If you’re ready to turn your love for the outdoors into a profitable business, buying a campground could be a great option. However, the process requires careful planning and understanding of different business models, including independent ownership, franchising and leasing. Each option has its benefits and drawbacks.
Why Buy a Campground?
Campgrounds offer a unique business model with lower overhead costs than hotels or resorts while still generating steady revenue. With the rise of outdoor recreation and eco-tourism, more travelers now seek affordable, nature-focused vacations. This growing demand means well-managed campgrounds can achieve high occupancy rates, especially during peak seasons. Additionally, revenue streams extend beyond just campsite fees — you can earn from RV hookups, cabin rentals, on-site stores, equipment rentals and special events.
Campgrounds also provide long-term value as real estate investments. Unlike enterprises that rely on leased space, buying a campsite means owning land that may appreciate over time. Plus, you can expand, add amenities or even transition to a franchise model to increase profitability.
How Do I Buy an Existing Campground Business?
Buying an existing campground can be a smart way to enter the outdoor hospitality industry without starting from scratch. Whether you’re purchasing an independent site or a franchise, evaluating key factors like location, financial performance and guest demand is essential.
1. Buying a Franchise Campground
Franchising is a less risky way to enter the campground sector. By purchasing a franchise, you benefit from an established brand, an existing customer base and ongoing operational support.
One of the most well-known options in the industry is Kampgrounds of America (KOA), which provides a dedicated Own a KOA program to help buyers purchase, convert or develop a franchisable campground. This program simplifies the process by offering guidance, a strong marketing network and training.
The cost to buy a KOA campground varies based on location and size. While you need to pay franchise fees and royalties, the support and recognition can offset those costs by improving occupancy rates and streamlining operations.
To buy a franchise campground:
- Research the franchise options: Investigate different franchise systems and their requirements. Understand the franchise fees, ongoing royalties and what the brand provides in terms of support.
- Financial planning: Franchise ownership comes with upfront costs, including an initial fee, construction or renovation costs, and equipment. Be prepared for a hefty investment, depending on the location and size of the campground.
- Training and support: Franchisors typically provide extensive training and ongoing support, which can reduce the learning curve for new owners. You’ll benefit from marketing campaigns and reservation systems.
Key features:
- Brand recognition: Customers trust established names like KOA, making it easier to attract guests.
- Operational support: The franchisor provides guidance on running the campground, including staffing and campaigns.
- Higher costs: The upfront fees can be significant, and ongoing royalty payments can reduce profit margins.
- Standardized operations: You must adhere to the brand’s guidelines, leaving less room for customization.
- Financial advantages: Leaders may be more willing to finance a franchise campground due to its established track record.
2. Buying an Independent Campground
Purchasing an independent campground gives you the freedom to create a business that aligns with your vision. Franchise rules don’t restrict you, so you can design the customer experience as you see fit. Independent campgrounds typically offer a unique, personalized atmosphere that attracts guests looking for a more authentic experience.
To buy an independent campground:
- Conduct thorough due diligence: Assess the financials, current occupancy rates and reputation of the campground. Ensure the property complies with local zoning laws and environmental regulations.
- Assess the location and market demand: Understand the seasonal demand of the area. A campground in a popular national park will likely have a different earning potential than one located in a less-traveled spot.
- Inspect the infrastructure and amenities: Evaluate the condition of facilities such as restrooms, RV hookups, cabins and other amenities guests value. Consider the costs for any necessary upgrades.
Key features:
- Flexibility: You have control over pricing, marketing and operations.
- Potential for higher profits: With no franchise fees, you keep more revenue, but the company also has a higher risk.
- More responsibility: You’re in charge of every aspect, from hiring staff to managing maintenance and customer relations.
- Higher upfront costs: While there are no franchise fees, you may need to invest more in marketing and infrastructure to compete with established brands.
- Customization: You can tailor the campground theme and services to your target audience, whether that’s families or luxury campers.
3. Leasing a Campground
Leasing a campground is a lower-risk entry into the sector, especially if you’re unsure about committing to full ownership. This option allows you to operate the campground under a lease agreement rather than purchasing it outright. It’s a great way to learn the ropes and test out the market before investing significant capital.
To lease a campground:
- Review the lease terms: Carefully read the lease agreement to understand the duration, renewal options and rent increases. Some may include maintenance and operational responsibilities, so ensure clarity on what it expects of you.
- Assess the property: Inspect the campground’s facilities and property conditions, including the amenities, maintenance history and guest satisfaction. Make sure the campground can be a viable business for you under the lease terms.
- Understand local laws: Some areas have specific regulations regarding leasehold improvements and zoning restrictions. Verify you comply with local laws.
Key features:
- Lower upfront cost: Leasing requires less capital upfront, as you don’t need to purchase the land or the property.
- Less risk: You won’t be responsible for the full cost of purchasing or maintaining the campground. However, the terms of the lease will limit long-term profits.
- Limited control: You have less flexibility in making major changes or improvements. Your ability to rebrand or adjust operations is constrained.
- Testing the market: Leasing allows you to test the viability of the campground enterprise before committing to full ownership.
- Short-term commitment: Leasing gives you flexibility, as long-term ownership won’t tie you down.
How Much Do Campgrounds Cost?
How much campgrounds cost varies significantly depending on factors like location, amenities and size. In the United States, the average cost of land per acre is around $18,500, but in states like Delaware, prices can be as high as $130,000.
Buying an existing campground can cost anywhere from $100,000 to over $2 million, plus expenses such as licensing and permitting. Running costs such as garbage disposal, hiring staff, installing internet and other site developments can rack up the spending.
Is a Campground a Good Investment?
Campgrounds can be profitable, especially in popular tourist destinations. However, consider seasonal demand, the cost of maintenance and market trends when making your decision.
Buying a Campground Business
If you’ve been dreaming of buying an existing campground, it’s crucial to research and understand each option. Whether you purchase an independent campground, invest in a franchise or lease a site, careful planning and due diligence are essential. The cost of buying a campground can vary, but with the right strategy, it can become a rewarding career that aligns with your passion for the outdoors.
