Thursday, May 05, 2005

Pricing a TPC Project

The TPC project in San Antonio continues apace with early routing work being done to the site off U.S. 281 just outside Loop 1604. But how much will the two courses cost to build, and how much with they cost to play?

A tentative answer to the first question, which provides a clue to the second, was revealed in a San Antonio Express-News update on the sweetheart bill introduced to the Texas Legislature on behalf of the project developers by Sen. Jeff Wentworth (see earlier post for details).

According to the newspaper, construction costs for the two golf courses - one a TPC course and the other a resort course - will be around $25 million combined. Can we translate that into expected green fees? Yes.

There is no hard-and-fast rule, but the general rule-of-thumb is this: for every $1 million in golf course contruction costs, figure $10 in green fees. So a golf course that costs $6 million to build will likely open with a green fee around $60.

With an anticipated $25 million in construction costs, therefore, expect the two courses that will make up San Antonio's TPC resort to have a combined $250 in green fees when they open. The TPC course will be higher-priced than the second course, so maybe $150 or $175 for it, and $100 or $75 for the other.

1 comment:

  1. Anonymous8:18 AM

    do you think anyone in san antonio will be willing to pay that much?

    ReplyDelete

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