Dollywood’s Parent Company Closes/Sells 20 Percent of the Parks It Acquired Earlier This Year
Herschend’s Recent theme park Changes
Earlier this year, Herschend announced a significant acquisition of Palace Entertainment, which included a portfolio of 20 U.S. theme parks across ten states. This strategic move positioned Herschend, known for owning popular attractions like Dollywood, Silver Dollar City, and Kentucky Kingdom, to bolster its place in the competitive theme park market. Following this merger, Herschend benefited from a substantial increase in its annual visitor numbers, which now average around 20 million, placing it close to top competitors like United Parks and Resorts.
Among the notable parks acquired were Kennywood and Dutch Wonderland in Pennsylvania and Lake Compounce in Connecticut, the oldest amusement park in America. Dollywood remains the highlight of Herschend’s theme park endeavors, consistently earning accolades as one of the best theme parks in America and often outperforming renowned establishments like Disney World.
Properties Sold and Closed
Despite the promising acquisition, Herschend swiftly reshaped its portfolio by selling and closing several properties. The company offloaded three parks to Lucky Strike Entertainment earlier this year, primarily associated with bowling alleys. The sold properties included Raging Waters Los Angeles in California, Castle Park in Riverside, and Wet ‘n Wild Emerald Pointe in Greensboro, North Carolina.
Recently, Herschend announced the closure of Malibu Norcross, a go-kart amusement center in Gwinnett County, Georgia. After over two decades of operation, this park’s final day was September 28. The company did not provide specific reasons for the closure or the previous property sales but indicated a strategic approach to managing its portfolio.
Financial Implications of the Merger
The merger with Palace Entertainment was supported by a substantial financial maneuver. Although precise figures regarding the acquisition cost were not disclosed, it was reported that Herschend took out a $1.1 billion loan around the time of the acquisition. This move enabled the company to expand its footprint across the U.S. theme park landscape, aiming for financial stability.
The decision to sell or close four properties soon after the acquisition could suggest redundancy within Herschend’s operations. By shedding these parks, the company might streamline its focus on more profitable locations, ensuring that its investment in the acquired parks yields favorable returns.
Future Outlook for Dollywood
Amid the changes within its parent company, Dollywood continues to shine brightly in the theme park industry. The park’s reputation as a leading destination remains unblemished, and with new attractions slated for 2026, prospects for increasing visitor engagement are promising. Dollywood’s unique offerings, including its link to country music legend Dolly Parton, provide an invaluable draw for potential guests.
Dollywood is anticipated to maintain its dominance as the theme park landscape evolves, mainly due to ongoing expansions and renovations planned to enhance the guest experience. Analysts predict that as Herschend refines its portfolio, Dollywood will continue to thrive and solidify its status as a premier entertainment venue in the United States.
