The Pellucid Perspective - March 2014 - (Page 14)

MARKET FOCUS Overdevelopment storm still blankets Minneapolis Minneapolis, MN Core Business Statistical Area (CBSA) C Otsego Otsego Albertville Albertville St M ichael St M ichael Greenfield Greenfield Rockford Rockford Corcoran Ham Lake Ham Lake Columbus Columbus Scandia Scandia Anoka Anoka Rogers Dayton Hanover Hanover Andover Andover Ramsey Ramsey Coon Rapids Coon Rapids Maple Grove Maple Grove M arine on St Croix M arine on St Croix Centerville Hugo Centerville Hugo Circle Pines Circle Pines M ounds View M ounds View Brooklyn Center Brooklyn Center ontinuing our sequential series of profiling the healthiest Loretto Loretto Hilltop Hilltop Top 25 US Golf Markets as quantified and ranked by Plymouth Crystal Plymouth Crystal Independence Independence Bayport Lake Elmo M aple Plain M aple Plain 35W North Hudson North Hudson Pellucid using a 10-measure composite scoring system Hudson Hudson (things like population size/growth, golfer base, rounds gen35E 94 St Paul St Paul Lakeland Lakeland M innetrista Deephaven eration, supply/demand balance, utilization and RevpAR), this M innetrista Deephaven Lake St Croix Beach Lake St Croix Beach St Bonifacius St Bonifacius Excelsior Excelsior Afton Afton Edina Edina month we highlight the 11th healthiest golf market in country, Victoria Victoria Newport Newport Richfield Richfield 494 Minneapolis MN. Currently buried beneath a blanket of more St Paul Park St Paul Park Bloomington Bloomington Eagan than a foot of snow and with temperatures peaking during the Chaska Chaska day in the low 20s, the golf market of Minneapolis is patiently Shakopee Burnsville Shakopee Burnsville Carver Carver Prescott Prescott Rosemount awaiting Spring when it will come to life as a healthy and viHastings Hastings Prior Lake Prior Lake Coates Coates brant host to nearly half a million golfers with an abundant Scott County Scott County Lakeville Lakeville supply of Public-access golf across the price spectrum. Vermillion Vermillion Jordan Jordan Farmington Farmington By rounds demand (our selection criteria for market incluGoodhue County Goodhue County Hampton Hampton sion in the Top 25 list), Minneapolis has a healthy number 8 M iesville M iesville ranking of US markets, with facility-reported annual demand of just over 5.9M rounds. (That facility-reported tally counts both local and tourist play). Looking at the golf consumer base, we Private PublicPublicPublicLearning Future Premium Value Price & Practice Facility see that Minneapolis is home to an abundant local golfer base of roughly 409K golfers. (This is only local, resident population, and doesn't count the summer tourism crowd). That golfer Minneapolis, MN Index base is served by an abundant 182 18-hole equivalent (EHE) Golfer Base CBSA vs. US Tot US facilities producing an above average ratio of nearly 2.3K local 408.9 24,400 - Est. # of Golfers (Ks) resident golfers per EHE, slightly above the national average. 182 14,675 - # of 18 Hole Equivalent Facilities 2,253 1,663 135 - Golfers per 18-Hole Equiv. The supply mix vs. the national distribution across PelSupply Mix lucid's five access/value/usage segments shows a bias to the - Private 20% 27% 74 Public segment at 80% of holes vs. 73% of holes nationally. - Pub-Prem 28% 23% 122 The balance of Value-add30% 28% 107 By rounds demand ed golf supply (Private & - Pub-Val - Pub-Price 12% 16% 75 Public Premium) vs. Value - Learn & Prac 10% 6% 167 (our selection golf (Public Value, Price Supply/Demand Balance criteria for market and Learning & Practice) - '00-'11 Cume Supply Growth/Decline 7% 8% 86 - '00-'11 Cume Rds Demand Growth/ is 48%/52%, which is simi-13% -15% 86 inclusion in the Decline lar to the national average - '00-'11 Cume Mkt Supply Dilution -20% -23% 86 (50%/50%). Within PublicTop 25 list), (-)/Absorption (+) Level* Regulation golf, the distribu- Avg Ann Rds Velocity (ks per 18-hole 27.8 26.7 104 Minneapolis has tion between Premium/ValEquiv.) a healthy number ue/Price is 40%/43%/17% Rounds & GF Revenue Health - % Utilization Rate which represents a clear bias 56% 44% 127 8 ranking of US - Avg. Ann. Rev. per Public to Premium, compared to $974 $836 117 Regulation EHE ($Ks) the national distribution of markets, with - Revenue per Available Round $13 $14 93 34%/42%/24%. (One has to (RevpAR) facility-reported * Period % Chng in Rds vs. Period % Chng in Supply keep in mind however that + Inverse index, lower is better the threshold for Publicannual demand Above average level vs. US (Index >105) in of just over 5.9M Premium lowMinneapolis is Average level vs. US (Index 95-104) relatively at $51+ comBelow average level vs. US (Index <95) pared to, say, Chicago where rounds. 14 The Pellucid PersPecTive March 2014

Table of Contents for the Digital Edition of The Pellucid Perspective - March 2014

Where is golf pricing headed in 2014?
The feminine touch
Colorado Section PGA enters tee time fray
Historic course going back to nature
February '14 golf weather impact: Tough sledding for golf
Overdevelopment storm still blankets Minneapolis
ClubCorp acquires Prestonwood CC and its two courses
The crime of the century

The Pellucid Perspective - March 2014