You want to sell your vacation park? Then it is good to know what the takeover market in the field of vacation parks looks like. Vacation rentals are in high demand, as this was one of the few options for a vacation during the global pandemic and this has pleased many people.
There is a real consolidation storm going on in this industry, triggered by the huge dip in the tourism sector in recent years.
There are many ways to value a business. A common method of expressing the value of a business is "a factor x gross annual profit." This factor is also called multiple and another designation for gross annual profit is EBITDA (Earnings Before Interest Taxes Depreciation and Amortization).
In the tourism and recreation sector, to which a vacation park landlord belongs, an indicative EBITDA multiple range of 2.9 to 4.0 is currently used, according to the Brookz Takeover Barometer. The average EBITDA multiple across all SME sectors is 4.90.
The valuation of a business is often the starting point for negotiations between buyer and seller. The outcome of these negotiations is the final sales price. So valuation and price are two different quantities. Besides valuation, the price is also determined by possible scarcity in the market, bargaining power of the parties, the strategic value of the business for the buyer and possible synergy effects for the buyer (cost savings, purchasing advantages).
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Do you want to buy a business or sell a business in the Hospitality, Tourism & Recreation sector? With this Brookz Sector Monitor we want to present buyers and sellers with facts, figures and an outlook that provide insight into the number of transactions, the value development of businesses and the latest trends and developments in the Hospitality, Tourism & Recreation sector. Because in any buying or selling process, thorough preparation provides peace of mind, overview and structure.
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There are many start-ups in the industry every year, the small-scale parks or individual landlords, which also makes many businesses with only one person working visible.
In figures, the number of vacation parks in 2024 looked as follows(CBS):
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A number of trends and developments will inevitably cause changes in the coming years, but also offer vacation parks many growth and acquisition opportunities:
Renting, or sometimes buying, a vacation home is a trend among consumers. We've taken advantage of the staycation enough in recent years, and now it's time to book a home from home. On vacation, but still in your own safe bubble with your own kitchen on hand, according to Travel Media.
Large, expensive vacation homes, luxury camping accommodations and designer vacation homes: this is the trend for the coming years. The supply is large and the consumers willing. It can be difficult for smaller vacation parks to stand out, as the importance of an optimal online proposition is greater than ever before, according to Rabobank.
Innovation in tourism is a big changemaker. Checking in and out is no longer done at an old-fashioned desk, but through apps. Room service and and information we want to be able to access digitally in hotels as well, so there are profits to be made there for many players.
Succession within the family is not so often an option anymore, but larger players in the market recognize the added value of vacation parks. It is a capital-intensive sector, because of maintenance and investments, but by making the consumer happy, there is a lot of profit to be made.
