Why Golf Entertainment Centers Are Booming | Advisers of the Year
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Why golf entertainment centers are booming | Advisers of the Year Ryan Doerr President/Owner Strategic Club Solutions MAY/JUNE 2019 Renovation of the Year Adare Manor in Ireland takes top honors with infrastructure-focused design. How much ›› WATER ›› LABOR ›› MONEY could your facility save with a Toro Irrigation System? ——————— LET’S FIND OUT. Toro.com/irrigation STAFF Editorial Team Jack Crittenden Editor-in-Chief [email protected] May/June 2019 Volume No. 28 Issue No. 3 877-Golf-Inc Keith Carter Managing Editor Jim Trageser OPERATIONS Assistant Managing Editor Mike Stetz Katie Thisdell 4 News: More golfers in 2018, but Robert Vasilak weather puts damper on year Senior Editors 7 Trend: Drones give courses an eye in James Prusa, Editor-at-Large, Asia the sky Tiffany Porter, Copy Editor 10 Feature: Why everyone’s investing in 10 Shannon Harrington, Art Director golf entertainment centers Richard Steadham, Senior Designer Publishing Team Katina Cavagnaro Publisher [email protected] OWNERSHIP & MANAGEMENT Shelley Golinsky, National Account Representative Mindy Palmer, Marketing and Sales Consultant 16 News: Troon acquires OB Sports Elizabeth Callahan, Audience Development Director 20 Trend: It’s becoming a seller’s market Aleisha Ruiz, Audience Marketing & Event Coordinator 22 Feature: We spotlight the year’s top 22 Trish Newberry, Accounting consultants and advisers New Paid Subscriptions: Please call 877-Golf-Inc Complimentary Subscriptions: Golf Inc. provides a complimentary print DEVELOPMENT & DESIGN subscription to the top decision-maker at 18-hole golf courses, golf course management companies and development firms. If you match 28 News: Tiger, Hanse to design two new one of these criteria, please email Hawaiian resort courses [email protected] 30 Trend: Olazabal aims for greatness with Change of Address: 32 Please send your information to new designs in Greece [email protected] 32 Feature: Renovation of the Year winners Reprints: put focus on infrastructure Please call Katina Cavagnaro, 301-825-9848 46 Back 9: Kohler permit blocked; Golf Inc. magazine (USPS 009-747, ISSN 1074- CMAA elects Ruder 9276) is published six times a year by Cypress Magazines Inc., 7670 Opportunity Road, Suite 105, San Diego, CA 92111. Periodical postage paid at San Diego, CA and at additional mailing offices. Entire contents copyright 2019 Cypress Magazines Inc. All rights reserved. Material in this publication may not be reproduced without written permission from the publisher. Golf Inc. grants permission only for educational purposes. Golf Inc. is a trademark of Cypress Magazines. POSTMASTER: Send address changes to Golf Inc., 7670 Opportunity Road, Suite 105, San Diego, CA 92111 May/June 2019 www.GolfIncMagazine.com 3 Operations Number of golfers increased in 2018, but poor weather blamed for drop in rounds The health of the golf industry may be trending up after several years of decline. While the total number of rounds played decreased slightly in 2018 for the third straight year, bad weather was the pri- mary cause, according to the National Golf UDO KROENER/ADOBESTOCK Foundation’s (NGF) annual Golf Industry Report. Pellucid Corp., an independent indus- try analyst, also found that the weather in 2018 was largely to blame for the drop in rounds. Pellucid founder Jim Koppenhaver said that it was the worst year for weather in the past eight years but that utilization improved from 52.5 percent to 54 percent. Utilization measures the number of rounds played compared to the number of avail- able rounds. The average green fee increased by 0.8 Rounds played (in millions) percent to $52, according to Pellucid. The median fee was $44. 2014 2015 2016 2017 2018 The NGF reported that the number of 458 466 469 456 434 players rose and that off-course golf partic- ipation continued to increase. Off-course An estimated 434 million rounds of golf were played across the U.S. in 2018, participation includes golf entertainment a 4.8% year-over-year decline. For many regions, 2018 was among the top 10 centers such as Topgolf, stand-alone driv- wettest years on record. The average weather-related fluctuation typically ing ranges and computerized golf simu- ranges between 2% and 3% either way, as Mother Nature has a major influence lators. That market grew by almost 10 on a game played entirely outdoors. percent in 2018 to 23 million participants, Source: NGF Golf Industry Report 2019 9.3 million of whom play off course exclu- sively. that the current totals of roughly 16,000 golf participation is at 10 percent, which As for traditional, on-course golfing, courses and 24 million golfers are about on is higher than the numbers for basketball, the annual survey found that 24.2 million par with figures from 20 years ago, before tennis, baseball or skiing. Americans played in 2018, up a tick from the boom in popularity and course devel- The NGF is a nonprofit trade associated 2017 but down from a peak of 30 million opment. founded in 1936. Its mission is to promote in 2003. Last year, 434 million rounds were Koppenhaver figures that the industry golf and provide members with informa- played, down 4.8 percent from 2017 and will reach equilibrium in nine years if the tion from its research team. below the 10-year median, which is about number of rounds remains flat. 458 million. “Rounds used to be tied with popula- Chambers Bay reopens Golf course closures continued at a tion growth, but that stopped in 2000,” with renovated greens strong pace. There were 198.5 course clos- Koppenhaver said at the PGA Merchandise ings, compared to only 12.5 openings of Show in January. “Population growth is Chambers Bay Golf Course has finally re- 18-hole-equivalent courses in 2018. That now being driven by diversity, which plays sodded its greens, five years after PGA play- brings the current total to 16,693 courses away from our base.” ers complained bitterly at the U.S. Open. at 14,613 facilities in the U.S., and 38,864 He said the golf participation rate has The old fescue greens had also received courses worldwide. dropped from a high of 12 percent to 7 negative feedback from regular customers, The Golf Industry Report pointed out percent. The Golf Industry Report said who complained about uneven surfaces. 4 Golf Inc. May/June 2019 In golf, it’s important to choose your partner carefully. Photo by Wood Sabold Wood by Photo No. 16 at Bandon Dunes, Bandon Dunes Golf Resort, managed by KemperSports Turn-key services in golf course development, marketing and management. True to the game™ 500 Skokie Blvd., Suite 444, Northbrook, IL 60062 847.850.1818 | www.kempersports.com The $230,000 project to replace the National High School Golf Association, The resort, which includes an 18-hole fescue with poa annua grass required the National Collegiate Club Golf golf course managed by KemperSports, closure of the publicly owned course for Association and the Nextgengolf City will close June 4 for a year-long renova- seven months. Tour. It runs more than 200 team-based tion. The Golf Club at La Torretta will Course operator KemperSports and golf tournaments nationwide. remain open during that time. Pierce County, Wash., which owns the A PGA of America spokesperson said Slated to reopen in the fall of 2020, the track, coordinated with the United States that while details are still being ironed venue will be called Margaritaville Lake Golf Association on the project after out, the initial expectation is that the Resort, Lake Conroe. Two of the din- three greens developed turf health issues PGA of America brand will be licensed ing facilities will be rebranded as Buffett leading up to the U.S. Amateur Four- for use with Nextgengolf operations. concept restaurants: a LandShark Bar & Ball Championship. (The event ended up Grill and a 5 O’clock Somewhere Bar & being moved from 2019 to 2021). Texas resort to have Grill. There will be 360 guest rooms, a KGMI Radio reported that Chambers Margaritaville theme tennis center, a spa, multiple pools and Bay officials hope to be awarded another a 45,000-square-foot conference center. U.S. Open in the future and felt upgrad- Jimmy Buffett’s leisure-lifestyle hospital- The par-71 course measures 6,900 ing the greens was necessary in order to ity company, Margaritaville Holdings, yards and was designed by Dave Marr, be considered. will open its first resort in Texas in Jay Riviere and Jeffrey Blume. It opened When the Robert Trent Jones Jr. course 2020. A deal has been signed to convert in 2008. Gensler is the project architect, opened in 2007, it was one of only a few La Torretta Lake Resort & Spa north of and McCarthy Building Cos. is the gen- courses in the U.S. with fescue greens. Houston. eral contractor. It has since been determined that poa annua is better suited to the climate at Chambers Bay, south of Tacoma, Wash. Golf-club vending machine PGA purchases Nextgengolf gets first try in Florida The PGA of America has acquired Cadi recently Nextgengolf, a Boston-based player unveiled an auto- development company, as part of its mated golf club kiosk efforts to grow the game, especially at The Legends at among younger players. Financial terms Orange Lake Resort were not disclosed. in Florida, where it Nextgengolf, which has just finished its was founded by Kris first introductory Hart, conducts team- use. based golf tourna- The Cadi kiosk is ments and experiences a vending machine for young adults, col- that allows a cus- lege students and high tomer to use a credit school students across card to rent a club Kris Hart the country. It also pro- or clubs to try out.