Daniel Island Club shows the value of keeping an eraser close to the drawing board.
No matter how much upfront planning clubs and resorts try to do, they can never be sure of the exact demographic they will draw interest from until they open for business. By being mindful of this fact and staying flexible about how to physically build up both its facilities and membership, the Daniel Island Club, in Charleston, S.C., has taken a unique and cost-effective approach to growth during a challenging period for new club properties.
Like many clubs connected to residential communities, Daniel Island was initially conceived in 2000 as a traditional club that would cater to an older clientele. But what a difference six years makes. Today, the club’s average member age is 48, with many young families in the mix. Rather than an “old school” golf club, it has evolved into a bustling, family-friendly, and full-fledged country club.
As the demographic focus has shifted, the club’s needs, from both a physical and programming perspective, have changed with it. Ultimately this led to a master plan for expanding and renovating the property—even though it was only a few years old—in multiple phases, so the Daniel Island Club could meet member needs without breaking the bank for a complete overhaul from what was originally designed.
Starting out small gave the club flexibility to transform as new members were attracted.
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Room to Grow
Recognizing that change was likely to be in the wind, Daniel Island’s plantation-style clubhouse was originally built with about 14,000 square feet of usable member space. Starting out small gave the club flexibility to transform, expand and renovate the facility as new members were attracted.
And sure enough, after about a year and a half, more space was needed to accommodate the club’s growing membership.
“We embarked on a path to build over time, and came up with a plan of phasing in construction,” explains Greg Keating, Vice President and General Manager of Club Operations. The two phases for clubhouse renovation and expansion focused first on building special event space, and then expanding member spaces.
Why not the other way around? Wouldn’t expanding and improving the high-end, more “showy” member spaces do more to attract interest and help membership sales?
The answer, says Keating, was that there was already a pressing need for event space, to accommodate the club’s increasingly popular family-oriented programs, including family dining nights, special brunches, cookouts and holiday parties.
So building the event space first made sense, both physically and financially: Keating says the club expects to generate $750,000 to $1 million in event revenue in the first full year of the upgraded clubhouse’s operations (Phase One was completed this past October).
“[Event space] will undoubtedly generate revenues that will ultimately help pay the bills for the second phase, which is not for high revenue generation, but for member space needed for a club at this level,” Keating says.
In Phase One, the club added an 8,000-sq.-ft. ballroom, along with a pre-function bar area; restrooms for the ballroom; a bridal suite; event storage space; an employee break room and locker room; and expanded kitchen facilities to accommodate the increased F&B volume. The dining room was also redecorated with new furnishings, carpet, window treatments and paint.
When kitchen construction began in June, the main dining room and bar in the clubhouse were closed for three months. But the club was prepared: Earlier in the year, it had built the Cabana Bar, an outdoor dining facility at the pool, to compensate for lost F&B revenue.
According to Keating, the Cabana Bar “held its own very nicely.” Overall, F&B did not lose much dining revenue during the shutdown. In fact, the Cabana Bar was so successful, the club now plans to expand it down the road.
To further offset costs, electrical and HVAC components for future renovations were installed during Phase One. “We front end-loaded a lot of stuff, which we hope will save us some money in the long run,” says Keating.
“[Event space] will generate revenues to help pay the bills on the second phase.”
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Taking the High End
With Phase One complete, the club is currently moving into Phase Two, with construction to begin in April 2007. During this phase, which will add 23,000 to 25,000 square feet to the clubhouse, a new high-end men’s locker room will be built, while the existing men’s and ladies’ locker rooms will be gutted, combined and renovated to become an expanded ladies’ locker room.
There will also be a new 1,200-sq.-ft. golf shop, as the existing shop is transformed into a high-tech private dining room with audiovisual equipment and wireless technology, to meet demand for business meeting space. Phase Two also includes plans for a casual dining Grill Room.
While all of these improvements may not directly generate revenue on the level of Phase One, the enhancements to member spaces are expected to boost membership sales. “The high-end space gets people excited about the club, and about joining it,” says Keating.
Along with the two clubhouse renovation phases, more changes are on the horizon. The club is currently building an additional 5,000-sq.-ft. pool, and plans to expand its fitness facility will be finalized in spring 2007.
Overall, Daniel Island Club’s phased approach to expansion and renovation has let it be efficient and flexible in catering to a growing and changing membership, without closing the clubhouse or building unused space.
“A lot of developers build cavernous clubhouses, anticipating the eventual buildout,” Keating notes. “But it’s very difficult to make them ‘pencil out’ financially and support themselves. Plus, [starting with] a smaller clubhouse helped us build
the friendly, family-oriented atmosphere we wanted.” C&RB
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