Feasibility & Appraisal
What is Feasibility Study?
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 outdoor hospitality projects like glamping resorts, RV parks, and campgrounds, a feasibility study examines multiple factors including market demand, competitive landscape, financial projections, site suitability, regulatory requirements, and risk assessment.
The study typically includes market analysis to understand demand and competition, financial modeling to project revenues and expenses, site analysis to evaluate location suitability, and strategic recommendations for development. Feasibility studies are essential for securing financing, as banks and lenders require them to assess project risk and viability.
Sage Outdoor Advisory specializes in creating comprehensive, bank-approved feasibility studies for outdoor hospitality projects. Our studies provide investors, developers, and lenders with the detailed analysis needed to make informed decisions about project development and financing. For current industry trends that inform feasibility studies, see our 2025 Outdoor Hospitality Industry Overview blog post.
The study typically includes market analysis to understand demand and competition, financial modeling to project revenues and expenses, site analysis to evaluate location suitability, and strategic recommendations for development. Feasibility studies are essential for securing financing, as banks and lenders require them to assess project risk and viability.
Sage Outdoor Advisory specializes in creating comprehensive, bank-approved feasibility studies for outdoor hospitality projects. Our studies provide investors, developers, and lenders with the detailed analysis needed to make informed decisions about project development and financing. For current industry trends that inform feasibility studies, see our 2025 Outdoor Hospitality Industry Overview blog post.
Examples of Feasibility Study
- •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 About Feasibility Study
How long does a feasibility study take?
Our feasibility studies typically take between 4 to 8 weeks, depending on the size and complexity of the property. This timeframe allows us to thoroughly review market data, inspect the property, and prepare a detailed, accurate report. For a more specific timeline based on your project, please contact our team—we're happy to discuss your feasibility study needs.
What's included in a feasibility study?
A feasibility study includes market analysis, competitive assessment, financial projections, site evaluation, and strategic recommendations.
Do banks accept feasibility studies?
Yes, banks and lenders require professional feasibility studies to assess project viability and risk before approving financing.
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