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The outdoor hospitality industry has experienced unprecedented growth in recent years, with RV parks, campgrounds, and glamping resorts becoming increasingly popular investment opportunities.
However, developing these facilities from scratch—what we call "greenfield development"—requires careful planning, thorough due diligence, and a deep understanding of both market dynamics and design principles.
This guide will walk you through the essential steps for successfully developing RV parks and campgrounds, from initial feasibility analysis to detailed master planning and construction preparation.
The Foundation: Due Diligence is Everything
The most critical factor in successful RV park development is comprehensive due diligence. Too many developers rush into projects without fully understanding the complexities involved, leading to costly delays, budget overruns, or complete project failure.
Due diligence encompasses every aspect of your project, from understanding local zoning requirements to analyzing market conditions and assessing site characteristics. When combined with well-designed facilities, thorough due diligence becomes your recipe for success in the competitive outdoor hospitality market.
Understanding Zoning and Planning Requirements
Before falling in love with a property or getting too far into your development dreams, you must understand the zoning and planning landscape.
This cannot be overstated: attempting to develop a greenfield resort in an area that isn't already zoned for such use, or in a community with strong NIMBY (Not In My Backyard) sentiment, can be the death knell of your project before it even begins.
It's not uncommon for developers to spend over two years navigating the rezoning process for RV campground ventures.
This extended timeline can drain resources and test investor patience. The key is to make sure your dream is actually possible before investing significant time and money.
Critical zoning considerations include:
- Current zoning classification and permitted uses
- Setback requirements and density restrictions
- Height limitations and architectural guidelines
- Parking and landscaping requirements
- Special use permit requirements
- Environmental impact assessments
You don't necessarily need to complete the rezoning process before moving forward, but you must understand whether it's viable and work with a county or municipality that is somewhat supportive of your vision.
Building Your Development Team
No one can successfully develop an RV park or campground alone. The complexity of these projects requires a team of specialized professionals, each bringing unique expertise to ensure your project's success.
Essential Team Members
1. Industry Consultant/Feasibility Analyst: A competent industry consultant is your first line of defense against costly mistakes. They provide:
- Market and competitive analysis
- Financial modeling and projections
- Operational feasibility assessments
- Clear-eyed evaluation of your project's viability
2. Land Planner/Master Planner/Architect: While guests don't visit resorts because of underground infrastructure, they absolutely come for the experience. Only a competent designer can create that experience efficiently and cost-effectively. Look for professionals who specialize in resort and hospitality design and understand how to balance guest experience with operational efficiency.
3. Real Estate Attorney: Depending on your zoning situation, consulting with a local real estate attorney can be invaluable. Seek someone who:
- Understands local politics and regulations
- Has experience with similar development projects
- Can navigate the rezoning process if necessary
4. Industry-Specific Civil Engineer: When you reach the construction phase, an industry-specific engineer becomes critical. Civil engineers are highly skilled, but if they're not familiar with resort infrastructure requirements, you risk over-engineering your project, which can destroy your budget. An experienced resort engineer working from a visionary master plan is essential for success.
5. Specialized Architect/Design Team: For specific structures like bathhouses, clubhouses, and entertainment venues, you need architects who understand resort design principles and can create facilities that enhance your brand and guest experience.
6. Industry-Specific Operator: If you lack in-house operational expertise, consider partnering with an experienced resort operator who can either manage your facility or train your staff in industry best practices.
Case Study: Lakes RV & Cabin Resort
To illustrate these principles in action, let's examine a real project: the Lakes RV & Cabin Resort in Maysville, North Carolina. This case study demonstrates how proper due diligence, team assembly, and design process create a successful development.
Site Analysis: The Foundation of Good Design
The first step in any development project is conducting a comprehensive site analysis. This process honestly and candidly assesses all physical components of the property to identify opportunities and potential challenges.
Key elements of site analysis include:
Topography: Understanding elevation changes, slopes, and natural drainage patterns. Areas with excessive slope may be unsuitable for RV sites but perfect for cabin development.
Hydrology: Identifying water sources, drainage patterns, and flood-prone areas. This is crucial for both development planning and regulatory compliance.
Zoning and Bylaws: Reviewing all applicable regulations and restrictions that will govern your development.
Vegetation: Cataloging existing trees and natural features that can enhance your resort's appeal while identifying areas that may need clearing.
Soil Quality: Understanding soil composition for construction and septic system requirements.
Floodplain Information: Reviewing FEMA flood maps and other regulatory flood designations.
In the Lakes RV & Cabin Resort project, the site analysis revealed several key features:
- Three beautiful lakes (former stone quarries filled with groundwater)
- Generally smooth, gently undulating topography suitable for RV development
- Steep areas around lakes unsuitable for RV sites but perfect for cabins
- Significant floodplain areas in the southern portion restricting permanent structures
- Excellent opportunities for water-based recreation
Market Research: Understanding Your Competition
While site analysis proceeds, your team should simultaneously conduct comprehensive market research. This involves analyzing competition and market conditions in expanding geographic circles:
50-Mile Radius (Primary Market): Detailed analysis of all competing facilities, including:
- Nightly rates and pricing strategies
- Business profiles (extended stay vs. short-term recreational)
- Amenity offerings and service levels
- Occupancy rates and seasonal patterns
100-Mile Radius (Secondary Market): Broader analysis of market trends and competing facilities outside your immediate area.
150-200 Mile Radius (Regional Market): Assessment of regional market conditions, including:
- Median income levels
- RV ownership rates
- Tourism patterns and attractions
- Economic indicators
Beyond 200 miles, market relevance typically drops off significantly and provides minimal value for most projects.
Developing Your Business Case
Once site analysis and market research are complete, you can develop a comprehensive business case that identifies your optimal niche and positioning strategy.
This process involves creating a detailed amenity matrix that positions your development for success. Amenities might include:
- Sports facilities (basketball, bocce, pickleball courts)
- Recreational activities (corn hole, horseshoes)
- Water-based activities (fishing, canoeing, kayaking)
- Trail systems for hiking and biking
- Entertainment venues and community spaces
Smart developers phase these amenities across multiple development stages, avoiding the need to capitalize everything upfront while ensuring long-term guest satisfaction and revenue growth.
Master Planning: From Vision to Reality
The Bubble Diagram Process
The initial master planning process begins with creating a bubble diagram—a high-level, conceptual plan that identifies major land use areas without getting bogged down in details.
Key components of effective bubble diagrams:
Land Use Identification: Different colored zones represent different uses:
- Red: Recreational areas (trails, fishing, non-vehicular activities)
- Gray: Cabins and park models
- Yellow: Pull-through RV sites
- Salmon: Back-in RV sites
- Black lines: Roadway systems
Topographic Considerations: Slightly steeper areas work well for park models and cabins, while flatter areas are reserved for RV sites.
Strategic Facility Placement: Key facilities like clubhouses should be positioned for maximum impact—good lake access, visibility from entry points, and central location for community building.
Density Calculations: Modern software allows accurate calculation of site counts and development density even at the bubble diagram stage, providing early financial projections.
Refining the Master Plan
The final master plan represents a significant refinement of the bubble diagram, incorporating lessons learned from market research and site analysis.
Key improvements in the refined master plan often include:
Circulation Optimization: Removing unnecessary roadways that don't add value while potentially increasing overall site density.
Mixed Revenue Streams: Incorporating both for-sale and rental park models to create diverse revenue sources and improve project resilience.
Amenity Integration: Strategically placing amenities like boat storage, bathhouses, and recreational facilities to enhance guest experience while maximizing site utilization.
Phased Development Consideration: Ensuring the master plan supports logical construction phasing that minimizes disruption to operating areas.
In the Lakes RV & Cabin Resort project, the refined master plan increased density by 70-80 sites compared to the original bubble diagram, demonstrating the value of the iterative design process.
The Importance of Flexibility
A well-designed master plan serves as both a roadmap and a flexible framework. While it provides clear direction for development, it should also accommodate adjustments as market conditions change or construction realities emerge.
The master plan becomes an invaluable tool for:
- Securing entitlements and rezoning approvals
- Explaining the concept to stakeholders and investors
- Guiding engineering and construction decisions
- Adapting to changing market conditions
Strategic Phasing: Making Large Projects Viable
Most RV park and campground developments cannot and should not be built in a single phase. Strategic phasing makes projects financially viable by:
- Reducing initial capital requirements
- Allowing market absorption of new supply
- Providing cash flow to fund subsequent phases
- Enabling adjustments based on operational experience
Phasing Considerations
Construction Logistics: Phase boundaries should consider equipment access, utility installation, and construction staging areas.
Operational Impact: Later phases should not disrupt the quiet enjoyment of guests in operating phases.
Market Absorption: Each phase should provide sufficient inventory to serve market demand without oversupplying.
Revenue Generation: Early phases should include sufficient amenities and sites to generate positive cash flow.
In the Lakes RV & Cabin Resort example, the project was divided into five phases:
Phase 1: 25 pull-through sites, 30 back-in sites, 79 park model sites, one comfort station, playground, entry features, and check-in building.
This first phase creates a viable proof of concept while generating immediate revenue to fund subsequent development phases.
Financial Modeling: The Numbers That Matter
Successful RV park development requires sophisticated financial modeling that accounts for multiple revenue streams, operational complexities, and market variables.
Revenue Projections
Site and Rental Revenue forms the foundation of your financial model and should include:
Seasonality Factors: Understanding how occupancy and rates vary throughout the year.
Site Mix: Different combinations of pull-through sites, back-in sites, and park models.
Rental Types: Extended stay vs. short-term recreational guests have different rate structures and operational requirements.
Rental Periods: Nightly, weekly, monthly, seasonal, and annual rates create different revenue patterns.
Rate Escalation: Annual rate increases should account for inflation and market conditions.
Occupancy Projections: Realistic occupancy rates by site type and season.
Additional Revenue Streams
While site rental forms your core business, additional revenue sources can significantly improve profitability:
- Golf cart rentals
- Clubhouse and event space rental
- Food and beverage sales
- Retail merchandise
- Activity and equipment rentals
- Boat and RV storage
Critical principle: Never base your development decision on additional revenue streams. These should always be considered supplementary to your core site rental business.
Cost Considerations
Operational Expenses: Staff, utilities, maintenance, insurance, and marketing costs.
Construction Costs: Realistic estimates for infrastructure, buildings, and amenities.
Financing Terms: Interest rates, loan-to-value ratios, and repayment schedules significantly impact project viability.
A comprehensive 5-10 year financial model helps ensure your project remains viable under various market scenarios.
Design Excellence: Creating Memorable Experiences
Architectural Theming
The architectural style and theming of your resort significantly impact guest experience and market positioning. Options range from ultra-modern to traditional, with several popular approaches:
Modern Contemporary: Clean lines, large windows, and minimalist aesthetics appeal to younger demographics and urban guests.
Traditional: Hip roofs, front porches, and bay windows create a classic, comfortable atmosphere.
Contemporary Traditional: Blending traditional forms with modern materials and details.
Rustic: Log cabins and timber construction emphasize connection with nature.
Regional Styles: Spanish, Mediterranean, or other regional architectural themes can enhance local character.
Facility Design Standards
Today's guests expect higher-quality facilities than previous generations. Successful resort development requires:
Clubhouse Design: Multi-functional spaces that serve as community gathering places, event venues, and operational headquarters.
Bathhouse Facilities: Clean, modern, and well-maintained facilities that enhance rather than detract from the guest experience.
Park Models and Cabins: High-quality accommodations that provide comfort and value.
Amenity Buildings: Swimming pools, fitness centers, and activity buildings that create destination appeal.
Pre-Construction Visualization
Modern resort development increasingly relies on detailed 3D renderings and visualizations to:
- Explain projects to stakeholders and investors
- Market facilities before construction completion
- Respond to market feedback during design phases
- Secure financing and regulatory approvals
Technical Documentation: Bridging Design and Construction
CAD Documentation Requirements
Professional CAD documentation bridges the gap between design vision and construction reality. Detailed drawings provide engineers with clear design intent, including:
Master Plan Documentation: Comprehensive site plans showing all facilities, circulation, and land uses.
Utility Layout Plans: Detailed routing for electrical, water, and sewer systems with specific hookup locations.
Phasing Plans: Clear delineation of construction phases with utility coordination.
Site-Specific Details: Precise layouts for individual RV sites, park models, and amenity areas.
Engineering Coordination
Proper documentation ensures smooth coordination between design professionals and engineers, minimizing costly changes during construction and ensuring design intent is preserved throughout the building process.
Conclusion: Setting Yourself Up for Success
Developing successful RV parks and campgrounds requires a comprehensive approach that balances market realities with design excellence. The key principles for success include:
- Thorough Due Diligence: Understanding zoning, market conditions, and site characteristics before making major commitments.
- Professional Team Assembly: Working with experienced consultants who understand the unique requirements of resort development.
- Comprehensive Planning: Creating detailed master plans that balance guest experience with operational efficiency and financial viability.
- Strategic Phasing: Developing projects in logical phases that manage risk while creating sustainable cash flow.
- Realistic Financial Modeling: Building conservative financial projections that account for market variables and operational complexities.
- Design Excellence: Creating memorable guest experiences through thoughtful architectural design and amenity planning.
The outdoor hospitality industry offers tremendous opportunities for developers who approach projects with proper planning, professional expertise, and realistic expectations. By following these principles and working with experienced professionals, you can create successful RV parks and campgrounds that serve guests, generate profits, and enhance communities.
This guide represents Part 1 of a two-part series on RV park and campground development. Part 2 will focus on repositioning, reconfiguring, and redeveloping existing properties to optimize market performance and profitability.
Ready to explore RV park and campground development opportunities? Contact Nadi Group today to discuss your project and learn how our expertise in outdoor hospitality design can help bring your vision to life.
