State of the Industry Remarks Warn of ‘Economic Darwinism’ If Owners Fail to Properly Prepare~ ~Former All-American Golfer Sees ‘All of America’ as Vice President of Pulte Homes / Del Webb
ATLANTA, GA (February 10, 2006) ~ Addressing the world’s largest gathering of golf course owners and operators at the 2006 NGCOA Conference – the Solutions Summit, during the nationally-noteworthy ‘State of the Industry’ roundtable, the incoming president of the National Golf Course Owners Association emphasized the value of course owners to be well-informed and properly financed in order to prosper in the coming economic cycle.
Henry DeLozier, who serves as Vice President for Active Adult Business Development and Vice President of Golf for the nation’s largest homebuilder, Pulte Homes/Del Webb, knows a thing or two about identifying and anticipating changes in the marketplace. In his role with Pulte, DeLozier crisscrosses the nation weekly to assess and assist Pulte’s response to the explosive growth of community development, fueled by the economic juggernaut known as the ‘Baby Boomer’ generation. Noting that in 2005 homebuilders were responsible for roughly 60% of all new golf courses opened, he said that this percentage represents a significant increase from the 48% level reported by the National Golf Foundation in 2004. The proportion is growing dramatically for two reasons: (1) the historic source of new courses (resorts, tribal gaming and wealthy individuals) has dropped off dramatically; and (2) alert large homebuilders – like Pulte and Shea – are tapping the popularity of golf among the Baby Boomers.
Ironically, DeLozier rose to his position of national prominence –he is regularly counted on anyone’s poll in the top 20 ‘most influential persons in golf’– while serving as head of golf for Del Webb, before the acquisition by Pulte in 2001. Visionary developer Del Webb, pioneer of today’s ‘active adult community’ concept, put the golf courses in the first Sun City because ‘that’s what retired people like to do – play golf!’
Today’s consideration of the value equation of prime land dedicated to a golf course as a driver for real estate sales, has taken on the complexion of intricate asset management, rather than a simple byproduct of lifestyle and generational preference.
Four Key Indicators of Change
The NGCOA’s 2006 Summit Solutions State of the Industry session addressed the complex and ever-expanding golf industry from multiple perspectives: real estate development, lifestyle trends, legal liabilities, financial benchmarks, food and beverage, advocacy issues and travel trends.
DeLozier forecast four key elements derived from recent data compilation and observation:
1. The proportion of new golf courses being built will swing decidedly to homebuilders.
2. This is a time of economic Darwinism for golf course owners. Those who are best informed and properly financed will prosper.
3. Golf course owners that have developed comprehensive financial and market-driven strategies will separate themselves from market competition.
4. The great challenge for golf course owners and operators is to exceed budgeted revenues.
For more, visit: http://www.ngcoa.org/ss2006/speakers.asp#state
About Henry B. DeLozier Henry B. DeLozier is Vice President of Golf for Pulte Homes, and is responsible for the development, operation and ownership of the portfolio of golf assets. The Pulte golf portfolio includes 22 golf courses in twelve communities nationwide, and exceeds $250 million in assets. Henry joined Pulte in 2001 through its acquisition of Del Webb where he was hired in 1999. Prior to joining Del Webb, Henry was a founder and managing partner of Lyon Golf, a Phoenix-based golf and country club development and management company. In 1996 Lyon Golf merged with Resort Management of America, which Henry created in 1987. In 2002 and 2003 he was recognized by Crittenden’s GolfInc magazine as the tenth "Most Influential People in Golf." Henry is a graduate of Oklahoma State University (B.A. – English) where he was an All-American golfer. He and his wife, Susan, have two children, ages 15 and 13. www.pulte.com
About the NGCOA
The National Golf Course Owners association provides owners with the tools they need to succeed in the complex and competitive golf business. Their success ensures that the playing fields continue to meet the demands of passionate golfers across the globe. The goals of the NGCOA include
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