Campgrounds Selling and Taking Profits?

[Judge]

We booked several KOA's a few months ago for our annual trip west from late August until mid-October. This year we are hitting the Balloon Festival in Albuquerque.

We just got notices that one of the KOA's in Colorado and another one in Utah are no longer part of KOA and are now part of RJourney RV Resorts.

I haven't heard of them until now but they own campgrounds in 12 states. I'm guessing some campground owners are taking advantage of the increased demand for campgrounds and the general increase in real estate values to sell their business and take some profits.

It will be interesting to see what happens in the industry overall now that people's lives are getting back to normal and elevated fuel costs.

[The Gritz Carlton]

Campgrounds (desirable ones) are becoming as valuable as land in Florida. While hotel rooms are now $250+ per night, campsites will become the price of what hotel rooms used to be. Won't be long we'll be paying over $100 per night with FHU's. Every home that goes up for sale around me is being bought up in 3 day or less with corporate cash for short-term rentals (at 130% of asking prices), which bring $5,000 per week now. Nothing is for long-term rent anymore, thus all the apartment complexes going up by the thousands. Campgrounds will follow the time-share trends with memberships required.

[Judge]

Yep.... I see the same things down in southwest Florida. Homes around me go above asking price every time.

Hotel price are also crazy high. We usually stay at higher end campgrounds and pick premium sites but rarely they were over $100.... but that is all changing. We will be paying for campgrounds what we used to pay for hotels.

They are building a new RV Resort between Cape Coral and Punta Gorda. My wife read they are selling the spots for $150,000. We talked about buying one and renting it... if they allow that.... but I'm not sure I want to go that route. I'm not sure how much it would be used from May - September when it is blazing hot down here and at the moment there are no trees for any shade.

[ericmac450]

Last year we stayed at a place called Ho-Hum in the panhandle. I just noticed in their last email that they are now owned by a big corporation in Las Vegas. I've seen quite a few articles about campgrounds being bought up. It's a shame, because prices only seem to be going up. It's going to make getting into State Parks that much more difficult!

[Chateau_Nomad]

There's always BLM land... but I have a sneaky suspicion that the concept of "free camping" is quickly getting squeezed out of existence by a few... shall I say "cooperating groups of individuals". There's $$$ in them thar hills!!

[lwmcguir]

The Camp Ground we have booked near Yosemite is owned by a conglomerate now with a centralized office that handles/controls several in the area.

Rates are up of course.

Garden of The Gods in the Springs was one of our favorites for years until Corporate buyouts increased the cost more than 50% years ago. Still go there but not for as many days.

BLM land is not as available due to trashy campers and many areas now closed. In warm weather I need to factor in at least 10 gallons of fuel for the generator to run the AC so boondocking cost is up as well.

As Judge notes, the future is going to be interesting and hopefully doesn't price out the average camper.

Sure seems like we are heading down a slippery slope in many ways

[The Gritz Carlton]

Originally Posted by Judge

Yep.... I see the same things down in southwest Florida. Homes around me go above asking price every time.

Hotel price are also crazy high. We usually stay at higher end campgrounds and pick premium sites but rarely they were over $100.... but that is all changing. We will be paying for campgrounds what we used to pay for hotels.

They are building a new RV Resort between Cape Coral and Punta Gorda. My wife read they are selling the spots for $150,000. We talked about buying one and renting it... if they allow that.... but I'm not sure I want to go that route. I'm not sure how much it would be used from May - September when it is blazing hot down here and at the moment there are no trees for any shade.

Quite a few years ago many marinas in Miami/Lauderdale area started "selling" their slips vs. annual leases. Along with that comes the maintenance fees, required insurance and other fees. Campgrounds are headed that way. We've camped near Port Charlotte and it was half park models and half campsites...huge campsites. People owned them but office managed the reservations/income. It becomes very political and there's no fixed cost to own one. It's like an HOA...when first hurricane passes through you get dinged "special assessments". Don't buy it.

[The_Breeze]

Originally Posted by Judge

Yep.... I see the same things down in southwest Florida. Homes around me go above asking price every time.

Hotel price are also crazy high. We usually stay at higher end campgrounds and pick premium sites but rarely they were over $100.... but that is all changing. We will be paying for campgrounds what we used to pay for hotels.

They are building a new RV Resort between Cape Coral and Punta Gorda. My wife read they are selling the spots for $150,000. We talked about buying one and renting it... if they allow that.... but I'm not sure I want to go that route. I'm not sure how much it would be used from May - September when it is blazing hot down here and at the moment there are no trees for any shade.

You can add Sun Resorts to the list of corporate conglomerates gobbling up campground real estate. A well-financed Mom and Pop campground called Southern Leisure just sold out to them and the rates went straight through the roof. It’s a nice place, don’t get me wrong but I personally don’t see the value in the rate.

If you ever read the book ‘Built to Flip’, this place had all the hallmark characteristics for that scenario.

[Judge]

Originally Posted by The Gritz Carlton

Quite a few years ago many marinas in Miami/Lauderdale area started "selling" their slips vs. annual leases. Along with that comes the maintenance fees, required insurance and other fees. Campgrounds are headed that way. We've camped near Port Charlotte and it was half park models and half campsites...huge campsites. People owned them but office managed the reservations/income. It becomes very political and there's no fixed cost to own one. It's like an HOA...when first hurricane passes through you get dinged "special assessments". Don't buy it.

Yea..... I figured it would be setup like that where the owner was responsible for maintenance, upkeep, etc. That was another reason I wasn't really interested in owning one of those to sub-lease it.

Interesting about the marinas. There are long wait lists (2 - 3 years) for docks over on this side of the state.

[Bob Denman]

None of these place are in business to make you happy: regardless of what their advertising says.
They are there to make money. By making money: they stay in business, and keep you happy!

[EA37TS]

The option is you can buy the campground and charge what you want and manage it the way you want.

If you don’t own it it’s none, repeat, none of your business what the owner does.

Adapt and overcome!

[FloridaFlyer]

We have reservations at the KOA in Panguitch, UT and which is adjacent to Bryce Canyon National Park. I received an email from KOA notifying me that the park was no longer affiliated with KOA. A couple of days later I received an email from RJourney to tell me they had bought the park and my reservations have been moved over successfully. The rate has not changed.

Kelly

[Judge]

Originally Posted by FloridaFlyer

We have reservations at the KOA in Panguitch, UT and which is adjacent to Bryce Canyon National Park. I received an email from KOA notifying me that the park was no longer affiliated with KOA. A couple of days later I received an email from RJourney to tell me they had bought the park and my reservations have been moved over successfully. The rate has not changed.

Kelly

That was one of the KOA's we had booked as well for September. The other that was purchased by RJorney that we have booked is / was the KOA in Cortez / Mesa Verde, CO.

My reservations also appear to have transferred properly with the same rates according to the emails I received.... but I am going to call to confirm and also verify their cancellation policy, etc. One reason I picked a bunch of KOA is that I am VIP level so I do not get charged the $10 Cancellation Fee if I cancel within 48 hours.

[txc2936@yahoo.com]

This would be def. an option, to buy one along the coast. Pick your favorite spot, buy into it and rent for other part of the year. I've been thinking this business plan for at least a year, just havent pulled the trigger. Send a link to a typical spot in FL...

We haven' t purchased a FL hotel room since buying the RV,. but i bet they are north of $400 a night.

[71_340]

We have yet to use a privately owned campground/RV park. Locally we use a state-owned park.

When we travel we use RV parks on military bases (always safe, clean and rules are enforced), federal parks or state parks.....in that order. On the way to our destination it's Walmart for overnight (always call ahead to make sure it's allowed).

I can use my Access card in all those locations and get a discount on the already relatively low price. I guess I am a cheapskate but it sure works for us and we can spend our money on other things.

[vt800c]

Four words "harvest hosts" or "Boondockers welcome"

[EA37TS]

Originally Posted by 71_340

We have yet to use a privately owned campground/RV park. Locally we use a state-owned park.

When we travel we use RV parks on military bases (always safe, clean and rules are enforced), federal parks or state parks.....in that order. On the way to our destination it's Walmart for overnight (always call ahead to make sure it's allowed).

I can use my Access card in all those locations and get a discount on the already relatively low price. I guess I am a cheapskate but it sure works for us and we can spend our money on other things.

You cannot use your access card for military bases.

FamCamps are for certain folks and are not open to the general public.

[The Gritz Carlton]

Originally Posted by vt800c

Four words "harvest hosts" or "Boondockers welcome"

Completely different program than regular campgrounds an they have enough issues of their own.

[mgunnin]

Originally Posted by Judge

Yea..... I figured it would be setup like that where the owner was responsible for maintenance, upkeep, etc. That was another reason I wasn't really interested in owning one of those to sub-lease it.

Interesting about the marinas. There are long wait lists (2 - 3 years) for docks over on this side of the state.

I disagree.
I live in SWFL in a RV community that has some park homes.
Those that own lots and have them in the rental program are making $ when rented only in season.
There are no daily rentals available. You must rent for a week or longer. Those that rent during season are 6-month rental.
The lots were $35,000.00 in 1999 they are upwards of $250,000.00 now.
1100-1400 Park Homes are in the $350,000.00 - $420,000.00.
I have $107,000.00 invested in a Park Home.
I think you can make a good investment if the location is good. We are 7 miles from beaches in Naples and Marco Island.

[Scubawise]

Originally Posted by mgunnin

I disagree.
I live in SWFL in a RV community that has some park homes.
Those that own lots and have them in the rental program are making $ when rented only in season.
There are no daily rentals available. You must rent for a week or longer. Those that rent during season are 6-month rental.
The lots were $35,000.00 in 1999 they are upwards of $250,000.00 now.
1100-1400 Park Homes are in the $350,000.00 - $420,000.00.
I have $107,000.00 invested in a Park Home.
I think you can make a good investment if the location is good. We are 7 miles from beaches in Naples and Marco Island.

My God you are not on the beach for that money
We go to Corpus Christi park Padre Island $7 day ..20 feet from beach