Feasibility & Appraisal
What is a Feasibility Study?
Author: Sage Outdoor Advisory
Quick answer
A comprehensive analysis that evaluates the viability, market potential, and financial prospects of a proposed outdoor hospitality project, such as a glamping resort, RV park, or campground.
Understanding Feasibility Study
A feasibility study is a critical business analysis tool used in the outdoor hospitality industry to determine whether a proposed project is viable, profitable, and worth pursuing. For glamping resorts, RV parks, and campgrounds, a feasibility study examines market demand, competition, financial projections, site suitability, regulatory requirements, and risk.
The study typically includes market analysis, competitive assessment, revenue and expense forecasts, site evaluation, and strategic recommendations. Lenders often require a bank-approved feasibility study before financing development or acquisition.
Sage Outdoor Advisory has completed more than 350 feasibility studies and appraisals for outdoor hospitality assets nationwide. Our bank-approved reports help investors, developers, and lenders make confident go/no-go decisions. For a deeper walkthrough of the process, see our complete guide to feasibility studies. For industry context, read the Outdoor Hospitality Industry Overview on the Sage blog.
The study typically includes market analysis, competitive assessment, revenue and expense forecasts, site evaluation, and strategic recommendations. Lenders often require a bank-approved feasibility study before financing development or acquisition.
Sage Outdoor Advisory has completed more than 350 feasibility studies and appraisals for outdoor hospitality assets nationwide. Our bank-approved reports help investors, developers, and lenders make confident go/no-go decisions. For a deeper walkthrough of the process, see our complete guide to feasibility studies. For industry context, read the Outdoor Hospitality Industry Overview on the Sage blog.
For operator perspective, listen to Meet Your Host: Shari Heilala on The Outdoor Hospitality Podcast.
Examples
- A developer planning a 30-unit glamping resort in Colorado's mountain region commissions a feasibility study. The study analyzes local tourism data showing 2.3M annual visitors to nearby attractions, identifies 8 competing properties with average 78% occupancy and $285 ADR, projects 65% first-year occupancy growing to 82% by year 3, estimates $1.2M development costs, and forecasts $650K Year 1 revenue growing to $1.1M by Year 5. The study concludes the project is viable with 18% IRR and recommends proceeding, helping secure $800K bank financing based on the comprehensive analysis.
- An investor considering a 150-site RV park near Great Smoky Mountains National Park needs a feasibility study. The analysis examines national park visitation (12M+ annually), analyzes 12 competing RV parks within 15 miles showing strong demand (average 75% occupancy), evaluates local zoning and utility requirements ($850K estimated development costs), projects $920K annual revenue at 70% occupancy and $60/night average rate, and identifies seasonal patterns with peak summer occupancy at 95%. The study validates strong market demand and projects positive cash flow by month 8, supporting the investment decision and lender requirements.
- A campground feasibility study for a proposed 80-site property assesses seasonal demand patterns by analyzing monthly visitor data from nearby state parks, weather patterns affecting camping season length (March-October with peak June-August), local event calendars driving weekend demand, and competitive pricing analysis. The study projects 55% annual occupancy with summer peaks at 90% and shoulder seasons at 40%, estimates $380K annual revenue, and identifies the need for winter storage income to offset low-season occupancy. This comprehensive demand analysis helps the owner optimize pricing strategy and plan operational expenses to match revenue patterns.
Common use cases
- Securing bank financing for development projects
- Evaluating investment opportunities
- Making go/no-go decisions on projects
- Understanding market potential before purchase
Related services
Frequently asked questions
- How long does a feasibility study take?
- Most outdoor hospitality feasibility studies take about six to eight weeks, depending on property size, market complexity, and scope. That timeline allows for market research, financial modeling, and a lender-ready report. See our feasibility study process timeline guide or contact Sage for a schedule tailored to your glamping, RV, or campground project.
- What's included in a feasibility study?
- A bank-ready feasibility study typically includes market and competitive analysis, occupancy and rate assumptions, operating expense forecasts, development or acquisition costs, multi-year pro forma financials, and risk discussion. Sage studies are built specifically for glamping resorts, RV parks, and campgrounds—not generic hotel templates.
- Do banks accept feasibility studies?
- Yes. Lenders routinely require third-party feasibility studies for outdoor hospitality development and acquisition loans. Sage Outdoor Advisory prepares bank-approved studies trusted by financial institutions; see our feasibility studies guide for what lenders expect.
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