SeaWorld making ‘significant investments’ going into hotel biz, opening international park

SeaWorld Entertainment is on the verge of opening its first international theme park this month and is jumping into the hotel business, the company’s CEO Marc Swanson said.

“I’m very excited about the significant investments we are making and the many initiatives we have underway across our business,” Swanson said as the company released its first-quarter earnings. “We are building an even stronger and more resilient business that we’re confident will deliver improved operational and financial results and meaningful increases in shareholder value.”

The company, whose portfolio of theme parks include SeaWorld Orlando and Busch Gardens Tampa Bay, posted a record revenue of $293 million, up 8% from the same time period in 2022, despite attendance dropping 25,000 visitors to 3.4 million guests. The company said bad weather and the new rides opening later this year are to blame for the attendance drop compared to 2022’s first quarter.

Disney and Universal draw visitors who stay the night on property and remain in the theme park bubble on their vacations. Meanwhile, SeaWorld hasn’t entered the hotel business before. But that’s changing, Swanson said Tuesday, as SeaWorld plans to open its first hotel in 2025 and a second one in 2026.

“We’re obviously excited about the hotel,” Swanson said. “We’re one of the few in the industry that doesn’t own our own hotels or have our own hotels, so we’re excited for those possibilities.”

Swanson still hasn’t said where the two hotels will be built, but hinted more hotels will be coming in the future. He also said the company hasn’t determined whether SeaWorld will own and operate its own hotels or partner with another business to finance and run the properties.

“We are working on design and planning for those two hotels and on site selection for additional hotels across our portfolio,” Swanson said, promising to provide more updates in the next months.

SeaWorld Abu Dhabi is opening its doors May 23. The park will have rides, characters and animal rescue facilities. But unlike the other SeaWorld parks in the United States, it won’t feature orcas — which have both a beloved and controversial history at SeaWorld.

Under a licensing agreement, SeaWorld will share revenue and a percentage of adjusted earnings, Swanson said, predicting the company will bring in a few million dollars this year and then “ramp accordingly … depending on how popular the park is.”

“We think it’s a great park,” Swanson said but with the return, “it’s hard to know until we get it open.”

To build attendance back up, Swanson pledged to “continue to do the things we’re doing,” such as investing in the parks and opening new rides and holding more events. In Orlando, the surf-themed roller coaster Pipeline is scheduled to open May 27 to the general public.