinney, co-founder and chief executive officer of McWhinney commented, "We are pleased to be partnering with Great Wolf Resorts in developing a first-class destination. Our expertise as a comprehensive developer on the West Coast, combined with Great Wolf's leading brand in indoor water park resorts, is sure to result in a successful family destination."
"The Great Wolf Lodge will be the biggest attraction to be included in the International West Resort. This will be the most significant revenue generator in the City," said Matt Fertal, City Manager of the City of Garden Grove.
