Editor’s Memo

Spending & Burning

AFTER THE CLUB industry took a couple of months earlier this year to catch its collecti ve breath from the initi al shock of the coronavirus outbreak, we have since published a steady stream of news reports and feature arti cles, and prepared a series of “The Road Back” videos (htt ps://clubandresortbusiness. com/category/the-road-back/), that have all highlighted upbeat reports on strong acti vity levels, sizeable membership gains and—most surprisingly—conti nued investment in faciliti es and golf courses at all types of club and resort properti es throughout the U.S.

To see just how deep of a trend these reports on spending refl ected—and how likely it was to conti nue—we recently conducted a larger survey of club managers on their current and future capital expenditure acti vity. We’ll publish a more detailed report on the fi ndings in an upcoming issue, but here are some notable highlights: • Asked if their clubs executed planned capital projects in 2020, 79.9% of the responding managers said yes. • Asked to describe their fi nancial positi on as a result of COVID-19, 56.6% said they were sti ll operati ng profi tably, 31.4% said they were breaking even, and only 11.9% said they were operati ng at a loss. • Asked to project their capital spending for 2021, 69.2% said they expected it to increase, 17.6% said they expected it to remain the same, and only 13.2% anti cipated a decrease. • We then asked for an indicati on of the range for which capital budgets would be set for 2021, and these two ranges polled the highest: - $1 million-$3 million, 35.2% - $3 million-$5 million, 29.6% (greater than $5 million was also selected by 2.5% of the respondents). • Over two-thirds (66.7%) of the respondents said major golf course im-

Our survey results on current capital spending activity and future CapEx plans had a business-as-usual tone— with the business looking pretty darn good.

provement projects will next take place at their property within a year. Almost 70% said the same was true (within a year) for their next major clubhouse/ facility improvement project.

We also asked for details about what the golf course and clubhouse/facility projects would focus on. Greens and drainage/water management projects stood out as the biggest prioriti es for golf courses, and dining venues and furnishings were cited as the top focus for clubhouses/faciliti es. But in both cases many other areas were also cited, indicati ng these aren’t emergency fi xes, but part of planned, strategic improvements.

We also asked the respondents to rank what they saw as their biggest forthcoming challenges in 2021. Att racti ng new members scored the highest, followed by retaining current members, building a balanced budget, assessment issues related to budgeti ng shortf alls, and prioriti zing capital projects.

All in all, the survey results had a business-as-usual tone—with the business looking prett y darn good. And I dare say that if we’d asked those same questi ons 12 years ago aft er the Great Recession took hold, “just surviving” would have ranked highly among the biggest upcoming challenges, even if it hadn’t been offered as a choice and could only be given as a write-in response.

Feeling the Burn

While the results of our capital spending survey refl ected an encouraging present and future outlook, that certainly doesn’t mean there aren’t sti ll plenty of things to get worked up about in the club business. This issue features the debut of three new regular “Burning Issue” columns, for Management (pg. 10), Membership & Marketi ng (pg. 11) and Golf Operati ons (pg. 9). Aft er skipping December’s special Top Innovators issue, all of these columns (plus others on occasion for operati ng areas such as fi tness, technology, golf course maintenance, and more) will be regular monthly features in C+RB.

So if you and/or others on your staff want to take a turn sounding off , let us know, and we’ll reserve your space.

Joe Barks • Editor jbarks@wtwhmedia.com

November 2020 • Vol. 16 • No. 11 INSIDE THIS ISSUE

12 Urban Blight Becomes a Coastal Delight at Harbor Shores Resort As the Benton Harbor, Mich. property celebrates its 10-year anniversary, what was once more than 550 acres of forsaken land, abandoned factories and lost manufacturing jobs is now a distant memory.

20 Design + Recreation ENDING THE SPACE JAM Locker rooms are being upgraded and expanded to take on this year’s added traffi c.

33

Chef to Chef WISE BEYOND HIS YEARS At just age 29, The Patt erson Club’s Geoff rey Lanez has established himself as a well-seasoned culinary professional. 28 Course + Grounds A WINNING PACE Colorado’s Flying Horse club stayed on the fast track this year with a new golf course.

36 Golf Operations SIMULATORS TAKE THE GAME INSIDE Clubs are dedicati ng more space to technology that’s proving to be quite a draw.

ALSO IN THIS ISSUE

5Editor’s Memo

SPENDING & BURNING

8

The Rob Report A FASHION FIRESTORM

9

Burning Issue: Golf Operations MAKING THE PRO SHOP PANDEMIC-PROOF

10

Burning Issue: Management DON’T FALL INTO THE SERVICE-CHARGE TRAP

11

Burning Issue: Membership + Marketing MARKETING MEMBERSHIPS IN

A PANDEMIC—AND BEYOND 25 Design Snapshot MAKING A GRAND ENTRANCE An updated lobby has turned Hunti ng Creek CC into a showcase-worthy desti nati on.

39 Super In Spotlight CAREER AUDIT How The Clubs of Cordillera Ranch’s Jeff Eldridge went from taxes to Texas. 42 Today’s Manager STRUCTURAL INTEGRITY Robert Sereci’s sound approach to Excellence in Club Management. 50 Idea Exchange A SUCCESSFUL KICKOFF Escanaba CC helps ease the pain of a lost football season.