According to the Travel Industry Association of America, or TIA, from 1994 to 2003 the number of domestic leisure trips taken by families grew from approximately 96 million trips in 1994 to 154 million trips in 2003. In 2003, approximately 45% of leisure trips lasted one to two nights. The primary mode of transportation for 77% of the overnight leisure trips in 2003 was by automobile. It is believed that these statistics provide evidence that the segment of the travel and leisure industry has strong demand characteristics that make family entertainment resorts attractive to leisure travelers.

The concept of a family entertainment resort with an indoor waterpark was first introduced in Wisconsin Dells, Wisconsin and has evolved there over the past 15 years. In an effort to boost occupancy and daily rates, as well as capture off-season demand, hotel operators in the Wisconsin Dells market began expanding indoor pools and adding waterslides and other water-based attractions to existing hotels and resorts.

Each of the Company’s Lodge resorts has a northwoods lodge theme, with a rustic log exterior and cultured stone veneer that provides a dramatic and authentic log cabin appearance. The Company’s three-story, approximately 5,000 to 7,800 square-foot atrium lobbies are designed in a northwoods cabin motif with exposed timber beams, massive stone fireplaces, mounted wolves and other northwoods creatures, North American art and an animated two-story clocktower that provides theatrical entertainment for the younger guests.

All of the Company’s guest suites are themed luxury suites ranging in size from approximately 385 square feet to 880 square feet. Substantially all of the Company’s rooms also include a private deck or patio. The Company’s resorts offer up to nine room styles to meet the needs and preferences of the guests, including a selection of rooms with lofts, jacuzzis and fireplaces. The Company’s standard rooms include two queen beds and a third queen bed in the sleeper sofa, a wet bar, microwave oven, refrigerator and dining and sitting area, and can accommodate up to six people.

Total other operating expenses increased $4,471 to $11,230 for the first three months of 2004, compared to $6,759 for the first three months of 2003.

Selling, general and administrative expenses increased $1,200 to $3,271 for the first three months of 2004 from $2,071 for the first three months of 2003.

Depreciation and amortization expense increased $2,603 to $2,744 for the first three months of 2004 from $141 for the first three months of 2003.

Operating (loss) for the first three months of 2004 decreased $2,046 to $(115) from $(2,161) for the first three months of 2003.