Some Huge-Name Resort Courses Enter Bankruptcy
by Charles Boyer on Feb 2, 2011 3:56 PM EST
Email
Print
Times are hard, most will agree, but it seems that the blows landing on leisure businesses and golf in particular are in their hardest times in generations. The following courses have declared bankruptcy, and this isn't your local Generic Creek Neighborhood GC, there are at least three flagship names you undoubtedly know:
- The Grand Wailea Resort Hotel & Spa on Maui,
- the Doral Golf Resort and Spa in Miami,
- The La Quinta (Calif.) Resort & Club PGA West,
- the Claremont Resort & Spa in Berkeley,, Calif.,
- the Arizona Biltmore Resort & Spa in Phoenix,
All filed Chapter 11 bankruptcy after lenders seized them from Morgan Stanley’s real estate funds. Undoubtedly these courses will continue operation, as it is inconceivable for them to escape sale and be sold for land value only. In fact, the bankruptcy move may be a tactic, as these properties were sold on Jan 28 in a single-bidder auction.
10 comments
|
0 recs |
Do you like this story?
Comments
The bottom line is that
there are too many golf courses in some parts of the US. It’s no surprise that the courses you list are in CA, FL, and AZ, that seemingly have way more courses than they can probably support.
I expect more courses to go under over time, not only because of the economy but because of pressures to use golf courses for other land uses, decreasing water availability, increased public scrutiny of fertilizer/pesticide use, etc.
Can't spell "Colletti" without LOL.
You may want to check out...
our post from last week: http://bit.ly/eqYitK
Basically, this has been an issue since 2006. And we blame Tiger.
lol – blaming Tiger – that’s funny
Fathom the odd hypocrisy that the government wants every citizen to prove that they have health insurance, but people don't have to prove they are citizens.
LOL court
it is funny, ha ha Chapter 11 filings go on in business all the time. You only hear about them when it’s a high profile company. News Worthy as they say. Basicly it’s just a financial positioning move to free up some cash flow allowing the corporation to make smaller monthy payments to vendors for a short period of time until the company becomes cash solvent once again. Golf courses and country clubs went through years of glory and good cash flow, creating a large interest with new investors and thus flooding the ‘warm weather’ states with new clubs, hotels/resorts whom all need a steady flow of customers to not only keep them going, but to turn a profit perhaps in five years. I believe that thining the herd, so to speak would be good for the industry overall until such time the world economy gets better.
"pain is only weakness leaving the body" jumpn
The Blue Ballengee has a ring to it.
La Quinta could be picked up by a restaurant chain and just drop the need for translations – Denny’s National would work.
Stephanie is keeping busy – how about Shawtie Wei-lea
Fathom the odd hypocrisy that the government wants every citizen to prove that they have health insurance, but people don't have to prove they are citizens.
Comcast is indeed the financial arm in the agreement but......
NBC will be all controling with most if not all of the day to day operations and new programing decisions for TGC and versus.
The executive leadership team of the newly formed NBC Sports Group – which consists of NBC Sports, Golf Channel, Versus, 11 Comcast SportNets (regional sports networks) and their digital assets – was announced Wednesday by Dick Ebersol, chairman, NBC Sports Group. Mike McCarley a long time sports veteran from NBC has been named the new president at Golf Channel. It’s an interesting merger to say the least and hopefully it will bring positive changes. They can start with with replacing many of the current on-air personalities.
"pain is only weakness leaving the body" jumpn
as long as they don’t get rid of Faldo and Feherty for Thursday and Friday rounds…or fire Steve Sands or Stephanie Sparks – they can do whatever they want. :-)
Fathom the odd hypocrisy that the government wants every citizen to prove that they have health insurance, but people don't have to prove they are citizens.
As Arte Johnson would say....
Eh, progolf….Very interesting. Are changes gonna be quick or the 30/60/90 day plan; get the lay of the land, assess, change.
Dead wood
Ironically, other than Doral, I’ve played all those golf courses, having lived in Arizona and California at various times, and visiting Hawaii often. Those courses are pretty venerable, but they are older, and Biltmore for one is not a course which will appeal to most of the “new generation” of golfers. I’m not surprised that they are losing money. Places like Florida, Arizona and California have been hit hard by the economy and foreclosures, and those 3 states account for a ton of golf courses. During the golf boom years, too many courses were built. Now that the economy is not like before, it is only natural that the pendulum swings the other way and some of the dead wood courses are pared away. I wouldn’t worry about, there are still many golfers.
GAR..It doesn't seem that many years ago when I would go play the Biltmore and the Wig-Wam..
They both attracted large crowds of Snow Birds during the winter….I saw some Gin Rummy games in the locker room at the Biltmore, that would cause a lot of people to get real nervous…25 cents a point in those days….And the food at both places was out of sight…Top Chefs came to get out of the winters up East….Everyone dressed for dinner…Quite a sight, …don’t see that anymore…..now, they come dressed with jeans with holes in them….STUB
STUB
Comments For This Post Are Closed
Secondary Sidebar
User Tools
Have a golf story tip? Contact editor Charles Boyer and he will follow the story! Thanks!
FanPosts
Community blog posts and discussion.
