Hartford Business Journal

HARTFORDBUSINESS.COM | DECEMBER 9, 2024 13 to June 30, 2028. S&P said it viewed the extension as "tantamount to a default." But Guyot said the loan maturity extension has provided further finan- cial flexibility that has allowed for continued reinvestment at Foxwoods. He added that recent property reno- vations will leave Foxwoods with no net new debt. S&P in August projected the tribe would report a 1% to 2% increase in overall revenue in fiscal year 2024, which ended Sept. 30, largely driven by increases in non-gaming revenue that would offset gaming revenue declines. S&P noted that Foxwoods "faces heavy competition from the Mohegan Sun casino in Uncasville… as well as regional casinos in adjoining states (Rhode Island, Massachusetts and New York)." During Connecticut's 2024 fiscal year, which ended June 30, Foxwoods contributed $90 million in slot gaming revenues to the General Fund, a 2.2% increase from the previous fiscal year. (Connecticut casinos are legally required to contribute 25% of their slot wins to the state.) By comparison, in fiscal year 2019, Foxwoods contributed $110.8 million in slot revenues to the state budget. One of the newest attractions at Foxwoods is Hell's Kitchen, the restaurant behind the hit TV show hosted by celebrity chef Gordon Ramsay. CONTRIBUTED PHOTO Private equity backing fuels Great Wolf Lodge's aggressive expansion into CT, elsewhere By Hanna Snyder Gambini hgambini@hartfordbusiness.com G reat Wolf Lodge, the family-oriented resort chain known for its indoor water parks, is set to make a splash in Connecticut with a new location adjacent to Foxwoods Resort Casino. The $300 million property, slated to open next spring, represents a strategic expansion for the company and highlights the growing influence of private equity in the hospitality sector. The Mashantucket facility will feature a 92,000-square-foot indoor water park with 13 slides, a wave pool, lazy river, water play areas and more, in addition to a 549-room hotel and dining options. The grand opening has been set for May 23. The new site will be the 23rd overall for Chicago-based Great Wolf Lodge, which has expanded its footprint aggressively from just 12 locations about a decade ago. In recent months, Great Wolf debuted new facilities in Houston, Texas and Naples, Florida. Future expansion could include interna- tional sites in Canada and the U.K.; there is currently only one Great Wolf location outside the U.S., in Niagara Falls, Ontario, Canada. Spurring the growth is the compa- ny's private equity ownership. In 2019, New York-based private equity giant Blackstone acquired a 65% controlling interest in Great Wolf Resorts Inc., and formed a $2.9 billion joint venture to own the company with Centerbridge Partners L.P. Since then, Blackstone has invested over $1.5 billion in the company, according to Jason Lasecki, Great Wolf's vice president of corporate communications. Leading the new Connecticut location is General Manager Henry Tessman, who has been with the company for over a decade. He led Great Wolf Lodge's 2014 opening in Fitchburg, Mass., which involved a renovation of an existing water park facility. He recently moved to Preston to oversee the Connecticut location, which is a ground-up development. Great Wolf Lodge's value propo- sition, Lasecki said, is that it offers a quick getaway for its targeted customer base: young families. "We like to say that we're kind of close, convenient and carefree," Lasecki said. "When this lodge opens up, we'll be within a four-hour drive radius of about 90% of the U.S. population. So, it's easy for a family to just get in the car, drive over, they don't have to worry about the hassles and expense of airfare." In terms of local competition in Connecticut, Lake Compounce and Quassy amusement parks also offer water parks and target young families. Symbiotic relationship Another key strategy for Great Wolf is opening in popular urban areas or near an established attrac- tion, like Foxwoods Resort Casino in Connecticut. Foxwoods is not a direct business partner in the water park; Great Wolf is simply leasing the land from the Mashantucket Pequot Tribe. But both companies hope to create a mutually beneficial relationship. The resort expects to comple- ment Foxwoods' existing fami- ly-friendly attractions, such as go-karts, zip lines and a museum, to extend guest stays in the area. Tessman said the new Connecticut location will have multiple dining options, a full-ser- vice Dunkin' Donuts, and 5,000 square feet of meeting space, which will be available to large parties, corporate gatherings or other groups that might cross over with Foxwoods. Great Wolf Lodge Connecticut General Manager Henry Tessman (left) and Jason Lasecki, Great Wolf's vice president of corporate communications. HBJ PHOTO | GREG BORDONARO Foxwoods has benefited from Connecticut's decision to legalize sports betting and online casino gaming in 2021. Foxwoods and Mohegan Sun were given access to operate in both of those markets, creating new gambling revenue streams. Foxwoods said its total gross revenue from sports betting and iGaming in fiscal year 2024 was $693 million, which was up 50% year over year. Guyot said gaming remains an important part of Foxwoods' busi- ness, but the diversification strategy is crucial for long-term growth and sustainability. "There's always something to do, and always opportunities and new concepts that hit the market," Guyot said. "So, we can never stop developing, never stop investigating what could be the next exciting thing that's going to drive people in volume and revenue."

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