Is Owning a Golf Course Profitable?

Golf courses become profitable by increasing sales or reducing expenses. Costs range from $500,000 a year for daily-fee course to $1 million for private club.
In winter, reduced green fees attract more players. Promotions in the bar/restaurant give members a reason to attend when not playing.
Building a course costs $10 million. Land purchase adds more. Greens cost up to $60 per square foot.
For beginners, expensive clubs are not worth it. Learning to swing; technology is not much help.

Average golf course salary $24,000-$39,500. Top earner makes $56,500.
How do they make money in winter? Offer reduced fees, bar promotions.
What’s a $100k earning club worth? $800k-$1.6 million based on earnings multiples.
130 million play mini-golf yearly. Mini-golf generates $1 billion revenue, has growth and staying power.

Most golf courses privately owned. Avid Golfer magazine estimates monthly dues of $1,025 at private clubs.
Initiating a golf course business involves substantial financial commitment influenced by location, market, expenses. Estimated starting cost around $3.8 million.
Profitable courses sell for 6-8 times EBITDA. Unprofitable ones sell at 0.8-1.4 times revenue.
Weather significantly impacts profitability. Clubs should invest in course maintenance, have contingency plans.
Membership provides predictable revenue used for improvements. Most fall in 15-25% profit margin range. Assess financials regularly to remain profitable.