According to the 2017-18 edition of Trends in Private Clubs by RSM US LLP, private clubs in Florida have spent $1.49 for every dollar of depreciation they have incurred, and “are staying ahead of the curve when it comes to replacing club infrastructure.”
RSM US LLP, a provider of audit, tax, and consulting services focused on the middle market, recently released its 2017-18 edition of Trends in Private Clubs. This is the firm’s 43rd annual report on the financial and operational trends in private clubs throughout Florida, the state with the highest concentration of clubs.
The annual report highlights trends uncovered through 200+ private club clients RSM audited in Florida during the last fiscal year (for year-ends through December 31, 2016). Findings are presented from statewide and regional perspectives, and are segmented by types of clubs, as well as key comparisons from the previous year.
Successful clubs are continuing to make capital improvements; 46% of clubs are planning what they consider to be significant projects in within the next 12 months, the highest this percentage has been since RSM started tracking this statistic.
“Over the last five years, clubs statewide have spent $1.49 for every dollar of depreciation they have incurred,” said Philip Newman, partner and national private clubs industry leader. “They are staying ahead of the curve when it comes to replacing club infrastructure and realize that capital spending is all part of the continuing process of meeting member expectations and remaining competitive.”
“Food and beverage revenue per FME is up more than 3% this year and up 22% over the past five years,” said Tammy Tassitano, partner and national director of club services. “This is significant because most of the clubs are private in membership and have a limited number of diners, so it is member usage of exciting new facility offerings that is actually driving the numbers.”
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 $90,500 while the comparable number for multiple course clubs was $82,900.
For more information and to download the 2017-18 edition of the report, visit the private clubs industry page of the RSM website.