Originally named Hard Rock Park, this 55-acre resort, located in Myrtle Beach, South Carolina, had suffered from poor ticket sales and major profit losses. After less than a year of operations, and over $400 million worth of investment, the park was forced to close due to financial hardship in 2008. It re-opened nine months later as the Free Style Music Park (FSMP) only to close again at the end of 2009.
Faced with the inability to generate consistent revenue margins the client reached out to EDG for analysis and advice to improve the resort’s financial health. After an exhaustive study, EDG concluded that the business model of the resort relied on overly-optimistic assumptions that were derailing its’ ability to financially support itself. Since it first opened, FSMP was meant to become the next world class mega-resort theme park, on par with Disney World, Universal Studios, and Sea World. However the resort lacked the size, intellectual property, and proximity to major tourism resources needed to compete at that level. In order to boost the revenue margins, EDG formulated a repositioned business strategy for the owner. It included an entire blueprint for mass-redevelopment, with a new marketing strategy, renewed media relations initiative, and better staffing recommendations.
When fully implemented the resort will have the opportunity to redefine itself as a more regional destination, thereby enabling it for sustainable growth throughout the future.
- Feasibility and Business Strategy
- 55 acres / 22 hectares