1 Analyze current demand patterns. This includes the occupancy and average daily rate levels of the existing resort and hotel supplies.

2 Consider existing hotels and resorts. Especially watch for those with indoor waterparks within driving distance. And don’t forget to include the number of other proposed indoor waterpark properties in the market.

3 Prepare for change. The addition of an indoor waterpark is not a panacea for any property. Adding a child-friendly amenity such as a waterpark to an existing destination resort will change the focus and type of guest who visits.

4 Figure out the cost. Costs associated with this development may range from $10 million to $30 million. These costs need to be analyzed in relation to the value created through the addition.