I've been thinking about this a fair bit recently. Resort Theme Parks definitely aren't the priority for the new Merlin leadership, and they have been burdened with resolving the historic issues within the various parks. However, I'd still argue that they provide a lot of value to the company as a whole. Firstly, having the experience of running theme parks, the Midway attractions and Legoland parks already have a framework and synergies that they can share with. We don't see a lot of it from a customer perspective, but the different divisions are always consulting each other with their various strengths and weaknesses, and occasionally we've seen Merlin use economies of scale for use across the different divisions within the business. I suspect contributing as to why the Lego parks are now receiving family B&Ms date back to when Tussauds first established a working relationship with them with Nemesis.It’s very clear to me Merlin see all the theme park portfolio in the UK as a pain in the arse. Minimal effort is made. Wouldn’t be shocked to see them dispose of them
I see a degree of truth behind this however I believe before Covid and even that dreaded train in a shed a few years earlier, Merlin had been doing consistent 3/4 year investment cycles across their portfolio. It might be the case that Merlin are back on those cycles again after the pandemic.I've been thinking about this a fair bit recently. Resort Theme Parks definitely aren't the priority for the new Merlin leadership, and they have been burdened with resolving the historic issues within the various parks. However, I'd still argue that they provide a lot of value to the company as a whole. Firstly, having the experience of running theme parks, the Midway attractions and Legoland parks already have a framework and synergies that they can share with. We don't see a lot of it from a customer perspective, but the different divisions are always consulting each other with their various strengths and weaknesses, and occasionally we've seen Merlin use economies of scale for use across the different divisions within the business. I suspect contributing as to why the Lego parks are now receiving family B&Ms date back to when Tussauds first established a working relationship with them with Nemesis.
Secondly, the RTPs bring a lot of value to the Merlin Annual Passes, which essentially serve as a big source of cashflow predominately towards the start of the new financial year. If they sold off the RTPs, then I can almost guarantee you that they'd see a permanent slump in attendance in many of their Legoland and Midways. Conversely, the Resort Theme Parks provide more consistent revenue compared to the Midway attractions, Merlin would be more exposed to their profits tanking if the popularity of Midway attractions were to, again, slump. Investors want to see growth, but equally they want to see reliable, consistent revenue.
It's becoming really obvious that Merlin currently are attracted towards growth within the Midway and Legoland divisions, especially in the Asia market. Merlin are the only regional Western theme park operator that has established a foothold in the gigantic market that is China, as well as having a footprint in the American market. I think the investments we're about to see in Chessington are a continued committment to the UK RTPs and look like Merlin really do want their answer to Super Nintendo World with the Minecraft Wild Asia replacement. I think Merlin realise there's a lot of untapped potential for growth still in the UK parks, the question is will the new additions be enough to see significant returns to outweigh the creaking infrastructure in the rest of parks. This Merlin doesn't seem interested in incrimential changes left and right, and more of a "go big or go home" approach, at least when it comes to capital expenditure.
Exactly, especially if this was suggested in 2019 before the Croc Drop plans got submitted.If you had said that Chessington would have a B&M inverting coaster and potentially a Intamin multi-dimensional coaster plus a host of new or repurposed flats in the space of 5 years you'd have been laughed off the forum.... Yet here we are
I can see huge investment continuing for Chessington and Thorpe Park with the whole London catchment. Towers seems strangely neglected
That is true, anything after Croc Drop was when Merlin started to change it's tune on Flat Rides and install more of these.Arguably the flats at Chessington are all 'family' as opposed to kids rides... Barrell Bail Out, Trawler Trouble, Mamba Strike and Ostrich Stampede. Legoland had Fire and Ice and Sky Lion. Towers will have a topspin back finally and a couple of decent rethemes and upgrades. Thorpe investment will continue and Chessington seems to be well in favour. Jumanji, Waterpark if approved, new accomodation (albeit it losing Glamping) and a huge new themed area plus more. Merlin have some dross to sort out or remove but I can see a decade long cycle of updating and extending some classics (Vampire, Oblivion) and also a lot of removals (Rattlesnake, Galactica)
It'll be nowhere near Disney or Universal standard but I think Merlin certainly are chucking 10's of millions at the parks even if the rides or IP's aren't to your liking
Scott O'Neill is very pro Chessington by all accounts. If the rumoured investment figures are true then Shipwreck Coast at £1m, World of Jumanji at £18m, Waterpark £35m and whatever Wild Asia going to become allegedly £50-70m total (phase 1 & phase 2) then over £100m investment in a decade or less is some decent numbers. A fraction of Universal but still not to be sniffed at. Arguably Chessington needs the most TLC as the true 'theme' park of the portfolio even if it does become IP heavyChessington seems to be an exception with the investment it has had both recently, and continues to have planned under O'Neil. Perhaps there was a significant effect from World of Jumanji, which gives them some confidence there. They could be packaging it up to sell I guess, but don't expect so.