Take-a-ways from Kiawah

Were you able to make it down to the Golf Inc. Magazine Strategies Summit held October 11-13 at Kiawah Island Golf Resort ? If you did, you were probably like me … happy to reconnect with long time friends that have been separated by two years of both challenges as well as successes.

If not, the breakout education sessions allowed attendees the opportunity to hear directly from leading golf operators on the new found stability of the industry, the return of initiation fees, and waiting lists across nearly all private clubs. As well as the methodology to enhance your business with new technology.

However, for me it was speakers such at Joe Beditz of the National Golf Foundation on the key metrics driving our business that I found fascinating. Including

Total Golf Facilities Net Gain/Loss Supply

Source: National Golf Foundation

and,

Rounds Per 18 Hole Equivalent

Source: National Golf Foundation

These two key drivers alone are critical for profitability!

When each is favorable they allow property owners to push rate to meet the inflationary pressures outside the industry without the fear of loss in play volume. As golf has historically demonstrated it tends to recessionary proof - when the quantity of facilities was in equilibrium.

This tied in nicely onto the panel that I spoke on with industry colleagues Jeffrey Dugas & Mark Mattingly … where we spoke on increasing golf investment sales, current market valuations,

as well as the value generation cycle of reinvestment following years of deferred maintenance due to limited earnings.

In short, we are hopefully collectively much smarter and certainly more cautious than the Tiger Boom cycle that has hindered our industry for almost two decades. However, golf has become once again a viable investment opportunity with upward growth available should be the key take-a-way.

A final thought … The Ocean Course at Kiawah is spectacular!

Played it for the first time while in town, and it did not disappoint. Warmed up on the range as the sun crested the ocean waves, teed off in the third group of the day and enjoyed a brisk pace.

Even "met" a new "friend" on Hole #4 - and No that is not my ball .... LOL

I selected a tee location that fit the current state of my game – and found the front nine loop to be relatively benign and playable. However, when you make the turn to the back nine.

Whoa!!

Great golf hole one after another … four holes straight out – the devilish Par 3 Hole #14 (maybe the most underrated hole on the course) as the keystone of the loop redirects you back towards the ocean, and then its down the final four-hole stretch to the house. Into the wind and tempting both in course strategy and execution. Great stuff!

If in the area … enjoy the experience!

Oh … and don’t forget to enjoy a burger and beverage at The Ryder Cup Pub overlooking both the #18 green and ocean following play. There may not be a better setting in golf.

Congrats to Roger Warren and his entire team on a first-class experience.

Allen

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