Calculating the Return on Investment of Waterfront golf for luxury resorts
Executive Summary
Waterfront golf represents the next generation of resort programming. This experience activates your property’s shoreline in a unique, novel way without the need for permanent construction or environmental disruption. Utilizing our proprietary Zero® Biodegradable Golf Balls and GPS-enabled floating targets, waterfront golf provides a signature amenity that elevates the guest experience and the property's bottom line simultaneously. Based on ten years of direct operational data from our Full Service activations across the Mid-Atlantic, this analysis demonstrates how waterfront golf drives incremental revenue, offers high margins, and provides a rapid payback period on your resort’s initial investment.
Built on Direct Operational Experience
The data in this analysis and our ROI projections are derived from a decade of our company running Full Service Waterfront Driving Ranges at the most prestigious waterfront venues in the Mid-Atlantic. These venues include The Chesapeake Bay Beach Club, Sagamore Pendry Baltimore, and the Wylder Hotel. This analysis reflects real-world financial performance, not a theoretical sales pitch.
How Resorts can Monetize Waterfront Golf
a. corporate events & weddings
The logos above represent examples of corporate groups that have paid for waterfront golf activations. Waterfront golf offers an opportunity to provide your event clients with a value-add experience while driving incremental revenue. Resorts can earn over $7.00 per ball in revenue, or between $2,500 - $5,000 per two-to-four hour waterfront golf activation, from corporate events and weddings at over 60% profit margins.
B. Beverage Sponsorships
The logos above represent examples of beverage companies that have sponsored waterfront golf activations. Your beverage vendors are constantly seeking innovative ways to engage with high-net-worth resort guests in a relaxed, social environment. Waterfront golf provides a premier branding platform that aligns with the "Eco-Luxury" lifestyle. High-end spirits, champagne, and beer brands are often willing to pay upwards of $10,000 to sponsor a seasonal activation or a specific event series.
C. Food & Beverage Sales
Waterfront golf keeps resort guests and event clients on-property. This results in increased dwell time, leading to more opportunities to drive sales from food, beverage, and other on-property retail. Resorts that activate waterfront golf near their bar or restaurant create an atmosphere that encourages guests and participants to stay longer.
The initial investment in waterfront golf
Waterfront Golf requires zero permanent construction and no disruptive infrastructure changes. Rather, the initial investment is in equipment that inherently makes this activity a “pop-up”. This allows your resort to match this amenity with your long term event and recreational programming goals. A proper water golf amenity includes the following elements.
A. Initial Stock of Biodegradable Golf Balls
Volume pricing for our Zero® Balls begins at 1,000 balls. Most resorts purchase between 1,000 - 10,000 balls per order. The estimated upfront cost for the initial stock of biodegradable golf balls is $1,350 - $11,500.
View Zero® Ball Environmental Fact Sheet
B. Floating Golf Target
Our GolfShotBot floating golf targets are available for purchase, lease, and rent. The condition of the GolfShotBot (new or used) and the technology package the resort selects determines the price of the target. The estimated upfront cost for the GolfShotBot floating golf target is between $3,500 - $12,000.
Explore GolfShotBot Floating Targets
C. Hitting Platforms
We recommend that resorts invest in at least two hitting stations because multiple people participating at the same time enhances the guest experience. The hitting stations we recommend are mobile, sturdy, and can be used on multiple surfaces and slopes. The estimated upfront cost for two hitting stations is $4,000.
D. Golf Accessories
Items including golf clubs, golf ball buckets, and branding elements. The estimated upfront cost for golf accessories is $1,000.
ROI Calculation and Payback Period
A. waterfront golf Initial Investment
Let’s assume a venue purchases a brand new GolfShotBot with the technology package ($12,000), two hitting stations ($4,000), and golf accessories ($1,000). Using the assumptions listed in the previous section, the total upfront equipment cost is $17,000.
b. profit per waterfront golf activation
Our internal data suggests a resort can generate between $3.00 and $10.00 per ball in incremental revenue for a corporate event or wedding waterfront golf add-on at a profit margin of 60%. Let’s assume $5.00 per ball in revenue for this calculation, or $3.00 per ball in profit. Note that the profit margin includes the cost for biodegradable golf balls and the cost for the staff to run the event.
C. Payback Period and ROI
With a per ball profit of $3.00 per ball, it would take 5,667 balls to break even. Our internal data shows that a typical group goes through between 500-600 balls per event, meaning that a resort can reach breakeven in ten events. Every event after that represents pure profit for your resort. The images above shows the ROI a resort can expect to make on a waterfront golf amenity. Note that this Payback Period and ROI calculation doesn’t take into account revenue from beverage sponsorships and revenue from additional F&B spend.
Ready to add waterfront golf to your resort?
Some of the world’s most prestigious resorts are incorporating waterfront golf into their recreational and event programming. As the only company in the world that manufactures biodegradable golf balls, distributes technology-enabled floating golf targets, and produces world-class waterfront golf activations, we are the best positioned to be your resort’s partner. Get in touch with us to learn how to get started with a waterfront golf amenity for your resort.