Our views on the Marinas sector

Introduction

Marinas are increasing their attractiveness for investors. At the same time, the current high fragmentation of the market is encouraging a consolidation process that implies attractive investment opportunities. In general, marinas have high recurrent margins, with relatively low investment requirements and with a significant portion of the incomes drive by annual upfront payments. As such, they are seen by the sector as a kind of “real estate” assets. Moreover, the marinas sector is highly fragmenting leading to potential consolidation opportunities.

At the same time, however, there are a significant number of marinas that have become well-known failure stories. In most of these cases the rationale behind has been the lack of a value proposition adjusted to the demand or location. Hence, bearing in mind the criticality of the value proposition, this whitepaper aims to highlight the main aspects driving the business strategy and value proposition of a marina, as well as key trends and success factors.

Key aspects on Marinas’ value proposition

The business strategy and market positioning of a marina, which is its key success driver, are determined by a set of factors:

  • Berth distribution: Berth distribution involves finding a thin equilibrium between the number of berths and size of these berths (LOA)
  • Seasonality: Marinas are classified based on their seasonality into summer marinas, winter marinas or year-round marinas, which determine the services that are required
  • Type of customer: From a user’s perspective, there are private owners and charter companies, with the latter possessing stronger negotiation lever
  • Tariff strategy: The tariff strategy is founded on the lease vs. rental model, depending the latter case on the duration (permanent vs. visitor)
  • Berth occupancy: Berth occupancy is quantified in terms of overnights (# berths occupied) and/or in berth surface (berth water surface occupied)

Key trends

The marina industry has shown an upward trend in the last decade with growing competition and an increase in products and services:

  • Growing competition and investment atmosphere: The level of competition between marinas is generally low, although some competition at a local/regional level may happen (e.g. Mediterranean Spain and French Riviera). However, the industry, which has been dominated for decades by small, local operators,  is seeing how large and well-financed players have entered the segment by acquiring existing marinas and/or developing new greenfield—often large—ones, particularly in regions of high demand. The availability of capital, along with the aging of numerous local marina owners, has created opportunities for investment and growth.
  • Last decade of industry growth: The marina industry is closely connected to the manufacturing and sales segments, and thus the recent growth in registration and sales of boats has been creating additional demand for docking spaces and their associated ancillary services. Moreover, occupancy rates have shown an upward trend in most marinas, calling for the development of new facilities and additional capacity in the most demanded spots.
  • More product and services: Given the growing influx of tourists and residents to marinas and their “lifestyle”, many operators are investing in the provision of value added services. Large commercial areas and real estate projects, both corporate and residential, are being developed next to (or within) marinas, providing new (and growing) revenue streams for operators.
  • Environmental restrictions: Increasing environmental pressures on new marina developments due to their impact on the preservation of marine wildlife and biodiversity will imply that operators will have to invest in sustainability and marine preservation in the coming years

Success factors:

Having a prime location & agreements with industry allies is crucial to attract all type of customers in new marinas:

  • Prime location: Location has an enormous influence on the marina industry for various reasons, including the ability of a destination to attract yacht owners/customers and accommodate them, as well as the importance of the quality of in-water infrastructure. Locations in the Mediterranean such as Côte d’Azur in France or Sardinia in Italy have proven highly lucrative for marina operators,  given their good climate and the variety of options offered for marina visitors. As a result, locations like these have become highly successful marina clusters.
  • Industry allies: Alliances with industry influencers, such as captains & crews, and charter companies has proven key to attract boaters and superyacht owners. The existing amenities and services available in a destination is crucial for the success of a marina. Agreements with leading players in every service; luxury retail, food brands, real estate agencies etc, provide competitive advantages.
  • Understanding of the customer: Carefully planning the business model, mapping the target markets, building the brand, and thoroughly understanding the customer needs, often leads to enhanced revenue streams. Successful marinas get creative with activities, events and services in order to keep their customers engaged throughout their experience in the marina.
  • Selecting adequate workforce: Marinas are customer service-oriented businesses within the transport sector, something that requires a highly diverse pool of skills to successfully operate. These range from luxury service skills, to nautical certifications, technical skills in maintenance and repair of boats, in addition to management and marketing skills. A proper selection of staff is highly relevant for the marina sector, and depending on the size and the services offered, further skills may be required.

Alhambra Advisors

Alhambra Advisors provides comprehensive services related to yacht industry, encompassing the development of tourist destinations to marina projects. Within this context, Alhambra Advisors provides services ranging from the strategy definition (market assessment and definition of the value proposition) to assessing the feasibility of marinas (concept design and business plan).

 

DOWNLOAD REPORT

Terms of Service

Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings. Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings. Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings. Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings. Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings. Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings. Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings. Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings. Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings. Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings.

 

Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings. Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings. Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings. Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings. Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings. Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings. Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings. Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings. Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings. Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings.

Privacy Policy

Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings. Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings. Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings. Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings. Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings. Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings. Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings. Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings. Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings. Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings.

 

Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings. Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings. Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings. Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings. Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings. Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings. Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings. Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings. Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings. Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings.