Somerset Campground Resort | Park Models As Invesments

Campground Restoration With Park Models And Glamping Pods

Summary

Investors were seeking a way to enter the resort space by offering a high-end camping experience. To achieve this goal, part of the model was to offer short-term rentals (STRs) with a high-end experience. Through the expert help and experience of Zook Cabins, their team was able to curate high-quality park models, glamping pods, and a bathhouse to fit their needs.

Company Profile

Investors desired to start a resort-style campground. One came up for purchase in Friends, PA, and Somerset Campground Resort was created. This property needed to be completely updated, so every site was renovated to give the space a new look and feel. After months of rehabilitating the space, it was time to create the high-end feel they always wanted.

Enter in Zook Cabins; we have been building Park Model RVs, glamping pods and bathhouses for years for projects just like this throughout the USA, including the expansion of the Big Texan RV Ranch. After seeing the business model and success of others in the space, Sommerset Resort decided to implement 13 park model cabins, 6 glamping pods, and a new bathhouse. Sommerset Campground Resort has consistent booking set up throughout the year with plans to continually improve the camp to afford all guests an ideal experience.

sommerset camground with revshare business model

Business Plan

Somerset Campground Resort’s business plan offers a lower capital commitment on building costs. Some of the buildings on the grounds are owned completely by Somerset Campground Resort, while the majority are owned by independent investors who have agreed to give the campground a certain amount of revenue from their rental income. This business model is known as RevShare.

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Park Models As Investments

Campground Owned Buildings

campground owned park model homes at Somerset Campground Resort

Campground-owned buildings are bought by the campground, owned by the campground, and rented out by the campground. The campground takes on all liability for the building’s upkeep and maintenance. However, the reward for these units is more significant profit margins. The big drawback of these buildings is the required capital.

RevShare Buildings

revshare park model homes for rent at somerset campground resort

RevShare Buildings are located on the campground but are not owned by the campground. They are owned by independent investors who oversee the costs of maintaining the building and the initial cost of purchasing it. This benefits the campground in two ways.

First, the campground receives a financial benefit from the building being on the property through revenue sharing. This is achieved by the independent owner providing the campground with a percentage of the revenue they receive from their park model bookings. Second, allowing independent investors to work with the campground investors lowers the initial capital needed to invest in the total amount of desired park models.

For example, 11 of the 13 park models at Somerset Campground Resort utilize RevShare. If each building costs $100,000*, the investors would need at least $1.3 million to have all 13 park models on site. Additionally, if each glamping pod cost $40,000* a piece, the resort would have needed an additional $240,000* for these sites, bringing the total Project cost to over $1.5 million for infrastructure on day one.

By offering park models and glamping pods as Revshare sites, Somerset Campground Resort could save over $1.3 million* for the initial infrastructure site. Yet, they get a share of the revenue from the agreements with the independent investors of each site. This allows them to make money on a RevShare site and creates income for them while reducing their capital needs.

* monetary figures shown are for simplistic math representation only. The actual cost of your park model will vary on multiple factors.