17 / 26
17
consultants Sirius Golf Advisors,
Brauer explained to GIS attendees
that renovation work does appear to
deliver positive financial results.
The report covered financial results
for many of the 19 public golf
courses that have been renovated
in the Dallas-Fort Worth (D-FW)
area in Texas since 2000, and Brauer
also added details for a renovation
handled by his firm. Eight of the
projects could be considered ‘major’
renovations, where an average of
almost $5 million had been invested
to fully renovate and rebrand their
facilities. For these courses, annual
revenues were boosted from an
average of $939,000 per year before
renovation to $1,600,125 in the first
year of reopening, then $1,485,709
the following year.
Brauer’s presentation also summarised
financial data for four courses where
‘minor’ work had been done—an
average of $445,000 for projects such
as turf, green and tee improvements. At
these courses, average annual revenue
increased from $1,168,000 before
renovation to $1,517,500 in the first year
of reopening and $1,378,250 by the
second year.
Figures indicated that return on
investment (ROI) for both major
and minor renovations was highest
the first year after the courses
reopened, due to the initial ‘buzz’
surrounding the new developments.
The results dipped into a more
sustainable pattern in the second
year, but the ROI figures remained
overwhelmingly positive.
“The fact that the nine extensively
renovated courses and the four with
minor enhancements improved
average revenues by 63.7% and 23.3%
respectively after two years shows that
well planned renovations can certainly
boost the finances of golf courses,”
said Brauer. “While the survey only
covered the first two years after the
reopening, NGF confirmed that even
the courses that were renovated ten
years ago have generally maintained
their new revenue levels.”
So this evidence suggests that
renovating a municipal golf course
brings financial success. But choosing
the right time to renovate a course is
rarely easy, not least because of the
disruption caused while the work is
being done.
According to Brauer, owners should
look for tell-tale signs: clubs may be
regularly losing members, they may
have been forced to lower prices to
attract more players, or—nowadays—
they notice poor reviews and ratings
on consumer websites. “A noticeable
drop in the number of visitors
suggests that the course no longer
meets their expectations, whether this
is due to worn out greens, damaged
bunkers, or simply the fact that a
nearby course offers newer and more
exciting holes,” he explained. “Owners
should also consider renovating their
courses if their staff are spending
an increased amount of time fixing
problems, rather than carrying out
simple everyday maintenance tasks.”
To ensure revenue growth, owners
need to identify the enhancements
that will help to boost the appeal of
the course and create real value for
their customers, while lowering future
maintenance and operational costs.
“Owners should invest in the
facilities that customers will want to
pay for, rather than overspending
on superficial or less important
upgrades,” explained Brauer. “If
members have complained about
the condition of the greens and
the bunkers, these areas should be
prioritized during the renovation.
The NGF and Sirius Golf Advisors
report strongly suggests that facilities
that have undergone a total makeover
to improve their image also need
Returns on renovation can last into the long term. Indian Creek GC in Carrollton, Texas was renovated by Jeff Brauer in 2007,
and has maintained the resulting increase in revenues