Unveiling our Top 2 Land Gems for Crafting Your Dream Glamping Getaway in Puerto Rico
The Glamping Trend: Soaring Demand on the Island. Low Startup Costs Transforming into an Investor’s and Developer’s Haven.
Investment fundamentals
It is estimated that at least 17 million households in the United States went on a glamping trip in 2022. The demand for glamping sites has increased by 155% since 2019. Not only have glamping business brands emerged and grown, but also short-term glamping rental options are entering the market at a similar pace.
Awareness about glamping sites has also been on the rise, growing at a rate of 8% per year. 1 in every 5 leisure travelers plans to go glamping in the future. Residents of southern states are more likely to engage in glamping, with 47% having either experienced glamping in the past or intending to do so in the near future.
While cabins remain the preferred accommodation style for a glamping trip, there has been an increase in various options as glamping has gained popularity. Treehouse resorts make up 2% of the available glamping accommodation offerings, with 55% of glampers declaring this as their preferred lodging choice.
Maximizing Income Per Unit in the Glamping Industry
For reference, in the city of San Juan, the average occupancy rate (AR) for Airbnb is 52%, with an average daily price (ADP) of $77 for 1 and 2-bedroom apartments.
Glamping units boast a comparable occupancy rate of 55%, yet they are rented out starting at $129 per night, offering an enhanced cash flow optimization.
Lower costs of construction
Glamping structures, such as cabins, treehouses, and dome units, are built modularly.
The average cost of traditional construction in Puerto Rico ranges between $104 and $161 per square foot. On the other hand, modular or steel-type construction used for cabins costs between $88 and $116 per square foot. This does not include foundations, septic systems, architectural aspects, or the weighted cost of the land.
Glamping maximizes overall profitability for the investor
At similar construction costs, if you’re looking to invest in unique glamping sites and resorts, you might be wondering how to compare the generated returns between treehouses and cabins. Construction costs are 22% lower, and the expected profitability is 32% higher.
Our favorite lands to build the resort on.
1. Selected plot of land in Fajardo, for building cabin complexes.
This 5-acre land with a marina view is appealing due to its location offering panoramic ocean views. Furthermore, it has tourism zoning and does not require special permits for constructing modular units.
The average occupancy rate in the area is 58%, and the daily rent is $161. For a modular cabin construction, with budget-friendly dome units, with a construction cost of $227 per square foot, it allows for an annual return of 21%.
2. Land in Rio Grande, for developing a glamping resort with domes.
This 26-acre land, located near San Juan and priced at $675,000, offers direct access to a river. The potential to access the river and the ample space of the land make it an ideal place to build a traditional glamping site, with high-quality domes and tents.
The A-G zoning requires ‘green’ construction and a municipal assembly to approve the project. This can be considered a disadvantage as the permitting process is prolonged and subject to conditions.
Río Grande has a low cost per acre and positive natural features. The average occupancy rate in the area is 55%, and the daily rent is $198. For a Glamping construction, with budget-friendly dome units, with a construction cost of $97.5 per square foot, it allows for an annual return of 34%.
In summary, glamping offers a unique experience that combines the island’s natural beauty with luxury and comfort. Whether by the coast or in the mountains, these land plots present opportunities to maximize returns for investors. If you’re seeking to develop an adventure with modern comfort, Puerto Rico has everything you need for an exceptional glamping experience. Adventure awaits you!
Let’s connect
For community members seeking assistance in purchasing or investing in properties for short-term rentals, they can reach out to us at 850–909–9993 or email us at investors@foothold.co.
To schedule a consultation call directly, you can do so at calendly.com/getfoothold.