Troon bullish on future, keeps adding courses

Troon Golf is bullish on its future, and the world’s largest management company expects development activity to pick up over the next year — both outside and inside the U.S.
 
“We believe there will be a restarting of development projects — even in the U.S.A.,” said Dana Garmany, CEO of the world’s largest management company. “There is some viability because the numbers are so low. It won’t be what it was, but there will be an up tick.”
 
Prior to the economic crisis in Fall 2008, an estimated 70 percent of Troon’s portfolio consisted of golf courses that it had helped to develop. Then over a 16-month period, 25 properties shut down. Most were projects in development, a few were bank take-overs.
 
But Troon has more than made up for those losses and today has more than 210 18-hole equivalent courses across the globe.
 
Most recently it took over management of Oued Fes in northern Morocco. The new resort, residential and leisure development is part of Morocco’s hope to become a major golf destination. The project is being developed by MEDZ, a subsidiary of the holding company CDG Development.
 
The company also continues to add properties in the U.S. — mostly private clubs and bank-owned courses.
 
It took over The Falls Resort & Golf Club in New Ulm, Texas in late June. The Falls is a resort community which features a residential community, a vacation ownership resort, and a hotel and conference facility. The resort operates through a group of companies jointly owned by Breakaway-Falls Development, LLC, a wholly-owned subsidiary of Breakaway Development Group, LLC; and Texas Falls Corporation, owned by the Swalm Foundation. Breakaway Development Group, based in Houston, Texas, specializes in the development and revitalization of resorts and resort communities.
 
Troon also recently announced enhancements to its Troon Family Golf program, a conscious effort to lead the way in introducing juniors to the game. Troon Family Golf now offers complimentary golf instruction for juniors when taking a lesson with a paying adult.
 
Juniors and families across the globe now benefit from the program, which recently expanded outside the United States into Europe, Middle East and Africa. In addition to free junior golf instruction, Troon Family Golf allows juniors to play for free after 3 p.m. when playing with a paying adult and complimentary junior rental clubs at more than 90 participating facilities.
 

“Making golf instruction more accessible to junior golfers is a key component to both growing the game and ensuring that young players are developing their skills and having fun,” stated John Easterbrook, executive vice president, operations, Troon. “The golf course is an ideal setting for families and Troon Family Golf makes it easier for people to gather and enjoy quality time as a family,” he added. 

Comments

That's good news for Troon! I would love to see them put a little more effort behind China, though. I know they have been talking about going over there, and have begun working with several facilities in China... but that market is HUGE and has a ton of growth potential. Regardless, moving into these new markets, and getting over 210 is a big deal. I can't wait to see what's next for Troon.

Troon does a great job. It isn't easy to be consistent in the golf business but these guys do it right at almost all of their courses. Interesting to hear that the CEO is bullish on the future, albeit at a different level. Look forward to them hitting 300..

Troon does a nice job, but they don't have any ownership stake in the courses they manage so there is no "skin" in the game. Mr. Garmany should be bullish on their model... when banks and REIT's repo courses, they don't know how to operate them, so they go find Troon or another management co. They come in find 25-30% savings through salary cuts, purchasing programs, etc to help justify the $50k-$150k/year management fees to cover corporate overhead, then just wait until the bank can unload it. Great model if you ask me..

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