Kanata Lakes on its way out???

[Sakuraba]

I agree with the estimate. That’s about half what Hunt Club spends on maintenance. It’s not cheap keeping courses in top shape. And I have to believe it’s one of the first things to get cut when purse strings tighten. But as previously posted, as conditions downgrade the fee payer or member becomes disappointed because they aren’t getting the same quality for money spent and choose to to go elsewhere. Then they leave and even less money comes in therefore conditions go down further and more people choose to leave.... Its a brutal cycle and it’s happening all over this area

I've been saying this for a long time now. It has never been more expensive to operate a golf course, and yet somehow it has never been cheaper to play. Something has to give, especially with the fact that # of rounds played is down. The market cannot continue in that direction. Courses that don't charge enough will close. At least the courses whose real estate is valuable can sell.

[big mac]

I've been saying this for a long time now. It has never been more expensive to operate a golf course, and yet somehow it has never been cheaper to play. Something has to give, especially with the fact that # of rounds played is down. The market cannot continue in that direction. Courses that don't charge enough will close. At least the courses whose real estate is valuable can sell.

Simply put and to the point Couldn't agree more.

[jeffc]

Simply put and to the point Couldn't agree more.

Yet Clublink says it was very profitable and the most of the courses they have in Ottawa. So it’s not that it’s not making $, its that the land is worth a lot more being developed into houses.

[Johnyc]

Yet Clublink says it was very profitable and the most of the courses they have in Ottawa. So it’s not that it’s not making $, its that the land is worth a lot more being developed into houses.

Are some courses making a profit, yes. But I’d be willing to bet that these are the courses that have diversified their business and are now into weddings, conferences, etc. The golf business model is broken. As someone said above and in which I completely agree, more money isn’t coming in but costs continue to rise. Not a great model

[jeffc]

Are some courses making a profit, yes. But I’d be willing to bet that these are the courses that have diversified their business and are now into weddings, conferences, etc. The golf business model is broken. As someone said above and in which I completely agree, more money isn’t coming in but costs continue to rise. Not a great model

I get that, but in this case it's not what is happening.

[Johnyc]

I get that, but in this case it's not what is happening.

Just found this on page 22 of clublink’s annual report;

Canadian Golf Club Operations

Management is expecting 2018 revenue from the amortization of membership fees to be approximately $6.6 million compared to $7.7 million in 2017. This decline is primarily the result of the members that joined in 2004 completing their amortization period in 2017. Commencing in 2018, this group of members will continue to generate revenue on a cash received basis.
In general, membership fee collections have been declining over the last five years due to the downward pressure from our competitors and an oversupply of golf courses in the markets that the Company operates. The average membership price for 2017 was $4,107 as compared to $5,996 for fiscal 2016 and $9,202 in 2015. This trend is expected to continue in the short-term. Inflationary increases for annual dues are still the norm.

Can’t find any information specific to Kanata but that’s a significant drop in revenue. Average membership prices have dropped 60% in two years.

[jeffc]

Just found this on page 22 of clublink’s annual report;

Canadian Golf Club Operations

Management is expecting 2018 revenue from the amortization of membership fees to be approximately $6.6 million compared to $7.7 million in 2017. This decline is primarily the result of the members that joined in 2004 completing their amortization period in 2017. Commencing in 2018, this group of members will continue to generate revenue on a cash received basis.
In general, membership fee collections have been declining over the last five years due to the downward pressure from our competitors and an oversupply of golf courses in the markets that the Company operates. The average membership price for 2017 was $4,107 as compared to $5,996 for fiscal 2016 and $9,202 in 2015. This trend is expected to continue in the short-term. Inflationary increases for annual dues are still the norm.

Can’t find any information specific to Kanata but that’s a significant drop in revenue. Average membership prices have dropped 60% in two years.

At their AGM they said Kanata was very profitable.