The Pellucid Perspective - February 2011 - (Page 9)

MARKET FOCUS Atlanta, GA Core Business Statistical Area (CBSA) Private hey’re seeing red in Atlanta and it’s not because they’re still debating the Civil War. The Atlanta CBSA ranks 12th of the Top 25 golf markets in the US by size (# of golfers). It has a solid golfer base with just over 328K golfers supplied by 173 18-hole equivalent (EHE) facilities. This produces an average consumer base, in the absolute, to support the existing supply level of just under 1,900 golfers per EHE (7% above the national average). The supply mix is markedly skewed vs. the national distribution across Pellucid’s five access/value/usage segments with a much higher concentration of Private offsetting a relative undersupply of Public-Premium and Public-Value. This is most likely a key factor in the success of at least one local operator which has successfully “changed the owner/operator game” by offering affordable, reciprocal private club access to a number of their managed properties scattered across the Atlanta metro area. The change in supply since 2000 has far exceeded the change in demand resulting in a cumulative dilution for existing facilities of 25% which is 2.5x the national average of 10%. This means that, while there exists an average number of golfers to service the supply, compared to 2000 the average existing operator has suffered an estimated 24% revenue decline due to supply dilution through some combination of rounds loss and/or rate erosion. The average facility has throughput of 30,000 rds/yr, on par with the national average. The more accurate comparison is that Atlanta’s 42% utilization trails the national average by 11 points (in other words, after factoring in favorable season length, they don’t use their facilities as efficiently as the average market). On Greens Fee RevpAR (Greens Fee Revenue/Available (Capacity) Rounds), Atlanta lags the national average with a $13 rate driven by a combination of its lower utilization rate coupled with a relatively low average effective greens fee rate T PublicPremium PublicValue PublicPrice Learning & Practice Future Facility (compared to the national average). In spite of adequate supply and very affordable golf, we’ve not been able to get the “South to rise again” in rounds demand in the Atlanta market. n Golfer Base – Est. # of Golfers (Ks) – # of 18 Hole Equivalent Facilities – Golfers per 18-Hole Equiv. Supply Mix – Private – Pub-Prem – Pub-Val – Pub-Price – Learn & Prac Supply/Demand Balance – ‘00-’09 Cume Mkt Supply Dilution (-)/Absorption (+) Level* – Avg Ann Rds Velocity (18-hole Equiv.) Rounds & GF Revenue Health – % Utilization Rate – Avg. Ann. Rev. per Public Regulation EHE ($Ks) – Revenue per Available Round (RevpAR) * Period % Chng in Rds vs. Period % Chng in Supply Atlanta, GA CBSA Tot US Index vs. US 328.1 26,600 173 15,929 1,897 1,774 47% 15% 23% 12% 3% –25% 29% 20% 33% 13% 4% –10% 107 162 75 70 92 75 241 95 29,913 31,512 42% 53% $912 $1,137 $13 $16 79 80 81 Above average level vs. US (Index 105+) Average level vs. US (Index 95-104) Below average level vs. US (Index <95) The Pellucid PersPecTive 9 http://WWW.PELLUCIDCORP.COM

Table of Contents for the Digital Edition of The Pellucid Perspective - February 2011

The Pellucid Perspective - February 2011
Is Groupon Good for Golf: The Sequel
Solving the Professional Payment Predicament
Jan 2011 YtD Weather Impact, Dec 2010 YtD Utilization
Reynolds Plantation Courses on the Market
Atlanta, GA Core Business Statistical Area (CBSA)
Alternative Golf? Or an Affirmation of How Many of Us Play Already?
Custom Clubfitting in 2011: A Solution but Not a Cure
Pap-Agony for Phoenix Muni
Show Time - Again

The Pellucid Perspective - February 2011