Tourism is one of the UK’s most lucrative industries. It continues to be a fast growing sectors and one of the biggest employers in the UK. VisitBritain have even forecast the British holiday and tourism industry to be worth nearly £260 billion by 2025.

It’s therefore no surprise that many private landowners and farmers looking for a new business opportunity or to diversify existing income streams is exploring the opportunities in hospitality. As demand of experiential, green and domestic tourism goes up setting-up and running B&B or glamping operations is becoming commercially very enticing.

How do you stand out from the crowd and compete with the big boys in the UK tourism industry (like Haven Holidays and Parkdean Resorts)? At TRE3DOM we believe that a treehouse can be your unique selling point.

We specialise in designing and building luxury eco treehouses for adults. We offer a ‘plug and play’ product perfect for B&B businesses looking to offer their guests a sustainable, contemporary and fun experience. Furnished to the highest of specifications, our beautiful treehouses are stunning both inside and out, and are sure to provide an unforgettable B&B experience.

If this all sounds interesting and a viable and unique option for your B&B, it is worth considering the cost and potential returns available. In this guide we discuss the cost of buying a treehouse and operating a B&B, while also giving you an idea of how much money you can expect to make.

How Much do Treehouses Cost?

Prices of treehouses vary significantly and can range from £65,000 to more than £150,000, depending on your requirements. The overall cost will depend on the house’s size, height from ground, materials used, quality of finishing details and so on.

Our current range of treehouses comprises two distinct designs: the Hexagon and the Pentagon. Both designs can sleep two or four people dependant on the return profile you are looking for. A four person Treehouse is much more lucrative; cost per night as much as £400 per night. Each treehouse has been designed to accommodate a fully functioning bathroom and kitchen as well as sleeping and living areas.

Or if you have your own ideas in mind, we can design and build you a bespoke treehouse, completely customised and tailored to suit your specific needs and requests.

Treehouse B&B Costs

So once you have acquired the treehouse, what is the actual cost of running a B&B?

Food & Drink

You need to factor the ongoing costs of providing breakfast to your guests. This doesn’t just include bacon, sausages, beans, tomatoes, yoghurt, fruit, cereal and juice, this also includes plates, cutlery, glasses, bowls, mugs and tablecloths, all of which will need to be washed and cleaned regularly and replaced every now and again.

Property Maintenance

It’s important not to underestimate the amount of natural wear and tear on your treehouse. Factor in funds for updating the interior décor of your property and for dealing with inevitable issues like blocked sinks and repairs to certain appliances.

Bedding & Towels

Don’t forget to budget for the cost of high-quality towels, cushions, curtains and duvets, all of which will need regular washing and occasional replacing.

The bed is a crucial element if your guests are to have a 5–star experience, a high-quality mattress and sheets will go a very long way in delivery excellence. It is important to replace these every few years.

Energy & Utility Bills

Utilities such as heating, lighting and water can be a significant cost for any B&B business and need to factored in.


You’ll also be required to insure the house and its contents. You’ll also need third-party liability insurance in case anyone injures themselves while they’re staying with you.

Marketing & Advertising

The hospitality industry is extremely competitive so some form of advertising will be pivotal when it comes to attracting quests. Whether it’s online ads, Facebook promotions or print advertising in tourist brochures, you’ll need to spend some money in order to get your name out there.

If you decide to use a third party platform to advertise and manage bookings, the cost will be between 3 and 30% dependant on the service they provide.

How Much Money Could I Make?

So, how much can you expect to make from a B&B business with a treehouse? Let’s look at an example.

  • Cost of treehouse; £120,000
  • Number of treehouses; 1
  • Cost per night; £200 per night

If your treehouse is occupied 90% of the year or 328 days a year. The prototype, Orchard Rooms, has had 95% occupancy since being rented out in April 2019.

Total Revenue; £65,700

However, you need to factor in the running costs;

  • Food and drink; £5 per night sold (we provide a hamper on arrival)
  • 3rd party cleaning service; £10 per night sold
  • Marketing and advertising; 20% of room revenue
  • Energy and utility bills; 2% of revenue
  • Property maintenance; £1000 per annum
  • Other expenses = £500 per annum

Operating Expenses; £20,882

Net Operating Income; £44,819 (Revenue – Expenses)

For the purpose of this example, let’s assume that these figures stay exactly the same for the next 5 years (unlikely because a lot of these figures are variable, occupancy, daily rent, maintenance costs etc)

Within 3 years and 1 months, you will have recovered the outlay from the cost of the treehouse. And over the course of 5 years you will see the following cashflow;

  • Room Revenue (over 5 years); £328,500
  • Operating Expenses (over 5 years); £104,410
  • Net Operating Income (over 5 years); £224,095

Which equates to the following metrics;

  • Multiple; 1.50x
  • ROI (Return of investment); 30%
  • Cash Yield 40%

Treehouse Design & Build with TRE3DOM

For further information on how treehouses can be of significant value to B&B business, please don’t hesitate to get in touch with a member of our team today. Our team here at TRE3DOM have years of experience in designing and building the finest quality contemporary treehouses, perfect for B&Bs looking to offer something a little different.

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See more: Treehouse Interior Design Ideas