Quote:
Originally Posted by drcar
(Post 2186691)
I will say that you spent a lot of time doing calculations that are not even close to being correct. I applaud your effort but you are way off. First the villages do not run the restaurants. Cart rental is very small. And your are basing your numbers on all tee times being used, which they are not.
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I did not based my #'s on 100% Tee Time Used. I based it on 70% usage.
There are approximately 4300 Tee Times available every day. 70% usage is 3010/day. They are open 364 days per year. My estimate was 1,095,000 rounds per year.
My estimate may be off by about 90,000 rounds.
I've since found some published information on the number of rounds played on the Championship courses. in 2019, there were approximately 717,124 rounds played (see attached). If Championship rounds increased at the same rate as Executive course rounds, that would yield approximately 975,000 rounds. Also, Southern Oaks wasn't open in 2019. The "course average" for rounds played is 60,000 (+/- guess, because some courses are 27 holes). A reasonable approximation for 2022 is 1 million rounds played.
Consider shop sales, cart rental, on course beverages, GHIN, guest & resident greens fees + Enhanced member fees, the yield must be at least $80/round. Restaurant F&B still count, as the Developer either revenue shares with the Operators or rent reflects the fact that the Developer essentially supplies 60,000 golfer/customers per year + the non-golfing customers.
I estimated that the Championship Golf operation is worth about $100,000,000 year in revenue. After estimating revenue based an entirely different approach (I didn't have to guess at Tee Time usage, seasonal variations, etc.) I still come up with the same number. Golf is a $100,000,000/year business for the Developer.
Maybe I'm off 20% ... ok, so it's an $80,000,000 business.
Or maybe I'm off 20% the other way and it's a $120,000,000 business.
The fact remains, it's a huge cash cow for the Developer.
