The Pellucid Perspective - May 2022 - 10

COMINGS
& GOINGS
Transactions Flow and Dominate Activities
A
ctivities in April returned to the previous " normal " level
for this column and our collection method with 21 activities
scanned from the public domain dominated by
transactions:
* Opens/Re-opens - 4
* Closeds - 0
* Transactions (continuing golf operations) - 16
* Redevelopments (transactions not continuing as golf
operations) - 0
* Status change (Priv-Pub switch, downsize holes,
Priv->Muni ownership etc.) - 0
* On the bubble - 1
The table provides details and commentary for each activity.
For those not into detail (or the entertaining commentary),
below are our general observations on the patterns we're
seeing over time and some anticipated future trends.
Several resorts changed hands where golf is just but one of
the amenities around a hospitality core (Saddlebrook, Naples
Grand, Sea Oaks etc.). There also appears to be increasing
action on Private Clubs changing hands which was rare in the
previous cycle. Generally the membership is offloading the
financial responsibility (ownership, not just management) to a
3rd party (Concert Golf involved in several of these) which is
slightly surprising given how strong private golf and membership
sales are due to the COVID surge. On a related note,
we're assuming most of you saw the news mid-month that
Apollo Global Management is considering taking ClubCorp
public again via an IPO. The published rumors are that it
would be in the $4-$5B range which would be a steep premium
to the $1-$2B that Apollo paid for the portfolio (they've
obviously though also invested in the properties along the way
which would figure into the realized return). Nothing solid
yet but would be an interesting, relatively quick turn from
public-private-public (not as quick as Elon Musk's current
plans for Twitter though, ha, ha).
The rest of the transactions are the normal mix of local entrepreneurs
buying golf courses as one-offs, stories of wealthy
local residents pooling their funds to save and operate a course
and a couple of parties which are assembling small portfolios
under the radar; sometimes in a concentrated region (caviar
king Bill Holst has built a 5 course portfolio in MN with one
" black sheep in WI) and in other instances scattered across
several markets. We've also seen several successful exits in less
than 5 years at good profits which seems to say that money
can be made once again in " flipping " golf courses but it's not
a sport for the faint of heart, even with the COVID wind at
your back.
Final note, we're continuing to see a small number, but consistent
pattern, of course openings and re-openings which is
encouraging for anyone on the " build side " of golf after 20
years basically in the desert. Within the new developments,
we see another example of the high-end resort choosing to
add a " sport course " to their property and a putting course in
the example of Omni Amelia Island which recently opened
the Little Sandy amenities. Is this " back to the future " when
the industry believed that short courses were the answer for
time constraints and on-ramps to golf or more just like having
more ways to entertain a captive, wealthy audience at the
higher-end resorts? We're going to go with the latter which
also wouldn't be bad for golf because the former approach
(along with planting First Tee facilities) didn't produce the
desired results.
The 9 hole Dannebrog Golf Course
in Nebraska with its sand greens.
HTTPS://CLUBANDRESORTBUSINESS.COM/QUIRKY-CLUB-WITH-SAND-GREENS-RECEIVES-NEW-LEASE-ON-LIFE/
10 The Pellucid PersPecTive
May 2022
https://clubandresortbusiness.com/QUIRKY-CLUB-WITH-SAND-GREENS-RECEIVES-NEW-LEASE-ON-LIFE/ HTTPS://CLUBANDRESORTBUSINESS.COM/QUIRKY-CLUB-WITH-SAND-GREENS-RECEIVES-NEW-LEASE-ON-LIFE/
The Pellucid Perspective - May 2022

Table of Contents for the Digital Edition of The Pellucid Perspective - May 2022
