Lodges – High-Value Accommodation Offering Long-Term Revenue Potential for UK Caravan Parks and Campsites

Lodges have become one of the most valuable accommodation assets available to UK caravan parks and campsites. Positioned at the premium end of the market, lodges offer park owners the opportunity to generate strong long-term income, attract higher-spending guests, and significantly enhance the overall value of their site.

For established caravan park operators, lodges represent a natural progression from static caravans and glamping units, allowing parks to move further up the value chain. For those planning to open a new campsite or holiday park, lodges can form a cornerstone of a high-quality, high-yield business model when introduced in a controlled and well-financed way.

This article explores how lodges function as high-value commercial assets within UK caravan parks and campsites, how they generate long-term revenue, and how UK finance solutions such as asset finance, hire purchase (HP), lease finance, and business loans can support lodge investment without compromising cash flow.

Why Lodges Command a Premium in the UK Holiday Park Market

Lodges differ from other forms of accommodation due to their size, specification, and perceived permanence. Guests typically associate lodges with space, privacy, and a higher standard of living, making them attractive for longer stays and repeat visits.

From a commercial standpoint, lodges allow caravan parks and campsites to:

• Charge higher weekly and nightly rates
• Attract guests seeking hotel-level comfort
• Encourage longer booking durations
• Reduce price sensitivity

This premium positioning makes lodges particularly effective at generating strong gross margins, even when occupancy levels are lower than those of standard units.

Lodges as Long-Term Revenue-Generating Assets

Lodges are best viewed as long-term business assets rather than short-term accommodation experiments. When properly maintained, a lodge can generate income for many years while continuing to contribute positively to the overall presentation and valuation of a park.

For caravan park owners, lodges provide:

• Stable, high-value rental income
• Opportunities for owner-occupied or mixed-use models
• Improved site profile and branding
• Enhanced appeal to lenders and buyers

This long-term income profile makes lodges well suited to structured finance solutions arranged through Gable Business Finance.

Rental Lodges vs Owner-Occupied Lodges

UK caravan parks typically operate one of two lodge models, or a combination of both.

Rental lodges are owned by the park and let to holiday guests. This model delivers direct rental income and allows full control over pricing, presentation, and availability.

Owner-occupied lodges are sold or leased to customers, generating income through pitch fees, service charges, and site fees. This model offers lower operational involvement and predictable recurring income.

Both models can be highly profitable when aligned with the right finance structure.

Funding Lodges Without Tying Up Capital

The upfront cost of lodges can be substantial, particularly when higher specifications or multiple units are involved. Paying in cash can restrict a park’s ability to invest in infrastructure, marketing, and staffing.

Using finance allows lodge investment to be spread over time, matching repayments to the income generated by the lodges themselves.

UK Finance Options for Lodges

Hire Purchase (HP) for Lodges

Hire purchase is a popular option for parks planning to retain lodges long term. Monthly repayments are fixed, and ownership transfers to the business at the end of the agreement.

HP is well suited to:

• Rental lodge models
• Owner-operated caravan parks
• Long-term site planning

Lease Finance for Lodges

Lease finance offers greater flexibility for parks that want to preserve cash flow or regularly refresh accommodation. Ownership remains with the finance provider during the lease term.

This option works well for parks testing demand for lodges or planning phased upgrades.

Business Loans for Lodge Developments

Business loans are often used where lodges form part of a broader development, such as a new park launch or major site expansion. Loans can fund lodges alongside groundwork, utilities, and communal facilities.

Impact of Lodges on Caravan Park Valuation

Lodges can significantly increase the value of a caravan park or campsite. Valuers consider not only rental income but also the quality, age, and earning potential of lodge stock.

Well-performing lodges contribute to higher EBITDA and make parks more attractive to buyers and investors.

5 Lodge Finance Case Studies

Case Study 1: Coastal Holiday Park Upgrade

A coastal park introduced four luxury lodges using hire purchase, increasing average booking values and attracting longer stays.

Case Study 2: Rural Park Diversification

A rural campsite added lodges funded through a business loan to broaden its accommodation mix.

Case Study 3: Owner-Occupied Lodge Development

A park funded lodge installation to support long-term pitch fee income.

Case Study 4: Phased Lodge Expansion

Lease finance enabled gradual lodge rollout as demand grew.

Case Study 5: Pre-Sale Value Enhancement

Lodges were added to improve EBITDA ahead of a planned park sale.

Frequently Asked Questions: Lodges and Finance

Are lodges suitable for finance?

Yes. Lodges are well-established commercial accommodation assets.

Can new parks finance lodges?

Yes, provided projections and planning are in place.

Is HP or lease finance better?

This depends on whether ownership or flexibility is the priority.

Do lodges improve park value?

Strong lodge income can significantly enhance valuation.

Conclusion: Lodges as a Strategic Investment

Lodges offer UK caravan parks and campsites a powerful way to generate high-value, long-term revenue while strengthening site appeal and valuation. When funded using hire purchase, lease finance, or business loans arranged through Gable Business Finance, lodge investment can be achieved without compromising cash flow.