Campgrounds: Business First, Real Estate Second?

Question

Lately I’ve been spending a lot of time studying campgrounds and outdoor hospitality as an asset class, and the more I dig in, the more I realize it doesn’t fit neatly into the “pure real estate” or “pure business” box.

It’s definitely operational up front. Site selection, zoning, infrastructure, layout, pricing, guest experience… if those aren’t thought through, no amount of amenities will fix it. But once a park is built right and run efficiently, it starts behaving much more like an income-producing property than people expect.

What I find interesting is the tradeoff. You give up early passivity, but in return you get control, diversification, and multiple ways to create value beyond just rent increases. With the right plan and eventually the right manager in place, the role shifts from daily work to oversight and capital decisions.

I’m currently working through a phased campground development from the ground up and learning a lot along the way. Curious how others here think about this balance between operations and long-term investment in alternative real estate.

Bryan Hartlen · Answer

@Dillon Clark I can’t comment directly on the campground business but it sounds very similar to the STR (AirBnB) market which I have been in. Where there is a front-loaded operations side with bringing a property online.  Once a unit is operational this effort diminishes but still has an operational side that requires more effort than a traditional long term rental. And in general I believe the STR market is more a hospitality business than real estate rental. I would assume your campground play would be very similar with an ongoing operational focus required in maintenance, customer satisfaction and promotion. Having traveled across the country a couple times in an RV, I know our selection of campgrounds was driven by a combination of location and reviews. If campground reviews indicated poor maintenance it wasn’t considered as a possible stop.

Dillon Clark · Answer

@Bo SmithYeah the phasing approach just makes the most sense to me. I’m not trying to dump a ton of money into amenities before I know what people actually want. Phase 1 is meant to be lean and prove demand. If things go the way I expect, I’m thinking roughly a year between phases. That gives me time to see what guests respond to, dial in the systems, and make sure the next phase is built off real data instead of guesses.

Dillon Clark · Answer

@Jaron WallingI hear what you’re saying, and I get the comparison you’re making. While I agree that camping isn’t “recession proof,” I don’t think any business truly is. I also don’t really see camping as a luxury activity. I didn’t grow up with money, and all my family could afford were basic tent sites. Those trips are some of my best memories, and that’s a big part of what draws me to this space today. And honestly, in a recession, I’d rather own a campground with diversified nightly/weekly income than deal with a tenant who stops paying rent and burns through reserves while I wait out the eviction process.I agree with you on location and amenities being huge. That’s actually part of the appeal for me. I like knowing I can create more value at any time by adding amenities or improving the experience. What separates me from a traditional investor is that once the heavy lifting is done and the systems are in place, it becomes a long‑term, relatively passive hold. That’s specific to me because I have the background to develop it in controlled phases without overextending.On buying an existing park, I think a lot of “successful” campgrounds only look successful on the surface.  Even if they look busy, it doesn't automatically mean they're profitable. If they don’t check the boxes lenders look for, you’re basically dumping your own money into a poorly run business and probably doing a full overhaul anyway. For me, coming from the construction world, I’d rather build it brick by brick and make sure the right systems are in place from day one. That’s just what fits my situation best.And yeah, the guy you mentioned definitely hit the jackpot. Inheriting the land and having an excavation background is a massive advantage. I’m sure he’ll do well, and I’d actually be curious to hear how things go once he’s up and running.

Dillon Clark · Answer

@Michael K Gallagher

Yeah pretty much. I’m taking raw land and building it out into a functioning campground in phases. Starting lean with tent and glamping sites, then expanding as demand proves out. It’s a cool mix of land development, hospitality, and long-term cash flow, so there’s a lot of moving parts but a lot of upside too.

If you want to chat more in depth about the model or the numbers, feel free to shoot me a DM.

Bo Smith · Answer

Yeah the phasing approach is smart - too many blow their budget on amenities before knowing if people even want to camp there. How long you thinking between phases?

Jaron Walling · Answer

Following along with @Bryan Hartlen opinions I think campgrounds are pretty far removed from owning conventional long term rentals like SF, MF, or commercial. I read a prior OP posts about campgrounds and realize the pros and cons. I'm a big advocate of camping and outdoor vacations.

My thing is camping is not recession proof. To be fair most RE isn't but camping is a luxury activity and went times get tough nobody's camping. People aren't buying RV's and sites don't get rented. I don't have that problem conventional RE. If a tenant stops paying I'll survive by holding reserves and finding a new tenant.

Location is paramount to campgrounds. Destinations, access to national parks, state parks, access to highways, and amenities are vastly more important than conventional RE. I don't need the best amenities or finishes to rent out a property. Tenants will happily commute 30-45 mins to a job. Vacationers and tenants are not the same. The camp sites are tiny STR's, each one capable of generating a return, but it's more work to keep them filled.

If the goal is running a successful hospitality business a campground could be a strong option. Buying an established park with operations in place and a brand that people recognize would be very helpful. If you had a competitive advantage with XYZ to get through the "front loaded operations" could be huge. Without some of those things I would never buy or build a campground.

At my 9-5 job I working with a property owner who is building a campground. He business plan is helping veterans and setting up seasonal lots for people to live in. It's seems to be a "mixed use" campground which is incredible if you ask me. The facts are this... he inherited the property. He also worked for a excavation company and has direct connections with equipment he "borrow" for construction. It's a massive competitive advantage to build the campground and I'm all for it. Without it a campground would be a figment of his imagination.

Michael K Gallagher · Answer

@Dillon Clark thanks for sharing, am I understanding correctly that you are currently working on taking a property from raw land to a functioning camp ground?  That sounds insanely interesting and I'd love to understand more about what that looks like?

Campgrounds: Business First, Real Estate Second?

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