Open-air hospitality, including camping, glamping, and hybrid leisure formats, is drawing increased interest from investors and operators as demand for experiential travel continues and operators report the potential for higher average daily rates compared to traditional campsites.
The segment was discussed at last month’s Atlantic Ocean Hotel Investors’ Summit in Madrid, where a panel of hospitality executives with exposure to glamping outlined how hotel companies and institutional investors are approaching outdoor accommodations as a distinct asset class.
Philippe Rossini, portfolio manager, hospitality, at Swiss Life Asset Managers, said the firm currently manages two funds dedicated to outdoor accommodations and is focused on expansion in France.
In 2023, the company launched its Plein Air Invest private equity fund with a strategy to acquire and upgrade traditional campsites into higher-yielding glamping destinations.
Rossini said interest from lenders and investors is partly driven by the segment’s environmental, social, and governance profile, though he noted that long-term value creation depends on disciplined site selection and asset management.
Luis Amézola, associate director of real estate investment, hospitality, and glamping at Meridia, said his firm has built a portfolio of 16 outdoor accommodation assets across Spain and Portugal over the past five years, including locations in Val d’Aran, Asturias, Alentejo, and Odeceixe.
He emphasized the seasonality of the business in southern Europe. “Andalucia can have demand all year, but 80% of our [gross operating profit] is in July and August. It is a super-seasonal business,” he said.
According to Amézola, annual occupancy of 55% to 60% is typical, but ADR remains the principal performance metric for operators in the segment. He added that operators are working to increase shoulder-season demand and attract business travelers and corporate groups to balance peak summer revenue.
Elie Armaly, senior director of business development at the Sharjah Investment & Development Authority (Shurooq), said his organization has included glamping products within its broader hotel portfolio since 2018.
“It is about heritage, adventure, and destination,” he said in a report by CoStar. One of its most recent projects, Nomad, a 20-site destination in the Kalba Mountain Reserve on the east coast of Sharjah in the United Arab Emirates, opened in late December as part of the Sharjah Collection.
Panelists also addressed regulatory and operational constraints. Rossini said France has seen a decline in campsites, partly due to strict legislation and barriers to entry. “There are fewer campsites in general, or they are in areas where you will not find the demand. In addition, the barriers of entry are super strong,” she said.
In Spain, Amézola noted that regional regulations differ, with some jurisdictions requiring specific in-unit amenities. “In Spain, some potential entrants wanted nothing smaller than 10 hectares. We managed to secure plots during COVID-19, but now there are more barriers,” he said.
Weather risk remains a consideration across markets. Armaly said summer temperatures in the Middle East limit glamping demand during peak heat. Rossini cited operational disruptions from flooding and water regulations in France, noting that pools must be emptied every nine days, which has prompted operators to consider alternative guest attractions.
For outdoor hospitality business owners, the discussion underscores several considerations: seasonality management, regulatory due diligence, ADR-focused pricing strategies, and the flexibility advantages of movable accommodation units.
Panelists said moveable units can be relocated to higher-performing sites, while refurbishment cycles are typically easier to manage than in traditional hotels due to seasonal closures.
As institutional capital continues to evaluate the sector, operators with strong land control, compliance expertise, and diversified demand strategies may be better positioned to secure investment and sustain returns.