Feasibility & Appraisal
What is Revenue Projections?
Forecasted income estimates for a property based on occupancy rates, average daily rates, and other revenue sources over a specific time period.
Understanding Revenue Projections
Revenue projections are financial forecasts that estimate future income for an outdoor hospitality property. They are based on assumptions about occupancy rates, average daily rates (ADR), seasonal variations, and other revenue streams such as amenities, activities, or retail.
For feasibility studies, revenue projections typically cover 5-10 years and include best-case, base-case, and worst-case scenarios. They help investors and lenders understand the income potential of a project and assess financial viability.
Sage Outdoor Advisory creates detailed revenue projections as part of our feasibility studies, using market data, competitive analysis, and industry benchmarks to provide realistic and defensible forecasts.
For feasibility studies, revenue projections typically cover 5-10 years and include best-case, base-case, and worst-case scenarios. They help investors and lenders understand the income potential of a project and assess financial viability.
Sage Outdoor Advisory creates detailed revenue projections as part of our feasibility studies, using market data, competitive analysis, and industry benchmarks to provide realistic and defensible forecasts.
Examples of Revenue Projections
- •A feasibility study for a new 20-unit glamping resort includes 5-year revenue projections: Year 1 projects $420K revenue at 55% occupancy (4,015 occupied unit-nights) with $105 ADR, growing to Year 5 with $850K revenue at 80% occupancy (5,840 unit-nights) and $145 ADR as the property gains reputation and can command premium rates. These projections help lenders assess loan repayment ability and help investors understand when profitability will be achieved. The projection includes conservative, base, and optimistic scenarios to account for market uncertainty.
- •An RV park owner creates seasonal revenue projections: Summer months (June-August) generate $280K quarterly with 85% occupancy at $95/night average rate. Spring and fall (March-May, September-November) generate $180K quarterly at 65% occupancy. Winter months (December-February) generate $95K quarterly at 40% occupancy. Total annual revenue projection = $735K. These seasonal projections help with cash flow planning, staffing decisions, and identifying when to schedule capital improvements during slower periods.
- •A campground expansion project evaluates revenue impact of adding 25 new RV sites: Current revenue is $480K annually from 75 sites. The expansion would add approximately $160K in new revenue (25 sites × $65 average rate × 80% occupancy × 365 days = $474K, but accounting for startup ramp-up, Year 1 projects $160K additional). Combined with existing operations, total projected revenue grows to $640K annually. This revenue projection justifies the $320K expansion cost and helps secure financing by demonstrating increased cash flow potential.
Common Use Cases
- •Feasibility studies
- •Financial planning
- •Loan applications
- •Investment analysis
Related Services
Frequently Asked Questions About Revenue Projections
How accurate are revenue projections?
Revenue projections are estimates based on market data and assumptions. Accuracy depends on the quality of market research and the stability of market conditions.
What time period do revenue projections cover?
Revenue projections in feasibility studies typically cover 5-10 years, with detailed annual and sometimes monthly breakdowns.
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