Question Campground Ownership

[Neal]

Is it profitable? Is it worth it? Seems like many of us that enjoy RVing probably consider our own campground someday. It goes against the concept of travel but that's what employees are for. What have you heard about CG ownership?

 

[TJ&LadyDi]

If you are talking about owning a whole campground, I think the hassles would outweigh the benefits unless you lived year-round at the site. "Employees" don't have any "money in the game" and won't always pay attention to the details. When you are in Polson, I can introduce you to someone who owns a KOA. I'm sure he and his wife can give you a solid, inside look at the campground biz.

TJ

 

[NWIP]

Too much like work for me?

 

[TJ&LadyDi]

I'm with you, Bill.

TJ

 

[Jabber Jaw]

Neal; Only way that's a good idea, is that you have a desire to no longer travel!

 

[sheridany]

Being a owner of commercial office buildings, I can’t see the value of this unless it’s one of a kind place like next door to polson etc. even then it’s seasonal. I’d rather have 12 months of predictable cash flow. On top of that, I am not a fan of franchises and koa is expensive for what you get. If you plan to be a silent owner, I’ll also say finding good managers that stay is difficult regardless of the industry.
From KOA
Ongoing franchise fees include an 8% royalty and a 2% advertising fee used for marketing programs that add to the recognition and success of KOA campgrounds. KOA franchise fees are based solely on site registration revenue.
No fees are paid on store sales, propane, food services, etc.
An annual administrative fee beginning in your second year of operation. Fee also includes an annual pass to the KOA Convention.

8% of revenue right of the top in my opinion is expensive and it certainly diminishes my targeted capitalization rate. Maybe this is negotiable, I don’t know.

Others on this forum have more in depth knowledge than I have. On the surface, I am not sure it’s the right investment.

 

[Jabber Jaw]

"sheridany"......after reading your post......I believe at my age, I prefer to spend my money staying at an "RV Resort", rather than owning one!

 

[TJ&LadyDi]

"sheridany"......after reading your post......I believe at my age, I prefer to spend my money staying at an "RV Resort", rather than owning one!

Yep! Me too!

TJ