Economics of par 3 courses at resorts

[Carl Nichols]

A number of high-end resorts--e.g., Bandon, Pinehurst, Sand Valley--have built par-3 courses that have been well received and that appear (anecdotally at least) to be quite busy.  Are they generally more or less profitable than the full 18-hole courses?  On the one hand, of course, the greens fees are lower--but they might have more rounds/day, and in any event the expense side is almost certainly lower too.  Or are there so many variables that this will be context-specific and one can't draw any general conclusions?

[Peter Flory]

I don't know the answer, but another consideration is that they retain guests and spread out the rush hours on the big courses.  So, the profitability calculation may be more abstract as it might pay off in room rates, higher occupancy, F&B, etc.  It is definitely an interesting topic. 

[Greg Tallman]

Highly unlikely they would pencil out on their own merits but as part of a busy resort operation they might generate some considerable revenues with not much incremental cost.


Year round resort best guess for best case scenario would be a hair over $2 million in revenue before cost allocations are considered.


Worth the effort? Only if keeping up with the joneses or utilizing a relatively worthless piece of land. Or setting the bar for others in terms of what “resort golf” means at this time.

[Carl Nichols]

I don't know the answer, but another consideration is that they retain guests and spread out the rush hours on the big courses.  So, the profitability calculation may be more abstract as it might pay off in room rates, higher occupancy, F&B, etc.  It is definitely an interesting topic.

Absolutely.  Even the on-course F&B (or B!) might be substantially higher. 

[Steve Lapper]

Many good reasons have been mentioned, however another primary one is to give their guests one more golf-related amenity that helps provide an attraction for those who don't enjoy walking 36 full holes a day.


It makes a ton of sense to provide the avid golfing customer some form of less constructed, more relaxed entertainment. Alcohol sales (the highest margin product on the property) are usually brisk and help propagate a happier vibe. The costs to build and maintain this kind of asset are marginal on a relative basis and profitability on these courses (if attractive and well-positioned) are likely fairly high.

[Tom_Doak]

While building a par-3 course means you have to take care of that many more greens, the maintenance for the rest of them is relatively little.  The 12-hole Mulligan at Ballyneal is only 7 acres of maintained turf, compared with 53 acres on the big course!


The economics work great if it's an add-on to an existing project, because you don't have to hire a superintendent or build a maintenance building or buy a bunch of equipment for them -- you already have everything you need.  Those factors would make it difficult to operate as a stand-alone entity.