Kampgrounds of America Inc.

2019 KOA Annual Report

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In his best-selling book, Start With Why, British-American author and motivational speaker Simon Sinek spoke of the need for organizations to define their mission, stating "very few people or companies can clearly articulate Why they do What they do. By Why I mean your purpose, cause or belief – Why does your company exist? Why do you get out of bed every morning?" Truly, the organizations that have continued to thrive over time are deeply rooted in their Why. And KOA is no different. For 58 years, KOA campgrounds have been committed to bringing family and friends together in the outdoors. We know there's no better place for fun and relaxation than outside, and that there are numerous health and societal benefits that come from being in nature. This year, we articulated this long-held purpose by re-framing the mission of our company to "connecting people to the outdoors and each other." Everyone that touches our brand from the team at the Home Office to franchise owners to campground staff is united in delivering upon this promise for our campers. This mission, along with our values and beliefs, is what truly sets KOA apart from other hospitality companies. While there are many important points of difference on a functional level, such as our large footprint or high brand awareness, none are as important as the foundation on which this company was built. KOA is Family Oriented. KOA is Passionate. KOA is Entrepreneurial. KOA is Customer-Focused. KOA is Progressive. These values are inherent in our business and people. Much like DNA, they are unique to us, and this combination fostered over time can not be replicated. Fueled by this shared purpose of the KOA Family, we have risen to the greatest heights in our history. The year 2019 was our 9th straight year of growth and our strongest year on record. Our campgrounds elevated our guest service to a new level, achieving a record-setting NPS of 66. We've grown our system to 524 locations and have 20 new development contracts in process. We've neared completion of our brand positioning initiative, and a majority of our system has transitioned to our new K2 operating system. Further, our marketing continues to extend our brand's reach, attracting 28 million visits to KOA.com in this year alone. And we're just getting started. W H Y W E D O W H A T W E D O As we transition into 2020, KOA is well positioned to accelerate its growth. There is a resurgence of interest in the outdoors, and camping is on the rise, driven by interest from younger generations. Our business aligns well with popular travel trends including micro-cations, multi-generational travel, road-tripping and glamping. To capitalize on these, we'll strive to ensure KOA is top of mind during the critical planning phases through heavy investment in digital marketing and public relations. And, as our campgrounds continue to upgrade and expand their sites and facilities, we will solidify that we have the best park in any given market. We will continue to innovate and transition our campgrounds of today into KOAs of tomorrow that will exceed the expectations of our current and future guests. Our future is bright, and I have no doubt we'll continue to propel forward. The way we'll succeed is by staying true to our mission, values and beliefs. Centering on Why we do What we do will allow us to evolve our business in a meaningful way that resonates with campers. Sure, there are many places to camp and many places to stay, but those that have the collective strength and united vision we have are few and far between. Onward, Toby O'Rourke President & CEO Kampgrounds of America, Inc.

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