Golf Courses & Country Clubs

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 9,600 golf courses and country clubs in the US can be broadly classified as public, private, or semi-private facilities. Golf courses typically offer only golf, and related golf services or products, while country clubs usually offer more extensive recreational activities, such as swimming and tennis. Country clubs also tend to be more private facilities, and usually offer more social services, such as a full service restaurant, formal dining room, and banquet/meeting facilities.

Environmental And Government Regulation

Golf courses and country clubs are heavily dependent on fungicides, insecticides and fertilizers to control insects, turf diseases, and to keep the various grasses green and in tip-top playing condition.

Ownership Of Multiple Courses

With so many golf courses across the nation struggling to survive, some opportunistic investors are finding success in acquiring and operating multiple courses in one geographical area as a way to pool resources, reduce maintenance costs, and market attractive combined playing options.

Industry size & Structure

An average golf course generates annual revenue of about $2.5 million and employs about 33 workers.

    • Around 9,600 courses generate revenue of $24 billion and employ 319,000 people.
    • The golf courses and country clubs industry is highly fragmented with the 50 largest firms representing just 18.5% of revenue.
    • Almost 1,300 major golf courses were renovated between 2006-2019. Only nine new courses were opened in 2019 and over 100 closed.
    • About 11% of courses closed between 2006 and 2020.
                                  Industry Forecast
                                  Golf Courses & Country Clubs Industry Growth
                                  Source: Vertical IQ and Inforum

                                  Coronavirus Update

                                  Apr 29, 2022 - High Green Fees Expected To Continue
                                  • Golf courses may keep green fees high in 2022 as demand remains above typical pre-pandemic levels. People are used to paying $55 or $65 (in the summer),” said Joe Williams, director of golf at Indian Wells Golf Resort in Palm Springs, CA. “Well, inflation is going to raise that up 10 bucks, just that. And with this golf boom, we will be $79 or $89 (this) summer.”
                                  • Golf rounds played may remain elevated by historic standards if the number of COVID-19 cases continues increasing. New COVID-19 case rates increased in late April, with the seven-day rolling average increasing to roughly 58,000 on May 1, up from 50,000 on April 27, 46,000 on April 22, and 30,000 cases per day on April 8, according to a New York Times COVID-19 case tracker. Experts note that the American population has different vaccination rates, levels of previous exposure to the virus, and degrees of underlying health conditions, so the trajectory of new cases could vary. New cases were increasing in all but six states and Washington, DC on April 28 as the Omicron subvariant continues to spread. Analysts note that the data regarding new cases are getting less reliable as the public testing infrastructure continues to wind down and home test results are less likely to be reported to officials.
                                  • Pandemic-driven golf equipment sales would be even greater if not for pandemic-driven supply chain problems, according to industry veterans. Rounds played may be affected by the equipment shortage. Justin Tripp, the manager and master fitter at retail and custom-fitting company Continental Golf, notes that he’s seen orders take up to six months, to the point that customers would often cancel orders. "The problem is you just can't get the clubs to go with [the demand]. You go back any time before this, and it was a shock if you ordered a set of golf clubs and it took three weeks," Tripp said. The problems have trickled down to literally every part of the equipment ecosystem, from clubheads to shafts (steel has proven particularly difficult) to grips to gloves to shoes to balls.
                                  • The pandemic has brought the largest percentage increase in beginner golfers and youth golfers since 1997. according to the National Golf Foundation.
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