Our Process for Profitability
Making Walnut Grove RV Resort a strong market asset.
Identifying Income Opportunities
Walnut Grove RV Resort was charging rates well below market, specifically for rental units. This was quickly apparent to us and we reasoned that with some straightforward upgrades, we could not only justify a sizable rate increase, but we could also open the door to a new demographic of campers that might not previously have considered this destination.
Result Delivered:
Boosted campsite rents from $1,600 to $2,500 with no impact on occupancy.
Brand & Marketing Revitalization
In order to appeal to the demographic we wanted to target, the park needed a facelift in its digital presentation. We performed a complete rebrand and redesign of the logo, developed a modern and robust website, and initiated marketing campaigns to drive interest and capture the market sector we believed would respond most strongly to a new and improved online presentation of the park.
Result Delivered:
Our new brand, website, and marketing strategy drove a significant growth of interest in the park and resulted in a changeover to a higher quality seasonal and transient campers.
Major Operational & Experiential Improvements
- Professionalized operations using Campspot online reservation system and Rent Manager
Converted 30 transient sites to seasonal, reducing turnover and creating longer term resident base
Capital Improvements: installed park-wide wifi system, upgraded olympic pool and basketball court, designed modern video game room
Purchased two additional rental cabins
Result Delivered:
These upgrades allowed our team to run a more efficient and more enjoyable park, as well as more closely track the park financials and optimize our operations to invest in the biggest money-makers for the resort.
Value Realization & Sale
Over the course of one season, Walnut Grove RV Resort experienced a revenue increase of well over 50%, and nearly 90% on rentals alone. The outdoor hospitality buying market continued to stay hot, and RMR chose to step out of our position the following year through the sale of the park to another investment firm at a large profit. At the beginning of 2023, the campground was pre-leased and had a waiting list for campers to gain access to The Grove.
Result Delivered:
Acquired in 2021 for 2,600,000; sold in 2022 for $4,200,000 creating $1,600,000 profit for RMR Partners in 18 months on an initial investment of $420,000.
