2009-04-17 Golf Course Market Review

100 %
0 %
Information about 2009-04-17 Golf Course Market Review
Business & Mgmt

Published on March 23, 2009

Author: LCFPD

Source: slideshare.net

Description

Presented to the Lake County Forest
Preserve District Board of Commissioners Committee of the Whole meeting, March 17, 2009, by ERA | AECOM.

For more information about the Fort Sheridan master planning process, please visit http://LCFPD.org/fort_sheridan_golf

Presentation Fort Sheridan Golf Course Market Review Presented to: The Lake County Forest Preserve District Presented by: ERA|AECOM March 17, 2009

Approach Map LCFPD golf rounds by zip code Understand geographic distribution of play Review ThunderHawk financial performance Rounds, revenue, and expenses Understand implications Confirm golf inventories within 25 miles Refine financial analysis for the proposed Fort Sheridan golf program Understand golf market demand and supply implications for 2014

Map LCFPD golf rounds by zip code

Understand geographic distribution of play

Review ThunderHawk financial performance

Rounds, revenue, and expenses

Understand implications

Confirm golf inventories within 25 miles

Refine financial analysis for the proposed Fort Sheridan golf program

Understand golf market demand and supply implications for 2014

Geography of Rounds: Brae Loch

Rounds: Countryside

Rounds: ThunderHawk

High End Golf Opportunity

Geographic Realities ThunderHawk and Ft. Sheridan share the North Shore high-end market 17% of play originates from zip codes around Fort Sheridan 8% of play originates from Winnetka, Wilmette, Kenilworth Limited penetration in Southern WI Significant private competition

ThunderHawk and Ft. Sheridan share the North Shore high-end market

17% of play originates from zip codes around Fort Sheridan

8% of play originates from Winnetka, Wilmette, Kenilworth

Limited penetration in Southern WI

Significant private competition

Public / Private Golf Supply

Supply / Demand Implications Private Market Reality 16 18-hole primary market courses Courses are losing members – driving a modest shift toward public play Courses are starting to lower prices Public / Daily Fee Market Reality 7 18-hole courses in the primary market Discounting is impacting profitability Since 2000: 3 18-hole courses closed 2014: Additional golf would be risky

Private Market Reality

16 18-hole primary market courses

Courses are losing members – driving a modest shift toward public play

Courses are starting to lower prices

Public / Daily Fee Market Reality

7 18-hole courses in the primary market

Discounting is impacting profitability

Since 2000: 3 18-hole courses closed

2014: Additional golf would be risky

Ft. Sheridan Financial Planning Effective greens fees Seasonality / discounting / weather Cart utilization rates Food & beverage sales Pro shop merchandise sales Implications for Fort Sheridan: No driving range / No banquet facility

Effective greens fees

Seasonality / discounting / weather

Cart utilization rates

Food & beverage sales

Pro shop merchandise sales

Implications for Fort Sheridan:

No driving range / No banquet facility

Perspective – ThunderHawk - 08 Average green fee of $46.88 per round 50% of rounds drive 35% of revenue Impact of discounting / specials Peak $69 green fee drives 33% of revenue on 23% of rounds – July and August Cart utilization is high >90% Additional $13 per round, on average Pro shop merchandise sales: $5 / round Food & beverage sales: $10 / round

Average green fee of $46.88 per round

50% of rounds drive 35% of revenue

Impact of discounting / specials

Peak $69 green fee drives 33% of revenue on 23% of rounds – July and August

Cart utilization is high >90%

Additional $13 per round, on average

Pro shop merchandise sales: $5 / round

Food & beverage sales: $10 / round

Fort Sheridan Concept Stabilized year rounds: 25,000 Prime season weekend rate: $102 Includes cart Thunderhawk:$84 w/cart No driving range income Estimated sales for F&B & pro shop F&B assumes small meetings, outings and tournaments – No banquets

Stabilized year rounds: 25,000

Prime season weekend rate: $102

Includes cart

Thunderhawk:$84 w/cart

No driving range income

Estimated sales for F&B & pro shop

F&B assumes small meetings, outings and tournaments – No banquets

Business Plan Approach Assumes LCFPD operation High-end courses are more expensive to operate: Player expectations / client service Maintenance / mowing Larger marketing budget ERA: 25% above ThunderHawk Replacement reserves Grow-in / startup costs need to be accommodated

Assumes LCFPD operation

High-end courses are more expensive to operate:

Player expectations / client service

Maintenance / mowing

Larger marketing budget

ERA: 25% above ThunderHawk

Replacement reserves

Grow-in / startup costs need to be accommodated

Financial Implications Effective Gross Revenue: $2.3 million Operating expenses: $1.5 million Income before debt: $800,000 Supportable debt service: 20 Years @ 5%:$10 million Supportable project budget: $12 Million 30-Year financing is possible Would require general fund guarantee

Effective Gross Revenue: $2.3 million

Operating expenses: $1.5 million

Income before debt: $800,000

Supportable debt service:

20 Years @ 5%:$10 million

Supportable project budget: $12 Million

30-Year financing is possible

Would require general fund guarantee

Implications - 2014 Public market should stabilize Begin to see revenue growth The private market will remain highly competitive If Fort Sheridan opened in 2014 $12 million project budget is insufficient A significant impact on ThunderHawk 15% market shift toward Ft. Sheridan

Public market should stabilize

Begin to see revenue growth

The private market will remain highly competitive

If Fort Sheridan opened in 2014

$12 million project budget is insufficient

A significant impact on ThunderHawk

15% market shift toward Ft. Sheridan

Add a comment

Related presentations

Canvas Prints at Affordable Prices make you smile.Visit http://www.shopcanvasprint...

30 Días en Bici en Gijón organiza un recorrido por los comercios históricos de la ...

Con el fin de conocer mejor el rol que juega internet en el proceso de compra en E...

With three established projects across the country and seven more in the pipeline,...

Retailing is not a rocket science, neither it's walk-in-the-park. In this presenta...

What is research??

What is research??

April 2, 2014

Explanatory definitions of research in depth...

Related pages

GolfDigest.com: Golf Instruction, Equipment, Courses ...

GolfDigest.com is the official site of the golf magazines, Golf Digest ... course finder and the best golf ... review the best new clubs on the market.
Read more

When NOT to Market Your Golf Course | Richard Singer's Blog

... is that it has been a hot issue for me and my clients in 2009, and I have seen some clear examples of when not to market your golf course. ...
Read more

Global Golf Industry, Participation and Growth Forecast

... impact of economy over golf industry, golf equipments ... Golf Course Closures 2.4. Golf Industry Trends and ... The US Golf Clubs Market by ...
Read more

West Winds Golf Club - New Market - Reviews of West Winds ...

West Winds Golf Club, New Market: See 7 reviews, articles, ... all telltale signs they were ready for golf season. I had a blast at this course.
Read more

Market Drayton Golf Club | Online Golf Guide | Golfshake.com

Market Drayton Golf Club, ... I plyed Market Drayton yesterday as part of a golf ... The golf courses reviews are the personal opinions of members ...
Read more

Golf Clubs, Courses & Professionals in Market Bosworth ...

Find Golf Clubs, Courses & Professionals in Market Bosworth on Yell. Get reviews and contact details for each business including photos, ...
Read more

Golf GPS & Scorecard - Android Apps on Google Play

Tried and tested on the golf course, ... * Backup scoreCard and review past golf scorecards at any time. * Scoring statistics
Read more

iGolf.com: The #1 Golf GPS Database

iGolf provides the golfing community many valuable services including course GPS data for Bushnell ... Golf Store. Score Tracker ... News & Reviews. Mobile ...
Read more

Golfshot Classic - Android Apps on Google Play

Course list at golfshot.com/courses. ... Review and edit scorecards for past golf ... Over 30,000 golf courses are currently available ...
Read more

Royal Golf Club - The Montgomerie Course, Bahrain

... The Montgomerie Course in Bahrain: course details, stats, tee-times, packages, ... Royal Golf Club - The Montgomerie Course Review by prabhu Patel.
Read more