how much does it normally cost to buy a public golf course

The average cost of an 18-hole course varies according to quality, with a lower to mid-quality course costing, on average, between €2.2 million and €3.0 million, high-end €5.9 million, and a signature course €6.8 million.

Full Answer

How much does it cost to own a golf course?

Dec 01, 2008 · The average cost of an 18-hole course varies according to quality, with a lower to mid-quality course costing, on average, between €2.2 million and €3.0 million, high-end €5.9 million, and a signature course €6.8 million.

How much does it cost to maintain an 18-hole golf course?

521,000. 2,218,000. 5,814,000. Source: Golf Course Builders Association of America, ASGCA, and Denis Griffiths. 2004. Costs can be kept to a minimum if the client has a good site; gently rolling with good drainage, and starts the job on time with all permits in hand.

Is a golf course worth $5 million?

The best golf course owners have great business sense and good people skills. In addition to the purchasing cost, you'll need an estimated $500,000 to $1 million per year to properly maintain a typical 18-hole golf course. Additional costs may include food and beverage facilities, building maintenance fees, and management fees.

Is buying a golf course a good investment?

Jul 01, 2020 · The cost to achieve the condition players expect — or will tolerate — ranges from about $500,000 a year for a daily-fee course to $1,000,000 a …

Are public golf courses profitable?

The most common income streams are green fees, membership fees, pro shop sales, and food and beverage sales. While increasing membership fees or green fees might seem like a good way to increase revenue, it might put off more golfers than the additional income earned.

Is buying a golf course a good investment?

Value creation, just like any other real estate deal, is the name of the game when you invest in a golf course. It's a tough business; 1% to 2% of golf courses close each year, while 25% of them don't turn a profit.Dec 21, 2021

Is buying a golf course profitable?

Average net profit margins for privately owned golf courses and country clubs (NAICS 713910) have been negative for several years. Over the last 12 months, for example, golf courses and country clubs lost about 2 cents for every dollar of revenue generated by memberships, club shop sales and restaurant meals.Jun 29, 2014

How much is a golf course?

The median cost to build a golf course is $14 million, not including buying the land. The lowest-priced golf courses cost $7 million. Others cost as much as $25 million. Building greens is one of the most important tasks, and it can cost as much as $60 per square foot.Apr 14, 2022

How do you finance a golf course?

While privately insured loans are often the most popular form of financing for golf course owners, some may find that SBA 7a or SBA 504 loans could be a better fit. Unlike privately insured loans, SBA loans allow golf course operators to buy equipment and fund working capital.

What is the profit margin on golf clubs?

After all expenses, the best golf retailers rarely profit more than 2-3% of the total cost of a club. However, as a whole, we can say that around 33.33% of the cost of a golf club is the markup from the retailer.Jun 25, 2019

Is a golf course a good business?

Buying a golf course is often a passion play. But with the right business savvy, it can also be a profitable enterprise.Aug 4, 2021

Is golf Losing Popularity?

Golf is on the decline in America. That reality has finally smacked us in the face like a two-by-four. The number of core American golfers (those playing eight rounds or more per year) has fallen between three and 4.5 percent every year since 2006.

How many acres does it take to build a golf course?

Golf courses require anywhere from 100 to 200 acres of land for an 18 hole championship course. The size of 18-hole golf courses can vary, sometimes drastically, but most courses are between 5,000 and 7,000 yards. But that's just the distance from hole to hole.

Why are golf courses so expensive?

Why is golf so expensive? Golf is costly due to the high cost of quality golf clubs, accessories, course fees, memberships, and the amount of golf that is played. Golf clubs are made from quality materials meant to last a lifetime, and courses often require membership, the cost of which reflects the club's exclusivity.Jun 30, 2020

How much does it cost to make a golf green?

On average, complete reconstruction of a putting green could cost from $7 to $10 per square foot, but even this range can be extended by $3 or more on either side of the average. There is a fourth question that anyone involved in the construction of putting greens should ask.Oct 2, 2015

How much does it cost to build a mini golf course?

When all of the factors listed below are addressed, designing and building a typical 18-hole concrete mini golf course can range from $150,000 to $500,000+.Jun 21, 2021

Golf Championships on SMGD courses

At Close House – Colt Course. Sept 2017. A prestigious European Tour Championship hosted by Lee Westwood.

The Cost of Building a Golf Course

It’s one of the most difficult questions to answer, but one of the most commonly asked, how much does it cost to build a golf course? The answer depends on a variety of factors; three of the most important being, what type of course the client wants, what type of land the course is to be built upon, and the competency of the golf course architect.

What to expect when buying a golf course?

When you buy a golf course, there’s a good chance that you’ll acquire a lot of the customers that the previous management had gained. That being said, you’ll want to bring improvements to the operation that will impress both new visitors and seasoned guests. Once you give them an amazing first experience, you’ll need to keep people engaged with your company to keep them coming back over and over again.

What happens if a golf course is up for sale?

If a golf course is up for sale, chances are that it wasn’t making a lot of profit. This doesn’t mean that you can’t breathe new life into the operation, however. With clever marketing, you can retain any previous customers while targeting new segments of golfers and growing your sales. Data analytics are crucial as they’ll keep you on top of what’s happening and give you insights into customer behaviour.

Why are lessons important in golf?

Lessons are a great way to generate some extra revenue while bringing in new golfers and growing the game. The golf professionals you hire need to not only have an in-depth understanding of the sport but also have amazing teaching skills.

Why do golf courses need to be close to current golfers?

A golf course needs to be close to as many current and prospective golfers as possible so it can take its share of the largest possible market, without being in an area that is too competitive to stand a chance.

How many golf courses have closed since 2011?

This is a relatively large market that you can capitalize on by buying a golf course. That being said, 737 golf facilities have closed since 2011, so success is not a given. Blindly running into ownership of a golf course can often be very risky, so you need to carefully select where you invest your money and how you operate your course.

What happens if you delay tee times?

If the participants’ tee times are delayed, food isn’t ready, and the golfers notice a lack of organization, they won’t have a great attitude towards your course. Tournaments and events need to be used as a way to make people love your facility, not just a way to make money on some weekends.

What do you need to sell in a pro shop?

When it comes to your pro shop, you need to at least sell the essentials like balls, gloves, and tees. You can charge a high price for these products because of how convenient your location is to golfers who lost, forgot, or ran out of them. Golf cart and club rentals are also a staple revenue channel for golf courses.

What is TGA in golf?

Read more. TGA is a great way to balance work and life. As a leader in youth sports and the go-to for golf and tennis introductory and recreational programming, TGA's curriculum is designed to help young players progress their skills, develop a passion for playing and provide a pathway to achieving through...

Is a golf course a good idea?

A golf course is a great idea from a business and investment standpoint — especially if you're a fan of the game. Many think first of starting a... Read more

What is the most important thing in a golf course?

The greens. They are the most essential element of any course, but because of labor and equipment they are also the most expensive things to maintain — even if some of our demands are a costly waste. Firm and fast is the golf standard for greens.

How many rounds are played on Pebble Beach?

Though it’s a public course, Pebble Beach is given the white-glove treatment, and it needs it. Typically, 60,000 rounds are played on it annually, in addition to three pro tournaments: the AT&T, the TaylorMade Pebble Beach Invitational and the PURE Insurance Championship. “It doesn’t slow down,” says Chris Dalhamer, the director of golf course maintenance at Pebble Beach. “Our biggest event is in February, which is one of our wettest months of the year. We have a staff that knows how to react in any situation.”

So, How Much Does It Cost To Play Golf?

The average round of golf will be around $35-$40 at your average public golf course. If you want to play golf at a premiere course you might spend between $60 and $100 dollars. You can also go to the highest level and play up to $500 for an round of 18 holes.

Golf Simulator Options

There are two options for golf simulators. You can either pay to play in a golf simulator or possibly build your very own golf simulator. I chose to build my own golf simulator several years ago and have now played over 500 rounds of simulator golf. I have close to 20 posts on all things golf simulator related. You can check out those posts, here.

Overall – Cost to Play Golf

As you can see from the charts above, you can get started in the game of golf for relatively cheap. There are free options in all of the areas where golf typically can cost a significant amount of money.

How much does it cost to golf at Augusta National?

One cannot just simply play Augusta National and pay a certain green fee. There are very limited ways to play golf there and even the most wealthy have to receive an invite to become a member.

Why Buy a Golf Simulator?

The ability to play golf year round in the climate where the winter weather is terrible and full of days below 30 degrees with plenty of snow is difficult to beat.

How much does it cost to buy a golf simulator?

You can expect to pay anywhere between $1000 and $40,000. With a realistic amount of between 6-8000 dollars. Here is a full post on how much it does to build a golf simulator.

Buzzkill

Don't have midwest info but when I worked in Florida our budget for two 18 hole courses with 2 mechanics and 15 greenskeepers was $750K which I believe is low by most standards. This was a private country club too.

Pepperturbo

In my experience - some numbers quoted here are low. Maybe they are low end courses (not meant as an insult anyone), can't say. On average, courses in AZ and CA cost about 6M-15M, depending on course turf, turf equipment and facilities. An acquaintance bought a tournament level course years back.

HenryBall

If you are running an 18 hole facility with food and beverage ops here are some of the numbers you can expect Food and Bev operation: 150,000 Golf related expense (flags, event signs, handicapping, pos software, staff, range balls, etc): 100,000 Maintenance: 200,000 Marketing: 75,000 Misc repairs/expenses: 100,000 These numbers may be slighlty skewed.

8orBetter

I'm sure the cost of gas is a budget buster for a lot of courses out there, especially with a weak economy where membership is cutting back either due to being laid off from work or just cutting back on expenses.

KennyLee

Way too broad of a question to get a good answer to without a ton more information. I've seen budgets that were $300k per year (goat track) and places where the greenskeeper made that much or more.

Tstiles

How much could one expect to spend on operating expenses for an above average golf course in the Midwest? I don't have much information to offer but would like some info on this. Thanks guys.

SFbaybum

Are you guys including other op expenses if you have more than a golf course (pool, tennis, etc)?