Inside the factors driving valuations in today’s market — and what owners need to know before they buy or sell.
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The golf market is hotter than ever, and the latest deals are proving it.
In June, Arcis Golf made headlines by adding three historic Georgia clubs to its portfolio, while also striking one of the biggest private club transactions in recent years with the rumored $200 million range purchase of The Woodlands Country Club near Houston.
For many in the industry, that price tag was stunning. But experts say the surge in values for high-end private clubs is less an anomaly than a reflection of today’s market forces — where strong financials, prime locations and surging demand are rewriting expectations for what a golf property is worth.
As the market for golf clubs continues to explode, Brandon Schempp, first vice president of the global commercial real estate leader CBRE, explains it really shouldn’t surprise anyone.
“High-end clubs with strong financials in locations that allow the sport to be played most of the year or year round are garnering high purchase prices,” Schempp said. “These clubs are commanding multipliers that are 7 to 9 or even 10 times the EBITDA (earnings before interest, taxes, depreciation and amortization).”
Given that few sales prices are actually made public and the number isn’t meaningful unless one knows the multiplier and other details of the sale, how do owners/operators really know what their clubs are worth?
Supply and demand
While it’s clearly a seller’s market, the asking price for an individual property is directly tied to factors such as supply and demand, which have essentially been turned upside down since the COVID-19 pandemic.
In fact, the industry during 2000-2020 was losing approximately 100 clubs per year, according to Jeff Davis, managing director of Fairway Advisors.
But when the pandemic hit and there were few recreational opportunities, it gave die-hard golfers an additional reason to play, and it created a whole new generation of amateur players.
“Many people saw golf as an opportunity to participate in a safe socially distant activity,” Davis said. “Now, instead of closures, we are seeing long waiting lists for private clubs and healthy revenue streams for daily fee and municipal courses.”
A lucrative formula
Though business is booming at many clubs, how much a specific course is worth is directly tied to several variables — two of the most important of which are revenue mix and EBITDA.
And those numbers are inextricably related to location.
“Much like a home or condominium, there are certain trophy markets for golf clubs,” Schempp said. “Explosive markets due to high demand include Southern California; Scottsdale, Arizona; Las Vegas; Naples, Tampa and Jupiter, Florida; and Dallas and Austin, Texas. These markets also tend to have wealthier residents who can afford expensive membership rates in both good and bad financial times.”
Schempp said in some places such as Scottsdale and Naples, there are waiting lists for high-end private clubs with people willing to pay $500,000 or more a year to join.
“A potential buyer aware of extended waiting lists at competing clubs can reasonably expect a consistently strong membership, which allows for financial stability and enhancement of the club’s facilities for further growth,” Schempp said.
But while location can add up to a much higher sales price, the land on which it sits is not necessarily valuable.
“The land is only as valuable as its zoning allows,” Davis said. “Most courses are not zoned to be anything other than a golf course.”
Deferred maintenance
While the right location and zoning can add great value to a club, if the facility is poorly maintained that will decrease the multiplier.
For example, a property with an outdated clubhouse, poor irrigation system or other maintenance issues can garner a lower sales price even in hot markets.
“As a buyer, I am not only looking at past and present operating performance, it is also critically important to understand what level of capital expense will be required post-transaction, and when to maintain the profitability we’ve based our valuation on,” said John Pugliese, chief executive officer of Landscapes Unlimited, which develops, owns and operates golf courses around the country and internationally.
Mike Suglich, a certified public accountant who serves as president and founding partner of Greenlight Advisors, said high deferred maintenance costs can be a fire sale for a purchaser.
“Golf courses that have aging major capital assets are at great risk,” Suglich said. “In many cases, the conditions of those courses are inferior to those that allocate annual reserves for capital improvements. Your top operators and management companies understand this principle. The courses that don’t are not very profitable and could be going down a slippery slope.”
Greenlight Advisors, a fintech company, has built a framework for capturing financial and operational data to help businesses benchmark their performances against industry averages.
The company is currently conducting its 2025 U.S. Municipal Golf Study, which includes five new metrics on deferred maintenance. The new metrics seek to identify the age of a course’s irrigation system, bunkers, greens, golf cart fleet, maintenance equipment, capital improvement plan and funding sources.
“We plan to analyze and benchmark this information, along with the financial and operational data, and then share it with the participating golf course operators so they understand how they compare to the industry standards,” Suglich said. “The goal is to identify weaknesses, take action and improve long-term performance.”
Value by club type
“What we love to see are private courses run by operators that are focused on customer service and as a result have larger expenses,” Schempp said. “We know that if an operator has excess expenses, we can market the club to buyers who will be able to come in and immediately make improvements to the bottom line.”
Schempp said some of the best properties are high-end private or those located in masterplan communities that require membership within the gates.
“This means revenue flow is guaranteed because if [members] fail to pay dues a lien will be placed on the house and if they sell it there will be a transfer fee,” Schempp said.
Some privately owned public courses also do quite well, Suglich said, especially those that have followed the private club membership model.
“The well maintained and operated municipal courses can be very profitable,” Suglich said. “They are rarely sold and if they do perform poorly could be turned into a different type of asset such as a park.”
However, he added, that park could be a more costly asset to maintain.
“Your top municipal golf course operators understand that and allocate profits annually for improvements to drive long-term sustainability,” Suglich said.
Adding value
As is the case with a home or condominium that’s on the market, Schempp said amenities can add value to a golf club, but the biggest boost is to private clubs.
“Amenities are a great way to get social memberships at private clubs,” Schempp said. “If my club has a pool or other amenities then I can bring my family and friends. This is more important in suburban areas than metropolitan areas so what an owner offers should be directly tied to the demographics of the area.”
The decision to sell
With the golf industry on fire at the moment, experts say if an owner/operator is considering selling, now is the time.
Davis said revenues are higher now, which means your course is worth more.
“Generally speaking, courses are more profitable today than they were three years ago,” Davis said. “There are also more buyers in the marketplace. This results in higher prices than we have previously seen.”
Pugliese agrees.
“There are plenty of good deals for buyers and sellers in today’s market,” Pugliese said. “Sellers can reap the rewards of staying the course over the last couple of decades of ups and downs, and new owners have a bright future with a market propelled by very durable demand across the most healthy and diverse demographics the industry has ever seen.”
While unlocking post-transaction value is almost always a goal, Pugliese said the player experience must remain top of mind.
“Buyers should be cautious about compromising the customer experience in pursuit of short-term financial gains,” he said. “The game of golf and the business of golf are long-term plays. People play golf for life; they join clubs for generations, and any investment approach that doesn’t place this reality at the center of the strategy is doomed to fail.”
(This story originally appeared in the November/December 2025 issue of Golf Inc.)
