Low Development Costs, High ADRs and Incredible Valuations

Written by: Jay Bhakta

Glamping has taken the hospitality industry by storm over the last few years with developments occurring overnight. These remote-style stays became especially popular over the course of the Covid pandemic, as they offered the distanced retreat and vacation getaway that many craved after lockdowns. Due to the lack of physical structures required, development is rapid and far less costly. However, with the unique service proposition provided, glamping properties are able to charge high ADRs. And, as these properties are valued based on the income approach, their valuations are derived from their cash flow — resulting in incredible returns.

With varying startup costs through different business models, these high returns can be further extended. By making decisions such as buying or leasing land, startup costs can be further mitigated, allowing for a low barrier of entry for new competition to join. With the growth in popularity of

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