To the Limited Partners of Ziggy Resorts River Cabins, LLC

Happy Summer! We hope you're planning some well-deserved time off with your family. 

Ziggy Resorts River Cabins, LLC has operated for 16 months. Our top priority remains profitability and delivering quarterly returns to our investors, which we aim to achieve by the end of Q4 2024.

Several improvements are underway, and with enhanced marketing and increased property exposure, we project 50%+ higher revenue this summer compared to 2023. Early summer results are encouraging: 

• May 2024 vs. 2023 Operating Revenue: +161%
• June 2024 vs. 2023 Operating Revenue: +122%

Thank you for your continued support. Please find more details below. 

Quick Recap of Progress

• We opened Blowing Rock Cabins 16 months ago. 
• For the first few months, we were far from profitable. 
• We brought property management and operations in-house. We now have three employees in the region and one overseas. 
• After more pivots, the addition of dynamic pricing, hundreds of guest reviews and Superhost status, and improved amenities and marketing, we have achieved marginal profitability.

Upcoming Improvements

We continue to make small but measurable improvements to the property and the guest experience. 

• New road signage and property lighting to take advantage of hundreds of passing tourists and locals each day. 
• New booking channels including Expedia. 
• We are positioning ourselves for the wedding and events industry, with the addition of a new website and local wedding planner partnerships. We expect full property buyouts to widen margins further and increase revenue. 
• Provided continued profitability, we will continue to invest in property improvements and consider the addition of new units. 

Numbers

Operating Revenue

Strong growth year over year. Our goal is above $20k for the best months of the year with an average in the high teens. 

Occupancy

Results are a combination of pricing and listing exposure. We recently increased pricing by 15% and have a handful of marketing initiatives underway to improve exposure. Our goal is 60% occupancy.

Average Daily Rate

When booked, these numbers reflect earnings per night. When combined with occupancy, they result in operating income or Revenue Per Available Night (RevPAN). We have improved 50%+ year over year and hope to continue this trend. 

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Conclusion

With operating revenue up over 100% year to year, we are tracking strong early summer growth! We attribute these results to the margin and marketing improvements of in-house property management. Going forward, we are improving amenities and increasing exposure via new marketing initiatives and local partnerships.

We will begin quarterly investor distributions after achieving an average profitability for six consecutive months. We are targeting the first distribution by the end of 2024. The investment pro forma remains on track for double-digit IRR returns.  

We appreciate your continued support. Thank you!

Ziggy Capital General Partners