hotel with a golf course - need help

[Michael Ealy]

Hi BP Nation,

I am evaluating this hotel with a golf course and I wonder if anyone in BP nation has any experience with this. I invest in hotels so I know what the numbers should be for a hotel and so I can see if there are any operating inefficiencies with it that I can solve and create that VALUE-ADD.

For golf courses, I am not as familiar.

What's the typical NOI vs. revenue (in terms of percentage) does a stabilized, performing golf course has? In apartments, that ratio varies from 40-65% and for hotels it's about 20-40%.

What about golf courses?

[Russ B.]

If I were looking at buying a golf course, I'd definitely want to play it first.. which is gonna be kinda hard to do in February, in Ohio 😅

The reason is, I'd want to see how nice it is compared to others in the area, how well they're maintaining it (is there room for improvement, or is this as good as it gets?), what opportunities for upgrades there are (which depends heavily on the landscape - not just the landscaping), what needs fixed, how busy it is, and what the golfers and hotel guests think of it in its current state.

I'd also want to know how much overlap there is between golfers and hotel guests, which business is attracting people to the other (if any), and if one business is helping keep customers at the other despite some shortcoming. 

With a golf course, that seems kinda hard to do outside the active season.

The two might go together well, if they can efficiently share some resources (ie, kitchen and staff).