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As Recovery Continues, Golf Course Owners Seeing ‘Light at the End of the Tunnel’

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11th Annual NGCOA Multi-Course Owners Retreat Attracts Industry’s Largest Ownership and Management Companies

MONTEREY, CALIF. (July 10, 2006) – Owners and operators of some of the industry’s largest golf course portfolios meeting at the National Golf Course Owners Association’s Multi-Course Leadership Retreat here last week were decidedly upbeat about the state of the game and the prospects of an ongoing recovery.

“Most multi-course owners are reporting same-store revenues up 4 to 7 percent over the prior year,” said Jim Hinckley, CEO of Century Golf Partners Management, which is associated with Arnold Palmer Golf Management. “Many companies are still trying to get back to the revenue levels of their peak years of ’99 to 2000, but I think most people feel like we’re working our way back.”

Ron Jackson, president and CEO of Meadowbrook Golf Group, which owns, leases and manages 75 courses, said: “We’ve been through some tough times, and the positive improvement going forward is going to be slower than the fall. But we seem finally to have the ability to charge a little more for a round of golf, and consumers are willing to buy a little merchandise in the pro shop, eat lunch in the restaurant and have a cocktail after the round. So we’re seeing some light at the end of the tunnel.”

Owners and operators representing 53 ownership and management groups with controlling interests in more than 1,600 golf courses across the U.S. and around the world attended the NGCOA’s 11th annual Multi-Course Owners Leadership Retreat.

Demographics and leisure trends also bode well for the golf industry, according to seminar moderator Peter Yesawich, chairman and CEO of YPB&R, a leading marketing firm serving the travel, leisure and lifestyle segments. “Over the last few years, there’s been a gradual increase in the number of active travelers who want to play golf on vacation, which is a good omen for the golf business,” he said.

For the first time in several years, NGCOA CEO Mike Hughes noted, the industry is in a “deal-making mood. “The last time there was this much anticipation in the air was back in the early to mid ‘90s, when there was all that Wall Street money trying to find a place to land. It’s obviously different this time around,” Hughes said. 

Hinckley said that investors are looking more favorably at golf courses these days. “I think the industry is on the verge of a transition. As investors start to realize it's an industry with stable cash flow, it opens [new] doors to capitalization strategies,” he said.

In his keynote address, Peter Ueberroth, owner and co-chairman of the Pebble Beach Company, said that although “the competitive spirit of U.S. businesses and sports is at a low point, we have the ability to come back faster [than ever]. As we do, we’re going to be stronger and make a positive difference in the community."

About the NGCOA
The National Golf Course Owners Association is the leading authority on the business of golf course ownership and management. The Association represents the key decision makers with ultimate responsibility for golf courses throughout the world. Through advocacy, information resources, purchasing programs and networking opportunities, the NGCOA helps golf course owners and operators run more successful businesses.