Cementing the best year in 60 years of company history, Kampgrounds of America Inc. (KOA) today (Jan. 17) announced a 33.2% revenue increase over 2020 and a 33% increase in revenue over 2019, the company’s previous highest-grossing year, in its Q4 Business Report.
Advanced deposits on future business are up 51% over the previous year, indicating this astounding growth will continue into 2022, according to a release. Additionally, KOA continues its expansion in franchise contracts and its company-owned portfolio, adding thirteen new campgrounds, 13 new construction contracts and 15 owned locations in 2021.
Impressive Performance Reported Across All Segments
Leading the way, KOA reports a 41.8% increase in short-term revenue in 2021. Compared to a record 2019, 2021’s short-term revenue is up over 38%. Short-term occupancy for 2021 increased 31.4% and 21.7% over 2020 and 2019, respectively.
While slightly down compared to 2020, KOA shares increases from 2019 across their long-term business. End-of-year reporting indicates that long-term registration revenue was up 9.3%.
Across all businesses, KOA’s occupancy finishes 2021, 5.6% up over 2020 and 12.7% over 2019.
“We are excited to close 2021 and go into our 60th year in business with our strongest financial performance ever, and even more pleased with the indicators of future growth,” 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 with a 51.1% increase in advanced deposits, that isn’t slowing down. People are choosing to camp over other travel options and they are choosing to camp at KOAs.”
Continued Growth of the Franchise System
Pointing to continued strength of the KOA brand and services, the company’s system of franchised campgrounds continued its growth in 2021. End-of-year totals show 26 new franchise locations across the KOA system. Thirteen of the locations added in 2021 are new construction contracts, indicating demand for more camping inventory.
In the fourth quarter of 2021, KOA welcomed five new conversion campgrounds as well as a new construction contract. These contracts add KOA campgrounds in Emporia, Va.; Burney Falls, Calif.; Montgomery, Ala.; Ogallala, Neb., and Sutherlin, Ore.
“We are very encouraged that so many campgrounds see the value in partnering with KOA,” said Ann Emerson, chief operating officer of KOA franchise. “Both longstanding campgrounds and new players starting from the ground up know that KOA can help them deliver a top-of-the-line experience that is trusted among campers and travelers. We are well poised to continue leading the camping market.”
An indication of franchisee satisfaction, KOA also reports a 99% renewal rate on existing franchise contracts in 2021.
Expansion of the Corporate Portfolio
In addition to growth in its franchise business, KOA continues to expand its owned campground portfolio. In 2021 KOA added 15 new campground locations or land for future development. In addition, KOA reports four dispositions.
In the fourth quarter of the year, KOA acquired three new campgrounds and purchased land in Florida, California and New York for future development. The three campgrounds added to the portfolio were Covert/South Haven KOA Holiday in Michigan, Sunbury/Columbus North KOA Holiday in Ohio and North Pole Resorts in New York.
“KOA has a continued interest in adding additional owned properties to the KOA brand,” said Darin Uselman, chief operating officer of owned and operated assets of KOA (OAK). “There is a financial component to building our owned portfolio, but it also improves our work as franchisors as we intimately understand camping operations and campground ownership.”
