The Pellucid Perspective - May 2024 - 10

COMINGS
& GOINGS
Privates, Destinations and Premiums are Prevalent
F
ebApril activity across the public domain sources we monitor
(as well as our weekly conversations with various business
associates) continued to be light at only 7 compared to
our '23 level of visibility which was 15-20 per month. Another
anomaly in the April tracking is, in '23 we didn't see much activity
in the Private sector but this month 60% (small base, 3 of 5)
of transactions were private clubs. Here's the month's scorecard
* Opens/Re-opens - 1 (new course but " on-trend " in
adding a short course to an existing resort facility)
* Closeds - 0
* Transactions (continuing golf operations including For
Sales & Auctions) - 6
* Redevelopments (transactions not continuing as golf
operations) - 0
* Other (name change, Priv-Pub switch, downsize holes,
Priv->Muni ownership etc.) - 0
The table provides details and commentary for each activity.
For those not into detail (or our entertaining commentary),
we've been anticipating that the COVID " lift " would increase
and improve liquidity in the industry by making golf courses
more desirable and improving valuations for those wanting
to exit the industry (retirements, end of targeted holding period
etc.) but we're not seeing that happen based on this level
of monthly activity (across ~14K possible facilities in the US).
We're also seeing a fairly clear dichotomy between the " haves "
and " have-nots " represented by the $31M sale of Bear's Best in
Las Vegas down to several properties we've been watching which
have taken 10-20% price reductions and still aren't moving.
And then there's the Country Club of the Poconos which had a
sealed bid process by the Middle Smithfield Township Board of
Golf's landscape changes
Course
Event
The Clutch
Open/Reopen
Closed
Lakewood Ranch
Golf & Country
Club
Transacted/For
Sale/Auction
Bent Creek Golf
Club
Tampa-St.Petersburg
(Sarasota) FL
Minneapolis-St.
Paul MN
PRIV/54
Heritage Golf purchases fm Schroeder-Manatee
Ranch, Inc., terms not disclosed, one of 3 courses
under umbrella (Cypress Links, King's Dunes,
Royal Lakes) at the Sarasota large master-planned
community (by SMR, Rick Jensen CEO)
PRIV/18
LaMettrey family (local business owner) purchased
50-yr old course fm Golf View Investments (Koch
family), sons will run the course (current members),
will stay private after considering public conversion
earlier in its life
DMA
Ft. Myers-Naples
FL
Supervisors (at a min bid of $650K) which had...no/zero interested
parties. Heritage Golf is once again in this monthly recap
with the acquisition of Legacy Golf Club at Lakewood Ranch in
Bradenton which extends their consecutive months' run of being
included in our summaries to 5 now. As foreshadowed in the
headline, we're also seeing a resurgence of exclusive, high-end
golf development with an example in the ground breaking on
Miakka Golf Club (also in Sarasota/Bradenton market) which
will be private and aspirational spanning 1,100 acres (18-hole
course, 12-hole Par 3 course, lighted putting course, 360 degree
driving range (good venue for Demo Day for an upcoming PGA
Merchandise Show?) and a 7-acre short game area). For those
select few who achieve membership, it will be a Walt Disney
World of golf.
Finally this month, we noticed the breathless announcement
of the imminent opening of the 89th US location in Durham,
NC which happened on April 12th. This follows the (also) highly-anticipated
opening of the El Segundo, CA location (which
is adjacent to a physical (Learning & Practice) golf course) and,
looking forward, Greensboro, NC appears to be next on the
list. Club & Resort Business reports that this will be their 99th
outdoor venue (globally) so the US is now far-and-away their
largest market. In conjunction with this, we noticed an NGF
release recently that suggested that " dualies " (virtual and physical
golfers) are the industry's best customers. Our take is that
the storyline is shifting from " TopGolf creates new green-grass
golfers " to " TopGolf is another opportunity for our core golfers
to spend money elsewhere...but it's not hurting their engagement
with green grass. " That's a topic for a whole other article
but, in the meantime, there's now an 89th US location for our
best customers to go spend (incremental) money on golf according
to the oracles of Jupiter.
Type/Holes Summary
PUB/12
12-hole short course at South Seas on Captiva
Island to complement existing resort; built
to compete with leading resort short-course
experiences like Pebble Beach, Hilton Head etc.,
60-90 min. guest playing experience
10 The Pellucid PersPecTive
May 2024

The Pellucid Perspective - May 2024

Table of Contents for the Digital Edition of The Pellucid Perspective - May 2024

TOC
US & golf economy; flashing early warning signs?
AI golf business application challenge: Classify 14K golf courses 210 unique ways
“Shallow” activity skews to Private and higher end properties
April’s a yawner with GPH +1%, Year-to-Date still up at +4%
Mar Utilization declines 4 pts (rounds up, weather up more), Year-to-Date now neutral at -1 pt
PGA Championship host city Louisville KY, could use more, affordable “on-ramps” for golf
The Pellucid Perspective - May 2024 - TOC
The Pellucid Perspective - May 2024 - US & golf economy; flashing early warning signs?
The Pellucid Perspective - May 2024 - 3
The Pellucid Perspective - May 2024 - 4
The Pellucid Perspective - May 2024 - 5
The Pellucid Perspective - May 2024 - AI golf business application challenge: Classify 14K golf courses 210 unique ways
The Pellucid Perspective - May 2024 - 7
The Pellucid Perspective - May 2024 - 8
The Pellucid Perspective - May 2024 - 9
The Pellucid Perspective - May 2024 - “Shallow” activity skews to Private and higher end properties
The Pellucid Perspective - May 2024 - 11
The Pellucid Perspective - May 2024 - April’s a yawner with GPH +1%, Year-to-Date still up at +4%
The Pellucid Perspective - May 2024 - 13
The Pellucid Perspective - May 2024 - Mar Utilization declines 4 pts (rounds up, weather up more), Year-to-Date now neutral at -1 pt
The Pellucid Perspective - May 2024 - 15
The Pellucid Perspective - May 2024 - PGA Championship host city Louisville KY, could use more, affordable “on-ramps” for golf
The Pellucid Perspective - May 2024 - 17
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