NPS Issues Prospectus For Olympic National Park’s Log Cabin Resort
The National Park Service recently solicited proposals for the operation of Log Cabin Resort in Olympic National Park. The contract includes management of the lodge and cabins, food service for a dining room and soda fountain, retail services, boat rentals, and operation of a campground for RVs and tents.
The resort is currently being operated by ARAMARK Sports and Entertainment under a temporary contract scheduled to terminate at the end of September 2013.
Log Cabin Resort is one of four lodging facilities in Olympic National Park. ARAMARK also operates Sol Duc Hot Springs Resort and Lake Crescent Lodge. Kalaloch is operated by DNC Parks & Resorts. Lake Crescent Lodge is across the lake and the nearest park lodging facility to Log Cabin Resort.
The resort offers several types of accommodations including motel-type lodge rooms, A-frame cabins, rustic cabins with and without kitchenettes, and camper cabins similar to those found at KOA.
We have visited the resort on a half-dozen occasions and found it sorely in need of major maintenance. Boards were rotting on the A-frames and the cabins were beyond rustic. The NPS has worked to improve the facility during the last year and intends to do significantly more during the next several years.
Depending upon funding, the seven rustic cabins will be removed and replaced with eight camper cabins with bathrooms. In addition, the manager’s residence will be replaced and improvements to the campground will be undertaken. These expenses will be borne by the National Park Service.
Gross receipts at the resort declined from $464,000 in 2010 to $411,000 in 2012. Approximately three-quarters of receipts originate from lodging while the remainder is split fairly evenly between retail and food and beverage. The marina provided only $15,000 in revenues for 2012. The NPS prospectus forecasts a major increase in revenues for 2014.
The operation has two major pluses. The first is the relatively small initial investment required for such a large property. NPS is estimating an initial investment of less than $250,000, including $80,000 for working capital. The other major plus is the location on the north side of beautiful Lake Crescent. Despite playing second fiddle to Lake Crescent Resort, Log Cabin Resort is in a superior location with better views and more sunshine.
The ten-year contract will require a franchise fee of 3 percent of gross revenues. The repair and maintenance reserve is 2.7 percent of gross revenues for the first 9 years and zero in the 10th year. Proposals are due in the San Francisco NPS office by June 25.