Why CSBFP fits campground and outdoor hospitality businesses
Campgrounds and glamping resorts are capital-intensive in ways that are not immediately obvious. The land itself is not CSBFP-eligible on its own — but almost everything that makes a raw parcel of land into a revenue-generating outdoor hospitality property qualifies: electrical infrastructure, water and sewer servicing, washroom and shower facilities, glamping structure construction, camp stores, recreational equipment, and the site management software that runs reservations.
The outdoor hospitality sector in Canada has experienced sustained demand growth — particularly for glamping properties that offer premium outdoor accommodation without requiring guests to own or operate camping equipment. This is a hospitality sub-sector with strong fundamentals and a capital profile that matches CSBFP well.
Campgrounds and outdoor resorts are typically seasonal businesses. See the seasonal businesses guide for how lenders model seasonal cash flow and how to structure the projections.
Eligible CSBFP costs for campgrounds
Site servicing infrastructure
For an existing unserviced campground converting to serviced sites, or for a new campground development:
- Electrical service and pedestals: Running primary electrical service through the campground and installing pedestal hookups (15, 30, and 50-amp service) at each site. Cost varies widely by campground size and terrain: $2,000–$5,000 per site including wiring and pedestal for a new development.
- Water and sewer hookups: Running water lines and sewer connections to individual sites for full- hookup RV sites. More capital-intensive than electrical only: $3,000–$8,000 per full-hookup site depending on soil conditions and distance to main services.
- Main service infrastructure: The primary electrical transformer, water main, and sewer main that service the entire campground are capital improvements to the property.
- Road and site development: Gravel road construction, site clearing, and pad preparation for RV sites — these are capital improvements to the land (where the land is owned, these are building improvements; on leased land, they are leaseholds).
Washroom and amenity facilities
- Washroom and shower buildings: Permanent washroom and shower structures are among the highest-value amenities for any campground. A modern, well-maintained washroom building is a direct driver of booking rates and guest reviews. Construction cost: $80,000–$200,000+ for a full facility with showers, flush toilets, and laundry.
- Comfort station and laundry: Coin-operated laundry machines for longer-stay guests — $4,000–$12,000. Dishwashing stations, accessible washrooms — associated capital.
- Camp store and reception building:A reception and camp store structure — even a modest one — serves as the operational hub of the campground. Construction or significant leasehold improvement: $30,000–$100,000.
Glamping structures
For glamping operations, the accommodations themselves are the primary revenue-generating asset:
- Yurts: Commercial-grade yurts with insulation, wood stove or electric heating, and interior finish — $15,000–$40,000 per yurt including platform construction and decking.
- Safari tents (canvas bell tents on platforms):Commercial canvas tents on permanent elevated platforms with beds, furniture, and basic amenities — $8,000–$25,000 per unit including the platform and deck.
- Cabin and tiny home accommodations:Permanently installed A-frame cabins, Park Model RVs, and modular cabin units — $30,000–$90,000 per unit depending on size and finish level.
- Treehouse accommodations: Platform and structural construction for treehouse glamping units — $40,000–$120,000 per unit depending on complexity.
- Glamping site utilities: Electrical, water, and sewer services to individual glamping sites — similar per-site costs to RV site servicing.
Recreational equipment and amenities
- Swimming pool and water amenities:An in-ground or above-ground pool, hot tub, or splash pad is a capital asset. In-ground pool with pool house: $80,000–$200,000. Hot tubs: $8,000–$20,000 per unit.
- Playground equipment: Commercial-grade playground structures — $10,000–$40,000.
- Watercraft and recreational equipment:Canoe and kayak fleets ($800–$2,000 per vessel), pedal boats, paddleboards — eligible equipment.
- ATV and UTV fleet: For properties offering guided or rental trail experiences — $10,000–$25,000 per unit.
Real property purchase
For a campground or outdoor resort that is purchasing its land and buildings, the real property category applies: up to $500,000 of the purchase price of the property (land + structures) is eligible under the real property sub-limit, with up to an additional $500,000 available for equipment and leaseholds — for a combined CSBFP maximum of $1,000,000.
See the real property guide for the owner-occupied requirement, appraisal process, and Phase I ESA requirement that apply to all CSBFP real property transactions.
Revenue model: sites, occupancy, and length of stay
Campground and glamping revenue is modelled from capacity utilization:
- Site inventory and rate tiers: Identify the number of sites by category: tenting sites ($20–$45/ night), electrical-only ($35–$55/night), full-hookup RV ($50–$80/night), glamping ($120–$350/night depending on unit type). Weighted average nightly rate is the key driver.
- Occupancy rate: Peak season occupancy (July–August) for an established campground: 75–95%. Shoulder season (May–June, September): 30–60%. Off-season: near zero for traditional campgrounds; glamping properties can sustain 20–40% off-season occupancy.
- Average length of stay: Traditional RV parks average 2–3 nights; glamping properties average 2.5–3 nights; weekly sites have fixed 7-night bookings.
Lenders will ask for reservation data for existing campgrounds — historical occupancy rates by month are the primary basis for the forward projections. For new campgrounds, comparable data from regional campground associations (Ontario Camping Association, Camping in Ontario, etc.) and the Tourism HR Canada data can support the occupancy assumptions.
A worked example: glamping resort conversion
An existing campground (owned property) with 40 basic sites is adding a glamping tier to improve revenue per site:
- 8 yurts with platform, deck, and utilities: $240,000
- New washroom and shower facility (for glamping area): $120,000
- Electrical service upgrade and glamping-area pedestals: $35,000
- Pool and hot tub installation: $65,000
- Camp store renovation and reception expansion: $30,000
- Canoe and kayak fleet (12 vessels): $18,000
- Reservation management software: $7,000
- Total: $515,000
The $515,000 total approaches the $500K non-RP sub-limit. Structure: lender finances $486,000 under non-RP (equipment + leaseholds); owner contributes $29,000 of the construction costs directly. Equity injection: $65,000 (approximately 13%). CSBFP loan: $450,000. Software under intangibles ✓. Total non-RP loan $450,000 — inside the $500K sub-limit ✓.
Year 2 projections: 8 glamping yurts at 65% occupancy (195 nights/year at $200/night average) = $312,000 in glamping revenue; existing 40 sites at improved occupancy (55%, $45/night average) = $360,750 for the season. Total: $672,750. After operating costs and seasonality: EBITDA approximately $195,000. Annual debt service (CSBFP loan at 7.95%, 10-year amortization, seasonal payment structure): approximately $72,000. DSCR: 2.7x ✓.