Legoland California will start construction of the long-promised Lego-themed hotel on the park grounds later this year.
Park officials refused to reveal how much its owner, London-based Merlin Entertainment Group, is investing in the 250-room hotel, but it is thought the costs could reach US $50 million or more based on a rough estimate of $200,000 a room.
Just a few years ago, the park spent $30 million on the Sea Life Aquarium and an Indiana Jones-like adventure in 1920s Egypt.
Legoland general manager Peter Ronchetti acknowledged that the hotel project, which is expected to be completed by the summer of 2013, "is by far the biggest investment we've made" since the park opened in 1999, Australia-based industry news agency e-Hotelier reported.
Although approved by the Carlsbad Planning Commission two years ago, the project had been on hold, awaiting a recovery of the tourism industry, which had been hard hit by the recession.
The Carlsbad park also needed enough of a critical mass of attractions - which it already has, with its water park and aquarium - to warrant more than a one-day visit.
"We've seen that the recovery in the hotel market is pretty much on track, so if we start now and open in 2013 the hotel market will be in significantly better shape," Ronchetti told the news agency.
"We're also continuing to enjoy a steady curve of visitor volume growth. This summer, we're significantly ahead of where we were last year, so for that reason we believe the formula is working, and it gives us more confidence to build the hotel."
Despite a still fragile economic recovery, Legoland is making a wise decision to move forward, given rising hotel occupancies and still modest construction costs, said theme park consultant Thor Degelmann, CEO of theme park design and feasibility firm LEDO International.
"Most of these theme parks throughout the US have experienced a very good summer and good spring, and in some cases the summer has created record attendances," Degelmann added.
"Having a hotel on property automatically lengthens the stay and economically it gets people to spend their money in the complex rather than going away. It makes it a whole lot easier to make the decision to go to the water park rather than staying at the hotel pool."
Specific details of the hotel design are not yet available, but the three-story property will incorporate the look and whimsy of the amusement park, featuring brightly-coloured Lego decor, as well as a pool area and restaurant. Rooms and suiteswill be themed to mimic the most popular areas of the theme park, geared to families with young children.
Legoland is in the process of finalising a design and evaluating contractor bids. Grading and preparation of the site will begin in October, with framing of the hotel expected to start by January, Ronchetti said.
The Lego hotel is among a number of planned expansions by Merlin. In May 2008, Merlin announced a strategic alliance with Tatweer, a member of Dubai Holdings, to create Legoland Dubailand. The $248.28m Legoland project was to occupy a total of three million square feet inside Dubailand.
Originally scheduled to open this year, developers behind the theme park insisted in April 2010 that the project would still go ahead despite delays brought about by the emirate’s economic slowdown.
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