Sequoia expects to double management business

 

Sequoia Golf, which did not add its first management contract until 2008, has more than 22 properties under contract and hopes to double that business over the next two years.

“We own more clubs than we manage and that adds a lot of value,” said Ken Guerra, executive vice president of Sequoia. “As owners, every property has had to be repositioned and so we have gotten very good at that. And most management properties need to be repositioned.”

Joe Guerra, Ken’s brother, started the company, officially known as Sequoia Golf Holdings, in 2002 with the acquisition of seven courses in Atlanta. The company grew through acquisitions, building tight clusters in Atlanta, Houston and most recently Denver. It currently owns 30 properties.

But in recent years the company has found more opportunity in third-party management than in ownership. It has been one of the primary management companies for Textron Financial, which has been repossessing and retaining courses.

“Textron has a great portfolio and they are not willing to sell at the bottom of the market,” said Joe Guerra, President and CEO. “They have been very careful and are the perfect client for us. They have experience and intelligence to know when to cut or when to invest into property.”

Sequoia has taken over management of ten Textron properties, three of which have since been sold.

Ken Guerra said his company generally recommends more bold repositioning plans than other management companies.

“We have a lot of experience with capital investments,” he said. “We are very good at that, and have an in-house [construction company].”

In addition to Greenscapes, its construction arm, the company also has an in-house clubhouse design team, IT services, and marketing arm.

“We have had to adapt because we have had such a large portfolio [of owned courses],” Joe Guerra said. “We don’t see too many other management companies that can duplicate these services.”

Joe said the company has never lost a management contract and will not take on a client unless they know they can add value.

“We are generally following another professional management company in and we can still offer greater efficiency,” said Ken Guerra.

An expanded profile of Sequoia Golf will appear in the Winter issue of Golf Inc. magazine.

 

 

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