Home
Feature Focus
Editorial Board
Editorial Calendar
Hotel Newswire
PURCHASE PDF ARTICLE
Mr. Trump Jr.
Development & Construction
Effective Golf Course and Club Development Today
By Donald Trump Jr., Executive Vice President Development & Acquisition, The Trump Organization
Co-authored by Eric F. Trump, Executive VP of Development & Acquisition, The Trump Organization
It’s no secret that Donald Trump has a passion for three things: 1) business 2) building and 3) golf. Seldom is a business grown simply out of passion, but for our father, there is no question that his excitement for the game created the foundation for what is now an integral and incredibly lucrative part of The Trump Organization.
Similar to the hotel industry, successful golf development requires a combination of disciplined strategy and strong positioning in the marketplace. Trump has a unique differentiator – a globally recognized brand, rarely found in the golf world – which attracts the world’s top clientele and commands an incredible premium. Additionally, our longstanding development and managerial track record has provided a tremendous advantage. Together, these factors have created an unrivaled niche in the golf marketplace, where we can provide our exclusive membership and high end clients an unparalleled five star experience from the course to the clubhouse. This has given us not only remarkable success, but the ability to cherry-pick the courses that are the perfect additions to our already award-winning Trump Golf portfolio.
Contrary to many companies who have suffered dramatically due to the economic downturn, The Trump Organization is a well capitalized private company with the known resources and stability to take advantage of market timing. As we come out of a recession, many golf courses, like other real estate assets, are “at risk” and are often in the hands of banks, teetering on foreclosure. Others are being managed by a struggling equity membership seeking solutions and a more stable future. As a result, we have seen more opportunities than ever in the golf sector, even in the most pristine and luxurious locations, and have the financial ability to capitalize on them. In the last 18 months alone, we have purchased 4 new courses - in Washington D.C., Philadelphia, Hudson Valley, N.Y and Colts Neck, N.J. This has led to the most aggressive expansion of golf course assets in recent history.
Trump National Golf Course, Washington, D.C.
In evaluating the multitude of assets crossing our desks on a monthly basis, location is always the distinguishing factor. This is a direct result of our development experience – Trump properties are always in the best locations, and our golf clubs are no different. In Florida, for example, Trump International Golf Club is located in the heart of Palm Beach, one of the country’s most beautiful and affluent destinations. Trump National Golf Club, Washington, D.C., purchased in 2009, features 2 courses with 2 miles of frontage on the Potomac River. Similarly, Trump National Golf Club, Los Angeles has all 18 holes terraced over the Pacific Ocean – a course which has been regularly called the #1 course in California and “The Best Golf Course in the West.”
Great locations naturally provide strong demographics. Much the same way that a true 5-star hotel is operated on strong ADR’s and occupancies, a super-luxury golf course needs strong membership with annual dues that will help to sustain the high cost of course operations and management. In addition, an affluent location will also support collateral income from food and beverage-related activity, such as weddings, bar mitzvahs, birthday parties and other events, which like a hotel’s “group business”, can often be the difference between a break even property and one which is incredibly lucrative.
Other than location, Trump evaluates each course to gauge its long term financial viability even if it has currently fallen on hard times. For example, in December of 2009, we purchased what is now known as Trump National Golf Club, Philadelphia. The club’s course was known to be one of the best in the country, often compared to its neighbor, Pine Valley Golf Club, but was lacking the equity infusion to maintain the facility to the standard it deserved. Clearly seeing the potential for the course to be one of the most spectacular on the East Coast, we have already begun its redevelopment, reinvigorating its current membership and attracting top tier events.
At all of our clubs, members welcome the Trump approach and word travels fast, attracting new members at premium rates. Our renowned, meticulous development and design experience sets us apart from our competitors – we are known for providing the most functional use of space while creating an incredibly elegant, expansive and luxurious feel. Additionally, our managerial style, taken from our hotel and residential properties is what we describe as “white glove”. At Trump National Golf Club, Hudson Valley, which we also purchased in December 2009, we attracted almost 70 new members based on a single news report outlining plans for the club’s future.
Trump International Golf Course West Palm Island Green
This fantastic brand recognition and credibility is built on a strong foundation, and each project builds upon the last, providing more synergies and economies of scale as we grow. When we purchased what is now known as Trump International Golf Club, Palm Beach – we took what was flat land and envisioned a transformation into what is now a world-class, tournament caliber course comprised of hills, palm trees, waterfalls, and the most magnificent landscape anywhere. We had a budget many times greater than that of most luxury golf courses, and our goal was to create something that the golf community had never seen. The result is consistent - accolade after accolade – the prestigious Florida Golf Magazine rates it “the #1 course in the state of Florida” and it was ranked nationally by GOLF Magazine as "Top 100 in the Country."
Trump National Golf Club, Bedminster, New Jersey
As we continue developing and expanding with this strategic approach and our signature standards, the list of accolades continues to grow. We are currently developing a magnificent, history-making course in Scotland with the most spectacular sand dunes overlooking the North Sea, which has been anticipated by many to become “the greatest golf course in the world.”
All of this is evidence that with the correct blend of vision, experience and unwavering standards of quality, extreme growth in the luxury sector can be achieved even during the worst economic times. The passion for golf and our love of development is what drives us – we know golf is a game that will be around for many years to come, and we are confident that Trump will be at the tip of the spear.
Co-Author Eric F. Trump serves as an Executive Vice President of development and acquisition for The Trump Organization, including Trump Hotel Collection, and has been a driving force in the acquisition and development of Trump National Golf Clubs in Washington D.C., Hudson Valley and Philadelphia, all which were purchased in the past year. He is currently focusing on projects in the United States as well as in Europe, the Caribbean, South America and Asia. Eric graduated with honors from Georgetown University with a major in finance and management.
Donald J. Trump Jr. is an innovator and leader in today's young business world. As an Executive Vice President at The Trump Organization, he works in tandem with his siblings Ivanka and Eric to expand the company's real estate, retail, commercial, hotel and golf interests nationally and internationally. His extensive real estate development experience, rigorous education and inherent business sense add a level of detail and depth to the management of all current and future Trump projects. Mr. Trump Jr. can be contacted at 212-832-2000. or donjr@trumphotels.com Extended Bio...
HotelExecutive.com retains the copyright to the articles published in the Hotel Business Review. Articles cannot be republished without prior written consent by HotelExecutive.com.
