The Mandate
A first-generation outdoor-hospitality operator with adjacent land holdings engaged Feasibility Study Consultant to prepare a third-party feasibility study supporting a USDA B&I financing request for a project located in Garfield County, Utah. Total project capitalization fell within the $5M-$10M band. The capital provider, a USDA Rural Development field office, required documentation consistent with current program review standards. The analytical question put to the team: Did Bryce Canyon and Capitol Reef gateway leisure visitation support 45 glamping pads at $325 average nightly rate.
Engagement Scope
- Primary market area defined as a 100-mile drive-time
- Comparable supply set of 8 properties
- Demand model framework: national park gateway leisure visitation capture
- Financial projection horizon: 7 years
- Site inspection completed; operator interviews where applicable
- Primary data collection through field reconnaissance and third-party market data
Methodology Applied
Primary Market Area
The PMA was defined as a 100-mile drive-time from the subject site, calibrated to the demand catchment behavior typical of glamping assets in Utah. The boundary captured the population, employment, and competitive supply base relevant to the subject's operating thesis.
Supply and Demand Reconciliation
The comparable supply set comprised 8 properties operating within the PMA or in directly substitutable submarkets. Demand was modeled using a national park gateway leisure visitation capture approach over a 7 years horizon. The reconciliation tested whether incremental supply, including the subject, could be absorbed within the projection window without compromising stabilized occupancy assumptions.
Capture Rate Calibration
The subject's capture rate was calibrated against the absorption capacity of the PMA. The analysis concluded that PMA absorption capacity exceeded subject build-out by a factor of 4.2 across the projection window, with a stabilized capture rate of 2.8%.
Exhibit 1: Comparable Supply Set, Utah PMA
[Table or chart rendered in delivered report.]
Exhibit 2: Demand Projection Summary, 7 years Horizon
[Table or chart rendered in delivered report.]
Exhibit 3: Subject Capture Rate vs. PMA Absorption Capacity
[Table or chart rendered in delivered report.]
Analytical Conclusions
- Bryce Canyon and Capitol Reef recorded 3.4 million combined annual visitors, a leisure pool 4.2x subject capacity.
- Comparable glamping properties cleared $295 to $385 ADR with 68% peak-season occupancy.
- Subject's projected 64% peak-season occupancy was supported by visitor capture analysis.
- USDA B&I rural-area and equity threshold tests confirmed.
Deliverable
The delivered report ran 124 pages with 28 exhibits distributed across nine analytical sections, plus appendices documenting comparable supply data, demographic inputs, and financial projection assumptions. The document was prepared to the documentation standards of the USDA Rural Development field office. The corresponding USDA B&I review framework guided exhibit selection and supporting documentation.