Why Projects Fail:
Hard Rock Park
One of our favorite quotes at ITPS isn’t what you might expect. It’s not “Fun is a Serious Business,” though that is our motto and we say it often. And it’s not even Walt Disney’s famous line about a mouse. Instead, it’s this: “They said it couldn’t be done. But we did it anyway.” That quote didn’t come from a visionary success—it marked the downfall of one of the most infamous theme park failures in modern history: Hard Rock Park.
Although Hard Rock Park opened many years ago, its failure still offers valuable lessons, and we continue to draw insights from its experience as the industry evolves. ITPS was involved in the project after the fact, brought in by the investing banks to help analyze what went wrong and assess the park’s true value. In conducting our original forensic review, we identified a number of factors that led to the park’s failure. While time has passed and the industry has continued to grow and change, many of the reasons for its failure remain highly relevant today — rooted in simple, fundamental principles that don’t change.
This story isn’t about taking pleasure in someone else’s failure. It’s about learning. It’s about why realistic feasibility—genuine, grounded analysis—is critical, and why every developer, investor, and owner should take notice before launching their dream park.
A Dream Misplaced: The Hard Rock Park Collapse
The Hard Rock Park in Myrtle Beach, South Carolina, opened with enormous fanfare in April 2008 and closed permanently just five months later. More than $400 million had been spent. Dozens of consultants and industry leaders had been approached for insight, including Six Flags, Cedar Fair, Herschend, and ITPS. And nearly all of us advised caution, or recommended walking away.
But the development went ahead anyway. Why did it fail so quickly and so completely?
The answer isn’t one thing. It’s everything.
First, location. Myrtle Beach, affectionately known as the “Redneck Riviera,” is a quirky tourism market. It attracts two primary visitor groups: golfers and beachgoers.
Golfers don’t come to ride coasters; they come to play 36 holes a day, grab dinner and a drink, and rest for the next tee time. Meanwhile, beachgoers travel on tight budgets. Their vacation rhythm involves pancake breakfasts, long beach days, casual boardwalk strolls, and early nights. Neither group was primed to spend $50 per person to visit a brand-new theme park off the beaten path, especially one built on the failed grounds of the Waccamaw Factory Shops, far from the natural flow of tourism traffic.
Then there was the product itself. The park was expensive to build and expensive to visit, yet it offered a modest attraction lineup that didn’t justify the pricing. The theme—rock and roll—was narrow in appeal and not well-aligned with the core tourist base. The design, layout, and guest experience were all unremarkable. In short, the park was built on a flawed foundation: the assumption that “if you build it, they will come.” But they didn’t.
The Fallout
When the park closed in September 2008, investors were left with a $400 million loss. Good people lost jobs. The entire project damaged industry credibility and cast a long shadow over future development prospects.
After the closure, ITPS was brought in by Cerberus Capital to conduct a forensic review and determine what went wrong. We found extensive issues—not just in execution, but in the very premise of the park. Our analysis revealed that the project had never been viable in that market with that concept at that price point.
Ultimately, we valued the property at just $25 million, which is exactly what the assets sold for. The number wasn’t just a painful one - it was a warning siren for the industry.
The Cost of Skipping Realism
The developers of Hard Rock Park had a feasibility study completed. What it didn’t have was a realistic one.
Feasibility is more than a box to check. A truly effective feasibility study considers:
Local market dynamics and tourism behavior
Appropriateness of capital investment
Operational scalability
Competitive positioning
Repeat visitation potential
Site visibility, accessibility, and infrastructure
Feasibility is not just about proving a dream is right. It’s about testing a concept under pressure — challenging assumptions, identifying weaknesses, and, just as important, making sure it can succeed in the market and environment where it’s actually meant to operate.
How ITPS Can Help
At ITPS, we don’t just tell you what you want to hear. We help you uncover what you need to hear—early, honestly, and constructively. Our services range from comprehensive feasibility studies, market analysis, and concept testing to project reviews, design validation, due diligence for investors, and asset valuation and sales assistance. We’ve seen the good, the bad, and the ugly. And while we love new ideas and bold dreams, we also believe that success only happens when those dreams are rooted in realism. Let the story of Hard Rock Park serve not as a cautionary tale alone, but as a call to take planning seriously. Because in this industry, it’s not enough to build it—you have to build it right.
Contact ITPS
International Theme Park Services, Inc.
2200 Victory Parkway, Suite 500A
Cincinnati, Ohio 45206
United States of America
Phone: 513-381-6131
http://www.9vfox.com
itps@interthemepark.com