Skip to main content

Financial Returns for August outpaced last August

In 2014, the Town of Oro Valley purchased two 18-hole golf courses, El Conquistador and La Cañada, from HSL Properties.

BACKGROUND

In 2014, the Town of Oro Valley purchased two 18-hole golf courses, El Conquistador and La Cañada, from HSL Properties. HSL utilized a different national golf management firm to operate the courses and the Town agreed to retain the firm for five years as part of the acquisition.

Since then, the courses required a significant financial subsidy and the Town explored repurposing all or some of the courses. In early 2020, the Town issued an RFP to identify a new operator with the vision and proven experience to right-size financial performance of the courses and generate sufficient funds to address upcoming capital needs. Part and parcel was the Town’s clear expectation that the courses provide positively memorable experiences and value to residents alongside tacit understanding that the courses are largely dependent on tourists and seasonal golfers.

IMPLEMENTATION

After a thorough RFP process, Indigo Golf Partners was selected by the Town to begin operating both courses on July 1, 2020. Indigo Golf Partners believes achieving long-term, self-sustainability for the courses requires stronger engagement with the community. To be clear, in destination markets, “community” represents greater-than-normal, 20-minute drive times. To this end, Indigo Golf Partners is focusing on: (1) data-driven, targeted marketing; (2) yield management (evaluating annual passholder pricing and implementing a loyalty programs); (3) improved guest experiences; (4) right-size expense model; (5) community-centric activities for families; (6) growth-of-the-game initiatives; and (7) culture shift.

RESULTS

A seamless transition throughout July impressed golfers and Town staff, especially given heightened COVID-19 safety concerns and precautions.

Financial returns for August outpaced last August by $100,000. Indigo Golf Partners and the Town are excited about the future of this new partnership.

Share
About the Author
With 30 years’ experience in golf, Mike oversees Indigo Golf Partners growth plans and specific lease, acquisition, consulting and third-party management opportunities. He enjoys an invaluable talent of dissecting ways golf courses, country clubs and resorts can create significant new revenue and save expenses without compromise to quality. Previously, Mike managed the company’s vast southeast portfolio. A PGA member, he is a graduate of Mississippi State University, an avid cyclist and diehard college football fan.