How to Make $500K a Year With Just 3 Cabins: A Micro-Resort Case Study
The future of hospitality isn’t about building bigger—it’s about building smarter. Boutique micro-resorts, especially those within driving distance of major metro areas, are proving to be one of the most profitable models in hospitality today.
With just three high-end, design-forward cabins strategically placed in the right location, it’s possible to generate over $500,000 in annual revenue—while maintaining low overhead, minimal staff, and premium pricing power.
Let’s break down how.
How to Make $600K a Year With Just 3 Cabins: A Micro-Resort Case Study
The future of hospitality isn’t about building bigger—it’s about building smarter. Boutique micro-resorts, especially those within driving distance of major metro areas, are proving to be one of the most profitable hospitality modelstoday.
With just three high-end, design-forward villas, strategically placed in the right location, it’s possible to generate over $600,000 in annual revenue—while maintaining low overhead, minimal staff, and premium pricing power.
Here’s how it all breaks down.
The Setup: A Luxury Micro-Resort in Virginia Wine Country
For this case study, let’s assume we’re building a high-end retreat in Virginia’s wine country, about 90 minutes outside Washington, D.C.. This area is a go-to weekend escape for affluent D.C. professionals, making it the perfect location for a premium, experience-driven stay.
The Investment
We’ll assume a 3-unit micro-resort made up of:
Two Studio Villas ($175,000 each) = $350,000
One 1-Bedroom Villa ($275,000) = $275,000
Land Purchase & Site Prep (utilities, permits, grading, landscaping) = $350,000
High-end interior & exterior furnishings = $75,000
Marketing, branding, and website setup = $25,000
Transportation Costs = $17,000–$28,000
💰 Total Estimated Investment: $1,097,000–$1,108,000
Occupancy Growth Plan
Since this is a new hospitality business, occupancy will ramp up over time as awareness and repeat guests grow.
Year 1: 50% occupancy (building awareness & bookings)
Year 2: 60% occupancy (repeat guests & word-of-mouth growth)
Year 3+: 70% occupancy (stabilized business, optimized pricing)
📊 For reference, the industry average occupancy for boutique hotels is ~68%, so a stabilized 70% occupancy target in Year 3 is reasonable. A ~45–47% net margin by Year 3 is better than most traditional hotels, which operate at ~25–35%)
The Revenue Model: Adjusted for Occupancy Ramp-Up
Nightly Rates
Studio Villas: $400 per night
1-Bedroom Villa: $600 per night
Annual Revenue by Year
Year 1 (50% occupancy): $430,571
Year 2 (60% occupancy): $516,685
Year 3+ (70% occupancy): $602,800
The Cost Structure: Keeping Overhead Low
Unlike a traditional 50+ room hotel, a three-unit micro-resort keeps operational costs minimal while maintaining high profitability.
Estimated Annual Operating Expenses
Property Management & Cleaning: $70,000
Utilities (electric, WiFi): $12,000
Property Taxes & Insurance: $10,000
Marketing & OTA Commissions: $22,000
Maintenance & Miscellaneous: $20,000
Total Annual Expenses: $134,000
📈 Net Profit by Year
Year 1 (50% occupancy)
Revenue: $430,571
Expenses: $134,000
Net Profit: $296,571
Year 2 (60% occupancy)
Revenue: $516,685
Expenses: $134,000
Net Profit: $382,685
Year 3+ (70% occupancy)
Revenue: $602,800
Expenses: $134,000
Net Profit: $468,800
📌 Breakeven in ~2.5 years, with stabilized $468K annual profit from Year 3 onward.
Factoring in Transportation Costs
A common concern with modular hospitality projects is transportation, so let’s break it down:
Studio Villas (x2) → $5K–$8K each → $10K–$16K total
One-Bedroom Villa (x1) → $7K–$12K total
Total Shipping Cost Range: $17K–$28K
Since this site is within 1.5–2 hours of the Tomu factory in Maryland, transportation remains manageable at only ~2.3% of total investment, proving that this model is viable for premium locations near major metro hubs.
Why This Works (And Why Now Is the Time to Build)
✅ Lower Upfront Investment – Unlike building a full-scale hotel, this model requires just over $1M, making it feasible for first-time developers and seasoned investors alike.
✅ Gradual Occupancy Growth Is Expected – Many boutique properties take 1–2 years to stabilize at 65–70% occupancy, making this ramp-up plan realistic.
✅ Premium Pricing & Profitability – By offering high-design, nature-immersed stays, micro-resorts can command luxury-level rates with a fraction of the overhead.
✅ Faster, More Predictable Build – Using Tomu’s prefab modular system, these cabins can be installed in a matter of months, getting you to revenue faster than traditional construction.
✅ Minimal Impact from Transportation Costs – Even after factoring in delivery, profit margins remain strong, making this an ideal high-end hospitality investment.
Want to Build Your Own Micro-Resort? Let’s Talk.
This is just one example of how small-scale hospitality can be incredibly lucrative. If you’ve been thinking about launching your own boutique retreat, Tomu’s prefab solutions make it faster, more cost-effective, and designed for profitability.
💬 Ready to turn your vision into reality? Let’s chat. 🚀
