Over the next 3 years we can expect to see many changes occur to the Cedar Point hotel properties. According to a story by toledobalde.com, Cedar Fair will invest in a 3 year $60 million project to upgrade its hotels and beach. The sale proceedings from the recent sale of Knott’s Soak City San Diego to SeaWorld will be used to cover the makeovers of the hotels and beach. The company plans to spend $18- $20 million annually on the project, without disrupting Cedar Fair’s annual capital budget that funds new rides and attractions at other Cedar Fair parks and waterparks.
Matt Ouimet, CEO and president of Cedar Fair, says he believes that the Lake Erie beach that was once sprawling with guests a century ago, can become the same way it used to be. He plans to make drastic changes to some of the hotels as well as refreshments and refurbishing in others. His main goal is to be able to give families of all budgets a nice accommodation. To do this, Mr. Ouimet will ask guests of Cedar Point what they would like to see changed in the hotels and the beach. All answers will be taken into consideration in order to meet the guests standards.
Once the upgrades are completed, two things will be able to happen; new vacation packages will be made available to purchase and more nighttime entertainment will be added. Rick Munarriz, an analyst for the Motley Fool online investor Web site said spending up to $60 million to improve the hotels isn’t likely to pay off right away for Cedar Fair. “But it’s something that needs to get done even though it won’t be major driver of their income,” he said. “It’s a smart move in theory and one what will pay off in time, I believe.”