Glamping Investment Guide
What is Glamping?
Glamping ("glamorous camping") combines outdoor experiences with hotel-like amenities. Popular unit types include:
- Safari tents - Canvas tents on platforms with beds, furniture, sometimes bathrooms
- Yurts - Circular structures inspired by Mongolian nomads, typically 200-700 sq ft
- Cabins - Small structures from tiny homes to A-frames, usually 200-600 sq ft
- Treehouses - Elevated structures in trees, premium pricing for unique experience
- Domes/Bubbles - Geodesic domes or transparent bubbles for stargazing
Why Invest in Glamping?
- Premium pricing - Nightly rates 2-5x higher than traditional camping
- Growing market - Glamping market growing 10-15% annually
- Lower buildout costs - Less construction than hotels or cabins
- Unique experiences - Stand out on Airbnb, Hipcamp, and social media
- Rural land opportunity - Monetize land that may not support traditional development
Key Metrics Explained
Occupancy Rate - Percentage of available unit-nights that are booked. Glamping is highly seasonal; 45-55% annual occupancy is typical, with peak seasons reaching 70-95%.
ADR (Average Daily Rate) - Average nightly rate across all bookings. Glamping ADRs range from $100-$500+ depending on unit type and location.
RevPAU (Revenue Per Available Unit) - Total revenue divided by total units. Useful for comparing properties with different unit counts.
Platform Fees - Booking platforms charge 3-20% of booking value. Airbnb charges ~3% host fee, while some platforms charge 15-20%.
Typical Glamping Metrics
- Cap rates: 8-14% depending on location and quality
- Nightly rates: $100-$500+ depending on unit type
- Operating expense ratio: 50-65% of gross revenue
- Peak season occupancy: 70-95%
- Off-season occupancy: 15-35%
- Average stay: 2-3 nights
- Cleaning fees: $50-$150 per turnover
Expense Considerations
- Platform fees - 3-20% of bookings depending on channel mix
- Cleaning/turnover - High frequency with short stays, $50-$150 per turn
- Linens/supplies - Replace frequently, budget 3-5% of revenue
- Property management - 20-30% if outsourced, includes guest communication
- Insurance - Specialty policies required, higher than traditional rentals
- Maintenance - Tents and soft structures need more frequent replacement