ClubCorp acquires two clubs, reports sixth consecutive year of growth

ClubCorp isn’t letting an internal review slow it down. The public company recently announced the acquisition of Eagle’s Nest Country Club, a member-owned country club in Maryland, just north of Baltimore, and North Hills Country Club, just north of downtown Philadelphia.

The Dallas-based public company formed a committee earlier in the year to review and evaluate alternatives to unlock the value inherent in the company and maximize value for all shareholders. While that could mean a possible sale of the company, it could also mean no change and the company's operators are moving forward with plans to acquire and upgrade private clubs. ClubCorp reported revenue of $1.1 billion, up 3.4%, for 2016, and net income of $4 million. Same-store revenue was up 1.9 percent, with dues up 3.1 percent and food & beverage up 2.4 percent. 

“We are incredibly proud of what we accomplished in 2016," said Eric Affeldt, chief executive officer. "The success of our O.N.E. offering, reinventions and acquisitions embody the core competencies that are at the essence of who we are as a company… a successful membership business and a growing network of private lifestyle clubs that cater to our members' needs and wants. As a result, ClubCorp has produced six consecutive years of record revenue and adjusted EBITDA growth. Since 2010, revenue and adjusted EBITDA have grown 8.0% and 8.9%, respectively, compounded annually. To celebrate our 60th anniversary, we will be launching some exciting new product offerings that will expand our addressable market reaching even more prospective members.”

The company's golf properties improved at a better pace than the business, sports and alumni clubs — 4.5 percent growth compared to 1.3 percent. Total golf and country club memberships increased 3.9 percent, while total business, sports and alumni club memberships declined 2.6 percent.

For 2017, the Company expects ROI expansion capital to be approximately $40 million.  Of this amount, ClubCorp plans to invest approximately $26 million on same-store clubs and approximately $14 million on recently acquired clubs, including the two clubs acquired in 2017.

ClubCorp plans to spend more than $1 million on capital projects at Eagle’s Nest that will bring new amenities, improvements and upgrades to the club. CLubCorp COO and president Mark Burnett said the company has plans for a multimillion-dollar reinvention for North Hills.

“We are proud to add North Hills Country Club, an exceptional club rich in history and family traditions, to our portfolio of clubs,” Burnett said. “The club allows us to expand to three clubs in the Philadelphia market, perfectly complementing our Hartefeld National club in Avondale and the newly reinvented Pyramid Club located downtown.”

The addition of Eagle’s Nest and North Hills brings the number of ClubCorp clubs on the Upper East Coast to 23. Additional clubs in the market include Chantilly National Golf and Country Club in Centreville, River Creek Club in Leesburg,  Piedmont Club in Haymarket, The City Club of Washington in downtown D.C. and Tower Club Tysons Corner in Vienna.

“This is great way to start the 47th year of our club's rich history,” said Mary Kay Mosch, president of Eagle's Nest Country Club. “The members cannot wait to take advantage of ClubCorp’s Network and very much look forward to the changes that will come with ClubCorp’s commitment to capital improvements and vast experience in the industry.”

Eagle’s Nest Country Club has an 18-hole golf course surrounded, a clubhouse that offers upscale and casual dining, eight Har-Tru outdoor tennis courts, Olympic-size pool and private event space that can accommodate up to 220.

North Hills Country Club offers an old-style championship golf course with tree lined fairways and small greens with the original design by J. Franklin Meehan. Additional amenities include casual and upscale dining, state-of-the-art swimming facility with three swimming pools — heated competition lap pool, resort-style zero entry pool and wading pool — and private event and meeting space that can accommodate up to 200.

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