The Marina Industry: Building Moats, Storing Boats - [Business Breakdowns, EP.170]

10 snips

Jun 19, 2024

Guest

Josh Koplewicz

Guest

David Chesner

David Chesner, Co-CEO of Grove Point Marinas, and Josh Koplewicz, Managing Partner at Thayer Street Partners, dive into the booming U.S. marina industry. They detail the lucrative dynamics of boat storage amidst regulatory constraints, leading to strong growth potential. The duo discusses the shift from local operations to institutional investments, enhancing capital access and operational efficiency. Key topics include the industry's resilience during economic challenges, evolving consumer preferences, and strategies for future consolidation. Tune in for valuable insights!

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INSIGHT

Marina Business Model

The marina industry has two main components: storage and hospitality.
Storage, like parking or self-storage, is steady, while hospitality (restaurants, rentals) is more cyclical and seasonal.

INSIGHT

Marina Economics

Marinas average ~100 slips, generating $1-6 million in revenue with 30-40% EBITDA margins.
Storage-focused marinas boast higher margins due to 100% gross margins on storage and minimal labor needs.

ADVICE

Marina Improvement Strategies

Improve acquired marinas by adding slips, updating infrastructure for larger boats, and enhancing customer experience.
Invest in upgrades like high-speed internet and attract renowned restaurant partners.

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This is Zack Fuss. Today, we are breaking down the U.S. Marina Industry. In the U.S. there are more than 11,000 marinas, grossing over $6 billion in sales.

Today, there is a 12 to 1 ratio of registered boats versus the supply of rentable wet slips and dry storage spaces. Zoning regulations lead to limited supply growth, which has led to a sustained backdrop of strong, profitable growth for the industry.

To break down the industry, I am joined by David Chesner, co-CEO of Grove Point Marinas, and Josh Koplewicz, managing partner of Thayer Street Partners. We discuss how Marinas are currently evolving from a largely local and independent model to one that is institutionalizing as an asset class and lowering the industry's cost of capital, helping to finance growth. And, to illustrate the unit economics, we cover the largest players in the space, including publicly traded Sun Communities’ Safe Harbor Marina business. Please enjoy this breakdown of the Marina Industry.

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Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.

Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com).

Show Notes

(00:00:00) Welcome to Business Breakdowns

(00:05:21) Overview of the Marina Industry

(00:08:00) Revenue and Margins in the Marina Business

(00:10:36) Operational Improvements and Best Practices

(00:12:54) Challenges in Marina Development

(00:14:10) Competitive Landscape and Market Players

(00:27:02) Growth Strategies and Financial Insights

(00:34:28) Risks and Resilience in the Marina Industry

(00:39:08) Lessons Learned from the Marina Industry