Study: $1.1 billion spent on club upgrades

Clubs in Florida invested more than $1.1 billion in capital improvements between 2015 and 2017, according to a new report from the financial consulting firm RSM US.

The findings are included in the firm’s recently released 2018-19 edition of “Trends in Private Clubs.” This is the firm’s 44th annual report on the financial and operational trends in private clubs throughout Florida, the state with the highest concentration of clubs. 

“Successful clubs know they have to maintain their reputations and protect their brands,” said RSM Partner Philip Newman. “Integral to doing this is establishing a program of continual reinvestment in, and replenishment of club amenities and program offerings.”

Among other findings, the study reported that payroll-related costs per full member equivalent increase by more than 3 percent to $9,300 in 2017.

The annual report highlights trends uncovered through more than 200 private club clients RSM audited in Florida during the last fiscal year (for year-ends through Dec. 31, 2017).

While clubs have evolved sporting and leisure offerings far beyond golf, the cost of golf course maintenance remains the largest single part of most clubs’ annual operating budgets. Cost per hole for 18-hole facilities topped out at $91,600, while the comparable number for multiple course clubs was $85,800.

More information about the report is available on the RMS website: rmsus.com.

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