When we bought an old campground in 2022, it was just a primitive RV campground bringing in barely $10,000 a year.
With a vision of transforming this underperforming property, we set out to create a glamping destination unlike any other.
Here’s a quick rundown of how we turned Ferncrest into a high-earning glampground:
Seller Financing:
Using creative financing strategies was key to our initial acquisition:
- Purchased for $285,000 using seller financing.
- Only $10,000 cash out-of-pocket for closing costs. (we have since invested much more into building it out)
Creating a Unique Experience:
Differentiation through design and amenities helped us attract higher-paying guests:
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Instead of a traditional RV park, we built a boutique outdoor hospitality experience.
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Dome tents with king-sized beds, air conditioning, electricity, and mini-fridges, commanding nightly rates averaging $250.
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Added amenities like hot tubs, fire pits, ice cream and coffee trailers, enhancing guest experience.
Revenue Generation:
Expanding revenue streams was crucial to maximizing profitability:
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25 sites averaging $225 per night, totaling around $5,600 nightly at full occupancy.
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Additional revenue streams: self-service camp store (adding 10-15% extra revenue), firewood sales, ice sales, and coffee/ice cream trailers.
Maximizing Occupancy:
Strategic occupancy management ensures both profitability and excellent guest experiences:
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Target occupancy rate of 60% ensures optimal revenue without sacrificing service quality.
Cost Management:
Keeping a close eye on expenses has allowed us to maintain healthy profit margins:
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Total operating costs about 35-40% of revenue, including labor, cleaning, linens, maintenance, taxes, and financing.
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Strong net profit margin around 60%, allowing consistent reinvestment into property improvements.
From an initial investment of $10,000, Ferncrest has become a multi million-dollar asset generating significant nightly revenues.
More importantly, it’s become a beloved destination where families make memories around the campfire and guests enjoy unparalleled outdoor comfort.
Don’t forget to watch this weeks YouTube video now for more insight and inspiration!
Happy Glamping,
Brian & Joanna Linton
