Marriott signs deal for Nickelodeon branded hotels and water parks

Posted | Contributed by Jeff

Marriott International Inc., the biggest U.S. hotel operator, and Viacom Inc.'s Nickelodeon cable network will create a chain of resorts with water parks and themed restaurants. As many as 20 Nickelodeon Resorts by Marriott may be built around the world by 2020, with the first to break ground in San Diego next year, the companies said Thursday. The hotels will be owned by Miller Global Properties LLC and managed by Marriott. Nickelodeon will receive a licensing fee.

Read more from Bloomberg via The Orlando Sentinel.

I wonder how long CF will keep their Nickelodeon license, now that everyone has it.

Well, there goes my idea of CF building a Nickeoledeon hotel at their properties.

Kind of makes the Nick Hotel in Orlando (which is a Holiday Inn property, BTW) a little less special.

Does Viacom realize that they dilute the licensing value of the brand by giving it to everyone?

Jeff, while that is true, if someone wants an exclusive license, they've got to be willing to pay for that. So far no one has said 'we want to be the only place you can go for Nick characters, and here's 2 bajillion dollars to make it worth your while', so Viacom keeps making deals.

^ Some would say they're "diluting the brand", others might say they're "striking while the iron is hot"....

Only in hindsight will we know which is correct...and even then it'll probably be debatable... :)

Kind of makes the Nick Hotel in Orlando (which is a Holiday Inn property, BTW) a little less special.

Sounds like that place will be a standard Holiday Inn come 2010.

In a related note...I swear the paragraph in the printed paper (USA Today) made mention of amusement parks in addition to water parks...but can't find it online. I was in a hurry at lunch today though...and might have got it wrong!

http://blogs.usatoday.com/hotelhotsheet/2007/05/marriott_and_ni.html?csp=34

I don't think Viacom cares who they sell the rights to, there getting paid. Viacom isn't in the park/resort business, so thats the only way they can capitalize on that market.

I would also figure that as long as the seperate entities don't directy compete there shouldn't be a problem.

And, since the first one is going to be in SD, I would be willing to bet there won't be one of these in Orlando anytime soon. Besides Miller Global owns The Nick hotel in Orlando, so it could just become a Marriott.

I wonder what kind of effect this will have on Soak City.*** This post was edited by ExJPranger 6/2/2007 7:22:05 AM ****** This post was edited by ExJPranger 6/2/2007 7:30:55 AM ***

I read it in the USA Today yesterday and made plans for San Diego in 2010 or was it 2009.

Now to me, this seems like a good opportunity for SF and certain CF parks to petition for some of these resorts to be built next door to their theme parks where they have the real estate to offer. SF avoids the cost of the entering the hotel business, the hotels now have an additional tourist draw. For example, the land next to SFMM which they do not own I know has at least one new business, and AMC megaplex movie theater. If Marriot built near the AMC, you have the basic anchors of a citywalk or downtown Disney.

There are two ways to look at brand dilution. One is that you kill the golden goose. Two is that the golden goose only lives so long no matter what, because fads change, so you may as well strike while the iron is hot.

But, yeah, this does look like over-saturation to me.

JRS: I didn't see any mention of exclusivity, so I'm guessing that HIFS will re-up with Miller.

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