The Pellucid Perspective - November 2010 - (Page 13)

MARKET FOCUS Washington DC/Northern VA DMA Private PublicPremium PublicValue PublicPrice Learning & Practice Future Facility he Washington DC/Northern VA DMA is a relatively healthy golf market with just over 300K golfers supplied by 159 18-hole equivalent (EHE) facilities. This produces an ample consumer base to support the existing supply level of just over 2,100 golfers per EHE (19% above the national average). The supply mix differs from the national distribution across Pellucid’s five access/value/usage segments with a higher concentration in Private facilities and a lower concentration of Public-Price holes. Supply growth since 2000 has exceeded demand resulting in a cumulative dilution for existing facilities of 20% which is double the national average of 10% supply dilution. This means, compared to 2000, the average existing operator has suffered an estimated 20% revenue decline due to supply dilution through some combination of rounds loss and/or rate erosion. The average facility has throughput of 35,000 rds/yr, slightly above the national average. The more accurate comparison, after factoring in season length and average weather, is that DC’s 57% utilization exceeds the national average by 4 points On Greens Fee RevpAR (Greens Fee Revenue/Available (Capacity) Rounds), DC handily beats the national average with a $23 rate driven a combination of its higher utilization and relatively good pricing power (compared to the national average, not to the historical levels for DC). n T Golfer Base – Est. # of Golfers (Ks) – # of 18 Hole Equivalent Facilities – Golfers per 18-Hole Equiv. Supply Mix – Private – Pub-Prem – Pub-Val – Pub-Price – Learn & Prac Supply/Demand Balance – ‘00-’09 Cume Mkt Supply Dilution (-)/Absorption (+) Level* – Avg Ann Rds Velocity (18-hole Equiv.) Rounds & GF Revenue Health – % Utilization Rate – Revenue per Available Round (RevpAR) Wash DC/ N. VA DMA Tot US Index vs. US 0.3 26.6 159 15,929 2,119 1,774 41% 18% 31% 6% 4% –19% 29% 20% 33% 13% 4% –10% 119 141 91 93 46 103 191 107 35,392 33,000 57% $23 53% $16 107 144 * Period % Chng in Rds vs. Period % Chng in Supply Above average level vs. US (Index 111+) Average level vs. US (Index 90-110) Below average level vs. US (Index <90_) The Pellucid PersPecTive 13 http://WWW.PELLUCIDCORP.COM

Table of Contents for the Digital Edition of The Pellucid Perspective - November 2010

The Pellucid Perspective - November 2010
Examining the Third Party Tee Time Marketing Issue
A Primer on Third Party Tee Time Marketers
Some Cities Willing to Buck Declining Golf Trend
Feel Golf Head Defies New Wedge Rules
Washington DC/Northern VA Profile
Oct YtD Weather Impact Sep YtD Utilization
Mixed Financial Results for Q3 and September YtD
Heard it Through the Grapevine

The Pellucid Perspective - November 2010