What’s a hospitality investment that isn’t costly to build and maintain, can be set up fairly quickly, gives good returns, and pays back in five years, even less if it’s a premium product in a multi-season location?
Outdoor lodging – think canvas tents, eco-lodges, treehouses and other “no walls” structures – has proven it can be all that. Yet the irony of it is that investors in Asia Pacific commonly walk away, even now when it’s clear that demand for natural settings, authentic experiences, and positive environmental and social impacts has risen since COVID-19. A key reason? It’s too small for them to bother.
“I find it a bit weird, but people [investors] say ‘yeah, but the investment amount is not big enough,’” said Willem Niemeijer, founder and CEO of Yanna Ventures Thailand. The company launched a Visama Opportunity Fund, final close in December 2024, to expand its new brand Visama Luxury Tented Camps across Asia. But they struggled to get the capital.
A passionate champion in dispersing tourists to underserved destinations, Niemeijer hoped to raise $30 million to roll out 18 Visama properties across Asia within 10 years. Each tented camp will have no more than 20 keys.
Visama is an affordable luxury product comprising two tiers, Visama Explorer and the higher tier Visama Reserve. The latter targets a rate of around $400 a night, while prices at high-end Asian camps such as Minor Group’s Four Seasons Tented Camp in Chiang Rai, Thailand, or Amanwana in Moyo Island, Indonesia – among first movers in ‘glamping’ in Asia – are in the thousands.
Niemeijer believes in “crystalizing” the affordable luxury segment as he sees its potential to scale in Asia. Unfortunately, 20 keys per property doesn’t work for investors. “They say, ‘you need to do minimum 80, 100 or more keys.’ The investment amount needs to be $40 million, $50 million, or more, as they see it,” Niemeijer added.
“But 20 [keys] are ideal, for various operational reasons. Beyond that, you’re going for a massive amount of land – think of the amount of landscaping, maintenance, etc. that is needed. Moreover, 20 keys are ideal for an IRR of 18% to 24% within five to six years.”
It’s also a big ask for investors to fund projects in remote locations, he added, never mind that canvas is cheaper than brick and mortars, and upkeep costs are much lower than hard builds. “In the end, they [the investors] move it to their analysts and return to their familiar financial models and cities such as Singapore, Tokyo, Seoul and the like. So, we have all of these well-ingrained views that are difficult to break through. Hence APOLA,” he said.
Formalizing a sector
APOLA is the Asia Pacific Outdoor Lodging Association, formalized recently by industry veterans Robert Hecker of Horwath HTL, Paul Dean of Dean & Associates, and Bill Barnett of C9 Hotelworks.
A non-profit registered in Singapore, its mission is to build a community of members who want to see the outdoor lodging sector grow in a proper and sustainable manner. So far, APOLA has attracted more than a dozen members and has organized its first masterclass on outdoor lodging for developers, investors, suppliers and consultants.
The association’s formation comes at a time when the opportunity for APAC’s outdoors to shine is evident. The region’s outdoors is immense and attractive, while on the demand side countless surveys have shown that travelers desire purposeful, experiential and sustainable trips. One of the latest, Small Luxury Hotels of the World’s poll of 6,000 adults across the U.K., U.S. and Australia, shows an overwhelming 49% of respondents picked nature-based trips as the type of travel that allows them to rest the most. Another 14% chose culture-focused and 13% adventure-based trips.
An India and U.S.-based market research and consulting company, Grandview Research, expects APAC’s outdoor luxury lodging market to grow at a compound annual rate of 11% from 2025 to 2030, reaching a projected revenue of $1.2 billion.
“There’s definitely been a swell of interest, which is a driver for setting up APOLA as a way to provide resources and guidance to investors/developers before there’s a proliferation of poorly considered and executed outdoor lodging projects that start to negatively taint the sector for consumer interest,” Horwath’s Hecker said.
To be sure, APAC does have its share of shabby outdoor lodging establishments. Mark Isenstadt, a field researcher and specialist in community engagement based in Thailand, has seen places that “cut corners and do not offer the real experience.”
Like Horwath, Dean & Associates is seeing “strong interest” in the sector. “It’s coming from individual developers who have land which might not lend itself to traditional resort construction methods and who are examining the possibilities of a glamping project,” Dean said. “Additionally, some existing resorts are examining whether to add a glamping component to diversify their offer. Currently, increasing interest in Indonesia, Malaysia, Singapore and Thailand primarily.”
Dean sees a future for entities that are able to scale, by replicating the U.S. experience of accessing investor capital to fund their growth, and who apply hospitality industry expertise to their operations with proper operating standards, distribution capabilities, revenue management, and standard hotel accounting system.
“There is certainly a market for the luxury end of the spectrum and, below that, a tier with a target rate of $350 to $500 per night, which will likely appeal to mainstream travelers seeking something different in their vacations,” Dean said. “And there is still the budget market of around $150 per night or less, which is usually very basic and is really just camping with a few amenities.”
But he also agrees that it’s difficult to access funding for development, as experienced by Yanna Ventures.
“It’s not easy because the sector is not yet properly understood. Investors/lenders are being asked to lend against a rather unique cashflow model rather than against the security offered by immovable assets,” Dean said.
He said the cashflow is incredibly strong and many glamping accommodations have a lifespan of around 30 years. “For a well-planned development which has a stellar location and offers something special in overall guest experience, a developer can expect to recover his investment in five years or less [compared with eight to 10 years for normal resorts],” Dean continued. “The business model is quite different to traditional hotel investment. This is generating more interest from investors; expanding on why the model can be so financially attractive for investors will be an ongoing challenge for APOLA.”
Ueli Wick, CEO of Escape Nomade, summed up the key investment pros. “With a tented camp, you can de-risk the product. You know how it looks with a mock-up; you know how much it costs. If you speed it up, it takes 50% of the build time – I think even less depending on the location and what you’re building – and 50% of the cost [than] bricks-and-mortar construction. So, lower cost, faster to market.”
Not giving up
Niemeijer, meanwhile, is not giving up his plan to scale Visama Luxury Tented Camps.
Yanna Ventures is putting money where the mouth is, being the lead investor for a Visama Explorer property in Cambodia, situated between the ancient sites of Koh Ker and UNESCO-listed Preah Vihear Temple. “We will continue with individual projects, and we invite other investors to join us [on this property], with a minimum sum of $250,000,” he said.
The Cambodia camp costs $2.3 million, excluding land. It comprises 14 luxury tents with private decks and is priced at $262 per night. Set to soft open in November 2026, it targets an IRR of 22.2% and a payback period of six years, higher than the average five years as Niemeijer said he’d rather be conservative as marketing remote areas takes a longer time. Shinta Mani Wild in Cambodia can vouch for that, despite getting massive publicity worldwide for its zip line arrival to the lobby.
Visama Explorer Preah Vihear 2026 soft opening follows a fully capitalized camp, Visama Explorer Nan, Thailand, which is opening in December. Exploratory discussions are ongoing for Visama projects in Nepal and Sri Lanka.
Having started in the early 1990s and developed the Anurak Lodge in Thailand and Cardamom Tented Camp in Cambodia, apart from running an inbound regional tour operating business, Khiri Travel, Niemeijer has seen the rewards of outdoor lodging.
Should APOLA succeed in getting more investors to think out of the doors, chances look bright for more capital to flow into the sector.
As Hecker said, “Outdoor lodging has proven to be profitable in other parts of the world, and Asia Pacific should be no exception.”
By Raini H.R.
