Insights from Sage Outdoor Advisory
In the dynamic realm of outdoor hospitality, where campgrounds, glamping resorts, and RV resorts cater to the desires of adventure-seekers and nature enthusiasts, ensuring the feasibility and financial potential of your business is paramount. That’s where Sage Outdoor Advisory comes into play. With a rich history of conducting feasibility studies and appraisals, Sage is your trusted partner in navigating the intricate landscape of the outdoor hospitality industry.
I. Introduction
At Sage Outdoor Advisory, we specialize in providing comprehensive services that empower outdoor hospitality businesses to make informed decisions. Our core offerings revolve around feasibility studies and appraisals, designed to give you a profound understanding of your business’s viability and financial outlook. In this blog post, we will delve into the best practices surrounding the appraisal and feasibility study processes, providing you with invaluable insights into the intricacies involved.
II. Breaking Down the Basics
Definition of Feasibility Studies
Feasibility studies are comprehensive analyses conducted to determine the viability of a project or business venture. They evaluate various factors, from market demand and competition to financial projections and potential risks. It may consider the highest and best outdoor hospitality use, unit mix, unit counts and amenities. The ultimate goal? To ascertain whether the project is feasible and if it’s a wise investment.
Definition of Appraisals
While appraisals might sound similar, they serve a distinct purpose. An appraisal is an evaluation of a property’s value. In the context of outdoor hospitality, an appraisal might assess the value of a campground or resort, providing stakeholders with a clear understanding of their asset’s worth. The appraisal can value vacant land including considering its value “as entitled and permitted”, as well as the prospective value of the business “as complete” and “as stabilized”.
III. The Sage Advantage
Our journey in the world of outdoor hospitality has been marked by a relentless pursuit of excellence. Having completed over 200 campground, glamping, and RV resort feasibility studies and appraisals across North America, Sage has earned its reputation as a trusted industry expert. We serve outdoor hospitality businesses launching or expanding their ventures, as well as those acquiring existing businesses.
When you engage with Sage, you’re partnering with a team that has successfully navigated the complexities of the industry, from areas just outside bustling cityscapes to the serene wilderness.
IV. Comprehensive Data and Resources
In the ever-evolving landscape of outdoor hospitality, having access to accurate and up-to-date data is invaluable. To meet this need, Sage has invested in creating the most comprehensive glamping & RV resort database, providing our clients with unrivaled insights into rates, occupancy, revenue, and other critical investment metrics. This database serves as the cornerstone of our advisory services, allowing you to make informed decisions with confidence.
Accessing this valuable information is straightforward. Simply use the map viewer, located in the top left corner, to explore different map layers and filter your search by unit type. With this data at your fingertips, you can align your business strategies with market trends and position yourself for success.
V. Sage as the Bridge Between Investment and Your Business
One of the key roles Sage plays is that of an independent third party that is capable of assessing the validity of a business proposal with objectivity. Our team is adept at creating detailed reports tailored to the specific requirements of investors and financial institutions. These reports encompass a wide array of research, financial analysis, and assessments, ensuring a holistic understanding of your venture:
Industry Overview
We provide a comprehensive analysis of the industry, considering economic factors, tourism trends, outdoor recreation dynamics, and the nuances of outdoor hospitality. This foundational knowledge helps shape your business strategy.
Area Analysis
Understanding the environment in which your outdoor hospitality business operates is crucial. Our reports delve into location specifics, demographics, recreation opportunities, accessibility, and area development trends, providing a comprehensive context regarding the demand for your venture.
Market Analysis
In the competitive landscape of outdoor hospitality, knowing your market is essential. Sage offers insights into the competitive landscape, identifies market opportunities, and assesses the impact of new and existing competition, equipping you to make strategic, data-driven decisions.
Revenue Projection
Anticipating revenue is a vital aspect of any business plan. We project rates, ancillary revenue, occupancy levels, and stabilization period, offering insights and trends drawn from Sage’s proprietary outdoor hospitality database, resulting in a realistic revenue forecast.
Operating Expense Projection
Understanding your expenses is equally important. Our analysis covers operating expenses and compares them to industry averages, helping you forecast costs efficiently. Our projections are tailored to the unique aspects and location of your project, leveraging extensive data from past project experience.
Pro Forma / Net Operating Income
We offer a 10-year income and expense pro forma with an initial monthly breakdown, enabling you to understand the short and long-term financial performance of your outdoor hospitality business.
Site Analysis
A thorough site analysis is essential for assessing any potential restrictions or advantages. Our reports include zoning assessments, wetland considerations, physical restrictions, utilities, and transportation analyses.
Development Costs
Preliminary site development and cost projections for units and the overall project are integral parts of our analysis, helping you plan your budget effectively. Our projections consider locational differences, and leverage extensive cost data in our files from past projects.
Feasibility Analysis
Understanding the financial projections and feasibility study of your business is critical to securing debt or private investment. We conduct debt coverage analysis, evaluate net income to equity after debt, project return on investment, and conclude with feasibility recommendations, ensuring you have a clear path forward.
Our clients, ranging from property owners launching new ventures to those expanding existing ones, have benefited immensely from Sage’s expertise. But don’t just take our word for it; let’s hear from a few of them:
“We were really in a bind closing our construction loan and we needed an appraiser the bank would approve. Sage came through for us big time! I would highly recommend working with them to anyone in the outdoor hospitality industry.”
– Blake Smith, CEO & Owner of Walden Retreats – Austin, TX
“Sage creates win-win scenarios for hoteliers and bankers or investors who want to get into the unconventional glamping space. Open Sky is currently in its second season of operations, in large part, thanks to the relationship with Sage. They provided a thorough and realistic appraisal of our glamping property, which in turn, allowed Open Sky to secure traditional bank funding for our pre-planned & designed build out. Sage was key to bridging the gap between the bank and Open Sky, revealing the true value of our unique outdoor accommodations.”
– Bygnal Dutson, Founder of Open Sky – Zion, UT
VI. The First Annual North American Glamping Report
In our commitment to knowledge sharing and industry transparency, Sage is thrilled to announce its partnership with Terramor/KOA in releasing the first annual North American Glamping Report. This report is a comprehensive resource that delves into the latest trends, opportunities, and challenges in the outdoor hospitality sector. Stay tuned for insights that can shape the future of your outdoor hospitality business.
VII. Conclusion
In the world of outdoor hospitality, success hinges on informed decision-making and meticulous planning. Sage Outdoor Advisory is your trusted expert to guide you through the appraisal and feasibility study processes with professionalism and precision. We bridge the gap between your investment goals and the reality of your business, ensuring that every step you take is backed by data-driven insights and industry wisdom.