Feasibility and Site Design
In order to maximize returns, it is critical to build a project that is “right” for the market. Construction costs must be in-line with the market rates and expected occupancy levels.
Initial Site Visit and Mini-Feasibility
We start with an initial 3-day site and market area visit in order to evaluate the property and the opportunity.
We meet with the property owner, tour the subject property, brainstorm the vision for the project in detail, visit the relevant area RV Park competition and get to know the area in general. It is critical that the project be built to best serve the specific market and target customers. This requires a careful analysis of the area, the RV Park competition and the market rate structure.
We are able to assess a market area by making a site visit and cover approximately 10 to 12 RV Parks in the market area. We obtain rate information, observe occupancies and license plates, talk to the front desk workers to gather more detailed information and we also assign a rating to each property. Every market we’ve ever visited has a fairly strong relationship between the rates they charge and the rating of the property; the higher the rating, the higher the rates that can be charged. Please see the following link for an article by Horizon about this topic: https://www.linkedin.com/pulse/rv-resort-market-positioning-david-simms/
Following our visit, within about 7 working days we will summarize our research and make high level recommendations on whether the project is feasible and if so, determine the optimal positioning, what should be built, phasing of the project, etc.
We will also prepare some preliminary high-level financial projections based on anticipated site count, amenities and a range of probable construction costs.
These can be fine-tuned once the site design and full feasibility are completed.
Feasibility Study
Once we all agree on a direction based on our initial report, we can produce a full feasibility study and master site plan which typically takes about 30 working days to complete. The combined costs of the initial site visit and feasibility study are less than the cost to build one RV site. Our studies include:
- Master site plan including RV sites, roads, building footprints and amenity locations. We’ll also provide typical RV site drawings including pads and utility locations.
- Recommendations on project phasing, if any.
- Rate positioning within the market and recommended property amenities.
- Detailed research on the area, competitive RV Resorts, and background on the RV industry.
- Detailed financial projections including:
- Line item construction estimates.
- 7-year P&L with details on occupancy and expenses.
- 7-year cash flow.
- Rates of return.
- Financing/debt assumptions.
- Key Ratios.
- Financial sensitivity scenarios.
Our financial projections are reality based and attainable, not “pie in the sky” as many other consultants provide.
Our studies are the most comprehensive in the industry, often exceeding 150 pages of relevant material, and are ready to be used for attracting bank and equity financing.
Site Designs
We’ve seen many new RV Park projects that have recently opened and have serious flaws that could have been easily corrected at the site design phase.
We work with our civil engineer to produce Master Site Plans that are engineered to meet the needs of today’s sophisticated RV’s.
We ensure:
- The correct density of spaces
- Optimal road widths and maneuverability for the largest RV’s.
- Correct placement of buildings and amenities with ample parking and RV staging lanes
- Allowance for storm water detention
- Minimize grading by taking topography into account
- Proper placement of parking pads and water, sewer and electric hookups