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Consultant sees market potential for Alhambra golf course

Photo by flickr user Business Furniture Inc. licensed under CC BY-SA 2.0.

Location

Alhambra , CA United States

Alhambra’s 18-hole golf course is profitable, but could be even more so, according to a consultant who presented an analysis on the course during last Monday’s City Council meeting.

The city hired Z. Gordon Davidson and Associates, which specializes in golf course and resort analysis, to look at Alhambra’s golf course ahead of finding a new operator. The current operator Jerry Wisz is retiring at the end of the year. The city plans to use Davidson’s presentation in their search for a new operator.

The golf course has increased their revenue from $1,325,699 in 2016 to $1,395,451 in 2018, said Davidson. Net profits increased from $3,459 to $45,857 over that same time period.

Davidson projected a potential increase in revenue to $1,469,050 a year, with a probable forecast of $112,600 in profit, as well as an optimistic forecast of $195,100 in profit. He recommended upgrading the driving range, improving irrigation and customer service at Almansor Grill and to align expenses with that of the industry to increase profitability.

Golf profits in California are on the decline, with many courses closing and being absorbed by gated communities. Davidson found potential for the Alhambra Golf Course to attract more golfers, given the average household income of $75,000 – $90,000 within a 30-minute drive-time radius around the course. Golf courses that perform well tend to have customers with an average household income of $50,000.

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