US-based indoor waterpark operator Great Wolf Resorts has reported a net loss of US$6m for the first quarter of 2011.

Announcing its results for the three months to 31 March 2011, the company said the losses were largely down to the effects of the sale of its Blue Harbor Resort in Sheboygan, Wisconsin.

The deal resulted in a US$6.7m gain on sale of the property and a US$4.8m charge to income tax expense due to an increase in the valuation allowance on deferred tax assets.

Adjusted EBITDA during the period increased by 19.6 per cent to $18.5m when compared to the year before, while total revenues increased 4.4 per cent to US71.9m during the same period.

Kim Schaefer, chief executive officer, said: For Great Wolf Resorts, 2011 has kicked off with strength, even as the economy is still trying to find sustainable stable footing.

"This momentum seems to be continuing and we are therefore increasing our RevPAR and earnings guidance for full year 2011."