With many golf courses in Texas, Florida, Georgia and the Carolinas experiencing damage from the recent storms, now may be the time to consider re-positioning in the market while planning for repairs, renovation and re-opening.
One question that all clubs should be asking is how the market might change as a result of the storm. While we certainly don’t wish for closures, it stands to reason that some courses may decide not to re-open and consider re-purposing their properties for alternative use. Some clubs may find that with a different market environment, their operating profile should change and an up to date market analysis would help.
Below is a list of some of the questions all clubs should consider prior to investing either insurance proceeds or other funds into their clubs?
- Should all facilities be repaired and re-opened?
- Do we really need “XX” (number of) holes?
- Is our clubhouse too big?
- Is the clubhouse efficient?
- How can we capitalize on the strengths of our club while minimizing the weaknesses?
- How can we possibly correct flaws as part of this effort?
- Have we been targeting the correct market segment?
- What will the impact be on our competition?
- What will be the impact on the overall market depth?
- What future opportunities exist for our club as a result of the storm?
- What (long term) challenges exist as a result of the storm?
These are just a few of the questions all clubs should consider once the flood waters recede and basic life returns to normal. In most cases, golf courses and clubs will have a little more time to ponder these questions as more basic needs are met like shelter, water and other basics, however, given that these storms impacted southern locations, the busy season is fast approaching and clubs will want to avoid missing a year’s worth of business.
The Society of Golf Appraisers (SGA) is in the process of developing “SGA RESPONDS” a program designed to help clubs determine the best path to recovery from these and other challenges for clubs in need. Watch for more information at www.golfappraisers.org.
Golf Property Analysts can also help. Call or email us.