Luxury cabin rentals (the easier way)
How to add high-end lodging to your campground with less "red tape"
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Estimated time to read: 5 minutes
TL;DR:
Landscape resorts/hotels: A “new” hospitality niche, with locations usually offering high-end detached/dispersed lodging accommodations that provide access to nature and the outdoors. It also usually features more permanent “hard-sided” lodging units vs. yurts or glamping tents.
Park model RVs: Unlike traditional RVs, these units can be up to 15 feet wide and 400 square feet and feel like homes or cabins. Modern designs don’t look like old-school park models (or even trailers), so they allow for higher nightly rental rates.
Less “red tape”: Certified park model RVs don’t typically require permits to be placed in an existing campsite.
High-end rentals in campgrounds: The data shows that nightly rental rates for cabins/park models are lower when the units are situated within a campground than when they are individual units or within a landscape hotel/resort.
The first campground I acquired is one that most investors would view as “too small.” In other words, the revenue is insufficient to justify the brain damage of investing in or running the business.
The campground was a major “fixer-upper” and generated around $150,000 in gross revenue at the time of purchase. Operating expenses were about $75,000 annually, and the mortgage principal and interest cost about $45,000 annually. That leaves about $30,000 per year in cash flow.
That doesn’t leave much to budget for improvements or major repairs!
Long story short: we needed a creative way to grow the campground revenue significantly.
At the time of acquisition, “tiny home villages” or “tiny home resorts” were gaining popularity, and we considered this for the long-term vision of the property.
However, in the 3 years since the acquisition, the classic tiny homes on wheels (think the style that became popular from all of the tiny home shows on HGTV) have become cliché and played out. Search Facebook Marketplace for “tiny home,” and you’ll see tons of units for sale. These units are also built to be road-ready and only 8 feet wide. Can you say “cramped”?!
The evolution of the tiny home resort/village brings us to the current darling of the hospitality world:
Landscape Hotels/Resorts
Developers and operators like Isaac French and Ben Wolff have made big splashes in the hospitality industry by building highly successful landscape resort projects and sharing their stories on social media.
Both have developed resorts offering unique, high-end experiences in beautiful, outdoor-focused locations. I linked their X/Twitter accounts to their names above and highly recommend you check out their stuff.
It’s no secret that many modern hospitality customers are looking for unique experiences and to connect with nature. Campground owners are well positioned to serve these customers, but not necessarily those looking for a luxury, climate-controlled experience.
So, what does this mean for campground owners?
This brings us to:
Park Model RVs
Park model RVs have long been a staple in the campground industry. They offer campground owners a convenient way to add camping cabins to their accommodations. Here is what the “old-school” classics look like:
In recent years, park model RV manufacturers have embraced the modern trends of unique, sexy designs that look nothing like the classic camping cabin. These modern designs allow for unique customer experiences and higher rental rates. Some examples:
Less “Red Tape”
Campground owners with RV sites have an advantage over others when adding accommodations like these park models: they’re legally RVs.
Of course, every municipality is different, so check with yours. However, in my experience, adding a park model RV to an existing RV site often requires no building permits if the current infrastructure doesn’t need to be changed.
Other conveniences:
Units are on wheels and can be relocated relatively easily.
Units can be delivered and set up in a matter of hours.
Demand is high, so units can be resold relatively easily if an operator decides to change direction.
RV financing is often available for park model RVs.
Reply to this email if you’d like some recommendations on park model RV manufacturers!
High-End Rentals in Campgrounds
This is a caution for campground operators who want to incorporate high-end rentals at their locations (say $250+ average daily rate).
Market data shows that you won’t be able to command the same rates and occupancy that a true landscape hotel/resort or individual vacation rental home would command. Landscape hotels/resorts typically offer high-end amenities and “feel” that campgrounds don’t, and individual vacation rental homes offer privacy that campgrounds don’t.
If you want to add high-end rentals to your campground, research what nearby campgrounds are getting for similar accommodations. Don’t use individual vacation rentals or landscape hotels/resorts as comparables.
For what it’s worth, we launched a modern A-frame park model cabin at our rustic campground mentioned above last month. Through our first 12 bookings, we’re currently achieving a $302 average daily rate with no amenities on the property other than a renovated bathhouse.
A link to the listing and some photos below:
Modern Catskills Creekfront A-Frame w/ Fly Fishing
That’s all for this week. Thank you so much for reading!
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