Use of Funds – Hideout Mountain Master Plan ($4M Raise)

The $4 million will first be allocated toward the purchase of Hideout Mountain, securing the property as the foundation of this hospitality and wellness venture. A portion will be dedicated to renovations and expansion, including upgraded accommodations, wellness facilities, and guest experiences that broaden revenue opportunities. Investment will also cover new equipment to enhance operations and guest comfort, from fitness and spa amenities to event and recreation infrastructure. Finally, funds will support a full rebranding and marketing campaign, ensuring strong visibility, strategic promotions, and lasting positioning as San Diego’s premier mountain retreat.

 

The Master Plan 

 

1. Property Acquisition – $3.0M (75%)

Secures the full Hideout Mountain property, including:

  • 40 units + 5 RV sites

  • Josie’s Bar & Stage (historic anchor venue)

  • 40+ acres of prime land for immediate operations and phased expansion.

ADR Connection:

  • Current baseline ADR: ~$225.

  • Ownership and positioning enable controlled pricing and upgrades to push ADR to $250–$275.

Why it matters: Owning the asset removes lease risk, builds long-term equity, and ensures Hideout can set rates, expand, and brand the destination without restrictions.

2. Renovations & Expansion – $300K (7.5%)

Focused upgrades to enhance guest experience and increase ADR:

  • Cabin & RV Refresh: Paint, fixtures, furniture, lighting, safety enhancements.

  • Phase 1 Expansion Units: Domes, treehouses, hobbit homes, and luxury tents.

  • Exterior Enhancements: Stargazing decks, rustic signage, landscaping, trails, and lighting.

  • F&B Upgrades: Modernizing Josie’s, Bean & Cream Café, and Moonbeam Market.

ADR Connection:

  • Renovated cabins justify +$25–$50 per night increases.

  • New luxury units command $300–$400 ADR, raising the overall blended rate.

Why it matters: These upgrades immediately increase nightly revenue potential, improve reviews, and differentiate Hideout as the “world’s most diverse overnight accommodations.”

3. Working Capital, Marketing, Branding & Reserve – $700K (17.5%)

Funds to fuel growth, smooth operations, and protect against seasonal dips:

  • Working Capital: Staffing, training, utilities, vendor deposits, soft-opening costs.

  • Marketing: Multi-channel campaigns (social media, influencer partnerships, PR, tourism alliances, winery tie-ins).

  • Branding: Logos, signage, merchandise, storytelling assets, and content creation (e.g., Cabin Fever Challenge).

  • Reserve: Cash cushion for seasonal slowdowns or unforeseen costs.

ADR Connection:

  • Marketing boosts occupancy, allowing more aggressive rate management.

  • Branding elevates Hideout into a premium rustic-luxury brand, increasing ADR without relying on discounts.

Why it matters: This category ensures Hideout opens strong, fills rooms quickly, builds brand equity, and remains financially stable even in off-peak months.

 Strategic Outcome

  • ADR Today (baseline): ~$225

  • ADR After Renovations & Marketing: ~$250–$275 blended average

  • Occupancy Target Year 1: ~52% 

  • Lodging Revenue Year 1: ~$2.65M

  • Total Revenue Year 1: ~$5.67M

  • Net Profit Year 1: ~$2.2M

 

Hideout Mountain Income Year 1– Quarterly Gross vs. Net (ADR $215)

Q1 (Jan–Mar)

  • Gross Revenue: $1,450,000

  • Net Profit: $572,000

  • Net Margin: ~39%

Q2 (Apr–Jun)

  • Gross Revenue: $1,337,000

  • Net Profit: $528,000

  • Net Margin: ~39%

Q3 (Jul–Sep)

  • Gross Revenue: $1,225,000

  • Net Profit: $484,000

  • Net Margin: ~40%

Q4 (Oct–Dec)

  • Gross Revenue: $1,558,000

  • Net Profit: $616,000

  • Net Margin: ~40%

Totals (Year 1)

  • Gross Revenue: $5,570,000

  • Net Profit: $2,200,000

  • Average Net Margin: ~39–40%