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News for January 22, 2022

Third Quarter Continues Year Of Growth For KOA

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Continuing progress towards a record year, Kampgrounds of America, Inc. (KOA) reports a 36.6% increase in revenue through September over 2020 in their Q3 Business Report. Compared to the same period in 2019, KOA’s highest-grossing year in its 59-year history, revenue increased just over 29%. This success is bolstered by a 43.4% increase in advanced deposits on future business over 2020. Additionally, KOA continues its growth in franchise contracts and its company-owned portfolio, adding two new campgrounds, four new construction contracts, and two owned locations.

Impressive Short-Term Performance

Short-term performance remains strong as KOA reports a 45.9% increase in short-term, year-to-date revenue through September over 2020. When compared to a record 2019, short-term revenue through the third quarter is up nearly 34%. Occupancy also improved during the first three quarters of the year at 35.6% and 18.1% over 2020 and 2019, respectively.

“We continue to see impressive growth as we progress through 2021,” said Toby O’Rourke, president and CEO of KOA. “The pandemic served as a catalyst for many people to try camping for the first time and we’re not only seeing a lot of these new campers continuing to enjoy camping, but we’re seeing them choose to do it at KOA. We believe the strong momentum we saw this quarter will continue through the remainder of the year and well into 2022.”

Growth of the Franchise System

KOA continues to grow its system of franchised campgrounds with six new contracts, including an additional four new construction contracts. In the third quarter, campgrounds in Waterloo, New York and Elko, Nevada converted to the KOA system.

Four new construction contracts signed with KOA in the second quarter. These new contracts join nine new construction contracts secured in the first two quarters of the year.

“The continued growth of new construction within KOA is unprecedented,” said O’Rourke. “The value of owning a campground is attracting business owners who want to create a top-of-the-line experience from the ground up. With nearly 60 years of industry knowledge, KOA is positioned to help these campgrounds succeed from the moment they break ground.”

As indication of franchisee satisfaction, KOA also had a 100% renewal rate on existing franchise contracts in the third quarter of 2021, building upon perfect renewal rates in quarters one and two.

The Corporate Portfolio Continues to Expand

In addition to growth in its franchise business, KOA is also actively expanding its owned campground portfolio. In the third quarter of the year, KOA acquired two new campgrounds and purchased land in Texas for future development. The company added Jacksonville North/St. Marys KOA Holiday in Georgia and the Durango RV Resort in California to their owned campground locations.

According to O’Rourke, “KOA has a continued interest in adding additional franchised locations and owned properties to the KOA brand. While there is a financial component to building our owned portfolio, it also improves our work as franchisors because our team understands the ins and outs of camping and campground ownership. This makes the KOA brand a true leader within the camping industry.”

About Kampgrounds of America

Kampgrounds of America, Inc. (KOA) is the world’s largest system of open-to-the-public campgrounds with 525 locations across the U.S. and Canada united under the mission of “connecting people to the outdoors and each other.” The industry leader in outdoor hospitality, KOA’s family of campground brands – KOA Journey, KOA Holiday and KOA Resort – offer sites and amenities designed for every type of camping experience. In addition to unrivaled brand visibility, KOA offers campground owners unparalleled support, marketing, and technology. The company’s proprietary reservation software, K2, deliver’s campgrounds a completive advantage within the market. Founded in 1962 in Billings, Mont., KOA now serves more than a million camping families each year, who rely on the standards of excellence and unique outdoor adventures KOA is known for. For more information, visit KOA.com.

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