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July 2, 2024

Nature Meets Luxury: The Ultimate Guide to Outdoor Hospitality

One of the most talked about and newest emerging commercial real estate sectors is the Outdoor Hospitality sector. There are several reasons why this is one of the most talked about asset classes on the rise since the pandemic. Firstly, the level of interest seen across all generations, especially in Millennials, Gen Z, and Baby Boomers, has risen dramatically, according to the KOA 2024 Annual Report, with 15.6 new entrants over the past five years. There is also a significant increase in the number of people who plan on camping and are repeat campers, coinciding with the surplus of orders on RVs. The numbers are projecting a fruitful future for the Outdoor Hospitality industry.

Since the pandemic, consumers have been seeking vacations that revolve around being outdoors while still experiencing traditional amenities found at hospitality assets. In addition to many parks having and or developing high-end amenities, several Outdoor Hospitality assets are in locations that can offer a more in-depth, intimate experience than your traditional hospitality assets. Outdoor Hospitality amenities differentiate themselves from conventional amenities by centering them around nature, health and wellness, a family experience, and a place to recharge and unwind.

Rendering of Lavendel RV Resort, Fredericksburg TX

Another compelling aspect of Outdoor Hospitality is the self-service feature. According to the KOA study, 47% of Millennials, one of the largest campers, prefer staff involvement at Outdoor Hospitality assets, and 59% would like staff to be available if needed. This self-service model, especially after the pandemic, offers many travelers a sense of safety and control. The ability to vacation in a less crowded resort or park is a significant draw, further enhancing the appeal of the Outdoor Hospitality sector.

 

Sources:
“Camping & Outdoor Hospitality Report.” Annual North American Camping & Outdoor Hospitality Report | Trends in Camping, koa.com/north-american-camping-report/. Accessed 5 June 2024.
“Comprehensive Outdoor Hospitality Market Analysis: Opportunities and Challenges.” CRR Hospitality, 2 Jan. 2024, crrhospitality.com/blog/comprehensive-outdoor-hospitality-market-analysis-opportunities-and-challenges/.

Disclaimer:
The contents of this article are not investment advice and should not be construed as such. Statements herein do not specifically describe any RREAF investment deal in particular. Information about specific RREAF investment opportunities are only contained in the applicable published “Private Placement Memorandum” issuing a given opportunity. Statements on performance may be qualified. Past performance does not predict future success.