Resort Amenities: ROI?

Ok, so the latest studies show that a private golf course closes (net closings) every 9 hours. On average, private golf course cost $375,000 per year to maintain + staff, insurance etc. You might get 20,000 rounds played in a year and so net $200,000. BUT….

Think about how many golf course lots you sold and how many garden homes with a fairway view you sold and how many interior lots you sold and how many weeks of timeshare you sold to people who don’t know anything about golf but know, and so want, the allure and “prestige” of living in a golf course resort or community. Golf courses drive sales and that’s about it these day. Golf is, sadly, a dying sport. Like swimming pools, marinas, fountains, tennis courts and parks, amenities drive sales and hold values. Without them a resort development is immediately labeled “B Team” and can quickly descend to “C Team” status. So, don’t try to line item an amenity as a profit center. You will be sad. They are an expense….like the light bill and new carpet. Now, nothing says (excluding HOA Nazis) you can’t shrink some fairways, reduce the size of the driving range or even cut off 9 holes and then redevelop more lots, fractionals and resort lodging but having a well maintained course can be very profitable when considering other, related sales activity. Lake side, riverfront and ocean front resorts face the same questions when dealing with marinas. They can be costly to maintain. They add liability. They are always to big or to small for certain water craft. So, on a spread sheet all you see is debits….but ad back the value of all the added activity at your resort. Add back how many condo and timeshare sales were made because a couple stopped and had dinner and wine at the floating bar. So, don’t go cheap on amenities. First impressions count. Its hard to sell when everything is perfect….buyers are looking for objections and reasons not to buy. Plus, you competitor has nice amenities. For more no-nonsense resort sales stuff call Chris Bounds directly.