How To Create a Micro Resort in 5 Steps

Ahh, vacation, the perfect way to relax with your significant other, family, or even just by yourself. We all have a secret spot where we go to unwind. But what if you could be the one creating the place where memories are made?

What if you were the host of:

“That’s the biggest fish I ever caught!”

“That trip was perfect for our 10th anniversary.”

“That trip was perfect to give me the solitude that I needed to brainstorm for my company’s next goals.”

Creating a micro resort will enable you to become the destination that people want to visit year after year, creating memories that will last a lifetime. If you are ready to take the plunge into creating a microresort, this blog is for you. 

What is a micro resort?

A micro resort is a luxury resort that typically has 2-10 rental units. These units may include park model tiny homes, modular log cabins, modern cabins, or a combination of these. The primary focus of these areas is to create a stay that is unique and high-end. Some examples of micro resorts include Retreat North and Virginia Bison Co. 

At these places, you can expect private hospitality areas, personal hot tubs, and high-end park models for your accommodations. On the other hand, a place like Mount Lemon Lodge created a micro resort area by using full-sized modular homes.

In the video above, see how Codie Sanchez learns from a hospitality expert, Isaac French who was able to create a successful micro resort in Texas.

How Do I Create A Micro Resort?

1.) Decide what buildings you would like

We know that this might seem a little backward, but it’s essential to determine the type of buildings you want on your micro resort’s land. This is because each building requires different foundations, electrical needs, water and sewer needs, and is taxed differently. Keep reading to understand the differences between what is needed for each building style. 

Park Model Tiny Homes

Park model tiny homes are, by and large, the most popular option for micro resorts. At Zook Cabins, all of our park model tiny homes are built to RVIA standards. This means that each unit is delivered on a trailer with a removable hitch and can be placed on a crushed stone or cement pad. 

The other great thing with these units is that they fall under the RV titling, meaning that in some cases, there may not be property taxes associated with your unit. Offering you additional savings and a faster cash-on-cash return for your business.

Additionally, the size of park model tiny homes is a great advantage in creating a micro resort. All park models can not be built to a size larger than 400 square feet. This means that you can fit the 2-5 units on a relatively small amount of land. In fact, we have a whole guide on how you can fit multiple park models on a single acre. 

Modular Cabins

In many cases, modular cabins are overlooked when looking to create a micro resort. However, these units can be just as desirable, especially when it comes to being a micro resort that emphasizes spaces for families. At Zook Cabins, we specialize in creating log and modern-style cabins. 

Log Modular cabins

Log modular cabins are built and designed to resemble a log timber frame cabin, but without the hassle of being constructed on site. These units are built off-site in our warehouse in modules and fit together upon arrival. These homes can be built on several foundation styles, allowing for beautiful walk-out basements or one-of-a-kind perched porches.

What is great with these units is that they are complete and total homes that, if placed correctly on your property, could be sold off as individual homes as an appreciating asset.

Modern Cabins

Modern modular cabins are similar to modular log cabins in that they are constructed in modules and then assembled on site. However, the styling is completely different and allows you to have truly unique designed homes in one-of-a-kind spaces. For example, at Zook Cabins, we offer modern modular tiny homes and full-sized modular homes, specifically in the A-Frame style. However, we also offer Scandinavian, farmhouse and even urban modern style. 

By offering these different home styles, you can create a truly unique stay that brings the modern look and feel to your resort.

2.) Find your land and know your Zoning Requirements

Once you know what kind of buildings you would like to have on your micro resort, it’s tiny to select the land that you would like to create your resort on. 

In our experience, this is where most people have a problem with starting a micro resort. This is because each municipality regulates this type of land use differently. In many cases, zoning will dictate how many units you can place on your land, or if the land can be used for a micro resort at all.

If you are looking for raw land to create your micro resort, we recommend looking for land that is zoned for Commercial – Resort/Hotel. Typically, this means that the area will allow you to add in a micro resort with relative ease, as the zoning already allows for this type of land use. 

On the other hand, if you are looking to purchase land to turn your micro resort into a destination resort, and it is located in a rural area, you may have more opportunities to obtain a zoning variance. A variance is when you would work alongside the township to allow for your micro resort in an area that would not typically permit such a resort. 

Additionally, one way to work around some stipulations is to have the property subdivided, with each unit serving as a standalone rental. You can then make your amenities available for communal use for anyone renting from you. However, ensure that your local zoning will approve such use. 

3.) Design your land layout

As a part of your zoning requirements, you will typically be required to submit a plan for how your micro resort will be laid out. This is the time to consider the amenities you would like to have and how the resort will be laid out as a whole. 

• Will you offer communal water features, such as a pond, pool, or cold plunge? 
• Will you offer communal activities like kayaking, a pickleball court, or a communal fire pit?
• Will everything be private, such as hot tubs, saunas, and outdoor hangout areas?
• How will you lay out the landscaping, and is there any existing landscaping that you would like to remain intact?

Understanding what you would like in each area is essential to knowing how to prepare the resort space. It also forces you to pay attention to how your land will be used.

For example, if you are trying to offer the most seclusion possible, a park model tiny home may be the best way to go. These homes are delivered via a semi truck and, with a little extra money for the rental fees, they can be placed in their final location via a skid steer. Allowing you to create spots that are entirely private with relative ease.

On the other hand, if you plan to have a micro resort with modular homes, you may need to be a bit more selective with your initial placement and landscaping design, and fill in the details once the buildings have been put into place. This is because setting your module for a modular home requires it to be placed using a crane, leaving limited space for maneuvering your home compared to a park model. 

4.) Create A Unique Experience

Now that you have all the “boring paperwork done,” it’s time to create the resort of your dreams. Creating a unique experience is the epitome of creating a micro resort. In a micro resort, it’s not about saying how much you have to offer but the quality of what you are offering. Common high-end experiences at micro-reort stays include:

• Private Hot Tubs
• Private Saunas
• Private Cold Plunge
• Private Outdoor Shower
• Private and Communal Fire Pits and Outdoor Lounging Area
• Local Beer and Wine stocked in the Fridge
• Local Artisan Charcuterie Board or Snacks Upon Arrival
• E-bikes, Golf Carts, ATVS or side-by-sides to venture around the resort
• Outdoor Entertainment Areas

Obviously, this is not an exhaustive list, but it’s a good starting point to know what your guests can expect on a basic level from a micro resort.

So, whether you are offering your guests a place to connect with nature or a resort that is truly just to spoil themselves with luxury, make it the best that it can be. When in doubt, overextend yourself with generosity and hospitality, and you will be surprised at how many people return year after year.

5.) Market Your Micro-Resort

Once you have the plans approved, the resort designed, and everything in place, it is time to market your resort. The easiest ways to do this are to create your social media channels, establish a basic website, and consider advertising on Google and other platforms.

What makes a micro resort different than an Airbnb rental?

What makes a Micro Resort different than your typical Airbnb rental is the aesthetic and intentionality, as well as the number of units you have to offer. Typically, an Airbnb is a great way to use a home to generate some income in a desirable location. However, the amenities are not typically a focus. For example, a stand-alone Airbnb usually makes between $14,00-$21,000. On the other hand, a micro resort with high-quality amenities and attention to detail could easily create $72,00 a year with a 50% occupancy rate with 2 tiny homes renting at $200 a night.  This means that, depending on your initial investment, you could pay off your units in a few years.

However, we highly recommend using Airbnb to advertise your micro resort listings.

Is it expensive to start a microresort?

Yes, starting a microresort is an expensive endeavor. However, it is typically more affordable than buying a large campground or hotel and creating a luxury experience that way. Something that we have seen work, for some people starting out in the industry, is to purchase a small campground that has infrastructure in place. 

Then you can decide if you want to stay as a micro resort or expand out to a full-sized resort. A success story that we saw follow this model was Red Run Resort. Their first year they started out having only 7 park models and then slowly increased the amount of park moded eachyear.

What is the best building to use for a micro resort?

Generally speaking, park model tiny homes are the best building to use for a micro resort.

This is because park models have a faster cash-on-cash return compared to full-sized modular homes. Additionally, a park model tiny home can be removed and replaced if you are looking to change the look or upgrade to a different model down the road. 

So let’s say you want to start out your resort with a few Nook Studios so that you can keep your initial investment more manageable. In a few years, you could take your profits and invest in some of the larger models like the A-Frame Studio, A-Frame bunk house or even the Sonoma. All that you would need to do it remove the existing park models and set in the new park models, and update some landscaping and fixtures. 

Has Zook Cabins ever helped someone start a micro resort?

Yes! At Zook Cabins, we have helped several companies get started in creating micro resorts and even full-scale resorts. Take a look at the list below to see who we have worked with in creating one-of-a-kind stays:

Red Run Resort : Located In Lancaster, Pa

Somerset Resort : Located in Friedens, Pa

Retreat North: Located in East Jordan, MI

Big Texan RV Ranch : Located in Amarillo, TX

Spring Mountain Resort : Located in Las Vegas, Nevada

Outbound Stowe Vermont : Located in Stowe, VT

Prospect Berkshires: Located in Egremont, MA

Providence Hill : Located in Jackson, MS

Bull Creek RV Park Located in Branson, MO

Royale Gorge RV Resort Located in Cañon City, CO

What’s the best number of units to start with for a micro resort?

Two units are the best way to get started with a micro resort. This allows you to try two different units and see which one works best for your needs and target audience. Once you determine which unit is best suited for your needs, you can order additional units and expand your micro resort. 

Want to understand the price and cash flow of a park model tiny home? Check out the video above.

Are Micro Resorts Profitable? 

Yes. Micro Resorts are profitable, and generally, they can be positive on cash flow in just a few years. However, keep in mind that the best way to make a return on your investment is to create a resort that offers reasonable rental costs and amenities that cannot be found anywhere else. However, don’t try to overprice your stays just because they are unique, or you may take longer to recoup the cost of your home.

While the video above shows 11 models at an RV park, consider this a way to scale your micro resort and the same numbers can apply.

Do I need a hotel license or Short Term Rental Allowances?

Yes, generally speaking, you will need a hotel or short-term rental license. However, what is ultimately required is up to your local municipality. It may also be determined based on the kind of building you have on your property. If you are using park model tiny homes, there may be less of a need for a license; on the other hand, full-sized modular homes may require more stringent approval.

How close should my micro resort be to large cities?

Your micro resort should be within 2 hours of a major city, and preferably closer if possible, unless your micro resort is the destination itself. 

People often want to “go into town” or see the sights that are close by. For example, Red Run Resort is in the heart of Amish country, Somerset Resort is about an hour from Pittsburgh, and Big Texan RV Ranch is just a complimentary limo ride away from the Big Texan Steak House. All of these places capitalize on their surroundings, making them ideal for micro resorts or full-scale resorts.

On the other hand, a place like Retreat North has become a destination while also being conveniently close to local amenities. This micro resort has found its niche by capitalizing on being an exclusive destination that immerses you in breathtaking nature views. 

Conclusion…

Creating a Micro Resort is not only fun, it’s a lot of hard work. From selecting buildings, amenities, and location to navigating the paperwork hassle. When you are ready to start building your micro resort, contact us. We would be happy to help you find the best buildings to fulfill the needs of your microresort.