Investment OPPORTUNITY
POSH OUTDOORS - A Scalable Luxury GLAMPING business
Q2 2024
IN THE FACE OF SKYROCKETING DEMAND, the Luxury Glamping Segment Has A Massive Supply Shortage
The luxury glamping market in the USA and Canada has a Total Addressable Market (TAM) of $12.6 billion*, but with only 2,118 units**, there is a staggering 111,066-unit shortage. At the current development rate, supply doesn't catch up to TAM in our lifetime due to substantial planning, zoning, & permitting barriers in addition to fierce local opposition.
*Source: Management Estimates, KOA 2023 Glamping Report
**Source: Sage Advisory Report, 2022
Posh Outdoors supplies owners of iconic properties with high-end glamping accommodations and backend support, at no up-front cost to the landowner, through an attractive revenue share model. Targeting existing tourism businesses, Posh enables operators to add unique lodging experiences with minimal capex. This enables Posh to avoid many of the lengthy and expensive pitfalls associated with ground up developments.
Deploying luxury glamping units to tourism businesses at scale to capitalize on the growing demand for experiential travel
Posh Outdoors has developed a highly scalable platform comprised of: (1) the supply and installation of turn-key, unique, all-season modular glamping units with award winning eco-friendly designs, (2) a menu of tech-centric, labor-light hospitality and revenue management services, (3) an innovative revenue share program to partner with outdoor tourism businesses such as wineries, ski resorts, ranches, and existing glamping operators.
The Posh revenue share program provides partners with turn-key luxury glamping units and services with minimal up-front cost to the partners, enabling them to add unique experiential lodging to existing tourism operations. The Posh program generates more demand for a partner’s existing tourism operations, and existing tourism customers represent built-in demand for the new Posh Outdoors lodging.
Investors in the current Posh Regulation CF offering of convertible debt expect to benefit from the company's scalability and a projected average unlevered yield on cost (UYOC) of approximately 30%, significantly higher than the typical 7-12% range for hotels and apartments. With the first location secured and a large pipeline of other North American locations, Posh Outdoors is poised to rapidly scale its number of keys while avoiding the costs and risks associated with traditional ground-up developments.
*Information contains forward looking statements. Actual results and future events could differ materially from those anticipated in such statements.
Investment terms
Details on this transaction below, subject to a disclaimer*
Industry
Hospitality
Max Capital Raise
$5,000,000*
Security
Convertible Note
Interest Accrual
12%
Term
3 Years
Valuation Cap
Lesser of $12,000,000**
or 25% Discount to Series A
**If part of the first $450K funded, then $10M cap, representing a 16.7% early bird discount
*Disclaimer: No money or other consideration is being solicited. If sent, it will not be accepted. No offer to buy securities will be accepted. No part of the purchase price will be received until the Company files Form C. Investments in the Reg CF raise must only flow through WeFunder’s platform. Any indication of interest involves no obligation or commitment of any kind. Note that the maximum capital raise is $1,235,000 until such time that the Company’s audit report is issued and an amendment to Form C is filed.
Company positioning
Posh Outdoors has developed a scalable, boutique luxury glamping platform that fills a gap between ultra-luxury glamping resorts ($2,000+ per night) and larger mid-range luxury operators like Autocamp and Under Canvas ($300-$600 per night). This is what boutique luxury glamping entrepreneur-operators, such as Posh Outdoors’ board member Ben Wolff’s Onera, have done with huge success, but nobody is yet doing it at scale due to the aforementioned barriers. The Posh Outdoors solution breaks down those barriers.
Investment Thesis
Experiential tourism is surging with 66% of travelers also prioritizing eco-friendly lodging. Yet few immersive eco-friendly lodging retreats exist – amounting to a massive 100,000 unit shortage in North America. Posh Outdoors unique business model enables rapid scaling of eco friendly luxury glamping units.
The build up to this critical moment in this category can be tracked over the last 5-10 years.
2014 | New Era: Airbnb Reaches Mass Market
- Late-stage private equity firm TPG invests $500M at a $10B valuation
- Funding propelled Airbnb into mass market over next 5 years to IPO
- Innovative platform empowered millions to become hospitality entrepreneurs
2017 - 2020 | Birth & Rise of Unique Stay
- Small, entrepreneurial hosts experimented with fresh ideas
- Single-unit, unique outdoor properties began to spring up and catch fire
- COVID19 drove travelers to nature, fueling demand for these unique stays
2021 | Airbnb Takes Notice
- These properties became the most trafficked & demanded on Airbnb
- Airbnb made unique stays a prominent part of its 2021 rebrand
- New marketplace UI pushed unique stays to the top of the list
2021 -2024 | Unique Hospitality Gathers Momentum
- More and more single-unit properties validate the unique stay concept
- A few ambitious developers decide to take this now proven idea to scale
- A new sub-category emerges: boutique luxury nature hotels
- Growth is severely limited by permitting, costs, and local opposition
- Biggest brands in the space have faced pushback that halted plans
2024 - 2030 | New Concepts Needed to Meet Demand
With an estimated shortage of 100,000 units in the luxury glamping category, there is a desperate need for new means & methods of creating these properties that avoids zoning & financing pitfalls.
Competitive AdvantageS
In the rapidly evolving glamping industry, Posh Outdoors is positioned as a partner for operators of existing high-end tourism businesses with a need to add unique accommodations to their locations. Traditional ground up glamping developments struggle with multi-year site design, planning, zoning, & permitting efforts in the face of local opposition, plus costly infrastructure and common area investment. The Posh model mitigates these risks and accelerates time to market during this critical 3 to 5 year period for operators to build market share and brand recognition.”
Revenue Share Leasing of Glamping Units To Operators of Existing Tourism Businesses
- 20-year revenue share partnerships with existing 4-season tourism businesses sidesteps barriers to entry associated with ground-up developments
- Existing infrastructure, utilities and/or guest amenities on partner properties makes setup faster and cost effective
- Strong supply chain through partnership with EJH Distribution ensures rapid deployment of glamping units
- Revenue share model cuts out the lengthy and expensive property acquisition process, enabling rapid deployment of glamping units and diversification across multiple locations
- Material new profit center for Revenue Share Partners within minimal capex
Off-Site Hospitality Management
Most Posh Revenue Share partners incorporate off-site hospitality management through our partners, Oasi. Services include:
- Marketing & Branding
- Social Media Content
- OTA Listing Management
- Direct Booking Optimization
- Guest Communications
By offering these services, Posh Outdoors earns higher revenue share percentages, further enhancing the company's compelling unit economics.
Landowner Benefits
Through its innovative revenue share program, Posh Outdoors enables landowners and operators of existing tourism businesses to add unique experiential lodging at a fraction of the cost of buying units up front. The turnkey, modular nature of the Posh units ensures that our partners can open their doors to guests with minimal impact on existing operations and the surrounding landscape.
Robust Partner Pipeline
Posh Outdoors has no shortage of landowner partners seeking to join the platform. Founder Nick Purslow’s Glampitect North America, and Founder Edward Haynes’ EJH Distribution, generate a consistent stream of leads from landowners and business owners interested in adding luxury glamping to their properties.
By leveraging these advantages, Posh Outdoors can establish a dominant position in the luxury glamping market, by rapidly deploying glamping units while our competitors entangle themselves with lengthy and expensive land acquisition, site planning, zoning, permitting, and construction of infrastructure and common area amenities already in place on Posh targeted sites.
Compelling Unit Economics
Posh Outdoors' unique approach to glamping development and operations results in attractive unit economics for both the company and its partners.
This is made possible by Posh's unique blend of:
- Award-winning, modular glamping structures (Tubbo PolyCarb Cabins and DeWaard's Big Oak canvas structure)
- Modular building system that reduces construction time by 80-90%
- Proven social-based revenue management system, maximizing direct bookings
- Revenue share model minimizes capex for infrastructure and common amenities
- Tech-centric, labor-light remote hospitality support
Projected Average Operating Metrics
- ADR: $552
- Occupancy: 75%
- Rev Share Rate: 50%
Target Locations
When evaluating potential partnerships, Posh Outdoors seeks locations that offer:
- Iconic natural settings with stunning landscapes
- Diverse outdoor recreation activities (hiking, skiing, fishing, etc.)
- Proximity to major urban centers and transportation hubs
- Established 4 season high-end tourism businesses on-site
- Existing infrastructure, amenities, and hospitality support available
- Necessary zoning and permitting for glamping operations
- Rev share partners committed to guest experience and eco-friendly practices
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Flagship Project
Skyridge Glamping, Kananaskis, Alberta (near Banff) | Opening Q3 2024
Posh Outdoors has secured an agreement for its first revenue share project. Skyridge Glamping is slated to open 10 Posh Outdoors units on an iconic 6.7 acres of Canadian Rockies Crown Land. The opportunity is tied to a 20yr lease with a 30% revenue share.
All units will have ensuite luxury baths & kitchenettes, decks & iconic views. The property and surrounding area offers awe-inspiring views of rugged peaks, glacial waters, and abundant wildlife. The property is a short drive from Calgary and its international airport and is the perfect “base camp” to explore the areas world class hiking, water sports, golf courses, skiing, mountain biking, fishing, and everything in-between – including Banff National Park, recognized as one of the top parks and beautiful areas in the world.
Learn more at: Skyridge Glamping Website
Key Details
- Lease Term: 20yrs
- Unit Count: 10 Posh Units (+10 landowner units)
- Land Size: 6.7 acres
- ADR: $515
- Occupancy: 75%
Financials
- Project Cost: $6 million
- Posh Investment: $1.7M
- Land Partner Equity: $3.3M
- Annual Gross Revenue Posh Units: $1,400,000
- Deal Terms: 30% Rev Share / 20-year term
- Annual Net Revenue Posh Units: $420,000
- Posh NOI: $400,000
Timeline
- Q3 2024 - Complete financing & infrastructure
- Q3-Q4 2024 – On-site Unit installation
- Q3 2024 - Projected first guest stays for 10 landowner units
- Q4 2004 - Projected first guest stays for 10 Posh Units
Company Projected financials
With compelling unit economics and a clear path to scale, Posh Outdoors presents an attractive investment opportunity.
As the portfolio grows, Posh Outdoors will be well-positioned to generate shareholder liquidity through a sale or recapitalization with institutional investors seeking exposure to this rapidly growing segment of the hospitality industry. The Company will also evaluate the potential conversion to a private REIT.
Recent Transactions:
Posh Outdoors team consists of experienced entrepreneurs with proven track records of building industry leading businesses from start-up to exit, hitting all facets of the Posh Outdoors model. Completing the Reg CF raise will enable us to continue building the team on this firm foundation.
Serial entrepreneur, as MBA student launched the most successful business ever started from SMU Business school, Director of New Ventures for billion-dollar subsidiary of Cox Communications, 2 exits. Luxuryhospitality experience includes business development and guest experience for a high-growth fractional yacht business.
read moreSerial entrepreneur specializing in businesses transforming the consumer experience. Founder & CEO of Allconnect - achieved rank of #73 on Inc. 500 and a $100 million exit. Arthur Andersen & Co alum.
read moreFounder of EJH Distribution, the North American distributor for several glamping structure manufacturers. With structures already deployed across the US and Canada, EJH is an established industry name and will form a crucial part of Posh Outdoors’ supply chain.
read more10+ years hospitality founder and executive. Founder of Onera, Fredericksburg, a boutique glamping operation which achieved a $7 million Public REIT hotel exit. McKinsey alum.
read moreFounder and Managing Director of Glampitect North America, a glamping consultancy and content company founded in July of 2022. Glampitect’s audience and lead generation brings a robust pipeline of revenue share partners to Posh Outdoors.
read moreOnera Fredericksburg
Developed by Posh Outdoors Board Member Ben Wolff, Onera Fredericksbury, a luxury glamping retreat in the Texas hill country, exemplifies the success of Posh Outdoors' innovative approach to outdoor hospitality. Onera Fredericksburg features 12 thoughtfully designed glamping units that blend style, comfort, and natural immersion. By implementing a pioneering social revenue management system, Onera achieved remarkable performance metrics that resulted in a $7 million exit to Summit Hotels after just 14 months of operation.
COMP STATISTICS
Project Size
8 acres / 12 units
Avg. Unit Cost
$400,000
Avg. Nightly Rate
$400 - $700 / +$1,000
Select DatesOccupancy
85%
Direct Booking Share
85%
Exit Value
$7M
Acquirer
Summit Hotels (NYSE: INN)*
Exit Value
$7M
Realized Gain
$2.5M
Exit Timeline
14 months
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