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Scottsdale, Ariz.-based Encore Communities, Inc., a 4-year-old company that evolved out of National Home Communities, Inc. to become one of the nation’s fastest growing upscale RV resort chains, wants to acquire more parks outside of its existing Sunbelt base, according to co-founder and CEO David A. Napp.
“What we would like to do on a long-range strategy is acquire additional parks, not only in the core markets that we’re in now, ” Napp says in the January issue of Woodall’s Campground Management (WCM). “But we would like to add in summer destination properties, properties that operate from Memorial Day to Labor Day along the Eastern Seaboard.
“We’re big believers that summer destination properties need to be on or near large bodies of water,” he added. “The person who is RVing in the summertime wants to be able to enjoy recreational water. But because we’re so concentrated in the Sunbelt, our revenues primarily come in the fourth quarter and first quarter. If we could add in properties that are second- and third quarter-oriented, our revenue stream would become more consistent in all four quarters.”
In addition to an expansion into the summer-destination market, Napp says he would like to see Encore take advantage of the advancing age demographics of the Baby Boomer generation and their needs for retirement dwellings, including recreational park trailers. In the process, he would hope to “take Encore to the next level” by building its annual revenue base from $40 million to $150 million.
Founded by Napp and Colleen S. Edwards, Encore has grown to encompass 31 RV parks with roughly 12,581 sites and more than 500 employees in Florida, Texas, Arizona and California. The overall company, according to Napp, has experienced a tenfold increase in revenue to about $40 million in 2002, with roughly 70% of its revenues earned from repeat or referral customer stays.
Having invested approximately $18 million in capital improvements over the past four years, Encore is targeting the high end of the RV market. Napp, 42, says the company’s parks, marketed under the Encore and Sunburst RV brand names, are tailored for both traveling RVers and seasonal park-model homeowners who buy Chariot Eagle or Skyline units through Leisure Living Resort Homes, a wholly owned Encore subsidiary that ranks as one of the nation’s top park-model retailers.