Bloomberg: Camping Boom Makes KOA Owner a Billionaire
Oscar and Agnes Hsu-Tang (Photo: Amanda Gordon/Bloomberg)
Oscar Tang became a billionaire one campfire at a time.
From Maine to Arizona, Florida to California, Tang’s fortune surged during the Covid-19 pandemic as Americans reconnected with the great outdoors in an era of social distancing, boosting revenue at his Kampgrounds of America Inc., according to Bloomberg. The Billings, Montana-based company, which the China native bought in 1980 when he was still a Wall Street financier, said revenue has continued to grow by double digits this year after surging by 46% in 2021.
Tang, 84, now has a net worth of $1.6 billion, according to the Bloomberg Billionaires Index, the first time he’s appeared on the global wealth list. He’s expanded his fortune in part by snapping up some of the most attractive KOA properties from franchisees for his portfolio of more than 40 campgrounds across the US.
“People need outlets,” Tang said in an interview in New York last week. “Even when the price of gas is high, they recreate. They recreate closer to home.”
Despite the pandemic-era boom, he’s still playing the long game and has no plans to monetize the company.
“I want to see this company become all that it can be” under the fifth generation of management, said Tang, who declined to comment on his net worth.
After decades under family ownership, KOA is putting more resources towards expansion and has about 1,200 acres (486 hectares) under development, on top of 2,000 acres of existing properties. Management is largely left alone when it comes to day-to-day operations, though Tang still signs off on big decisions such as buying new sites. The company has added 19 campgrounds and five tracts of land for future development since 2021, including four campgrounds that required exercising the first right of refusal on a KOA-affiliated property.
A KOA campsite at a park in Willcox, Ariz. (Photo: KOA)
KOA has been turning down offers because the board still sees opportunities to grow after the Covid boom as inflation drives travelers and vacationers toward more affordable alternatives. The majority of new campers this year identified as non-white, suggesting that the industry may be unlocking a broader customer base.
“This isn’t a blip,” KOA Chief Executive Officer Toby O’Rourke said in an interview about camping’s rise in popularity. “There’s a big movement towards younger diverse audiences. It’s a hot market out there.”
Source: https://rvbusiness.com/bloomberg-camping-boom-makes-koa-owner-a-billionaire/
