…sits a beautiful campground ready for the next discerning owner. Temperate summers, and crisp snowy winters prove a unique challenge for such a park… ready for improvement by those who share the vision.
Without going into too much detail, lets explore some of the possibilities for adding value and setting this case study apart from the competition. Remember, in order to protect the identity of the park, we’ve only used estimates while exploring the upside.
An RV park & campground with some cute amenities, great ratings, and a geographic location that makes this a home-run should the proper brand positioning be attained.
CAP rate is running strong at roughly 12%, however with very low (seasonal) occupancy. Expansion opportunities exist and current structures are operational but out-dated.
A stronger emphasis must be placed on the annual enjoyment of this park. A great way to achieve this is to create unique, independently “brandable” – yet cohesive – themes that act as a draw to clientele for each and every season.
With proper re-positioning and cost-effective renovations, this park can surely shine.
Fast-forward two years into the future, and this park is now a incredible destination for summer, fall, spring, and winter-goers alike. Occupancy rates have surged and as a result, the CAP rate has nearly doubled – a gold-mine for the owner/operators.
For those seeking a bit more thrill, it’s time to explore the allure of snowmobile adventures. Perfect for those who wish to get out on some of the trails, fields, and open spaces - to buzz around and sight see before retiring for the evening at the lodge.
Potential revenues from this are not solely limited to the experience itself, but also as a cross-sell or up-sell to those coming for special events, weddings, or just simply a romantic getaway.
The pavillion itself becomes a focal point from which the bathhouses, gift shops, common eating areas and launch points for adventures can all take shape.
If a stunning pavilion wasn’t already enough, we’d like to introduce to the area our incredible “Biergarten” concept - wherein local microbreweries can take part in regular experiences - taking full advantage of the transient demographic. A beer garden within the community is a great way for people to not only come together as friends, family, and fellow campers, but also an amazing way to celebrate Oktoberfest in the heart of Autumn weather.
The Stargazing Cabins are cost-effective “luxury” cabins sure to increase cash flow and bring a per unit nightly/weekly rate that rivals the best of hotels in the area. Each unit, acting as a stand-alone “suite”, comes complete with small entry area, closet, and oversized sleeping area. Best of all, the cabin features three “walls of glass” as well as a “starlight ceiling” also made of tempered glass. The overall effect is spectacular, and allows for campers to sleep beneath the cosmos each and every cloudless night.
…for a luxurious RV Park with inlet views and waterfront sites. A sizeable investment has been put into beautiful grounds, and semi-private camping areas, yet the community is lacking something special.
The park is our oyster and the upside is our pearl. Remember, in order to protect the identity of the park, we’ve only used estimates while exploring the upside.
An upper-end RV park catering to those who wish to have splendid natural views. Incredible location, but lack of amenities and near-zero digital presence.
You’re paying for location – as such the CAP sits at a current 8.5%. Occupancy is at market average, and there is adjacent land properly zoned for added infrastructure.
Whilst the sites are stunning, and the common area is very high-end, there’s simply nothing much to do here! Let’s change that.
With annual climate that is suitable to comfortable indoor/outdoor living near year-round, we’ll explore add-value propositions that take advantage of all this park has to offer – plus let’s get more people through the door.
With the implementation of our proposed add-value amenities, it won’t be very long before extra cash flow can be generated. The occupancy rate will slowly creep up as an indirect result, but more important will be the improved CAP rate – making your investment in a stunning geographic hot-spot be that much more lucrative. The property will PAY YOU handsomely to own and operate it, all the while appreciating in value over the long haul.
As this particular RV park collects the highest site rates from the water front and water view sites, it stands to reason that there may be a higher and better use for the underutilized pads more inland within the park. These are the perfect sites for food trucks to set up shop. As there are few amenities in the park, and few dining options in the area, the food trucks may also consider catering to the local community during certain hours of the day. Food for thought.
Imagine if you will a drive-in cinema… perfect for the outdoorsy romantic types, yet requires a lot of room for parking. Not ideal, but the concept is a great foundation for an RV Park or campground where outdoor activities can take shape. Not necessarily something to be monetized independently, but rather a great way to boost per-site revenue and community brandability.
Lastly, and most important, so many parks nowadays completely lack an interactive booking and reservation system. As we’re in the business of implementing these platforms for owners/operators, this service is a “hands-down no brainer” for this particular project. Ease-of-booking and a killer website are must-haves in today’s market, and will help knock the revenues of this park out of the … ahem… park.
Adventure seeking, lifestyle-oriented outdoorsmen take note – this RV Park is nestled in the heart of Montana – beckoning to those who wish to connect with big sky country.
While smaller, this park is ripe for re-positioning as a destination for corporate retreats. Remember, in order to protect the identity of the park, we’ve only used estimates while exploring the upside.
Situated in the heart of fly fishing country, this riverside retreat is primarily driven by return guests. Great news, but not necessarily optimal for cash flow and bottom line.
As it sits, this project cash flows quite well, and would – in a short span – pay for its own upfit and market repositioning. Current CAP is 11% and is based almost exclusively on return clientele.
Destination-based travel is an incredible way to add a fast as well as long-term revenue boost to an RV Park of this calibre. Whilst still catering to to the RV bound traveler, one can easily reposition this community (or rather transition) into a five-star getaway for corporate retreats and event oriented travel. Let’s explore what makes a park a destination by developing a resort-style enclave catering to the avid sportsman and even those who simply wish to “unplug” from life’s hustle, bustle, and daily chaos.
As expected, investing the necessary capital for world-class lodge and rustic yet well appointed cabins has paid off exponentially.
The luxury repositioning of this park assists in attracting high-paying clientele from corporations seeking destination-based experientialism for their executives. Proximity to a private airport, and the perfect setting on a fish-filled river make this park a brandable paradise for its owner/operator.
This new lodge can house a small chef’s kitchen, a bar area, a cozy fireplace and seating area, as well as a retail center with branded goods, apparel, accessories, and outdoor supplies. The restaurant will be home to a chef who specialized in creating amazing dishes with locally sourced product. The menus will be seasonal, ensuring something unique year-round.
Setting up a small facility for a upscale bait shack, storehouse, and launch facility for fly fishing would be a winning formula. Not only would this have the potential to be marketed to a very clear demographic, but itself could be branded as a flyfishing park for which branded apparel and accessories could be sold in the bait shack. A true win-win for a value-add proposition.
The cabins themselves will feature fine amenities, and will be situated on the parcels/lots that may not be the perfect site for an RV or a tent. In other words, these cabins will increase the value substantially of what would otherwise be undervalued sites. This new feature, when combined with the lodge and similarly themed dining area, as well as the outdoor adventure amenities, will make this particular park stand out well from the competition.
