SPECIAL CITY COUNCIL
Meeting Agenda
Thursday, March 23, 2023
9:00 AM
Indian Wells Golf Resort
44500 Indian Wells Lane, CA 92210
Welcome to a meeting of the Indian Wells City Council.
Public Comments: Members of the Public who wish to speak should fill out a blue slip and submit it to the City Clerk, comments are limited to 3 minutes. In accordance with State Law, remarks during public comment are to be limited to subjects within the City's jurisdiction.
Notification: If you are an individual with a disability and need a reasonable modification or accommodation pursuant to the Americans with Disabilities Act (ADA) please contact the City Clerk at 760-346-2489, 48 hours prior to the meeting.
Please turn off all communication devices (phones) or put them on non-audible mode (vibrate) during Council proceedings. All documents for public review are available for public inspection at City Hall reception, 44-950 Eldorado Drive, Indian Wells during normal business hours.
Pages
A.CONVENE THE INDIAN WELLS CITY COUNCIL, PLEDGE OF
ALLEGIANCE AND ROLL CALL
MAYOR DONNA GRIFFITH
MAYOR PRO TEM GREG SANDERS
COUNCIL MEMBER TY PEABODY
COUNCIL MEMBER BRUCE WHITMAN
COUNCIL MEMBER DANA REED
B.APPROVAL OF THE FINAL AGENDA
C.PUBLIC COMMENTS
Members of the Public who wish to speak on items listed on the special-agenda may do so at this time. Please note that at this special meeting you may address the City Council only on items that are listed on the agenda.
The Mayor will recognize members of the public at the appropriate time. Once the Mayor calls on members of the public for comments, please come forward to the microphone and state your name for the record. Comments are limited to three minutes.
D.2023 Indian Wells Golf Report Strategic Planning Session 4 RECOMMENDED ACTION:
Council REVIEWS, DISCUSSES, and provides DIRECTION on the 2023 City Council Goals and Objectives for the Indian Wells Golf Resort.
E.ADJOURNMENT
To a regularly scheduled meeting of the City Council to be held at 1:30 p.m. on April 6, 2023 in the City Hall Council Chamber.
Affidavit of Posting,
I, Angelica Avila, certify that on March 17, 2023 I caused to be posted a notice of a Special Council Meeting to be held on March 23, 2023 at 9:00 a.m. in the Indian Wells Golf Resort, Celebrity Ballroom.
Notices were posted at Indian Wells Civic Center and City's Website [ www.cityofindianwells.org]
________________________
Angelica Avila, City Clerk
INDIAN WELLS
-IWGR Strategic Planning Session -
2023-2024
March 23, 2023: Special Council
TO CREATE EXTRAORDINARY RESIDENT AND
GUEST EXPERIENCE BY DELIVERING SUPERIOR
SERVICE,AMENITIES AND FACILITY CONDITIONS.
OUR COMMITMENT TO THE QUALITY OF OUR
PRODUCT, COUPLED WITH OUR OPERATING
RESULTS, WILL ALLOW IS TO ENHANCE THE
BRAND OF INDIAN WELLS GOLF RESORT AND
PROVIDE A FINANCIALLY SUSTAINABLE FUTURE
FOR THE CITY OF INDIAN WELLS.
IWGR MISSION STATEMENT
Resort Hotel Partners
IWGR Financial Update
Today’s Topics
•Benchmarking
•Historical Trends
•Council Direction on Financial Goals
•Council Direction on Capital plans and
funding sources
Benchmarks used at the Golf Resort
Historical benchmarks based on performance
trends.
•Developed in the adopted budget
•Benchmarks established by the operator
•Use of third-party comparative
performance benchmarks
•Saga City Golf
The Financial Update
Benchmarking Financial Performance
•One of the best ways to understand how
well or poorly the IWGR is operating is to
compare how well the Golf Resort manages
its costs as a percentage of its revenues.
•The lower the operating ratio, the more
efficient the operation
Using Data Sets
•Compares ten years of actual financial
performance between Fiscal Year 2012-13
and Fiscal Year 2021-22 plus adds the
forecasted Fiscal Year 2022-23.
•Fiscal Year 2022-23 is forecasted using
actuals as of March 11, 2023, plus the
remaining budget.
Benchmarking Categories
•Revenue
•Cost of Sales
•Payroll
•Operating Expenses
•Net profit or (loss)
•Golf and Food & Beverage Customers
•Employee Labor (Full-Time Equivalent or
FTE)
Financial Summary
•Since Fiscal Year 2021-22, the Golf Resort
(Consolidated) has been operating
profitably without the need for an amenity
subsidy from the City’s General Fund.
•Financial performance is trending better
than it has been in the last decade.
Financial Summary
•We must attract more customers to spend
more at the Golf Resort.
•More golfers, more banquet events, and
more customers in VUE
•Continued focus on improving cost of sales
and payroll metrics.
•Establish goals
Consolidated w/o Golf Amenity Subsidy & Capital
Golf & Golf Maintenance ONLY
Merchandise
Food & Beverage
Allocated Payroll
VUE
Beverage Cart
Banquets
Food Truck/ Cafe
Shots in the Night
Council Direction on Financial Goals
•Profitable before amenity subsidy and after
capital expense and maintenance.
•Strategies to increase Customers and
Check Averages
•Opportunities to improve the efficiencies
of Operations
•Other Financial Goals
Council Direction on Capital Funding
•Capital Funding Sources
•Golf Resort operating profits
•Golf Resort energy savings
•Use of former Redevelopment Agency loan re-
payments
•Other
•Defining Capital Roles
•Troon oversees and budgets for facility capital
expenses and maintenance
•City Council decides ROI projects and
construction –sets policy
IWGR Strategic Asset Plan
IWGR Strategic Asset Plan
25Prepared for the City of Indian Wells / City Council -Indian Wells Golf Resort Strategic Planning Session As of March 23, 2023
Highlights
Strategic Asset Plan -Indian Wells Golf Resort
IWGR Strategic Asset Plan
26Prepared for the City of Indian Wells / City Council -Indian Wells Golf Resort Strategic Planning Session As of March 23, 2023
Highlights
Highest
And Best
Use
Hotel
Partners
Resident
Golfers
Golf
Committee
Others
Residents
Stakeholder
s
Scope of
Work
Facility
Mission
Confirmation of facility mission (with
stakeholders) and options for economic
resiliency and self-sufficiency.
Identification of alternative net revenue
opportunities.
Business review of operating efficiencies,
program, and physical factors, and post-Covid
19 industry performance. Consideration of
trends and obsolescence issues.
Within the legal structure that is in place –
the Easement Agreement.
Pursuant to Stakeholder expectations.
Linear ideation and creative dissonance go
together.Input from our Golf & F&B
veterans.
IWGR Strategic Asset Plan
27Prepared for the City of Indian Wells / City Council -Indian Wells Golf Resort Strategic Planning Session As of March 23, 2023
Highlights
Are there Revenue Opportunities to mitigate Subsidies?
IWGR Strategic Asset Plan
28Prepared for the City of Indian Wells / City Council -Indian Wells Golf Resort Strategic Planning Session As of March 23, 2023
Highlights
Rebound from Covid-19 Pandemic
Post-Covid Rebound
IWGR Strategic Asset Plan
29Prepared for the City of Indian Wells / City Council -Indian Wells Golf Resort Strategic Planning Session As of March 23, 2023
Highlights
NET OPERATING CASH
FLOW
We’ve looked at how IWGR has performed,
what actions can be taken to improve net revenue.
IWGR Strategic Asset Plan
30Prepared for the City of Indian Wells / City Council -Indian Wells Golf Resort Strategic Planning Session As of March 23, 2023
HighlightsGolf Operations
We ran metrics across operated departments,
looking at departmental efficiencies.
IWGR Strategic Asset Plan
31Prepared for the City of Indian Wells / City Council -Indian Wells Golf Resort Strategic Planning Session As of March 23, 2023
Highlights
Overnight Accomodations
Food & Beverage
Meetings -37,626 SF
Hyatt
Food & Beverage
Meetings
IWGR
Golf
Golf Lessons / Retail
Scenic Open Space
Agua Serena Spa
Banquets
Overnight Accomodations
Food & Beverage
Meetings –61,000 SF
Renaissance Esmeralda
Banquets
Spa Esmeralda
Banquets
Overnight Accomodations
Food & Beverage
Meetings -35,000 SF
Miramonte
Banquets
The WELL Spa
530 rooms, including 43 villas and 35 suites
88,000 SF of flexible indoor and outdoor
event space
HyTides Waterpark with two 30 ft dueling
slides and a 450 ft lazy river
Fitness CenterFitness CenterFitness Center
HyTides Waterpark
Shots in the Night
560 rooms215 rooms
One objective for ongoing IWGR business planning may be the avoidance of business overlap with the City’s Partner Hotels. Any business opportunities placed with the Partner Hotels, earns the City the TOT payment. If the same opportunity is pursued by IWGR, IWGR must earn the EBITDA to match or exceed the foregone TOT payment.
We note that each of the Partner Hotels is under relatively new ownership, so that facility programs noted here may be modified in the near future.
Origin of IWGR & Hotel Partners, and Current Circumstances.
IWGR Strategic Asset Plan
32Prepared for the City of Indian Wells / City Council -Indian Wells Golf Resort Strategic Planning Session As of March 23, 2023
Highlights
IWGR & Hotels are “Co-Anchors” but Less Connected
TOT Contribution to City General Fund
Each year, the five Hotel Partners are the largest contributor of funds (taxes) to the City’s General Fund. The table below shows Transient Occupancy Tax payments expected at the time of preparation for the City’s 2021-2023 biennial operating budget. As noted in the prior exhibit, actual TOT collected for FY 2022 significantly exceeded what was projected in May 2021. The time period in which this estimate of TOT was made was a difficult one, as no one knew how the golf industry would emerge from the Pandemic.
General Fund Five-Year Projected Cash Flow
Source: City of Indian Wells, Biennial Operating Budget for FY 2021-2023, prepared May 20, 2021.
IWGR Strategic Asset Plan
33Prepared for the City of Indian Wells / City Council -Indian Wells Golf Resort Strategic Planning Session As of March 23, 2023
Highlights
Strategic Marketing Collaboration with the Partner Hotels is worth exploration to find new common ground.
Lobby presence
Website presence
Guestroom tabletop standees / table tents
Co-promotion of some IWGR programs such as The Academy. Placemaking Tactics
Wayfinding
Enhanced pathways to/from clubhouse
The City and IWGR specifically, have a large strategic benefit with mostly new (relatively) and experienced hotel owners in place among the Partner Hotels.
IWGR Strategic Asset Plan
34Prepared for the City of Indian Wells / City Council -Indian Wells Golf Resort Strategic Planning Session As of March 23, 2023
Highlights
There is an opportunity to repurpose IWGR’s core facilities, to enhance the experience for golfers, event guests, and other visitors.
3 New Short Game Practice Facility adjacent to
Players 1st Tee
Expansion of putting venue, to 9 holes.
Great moments at IWGR / clubhouse
Promote the Academy, as a social experience
using golf instruction
Light Celebrity Front 9
New Access Road from Fred Waring Drive
Connection to Tennis Stadium –a “District”
Plus
:
DEFENSIBLE
SPACE
SENSIBILITY
IWGR Strategic Asset Plan
35Prepared for the City of Indian Wells / City Council -Indian Wells Golf Resort Strategic Planning Session As of March 23, 2023
Highlights
New Clubhouse Golf Grill at Ground Floor
Shown above: views of The Stonehaus Grill in Westlake Village (California). The clubhouse’s “inside-outside” guest flow and service style would adapt well to IWGR’s clubhouse ground floor.
Shown at left: views of part of the outdoor area adjacent to the clubhouse lobby.
IWGR Strategic Asset Plan
36Prepared for the City of Indian Wells / City Council -Indian Wells Golf Resort Strategic Planning Session As of March 23, 2023
Highlights
Destination Restaurant at Clubhouse 2nd Level.6
New outside elevator facing Indian Wells Lane (entry road). Convert Vue to a rent payment, even if mostly performance (percentage rent) based.
IWGR is situated in a region with a myriad of dining choices; let a restauranteur focus on how to best compete.
The Vue is the only aspect of operations that did not keep up with inflation since pre-Pandemic.
Get out of the full-service restaurant business, focus on catering, golfer F&B, and ancillary F&B at driving range, SITN, and the like. Be open to alternate concepts that could be proposed for the space.
IWGR Strategic Asset Plan
37Prepared for the City of Indian Wells / City Council -Indian Wells Golf Resort Strategic Planning Session As of March 23, 2023
HighlightsF&B Operations
IWGR Strategic Asset Plan
38Prepared for the City of Indian Wells / City Council -Indian Wells Golf Resort Strategic Planning Session As of March 23, 2023
Highlights
Expansion of Short-Game Practice Area
IWGR Strategic Asset Plan
39Prepared for the City of Indian Wells / City Council -Indian Wells Golf Resort Strategic Planning Session As of March 23, 2023
HighlightsFairway Grill
Shown above, various views of Fairway Grill and environs. At the time of our fieldwork, Troon Golf was exploring areas at or about the Fairway Grill that could be level-graded to provide kitchen expansion area and additional outdoor settings for small group events. See photo at far right below, of an area overlooking the Wash bridge near to the Fairway Grill.
IWGR Strategic Asset Plan
40Prepared for the City of Indian Wells / City Council -Indian Wells Golf Resort Strategic Planning Session As of March 23, 2023
Highlights
Enhanced Presence and Pathways for Hotels
There is a large opportunity to improve the paths and trails at or about IWGR.
Although a master-planned resort campus, the pedestrian paths at IWGR are poor or nonexistent.
The guest path from the Hyatt Regency to the clubhouse current consists of a stroll through a parking garage, and across IWGR clubhouse parking spaces, on to the clubhouse entrance.
With collaboration with the Hyatt Regency Indian Wells, a more direct walking path could be provided from the north side of the main hotel building, along the Wash, and onto the clubhouse’s north entrance. This new path would be a beautiful one featuring views of golf north of the Wash and would culminate with arrival at the new Stonehaus-style Golf Grill at the Clubhouse ground level. The guest path from Renaissance Esmerelda over to the IWGR clubhouse is not clear or inviting. A guest standing at the hotel drop-off would not be aware of the clubhouse unless they were told where it was and where to look. From the hotel’s front entrance there is no wayfinding or path to encourage a stroll over to the clubhouse.
The problem with paths from the Renaissance can be easily remedied with a rework of the parking areas upon a property swap as part of repurposing of the Players course.
We reviewed the $276,242 capital improvements work in the City’s IWGR Sidewalk Improvements project, and believe it begins to address this pathways deficiency.
Aligning the sidewalks to be more intuitive and safer, and providing access ramps for ADA compliance, are quite helpful. More can be done, as noted, to improve pathways and related wayfinding to improve the overall “resort campus“ experience.
Shown at upper right, the service road north of the parking structure adjacent to the Hyatt Regency Indian Wells. An actual path could be placed along the north side of this access road, ss shown at below right. Shown at middle right, a view from the west edge of the hotel front guest entry, at the Renaissance Esmeralda.
IWGR Strategic Asset Plan
41Prepared for the City of Indian Wells / City Council -Indian Wells Golf Resort Strategic Planning Session As of March 23, 2023
Highlights
Add additional Special Events to IWGR’s Calendar –they’re working!
Desert Willows offers its Music + Dining Under the Stars program, something similar would work at IWGR.
We would suggest an “own the holidays” sensibility in planning special events at IWGR.
If it’s a holiday, IWGR should be a place to be.
IWGR Strategic Asset Plan
42Prepared for the City of Indian Wells / City Council -Indian Wells Golf Resort Strategic Planning Session As of March 23, 2023
Highlights
Establish a Reserve for Capital Replacements.
A reserve is an ordinary and usual method for accumulating capital for major replacements –each kind of FF&E can be included on the capital replacements schedule with typical useful life noted and reserved for. We note the difference between a reserve for major capital replacements and projects, versus ordinary and usual Repairs and Maintenance that is included in the facility’s operating budget.
And eliminate the Resident Amenity Fee, and all other accounting adjustments and allocations, at least in performance reporting.
Consider appointment of a 3rd-party Asset Manager.
IWGR Strategic Asset Plan
43Prepared for the City of Indian Wells / City Council -Indian Wells Golf Resort Strategic Planning Session As of March 23, 2023
Highlights
First, all Stakeholders expect the Indian Wells Golf Resort to be operated to maintain, if not enhance, its reputation as a premier golf experience among the best of regional and national golf facilities, whether premier private or premium public play courses. Resident Stakeholders and those non-resident golfers paying market rates, have largely this same expectations for IWGR’s premier quality.
Second, while seeking to preserve and expand Resident privileges at IWGR, it is sufficient to operate IWGR each fiscal year to meet or exceed breakeven from operations after reserves for capital expenditures and net of subsidy from the City.
SUGGESTED
MISSION
Players Course Redesign
Players Course Redesign
PRESENTATION
Purpose of the Study:
1.Integrate Two New Replacement Holes
(for #17 & #18) but overall keep the golf
course intact. This is NOT a new course.
2.Create Improved Access for Fire Trucks
and Delivery Trucks to the Fairway Grill.
3.Make Infrastructure Updates to the Golf
Course which is currently +15 years old.
Current Market Conditions:
•Golf is in an upswing in participation
•There is a Big Labor Shortage
•Materials are in Short Supply (cost is
+30% higher) & Take Longer to Acquire
•Golf Course Contractors are Booked Well
in Advance
Work Areas Plan:
HOLE No. 5
(current #13)
Build new back tee to gain
yardage. Repair forward tees
Shrink left greenside bunker &
remove excess tree branches
Repair right fairway bunkers
457
424
391
351
327
Original Green Site
Current Green Site
HOLE No. 6
(current #6)
Build new back tee to gain
yardage. Repair forward tees
Build new green where the
nursery green exists
Create a dogleg to the right.
Add fore-bunker for strategy
New green to
have subtle
movement
418
390
361
339
296
Existing Green Site
Proposed Green
HOLE No. 7
(new hole)
Build three large tees on ridge
Elevated above #6 green.
Build new green angled
around lake on the left
Add strategic greenside
bunker on the right
New green to
fall away in
back corner
177
150
141
132
109
HOLE No. 9
(current #8)
Expand back tee and repair
forward tees
Remove front bunker to open
green in front. Expand left &
back right greenside bunkers
Move cart part closer to
fairway and add trees
223
202
189
165
137
Existing Greens Complex
Proposed Greens Complex
HOLE No. 10
(new hole)
All new tees will be developed
for this new hole
Add fairway bunkering to
create strategy for the tee
shot. Lower hillside to create
view of the fairway
Build new green that is long
and narrow. The new green
falls gently away making the
approach more difficult
Long green to
slope away,
front to back
333
310
295
260
236
Existing #10
Proposed #10
HOLE No. 12
(new par three)
Construct new tees to fit for
this new par three
Remove trees and lower grade
to provide view of new green
Construct new greens complex
that is long and falls away on
the left side of the green
Narrow green
that falls away on
the left
180
170
159
148
124
HOLE No. 13
(current #4)
Construct new tees further
back to add yardage and
create a long par five
Lower hillock at the start of
the fairway. This will provide a
better view of the driving zone.
Add fairway bunker on the left
Keep existing bunkers but
reshape all three bunkers to
provide a better and simpler
design motif
577
537
504
464
410
Existing #4
Proposed #13
HOLE No. 16
(current #15)
Revitalize tees and expand
back tee. Remove trees near
tees and along the fairway
Remove overgrown trees along
the left side of this hole
Reshape (shrink) directional
fore-bunker in position
Remove overgrown trees and
revitalize left greenside bunker
461
414
370
346
299
Current #16
Current #16
Original #16
HOLE No. 17
(current #16)
Build new tees forward to
create long downhill par three
Remove overgrown trees along
the left side of this hole and
lower area to create view of
the greens complex
Build new green with one
strategic bunker on the left
Large green
to slope away
in back243
220
208
190
166
Existing Green #16
Proposed Green #17
HOLE No. 18
(current #1)
Build new tees to create
dramatic par five finishing hole
Soften grades in fairway and
build two strategic fairway
bunkers in driving zone
Build new green on edge of
wash. Construct three
interesting bunkers around
greens complex
Long green
to slope back
To front
551
516
485
444
406
New Putting Green &
Short Game Practice
New short game practice area
to be built near #10 tees.
Green to be 2,000 SF & allow
pitch shots up to 30 yards
Build new putting green to be
placed behind new #9 green in
between #1 & #10 tees
Card of the Revised Course
Hole
Cabernet
Blue
Yellow
White
Red
Par
1 620
584
545
478
412
5 2
400
373
342
322
286
4 3
337
312
200
269
241
4 4
186
163
157
144
124
3 5
457
424
391
351
327
4 6
418
390
361
339
296
4 7
177
150
141
132
109
3 8
577
537
502
463
407
5 9
223
202
189
165
137
3 Out
3395
3145
2918
2663
2339
35 10
333
310
295
260
236
4 11
382
355
332
305
274
4 12
180
170
159
148
124
3 13
577
537
504
464
410
5 14
467
437
390
354
327
4 15
515
479
443
410
358
4 16
461
414
370
346
299
4 17
243
220
208
190
166
3 18
551
516
485
444
406
5 In
3715
3438
3186
2921
2599
36 Total
7110
6583
6104
5584
4938
71 Expected Results:
•The golf course should play faster.
•The maintenance will be simpler and more
efficient (require less labor).
•Will not have to cross the wash (16 to 17).
•The finish of the golf course will be better
with returning nines.
IndIan Wells Golf ResoRt
Players Course Redevelopment Plan
March 1, 2023
ROIs
FAIRWAY GRILLE
IND
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•Estimated cost of $800k
•ROI not to exceed 10 years
•Return of a very popular destination
VUE 2.0
IND
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F
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G
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•Estimated costs starting at $1 million
•Enhance clarity of concept
•Alternatives currently being explored
BANQUET KITCHEN / PAVILLION
IND
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F
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S
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•Estimated costs of $2.5 million
•Enhanced operational efficiency and qualitative guest experience •ROI not to exceed 9 years
GOLF SUITES
IND
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G
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F
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G
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•Estimated costs of $2 million
•ROI not to exceed 8 years
•Hotel function space
•Activates campus for additional programming
Troon
STRATEGY SESSION
IND
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F
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G
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Indian Wells Golf Resort
GOLF RESORT
OVERVIEW
SVEN WIEDENHAUPT, GM
Golf Rev Golf NOI F&B Rev F&B NOI
$10,000,000
$7,500,000
$5,000,000
$2,500,000
$0
HISTORICAL GOLF / F&B REVENUES
INDIAN WELLS GOLF RESORT STRATEGY SESSION
$6.47M $6.53M $6.54M $6.33M $6.44M $6.68M $6.78M
$5.12M
$5.56M
$8.37M
$9.31M
$4.1M $4.5M
$5M $5.1M $5.1M $5.1M
$6.2M
$3.7M
$2.5M
$5.9M
$6.7M
ADR ADC
$125
$100
$75
$50
$25
$0
HISTORICAL ADR / ADC
INDIAN WELLS GOLF RESORT STRATEGY SESSION
$72 $74 $76 $75 $81 $83 $85 $86 $87
$104
$116
$17 $18 $20 $21 $23 $23 $22 $19 $14
$24 $29
Cost of F&B Sales
40%
30%
20%
10%
0%
COST OF FOOD & BEVERAGE SALES
INDIAN WELLS GOLF RESORT STRATEGY SESSION
33%32%33%34%33%33%
30%31%
28%27%27%
Cost of Retail Sales
60%
40%
20%
0%
COST OF RETAIL SALES
INDIAN WELLS GOLF RESORT STRATEGY SESSION
54%52%52%54%53%50%53%54%52%52%53%
TROON VALUE
REPORT
INDIAN WELLS GOLF RESORT STRATEGY SESSION
Our partnership with Troon has allowed us to save over
$262k across our golf, retail, F&B, Agronomy and general administrative operations.
Golf = $104,034 in expense savings
Retail = $38,525 in expense savings
F&B = $19,938 in expense savings
Agronomy = $17,001 in expense savings
Technology = $22,431 in expense savings
Centralized Services = $38,811 in expense savings
ASSOCIATE OPINION SURVEY RESULTS
INDIAN WELLS GOLF RESORT STRATEGY SESSION
CA Club 1 CA Club 2 CA Club 3 AZ Club 1 CA Club 4 IWGR CA Club 5 CA Club 6 CA Club 7 UT Club 1 CA Club 8 CA Club 9 CA Club 10 Average CA Club 1 CA Club 2 CA Club 3 AZ Club 1 CA Club 4 IWGR CA Club 5 CA Club 6 CA Club 7 UT Club 1 CA Club 8 CA Club 9 CA Club 10 AverageCA Club 11
INDIAN WELLS GOLF RESORT STRATEGY SESSION
PLAYERS FIRST RANKINGS
PROSHOP F&B COURSE CONDITIONS
TOP 3%
OF NATIONAL
BENCHMARK
TOP 25%
OF NATIONAL
BENCHMARK
TOP 8%
OF NATIONAL
BENCHMARK
INDIAN WELLS GOLF RESORT STRATEGY SESSION
PLAYERS FIRST RANKINGS
WOULD RECOMMEND CLUBHOUSE
TOP 7%
OF NATIONAL
BENCHMARK
TOP 12%
OF NATIONAL
BENCHMARK
INDIAN WELLS GOLF RESORT STRATEGY SESSION
NET PROMOTER SCORE
CA Club 1 CA Club 2 CA Club 4CA Club 3 CA Club 5IWGR AVG CA Club 1 CA Club 2 AZ Club 2CA Club 3 CA Club 6 AVGAZ Club 1 CA Club 4 CA Club 5 73%
INDIAN WELLS GOLF RESORT STRATEGY SESSION
INDIAN WELLS GOLF RESORT STRATEGY SESSION
INDIAN WELLS GOLF RESORT STRATEGY SESSION
REVIEWS
924 Reviews
4 out of 5 Stars
877 Reviews
4.1 out of 5 Stars
241 Reviews
4 out of 5 Stars
98 Reviews
4.1 out of 5 Stars
288 Reviews
4.3 out of 5 Stars
F&B TRAVEL OVERALL
60%
40%
20%
0%
-20%
INDIAN WELLS GOLF RESORT STRATEGY SESSION
F&B RESULTS
58%
45%
27%
35%
14%
-2%
SOLAR / TOP TRACER
INDIAN WELLS GOLF RESORT STRATEGY SESSION
The overall solar panels system is expected to generate 80% to 90% of the energy used by the entire golf resort, including the main clubhouse, pump system, and maintenance yard (Where separate solar panels will be installed in the next phase of the project.
2.1 MILLION POUNDS OF C02
ELIMINATION
PRESS EXPOSURE
INDIAN WELLS GOLF RESORT STRATEGY SESSION
IWGR has leveraged Troon and Troon's preferred partner Buffalo Agency to ensure the IWGR brand is being discussed in local and national media publications including GolfDigest, Desert Sun, Golf Magazine, Links Magazine and more.
AGRONOMY
NICK LEITNER, DIRECTOR OF AGRONOMY
GREENS MOISTURE TECH | POGO
INDIAN WELLS GOLF RESORT STRATEGY SESSION
TASK TRACKER
INDIAN WELLS GOLF RESORT STRATEGY SESSION
LEONS LANDSCAPING
INDIAN WELLS GOLF RESORT STRATEGY SESSION
CATTAIL REMOVAL #6 CELEBRITY
INDIAN WELLS GOLF RESORT STRATEGY SESSION
BEFORE AFTER
ALGAE CLEANUP #6 CELEBRITY
INDIAN WELLS GOLF RESORT STRATEGY SESSION
BEFORE AFTER
GOLF OPERATIONS
JOE WILLIAMS, DIRECTOR OF GOLF
Golf Rev
$10,000,000
$7,500,000
$5,000,000
$2,500,000
$0
GOLF REVENUES 10 YEAR HISTORY
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$9.3M
$8.3M
$5.5M$5.1M
$6.7M$6.6M$6.4M$6.3M$6.5M$6.5M$6.4M
Rounds Trend Line
Troon Revenue Mangement Services
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Troon’s team of revenue managers support the Indian Wells Golf Resort team related to data analysis, forecasting, pricing review and recommendations. The methodology includes leveraging industry-leading tools, customized recommendations from a dedicated Troon revenue manager, collaboration with the IWGR team in 2x per-month revenue management meetings, and onsite approval of recommendations. The net result has be industry-leading rate growth/revenue capture for Indian Wells Golf Resort.
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FEBRUARY DAILY FEE AVERAGE RATE
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ADR BY MONTH (2019 -2023)
ROUNDS DISTRIBUTION
INDIAN WELLS GOLF RESORT STRATEGY SESSION
17%
Other
10%
Tournament
24%
Resident
48%
Daily Fee
10%
Other
22%
Tournament
25%
Resident
43%
Daily Fee
8%
Other
21%
Tournament
24%
Resident
47%
Daily Fee
FYE 2019 FYE 2022 FYFCST 2023
*OTHER PACKAGE, WHOLESALE, PRIVATE CLUB RECIPROCAL, PROMOTIONAL ETC.
CLUB RENTAL REVENUES
INDIAN WELLS GOLF RESORT STRATEGY SESSION
2019 2020 2021 2022 2023
$250,000
$200,000
$150,000
$100,000
$50,000
$0
$218K
$120K
$60K
$209K
$240K
(Forecast)
THE ACADEMY AT INDIAN WELLS
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JUNIORS:
In two years we have brought in 120 families, this year with camps and Operation 36 we have brought in 23 new families. Eric was named Top 50 Coach with Juniors; he has national PGA speaking engagements in the near future.
ADULTS:
Over 30 new families and couples participate this year, translating to new facility-wide spending.
Op 36
Junior Camps
PGA Junior League
Corporate Clinics
Other Clinics
Mental Golf Workshop
Golf Schools
(2) Top Tracer Nights
Fittings
Trackman Bay Rentals
ACADEMY
PARTICIPANTS266+
RETAIL | TOP 100 GOLF SHOP
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RETAIL PERFORMANCE
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Revenue NOI
2019-20 2020 -21 2021 -22 2022 -23 (FCST)
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
$896K
$238K
$717K
$146K
$1.57M
$530K
$1.59M
$500K
SALES AND MARKETING
BEN RODNY, DIRECTOR OF SALES & MARKETING
MARKETING
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Based on increased communications and relationship building with the campus hotel partners, we instituted our digital concierge program in the lobbies of the Hyatt and Renaissance resorts to ensure ease of booking tee times and contacting the Golf Resort.
Without the Resorts' partnership this would not have been possible.
RENAISSANCE DISPLAY
HYATT DISPLAY
THE IWGR MAGAZINE (TROON MAGAZINE)
Through a collaborative effort with Troon we were able to customize and produce The Indian Wells Golf Resort Magazine with custom welcome letters for The Campus General Managers. The publication can be found at IWGR along with The Hyatt and Miramonte Resort's.DIGITAL CONCIERGE
GOLF EXPERIENCES
2021/2022 PRODUCTION:
REVENUE -$100,066.07
ROOM NIGHTS: 409
GROUP GOLF & CATERING SALES
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•Recognized opportunity to transform our group business based on market trends and underutilization of certain resort venues. •Course buy-outs predominantly moved to beginning of the week. •ADR (Average Daily Rate) is maximized on weekends.
•Instituted F&B Minimum for Groups of 40 golfers and up. •Pavilion wedding inquiries have settled to pre c. levels. •Instituted new pricing strategy for events.
•Focus on executive day meeting program with elements of the Academy, Culinary, Golf, teambuilding.
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
GROUP GOLF SALES
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Indian Wells has done an excellent job capatilzing on increased demand for group golf events. Group Golf revenues are projected to be the highest they have been in the past decade exceeding $2 million. An 18%increase in average group round rate has allowed IWGR to host less group rounds and still increase revenues by 5%over prior year.
2022 / 23 Avg. Rate$122
(per group round)
PY Avg. Rate: $103.56
18.4%
2022 / 23 Revenue$2.08 Mil
PY Revenue: $1.9 Mil
5.14%
Year
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$2.08M
$1.9M
$650K
$937K
$1.65M$1.65M $1.61M $1.58M
ENHANCED COMMUNICATIONS
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INTRODUCED 'THE ARROW'
RESIDENT NEWSLETTER.
MADE THE IW INSIDER
A QUARTERLY MAGAZINE
UTIZLING OUR EMAIL DATABASE
WE ARE ACHIEVING
UNPRECEDENTED OPEN RATES
-THE ARROW SENT OUT ON
3/14/23
TO 2,411 EMAIL ADDRESSES
-TROON SO CAL EMAIL BLAST
WENT OUT TO 62,402 EMAIL
ADDRESSES
OPEN RATE: 40.01%
OPEN RATE:
62.4%
11K
TOTAL FOLLOWERS
SOCIAL PRESENCE AND ACCOLADES
INDIAN WELLS GOLF RESORT STRATEGY SESSION
2023
GOLF PASS -GOLFERS CHOICE -TOP U.S. GOLF COURSES -CELEBRITY COURSE -N. 28 2022
Links Magazine -Players Course N. 6 -Top 10 Municipal Courses in the USA Golf Advisor -Top Courses in California -Celebrity Course N. 6 Golf Advisor -Golfers Choice Top 50 Golf Courses in US -Players Course N. 28
GLOBALLY PRESENT
INDIAN WELLS VIA TROON CHANNELS
KRIS STRAUSS, EXECUTIVE VP GLOBAL SALES & MARKETING
August Troon Card Enews Troon Challenge Host Feature
Sends: 10,251 contacts
Unique Opens: 5,189 contacts (50%)
Unique Clicks: 400 clicks
July Rewards E-statement Feature
Sends: 280,307 contacts
Unique Opens: 101,701 (36.28%)
Unique Clicks: 128 clicks
September Troon Golf California Feature
Sends: 138,904 contacts
Unique Opens: 48,790 (35.12%)
Unique Clicks: 690 clicks
INDIAN WELLS EMAILS TARGETING TROON DATABASE
INDIAN WELLS GOLF RESORT STRATEGY SESSION
November 21st 2022 | Winterfest
Sends: 293,256 contacts
Unique Opens: 101,545 contacts (34.63%)
Unique Clicks: 1,282 clicks
722K
Emails Sent
Indian Wells Golf Resort is afforded dedicated sponsored email campaigns targeting 1.3 M opt in emails within the Troon Database. Recent example of such is a targeted email campaign promoting WinterFest that went to 293,256 emails. Related to value of these marketing efforts, for context the Southern California Golf Association typically charges $8500 for one dedicated email blast targeting just over 100,000 emails.
TROON
MAGAZINES
TROON MAGAZINE
Troon Rewards Ad Feature: Sept/Oct Issue. Cir: 1,035,000
TROON PRIVE MAGAZINE
Troon Rewards Ad Feature: Oct/Nov Issue: Cir 47k
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1 MIL
Total Reach
Troon Rewards Ad Feature in Troon Mags
TROON SOCIAL
Winterfest / Troon Challenge Posts: 2
Facebook Posts Reach 114k
2 Instagram Post: Reach 50k
2 LinkedIn Post: Reach 70k
1 Twitter Post: Reach 22k
1 LinkedIn Post: Reach 36k
INDIAN WELLS GOLF RESORT STRATEGY SESSION
292k
Total Reach
Utilizing Troon best practices, we are dedicated to building Indian Wells social footprint leveraging social trends, club features on Troon accounts and sharing the Troon content calendar for inspiring club posts.
25.9k Followers
57.8k Followers
22.8k Followers
36k Followers
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BreakingPar
Filmed on-site at IWGR January 2023 | Episode to air February 2023 -March 2023 Episode to feature the entirety of the facility. TopTracer Experience, amazing culinary experience at Vue, Shots in the Night putting experience AND two of the best courses you can play in CA (Celebrity and Players).
2022 TROON
CHALLENGE
FINALS HOST
Indian Wells Golf Resort played host to the 2022
Troon Challenge finals in spectacular fashion exposing 140 of Troon's most loyal customers to the IWGR experience.
RESORT / HOTEL DELIVERY
Renaissance Room Nights Booked: 178
Renaissance Revenue Generated: $36,141.27
IWGR DELIVERY
Golf Spend: $58,000
•Shots in the Night fee: $1,500
•Golf Shop GC: $14,000
F&B Spend: $40,445.
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$150k
Revenues
Total Troon Value $475,349
YEAR TO DATE DELIVERY
Troon delivered 2,037 rounds and $388,749 in revenue to Indian Wells Golf Resort.
Troon Rewards Members spent $619,665 at Indian Wells Golf Resort. 2,037
RoundsDelivered
$388,749
Revenue Generated
($535K delivered in PY)
$619,665
Spent by Troon Rewards Members
$262 K$651K
Received
Troon Procurement Direct Savings
Program Revenue Rounds
Troon Challenge $150,263 280 rounds / 178 nights Troon Card $125,787 1038 Troon Advantage $70,544 505 Troon Golf Vacations $3,790 24 EZ Links Cross-Selling $2,006 21 Troon CA Co-Op $36,359 169 Revenues $388,749 2,037
Expense Savings $262,817
CAPITAL PROJECTS
SVEN WIEDENHAUPT, GM
FAIRWAY GRILLE
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•Estimated cost of $800k
•ROI not to exceed 10 years
•Return of a very popular destination
VUE 2.0
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•Estimated costs starting at $1 million
•Enhance clarity of concept
•Alternatives currently being explored
BANQUET KITCHEN / PAVILLION
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•Estimated costs of $2.5 million
•Enhanced operational efficiency and qualitative guest experience •ROI not to exceed 9 years
GOLF SUITES
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•Estimated costs of $2 million
•ROI not to exceed 8 years
•Hotel function space
•Activates campus for additional programming
THE VUE REIMAGINED
ED DOYLE, PRESIDENT REALFOOD HOSPITALITY, SVP TROON F&B
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THE VUE COMP SET A
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•Chain restaurant elevated
experience American Food
craft/local drinks.
•2.0 miles away
•Lunch avg. price: $35
•Dinner avg. price: $35
•Fine dining with sushi and
American classics.
•Extensive wine, sake, bourbon
lists.
•2.9 miles away
•Lunch avg. price: $40
•Dinner avg. price: $65
•Classic American and
Mediterranean flair, big bar,
prime location on El Paseo.
•No reservations.
•3.5 miles away
•Lunch Avg. price: $35
•Dinner Avg. price: $45
•Elevated to Fine Dining -Seafood
Restaurant. 15 years in business. 3
private dining space options.
•3.4 miles away.
•Lunch avg price: $45
•Dinner avge price: $65
THE VUE COMP SET B
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•Classic American Bar/Sports bar
with pool tables, large bars and
sticky floors
•Avg lunch per person -$25
•Avg Dinner per person-$40
•2.4 miles away.
•Dinner Only. Elevated/Fine dining
•Avg Dinner price $100
•3.8 miles away
•Fine dining –Grille/Steak house –
American Food –extensive wine
list.
•2.1 miles away
•Dinner only. (4pm)
•Avg price: $75 per person
•American Dining
•$40 lunch avg price
•$65 dinner avg price
•4 miles away
•Elevated Kitchen & Bar
•Dinner only
•Avg. price $65 per person
•5.6 miles away
PROPOSED CONCEPT #1
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Rebrand the VUE with new name, concept
and all new interiors.
PROPOSED CONCEPT #2
Reimagine VUE with new name, concept, all new
interiors and a Celebrity Chef.
Celebrity Chef
MANAGEMENT AGREEMENT
BILL O'BRIEN, SENIOR VP OPERATIONS
Management Contract
Request for Proposal (RFP)
•Process
•Options
•Benchmarks & Standards added in
contract
•Incentive Based?
CELEBRATE!
-A Job Well Done -
Indian Wells City Council
March 23, 2023
STAFF REPORT
To: City Council
From: City Manager Department
Prepared by: Christopher Freeland, City Manager
Subject: 2023 Indian Wells Golf Report Strategic Planning Session commendation
RECOMMENDED ACTION:
Council REVIEWS, DISCUSSES, and provides DIRECTION on the 2023 City Council Goals and Objectives for the Indian Wells Golf Resort.
BACKGROUND:
Strategic planning determines where an organization is going over the next year or more, how it is going to get there, and how it will know if it got there or not. This is the City’s “Game Plan.” The focus of a strategic plan is to outline the goals of the City Council for the Indian Wells Golf Resort (IWGR) over some time (one, three, or five-year are common). Goals-based planning starts with focusing on the organization's vision and/or values, then selecting projects and programs to meet and achieve the goals, analyzing the resources needed and available, and finally, who will do what and by when.
Over the past few months, the City Manager has met individually with Councilmembers to identify potential goals and objectives for the IWGR in the coming year. Those items previously specified by the City Council have been included in the IWGR Strategic Planning Session discussion.
The goals also need to be realistic and obtainable. Does the City have the internal capabilities or the necessary resources to complete the goals? It is also essential to have a consensus on the goals to maximize the use of resources and to streamline the process of approving the individual projects and programs that make up the goals.
Goal setting by the City Council has the following benefits:
Formally adopted City Council Goals provide staff official direction to plan and organize resources to ensure their completion.
The strategic plan is used to identify funding priorities for inclusion in the City’s /IWGR budget.
A better understanding by citizens and staff of the City Council’s plans as a single governing body for the future of the IWGR.
Goals are established to meet the changing needs of the facility. City staff and management company (Troon) are more focused and effective in addressing City Council priorities.
City staff and Troon are more accountable to the City Council for achieving these goals.
In addition, Goals should also reflect how they support and further the IWGR’s Mission Statement.
Indian Wells Golf Resort’s Mission Statement:
To create extraordinary resident and guest experience by delivering superior service, amenities, and facility conditions. Our commitment to the quality of our product, coupled with our operating results, will allow us to enhance the brand of Indian Wells Golf Resort and provide a financially sustainable future for the City of Indian Wells.
Dy
DISCUSSION:
The COVID-19 pandemic significantly impacted the operations of the IWGR. Financially, the golf resort experienced financial losses due to the closure of golf courses and Vue restaurant and the cancelation of numerous weddings and special events held at the IWGR. The economic losses could have been more severe if not for the quick action of the City and Troon to immediately change the operating model of the resort to minimize expenditures and seek new revenue opportunities (e.g., Riverside County Great Plates Program).
For the past couple of years, the recovery of the IWGR has been focused on various projects and programs that improve the overall long-term financial stability and customer experience of the golf resort. Some of these priorities included improving the golf and dining experiences for all guests to the IWGR, addressing deferred maintenance, expanding banquet business, introducing new entertainment options to compliment Shots in the Night (e.g., Top Tracer), improving staffing levels lost during the pandemic, expand partnerships with other stakeholders (e.g., hotel partners), and complete an overall strategic asset plan to help shape the future of the IWGR.
In June 2022, the City Council formed an Ad-Hoc Committee of Mayor Donna Griffith and Mayor Pro Tem Greg Sanders to help facilitate the strategic plan’s completion and address various needs at the IWGR. At the February 16, 2023, City Council meeting, the Ad-Hoc Committee updated their actions over the last several months, presented the final Stone Creek IWGR Strategic Asset Plan, and provided guidance for additional topics discussed at the Golf Resort Strategic Planning Session.
The March 23, 2023, Strategic Planning Session is intended to address various operations and programs at the IWGR to establish goals, objectives, and priorities for the golf resort over the
next year or longer. This includes a review of the IWGR finances and capital needs, a review of the 2023 Strategic Asset Plan (Stone Creek Report), operations of the various departments, a discussion on the management agreement, the future of the Vue restaurant, new marketing strategies, and opportunities to provide new amenities to enhance the overall golf and visito r experience.
Based on the comments during today’s study session, staff intends to summarize the approved 2023 Indian Wells Golf Resort Goals at an upcoming regularly scheduled meeting.
IWGR Financial Update
The City’s Finance Department assists the Golf Resort’s operator with developing the annual Golf Operations and Capital Budget consistent with the City Council’s strategic goals. Finance provides financial analysis as requested by the City Manager and provides monthly comparative financial data to the City Council. Financial performance includes current month and year-to-date data compared to the prior year’s adopted budget.
Benchmarks are used to understand financial performance and include historical trends, models developed in the adopted budget, internal benchmarks established by the operator, and third - party benchmarks independently tracking competitive market sets.
One of the best ways to understand how well or poorly the Golf Resort is operating is to compare how well the Golf Resort manages its costs as a percentage of its revenues. The lower the operating ratio, the more efficient the operation. This is especially true when analyzing long - term historical trend data. Discussion items subject to today’s review, like “rounds and covers mix,” “menu pricing,” “food quality,” and “service levels,” can serve to conflate this simple analysis. Still, over time those items can be factored into the analytics.
The financial analysis prepared for this year’s strategic planning session compare s ten years of actual financial performance between Fiscal Year 2012-13 and Fiscal Year 2021-22, plus adds the forecasted Fiscal Year 2022-23. Fiscal Year 2022-23 is predicted using actuals as of March 11, 2023, plus the remaining budget.
IWGR Strategic Asset Plan
During the 2020 City Council Strategic Planning Session, Council directed Staff to develop a comprehensive Strategic Asset Plan for the Indian Wells Golf Resort (IWGR). The purpose of the Strategic Asset Plan is to shape the future development and operations of the Indian Wells Golf Resort with support from community stakeholders.
On May 20, 2021, the City Council selected Stone Creek Partners to develop the Strategic Asset Plan, conduct multiple community engagement sessions, meet with the City’s strategic partners, and engage with residents one-on-one. The engagement process included community meetings with:
o Indian Wells residents, including resident golfers and those residents who do not play golf.
o Indian Wells resort hotels and their guests.
o City Council members interviewed individually.
o The IWGR Golf Resort Advisory Committee interviewed individually. o Visit Greater Palm Springs.
A draft Golf Resort Strategic Asset Plan was disseminated to the public on May 19, 2022, containing numerous projects and programs presented by stakeholders during the community engagement process. The final Golf Resort Strategic Asset Plan was presented by the Golf Ad-Hoc Committee at the February 16, 2023, City Council Meeting.
Attached is the Stone Creek Partners completed Golf Resort’s Strategic Asset Plan.
The Strategic Asset Plan is intended to become a long‐range and annual reference document to guide the asset management of the Indian Wells Golf Resort. As such, this Plan is expected to be updated over time to respond to continuing Stakeholders’ input and evolving business conditions. Highlights of the report include a summary on pages 5-15, Stone Creek’s views of the facility’s mission on pages 16-17, and a discussion on possible facility enhancements on pages 38-62.
Many of the items in the Strategic Asset Plan are to be discussed during the IWGR Strategic Planning Session, including a reconceptualization of the Vue restaurant (e.g., concept and location); modifications to the Player’s Course; re-activation of the Fairway Grill; golf suites; identify opportunities to address parking deficiencies; upgrades to the pavilion; banquet kitchen and pavilion upgrades; and improved circulation around the pavilion and 1st Tee of each course.
IWGR Operations and Strategies for 2023
Troon serves as the IWGR contracted management company, with the daily operations of the facility overseen by the General Manager. Troon employs all employees of the IWGR. The IWGR is separated into various Departments and Divisions, similar to the City of Indian Wells. These individual Departments and Divisions (e.g., Pro shop, banquets, golf, Vue Restaurant, Shots in the Night) are overseen by various directors and managers (e.g., Dir ector of Golf, Director of Agronomy, Food & Beverage Director).
As part of the overall development of strategies for 2023, each department and division will provide a verbal update on their operations and strategy suggestions for the City Council’s consideration. Reports to be given include Agronomy (golf course maintenance); golf Operations, including pro shop and golf academy; Food and Beverage, including banquets, food truck, and shots in the night; and discussion on the reconceptualization of the Vue restaurant.
In addition, a separate discussion on the overall marketing strategies of the IWGR will be conducted that focuses on IWGR as a tourist destination; marketing Vue restaurant to residents,
golfers, hotel guests, and valley residents; collaboration to promote IWGR with hotel partners, Visit Greater Palm Springs, Indian Wells Chamber of Commerce, and Coachella Valley Chamber of Commerce; local marketing efforts; and other unique opportunities to further IWGR as a golf and special events destination (e.g., Troon Cup, Celebrity Golf League, other activations).
IWGR Golf Resort Management Agreement
Since 2009, Troon has served as the management company of the IWGR through a management agreement between the City and Troon. Over the years, the agreement has been amended to memorialize changes in the operations of the IWGR, extension of terms and conditions, and more. In addition, the City and Troon entered into a Restaurant Lease Agreement for Troon to manage the Food & Beverage operations of the IWGR. Attached is a copy of the 2009 Management Agreement, the five amendments, and the Restaurant Lease Agreement . The current management agreement is set to expire on June 1, 2024, unless both parties mutually agree to extend for an additional three years (June 1, 2027).
At a previous City Council meeting, the City Council instructed staff to discuss the development of a new management agreement, including a Request for Proposals (RFP) process, during the IWGR Strategic Planning Session.
Request for Proposals Process
To successfully develop an RFP, staff will need City Council direction on any changes to the existing management agreement that would be reflected in a successor agreement (e.g., duties and obligations, definitions, fee structure, reconceptualization of the Vue Restaurant, etc.). In addition, staff will need direction on a process, which may or may not include the IWGR Ad -Hoc Committee, whom to conduct the interviews, is staff or a third party to evaluate the proposals, etc.
Below is a draft timeline for a Request for Proposals:
July-October 2023 Development of RFP
November 2023 Council Approval of RFP
December 2023 Voluntary Pre-Proposal/Site Visit Meeting January 2024 Deadline for Questions/Deadline for Responses to Questions February 2024 RFP’s Due and Evaluation of RFPs March 2024 Interviews
April 2024 Recommendation to Council June 1, 2024 Start Date
Additional Options
In addition to conducting an RFP, the City Council has the following options:
Extend the current Troon agreement through June 1, 2027, as allowed in the Fifth Amendment; or
Re-negotiate a new agreement with Troon; or
Provide alternative direction.
Other IWGR Golf Resort Items for Discussion
In addition to the items outlined in this report, the IWGR Strategic Planning Session will include further discussion on items brought forward by the City Council, community, and other stakeholders during the meeting.
ATTACHMENTS
1. Attachment 1-IWGR Strategic Asset Plan
2. Attachment 2-Troon Management Agreement and Amendments 1-5
3. Attachment 3-Troon Restaurant Lease Agreement and True-Up Agreement
IWGR Strategic Asset Plan
1Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
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Strategic Asset Plan ‐Indian Wells Golf ResortStrategic Asset Plan ‐Indian Wells Golf Resort ATTACHMENT #1
IWGR Strategic Asset Plan
2Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
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Acronyms and Report Format . . . . . . . . . . . . . . . . . . .
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Facility Mission . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . .
Performance Metrics . . . . . . . . . . . . . . . . . . . . . . . . .
Fiscal Impact . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Facility Enhancements . . . . . . . .. . . . . . . . . . . . . . . . . . . . .
Asset Management . . . . . . . . . . . . . . . . . . . . . . . . . . .
Facility Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Golf Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Marketing and Promotions . . . . . . . . . . . . . . . . . . . . . .
SWOT Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trade Area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Guest Trip Motivation . . . . . . . . . . . . . . . . . . . . . . . . . .
Appendix
A-1 Scope of Work . . . . . . . . . . . . . . . . . . . . . .
A-2 Information Sources . . . . . . . . . . . . . . . . . . . . . . .
A-3 Opportunities Not of Interest . . . . . . . . . . . . . . . . . .
A-4 About StoneCreek Partners and Team . . . . . . . . . . 3 4
5 18
21 33
40 66
73 104
111
122
127
137
138
139
140
147
169
Page
Contents
Strategic Asset Plan ‐Indian Wells Golf Resort
Golf Committee Review Version
IWGR Strategic Asset Plan
3Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
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Contents
Acronyms and Report Organization
Acronyms and frequently used defined terms used in this report and appendix materials, include the following:
City – without exception, all capitalized references to City are intended to refer to the City of Indian Wells.
COGS – refers to cost of goods sold, typically in a retail or services business. Easement Agreement – the agreement executed on April 8, 1985, and since amended, that allowed for the development of IWGR with its two golf courses and two destination resort hotels.
FY – refers to the City’s Fiscal year(s) ending June 30. GAAP – an acronym for generally‐accepted accounting principles as promulgated by the Financial Accounting Standards Board (FASB).
HBU – refers to highest‐and‐best‐use of a real property, according to common U.S. appraisal industry practice, there are four tests for “highest and best use” of a real property.
Hotel Partners or Partner Hotels – refers to the City’s five hotels, including the two hotels party to the IWGR Easement Agreement (the Hyatt Regency and the Renaissance Esmeralda), and the three other lodging properties located in Indians Wells (Miramonte, Sands Hotel & Spa, and the Indian Wells Resort Hotel).
IWGR – refers to the Indian Wells Golf Resort.
IWGR Core – identifies the area for potential focused “area development” at IWGR, to include the clubhouse, driving range, Wash bridge, Fairway Grill, and associated ancillary facilities.
MICE ‐is an acronym commonly used in the meetings and events industry, that includes meetings, incentives, conferences, and exhibitions. Net Operating Cash Flow – refers to total facility operating revenue less the facility’s total operating expenses, before capital expenditures and any GAAP adjustments.
NNN Lease – the “NNN” refers to a tenant lease where tenant is responsible for their share of utilities, insurance, premises maintenance, and property taxes. Common area expense sharing is a separate matter.
Phase 1 Work – refers to this report and the research, analysis, and findings that are presented.
Phase 2 Work – refers to the interviews, meetings, and community meetings held with Stakeholders.
Placemaking – is a multidisciplinary approach to creating places and paths that are inviting, inclusive, and nurturing for gathering, interaction, and community. POV – Point of View.
SAP –Strategic Asset Plan, a reference to this report. SCP – StoneCreek Partners and consulting team for this assignment. SMERF – refers to the travel industry segment of Social, Military, Educational, Religious and Fraternal groups.
Stakeholders – this term is intended to primarily refer to “Indian Wells resident stakeholders,” although others were interviewed during the Phase 2 work. In some instances, to be clear, we refer to Resident Stakeholders to distinguish Indian Wells residents from all other Stakeholders.
TOT – for Transient Occupancy Taxes
Single Subject per page – to allow easy updating and insertion of new materials over time, the report generally conforms to one subject on each page. There are exceptions to this where a subject includes a list of additional considerations or options. Line‐Item Comparison Tool – throughout the report there are exhibits that show monthly financial line‐items from our IWGR operating results database, in some cases compared to another line item as an annual total. The exhibits indicate monthly results since FY 2017 in a visual style that allows trends and patterns to be more easily identified. Appendix – some materials have been moved to an appendix section following the report, most of which is a summary of various opportunities explored but were of little or no interest to the majority of Resident Stakeholders. As noted, these are included in the appendix simply as a record of the work.
Fieldwork Effective Date(s) ‐Research included in this report was primarily collected during 2021. Operating and financial results for IWGR have been reviewed through October 2022.
Notes on Report Organization
IWGR Strategic Asset Plan
4Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
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StoneCreek Partners (“SCP”) was retained by the City of Indian Wells (the “City”) to identify alternatives to be considered in preparing a strategic asset plan for Indian Wells Golf Resort (“IWGR”). In this capacity, SCP assembled a team to assist in this work, that included Mark Mungeam, Larry Hirsch, Mark Taylor, Craig Gladstone, and Tim Brown, each for their specific area of expertise (see the Appendix for the team’s professional background).
Over the years, IWGR has experienced losses from operation before consideration of funding for recurring capital requirements . The City has funded operating losses and provided for capital projects by calculating and remitting subsidy payments to IWGR, referred to as the Resident Amenity Fee (totaling $7 million+ since FY 2018. We note here that in the most recent fiscal year, the course operated at a profit for the first time – certainly, an excellent result.
We note that the City developed the Resident Amenity Fee methodology in response to the creation of its Golf Enterprise Fund. The Resident Amenity Fee is the General Fund subsidy (expenditure) paid to the Indian Wells Golf Resort for the lost opportunity revenue that the Golf Resort, as a stand‐alone business, would have otherwise received from a non‐resident tee time.
In our scope of work, we explored numerous revenue opportunities, we reviewed the operating results (and margins) achieved by Troon Golf, and we reviewed program and physical aspects of the facility that have impacted operating results. Our exploration also included highest‐and‐best‐use considerations as well as more straightforward extensions of the IWGR golf experience.
The Strategic Asset Plan (“Plan”) – both this reference report and upcoming process, is expected to be updated over time, to respond to continuing Stakeholders input, and evolving business circumstances.
Introduction
Introduction
Shown at right, the 18th holes at IWGR’s Celebrity and Players courses.
What is included in this initial SAP report is based on Stakeholders input and ideas, inclusive of the several groups of concerned Stakeholders as noted at right.
SAP Process Stakeholders:
City of Indian Wells residents, including Resident Golfers and those residents who do not golf;
IWGR hotels and their end‐users (the guests) (referred to herein as “Partner Hotels” and “Hotel Partners”) – which we have considered as the City’s five hotels, recognizing that two of these hotels are party to the 1985 Easement Agreement (as amended),
City Council members, interviewed individually;
The IWGR Golf Resort Advisory Committee (the “Golf Committee”), interviewed individually; and
A representative of Visit Greater Palm Springs.
IWGR Strategic Asset Plan
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Summary
SUMMARY
We were retained to explore strategic opportunities available to IWGR, that could provide additional sources of net revenue from facility operations and to suggest an overall facility business mission for IWGR.
Over the years, IWGR has experienced losses from operation before consideration of funding for recurring capital requirements. The City has funded operating losses and provided such capital by calculating and remitting payment to IWGR, referred to as the Resident Amenity Fee. The City developed the Resident Amenity Fee methodology in response to the creation of the Golf Enterprise Fund. The Resident Amenity Fee is the General Fund subsidy (expenditure) paid to the Indian Wells Golf Resort for the lost opportunity revenue that the Golf Resort, as a stand‐alone business, would have otherwise received from a non‐resident tee time.
In our scope of work, we explored all manner of revenue opportunity as well as reviewed the operating results (and margins) as achieved by Troon. Our exploration included highest‐and‐best‐use considerations as well as more straightforward extensions of the IWGR golf experience.
One issue that was clear at the outset of our work was the lack of a clear understanding by all concerned, as to the business mission of IWGR. Over numerous stakeholder interviews and meetings, it became apparent that the original Easement Agreement expectations have evolved with consumer and marketplace circumstances to a different understanding among the Parties.
For the sustainability of the facility in an environment of continuing changing circumstances, we suggest that the facility’s mission can be stated in two parts:
First, all stakeholders expect the Indian Wells Golf Resort to be operated to maintain, if not enhance, its reputation as a premier golf experience among regional and national golf facilities.
Second, while seeking to preserve and expand Resident privileges at IWGR, it is sufficient to operate IWGR each fiscal year to meet or exceed breakeven from operations after reserves are made for capital expenditures net of any Resident Amenity Fee or subsidy paid by the City.
We note herein a related policy question for study during IWGR’s upcoming strategic planning process is confirmation of the preferred means of handling IWGR operating losses and capital requirements. There are some options:
IWGR Strategic Asset Plan
6Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
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StoneCreek Partners was tasked with exploring the highest- and-best use of IWGR, within the expressed interest of
Stakeholders.
Summary
1 Identification of alternative net revenue opportunities. Review of operating efficiencies, program, and physical factors, and post‐Covid 19 industry performance. Consideration of trends and obsolescence issues. Pursuant to Stakeholder expectations.
Within the legal structure that is in place – the Easement Agreement. We note that IWGR is a hybrid facility, a municipal course with a private course play experience.
We were retained to identify alternatives for consideration, with preferred options to be selected by Stakeholders as the strategic planning process commences. We can supply financial estimates of fiscal impact, for each scenario of interest.
IWGR Strategic Asset Plan
7Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
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Indian Wells Golf Resort should be operated to sustain and enhance its reputation as a premier golf experience, in the region and nationally. Sustaining this reputation will depend on identifying and securing new opportunities for IWGR revenue.
To make this happen, new revenue opportunities or confirmation of a preferred subsidy method is required, with a level of new capital investment. IWGR Net Operating Cash Flow (lor loss) even with a Reserve for Replacements included, is not a significant factor as compared to the scale of the overall Transient Occupancy Tax contribution to the City’s treasury. Again, breakeven or better is sufficient.
Fortunately, there are such opportunities for IWGR. And there is time, most recent operating results provide some time to make changes.
Summary
In order to preserve and potentially expand Resident
amenities, IWGR should be operated to exceed
breakeven after capital expenditures.
2
IWGR Strategic Asset Plan
8Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
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Summary
There is an opportunity to repurpose IWGR’s core
facilities, to enhance the experience for golfers, event guests, and other visitors.
3 New Short Game Practice Facility adjacent
to Players 1st Tee
Expansion of putting venue, to 9 holes.
Great moments at IWGR / clubhouse
Promote the Academy, as a social
experience using golf instruction
Light Celebrity Front 9
New Access Road from Fred Waring Drive
Plus:
DEFENSIBLE SPACE
SENSIBILITY
IWGR Strategic Asset Plan
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Summary
Expansion of Short‐Game Practice Area
We suggest consideration for development of an expanded short‐game practice facility in the area of the current Player course first tee. Practice facilities and Short Game areas provides a casual “alternative” golf offering for golf enthusiasts learn and improve their game. These facilities also provide an experience for golfers with limited time on a particular day.
Many private golf courses in the Coachella Valley have practice areas superior to what is offered at IWGR (Madison Club, Tradition Golf Club, Bighorn Golf Club, etc.) – providing a well‐conceived short‐game practice area would help IWGR to match what is offered at the best private courses.
This concept can be pursued as part of an area design study that includes the Event Pavilion, the Fairway Grill, a possible Wash bridge experience, and the potential rerouting of Players course to play entire north of the Wash. This area is highlighted in the diagram at right.
We believe this expanded / enhanced short‐game area, combined with the enhanced primary driving range, can assist in transforming IWGR’s practice facilities to a well‐regarded status among golfers.
Safety – provide ample space to provide a margin of error for novice golfers. Have bunkers not in line with other bunkers.
Variety ‐at a minimum, a practice area should replicate shots that might be required regularly on the course. If space is available, the design should cater to all types of golfers.
A great practice facility will emulate the golf course, with target greens that copy those on the golf course(s). Mowing patterns should copy the course with rough, fairway, cut and green length grass cutting definition. Also, ample available grass tee space is a big plus. Beauty ‐features should all relate to one another and be cohesive with the landscape. Maintenance ‐for consistency, the short game areas should be maintained in the same condition as the rest of the golf course. Green speeds, sand, type, grass, heights, etc. should match the facility’s golf courses.
Location – visibility of the practice area(s) from the clubhouse, is important to encourage use..
Space – the best short game practice areas are typically in the 2‐5‐acre range. Fun – practice areas that encourage the golfer to use their imagination and to get lost in the improvement process, are compelling.
Some Practice Area planning factors:
IWGR Strategic Asset Plan
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B
D
C
A
E
B
Summary
The compact nature of IWGR’s Core Facility can actually benefit F&B revenue – Compact gathering places tend to drive lingering, people watching, and F&B sales
IWGR Strategic Asset Plan
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Summary
We have reviewed the possibilities for making the Wash bridge more of an experiential element to a golf or group event guest. There are various means to signature the Bridge, so it is a net add to the IWGR experience versus an annoyance of sorts. At the minimum is should take on a scenic quality. As part of “area development” district considerations in placemaking it could be much more.
The Wash Bridge Experience
IWGR Strategic Asset Plan
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Strategic Marketing Collaboration with the Partner
Hotels is worth exploration to find new common
ground.
4 Lobby presence
Website presence
Guestroom tabletop standees / table tents
Co‐promotion of some IWGR programs such as The Academy. Placemaking Tactics
Wayfinding
Enhanced pathways to/from clubhouse
The City and IWGR specifically, have a large strategic benefit with mostly new (relatively) and experienced hotel owners in place among the Partner Hotels.
Summary
IWGR Strategic Asset Plan
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Establish a Reserve for Capital Replacements.5
Summary
A reserve is an ordinary and usual method for accumulating capital for major replacements – each kind of FF&E can be included on the capital replacements schedule with typical useful life noted and reserved for. We note the difference between a reserve for major capital replacements and projects, versus ordinary and usual Repairs and Maintenance that is included in the facility’s operating budget.
And eliminate the Resident Amenity Fee, and all other accounting adjustments and allocations, at least in performance reporting.
IWGR Strategic Asset Plan
14Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
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Destination Restaurant at Clubhouse 2nd Level.6
Summary
New outside elevator facing Indian Wells Lane (entry road). Convert Vue to a rent payment, even if mostly performance (percentage rent) based.
IWGR is situated in a region with a myriad of dining choices; let a restauranteur focus on how to best compete.
The Vue is the only aspect of operations that did not keep up with inflation since pre‐Pandemic.
Get out of the full‐service restaurant business, focus on catering, golfer F&B, and ancillary F&B at driving range, SITN, and the like. Be open to alternate concepts that could be proposed for the space.
IWGR Strategic Asset Plan
15Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
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Make Changes to the Golf Courses.7
Summary
Repurposing of Players Course to Play Entirely North of the Wash. Adjust Players “envelop” accommodate IWGR Core facility changes.
Reduce bunkers on Celebrity.
Additional changes as noted in the course evaluation comments herein.
IWGR Strategic Asset Plan
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8 Summary
Add additional Special Events to IWGR’s Calendar –
they’re working!
Desert Willows offers its Music + Dining Under the Stars program, something similar would work at IWGR.
We would suggest an “own the holidays” sensibility in planning special events at IWGR.
If it’s a holiday, IWGR should be a place to be.
IWGR Strategic Asset Plan
17Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
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The Easement Agreement can be renegotiated with
the Hotel Partners – as circumstance have changed for
all parties – in a good way.
It is expected that all parties to the Agreement will see some advantage in reaching a new form of cooperation agreement.
Included in restriking the Agreement could be accommodation of ROWs for new pathways to/from clubhouse, that were not in the original master plan. The original intent of the Easement Agreement is largely obviated. 4 Summary
IWGR Strategic Asset Plan
18Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
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Facility Mission
FACILITY
MISSION
What is the mission of IWGR?
What are we?
One issue that was clear at the outset of our work was the lack of a clear understanding by all concerned, as to the business mission of IWGR. This is a crucial issue as the confirmation of mission impacts future quality expectations, SAP business planning, capital decisions, and how IWGR should be managed, among many related matters.
The original Easement Agreement explicitly and implicitly called for a facility offering 36 holes of championship‐caliber golf, assumed a participation from the two resort hotels, and provided for specified privileges for Indian Wells residents (as amended over the years).
Over numerous stakeholder interviews and meetings, it became apparent that the original Easement Agreement expectations have evolved with consumer and marketplace circumstances to a different understanding among the Parties.
The five Hotel Partners of the city, and particularly those that are part of the Easement Agreement, have access to IWGR as a golf amenity for their guests and as an essential placemaking backdrop for their resorts. Each of the hotels no longer exist or market themselves as golf resorts as was once the custom.
In our interviews, the hotels have not asserted a possible larger golf participation if only for one change or improvement, or another.
In terms of a municipal consideration for “highest and best use” for committing the property, financial resources, and staff resources in its oversight, Resident Stakeholders have not encouraged a different vision for IWGR other than what is generally in place. We believe this obviates any general sense of fiduciary obligation that might otherwise exist.
We note that golf is evolving to meet the leisure expectations of up‐and‐coming generations and the definition of premier will evolve with these new generations of golfers.
IWGR Strategic Asset Plan
19Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
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For the sustainability of the IWGR in a business environment of continuing changing circumstances, we suggest that the facility’s mission can be stated in two parts as noted at right.
Sustaining this reputation may depend on identifying and securing new opportunities for IWGR revenue, as opposed to depending on City subsidy of IWGR operations.
Regarding the second part of the suggested mission noted at right, we believe that operating IWGR with a Reserve for Replacements included, at breakeven, is sufficient since net profits are better used in improving the facility (our opinion). The scale of overall Transient Occupancy Tax collections are the substantial contributor to the City’s fiscal health.
IWGR and its special privileges for Residents is part of the value proposition for privately‐ owned residential real estate in Indian Wells. IWGR is valuable in this way for all residents and not solely for those who golf. IWGR also provides a community‐wide placemaking value for all residents, providing a beautiful landscaped center of community activities.
We note a related policy question for study during IWGR’s strategic planning process is confirmation of the preferred means of handling IWGR operating losses and capital requirements. There are some options:
Continue with the City directly subsidizing IWGR with the Resident Amenity Fee, as has been the practice.
Allocate a stipulated portion of the City’s Transient Occupancy Tax, instead of subsidy through the Resident Amenity Fee calculation.
Confirm new sources of net revenue to avoid operating losses and seek to directly fund IWGR capital requirements from facility operations.
Facility Mission – for Consideration
Facility Mission
First, all Stakeholders expect the Indian Wells
Golf Resort to be operated to maintain, if not
enhance, its reputation as a premier golf
experience among the best of regional and
national golf facilities, whether premier private
or premium public play courses. Resident
Stakeholders and those non‐resident golfers
paying market rates, have largely this same
expectations for IWGR’s premier quality.
Second, while seeking to preserve and expand
Resident privileges at IWGR, it is sufficient to
operate IWGR each fiscal year to meet or
exceed breakeven from operations after
reserves for capital expenditures and net of
subsidy from the City.
SUGGESTED MISSION
IWGR Strategic Asset Plan
20Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
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Stakeholders have emphasized that IWGR is considered a community facility, a special amenity for residents.
Facility Mission
Preferred Mission
Alternative Mission Considered
In discussions with Stakeholders, what IWGR is perceived to be was compared to the original business intent embodied in the Easement Agreement.
IWGR Strategic Asset Plan
21Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
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Performance Metrics
Performance Metrics
We have reviewed the operating and financial performance of IWGR, for the period FY 2017 through FY 2022, as well as the start of FY 2022 through October.
In our review we use a format known as the Uniform System of Accounts as commonly used in the hotel / hospitality industry. The Uniform System of Accounts provides us a helpful focus on departmental performance and all other undistributed expenses within a facility’s operation.
Over the review period, there were changing treatments of the Resident Amenity Fee and allocations of VUE restaurant staffing. Depreciation and amortization charges also changed over the review period as GAAP policies changed. We endeavored to construct our preferred format for financial reporting while tying back to IWGR’s format.
We use EBITDA as the bottom‐line performance result. We of course have not audited IWGR financial results; we have reformatted and recast the financial presentation to best understand departmental performance before accounting adjustments.
Throughout this report, we use the financial report to depict the impact of facility changes and enhancements.
The Baseline financial report as recast, is shown on the following page. This Baseline run includes the adjustment for CPI due to occur on January 1, 2023.
PERFORMANCE
METRICS
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EBITDA Performance Improvements
Performance Metrics
In the following three financial runs, we show a baseline projection, then the departmental performance for the baseline run, and then financial projection for IWGR with operation adjusted to a new “normal operation” The metrics from the 3rd financial run, the new IWGR normal, illustrate departmental performance as can be expected with a more typical operating condition.
EBITDA Improvements
We suggest an EBITDA improvement plan that unloads The Vue to a 3rd‐party that can give that space the independent positioning and promotion it requires.
Destination restaurants and some high‐end chain restaurants do significantly better revenue than The Vue. Removing the operating losses of The Vue and changing the focus to creative promotion of Golf and Group F&B offerings, is something IWGR and Troon, are well suited for.
The program at right allows for each plan element to make its contribution to increasing facility EBITDA. No one program can fully transform IWGR. But a slate of programs carefully chosen for their value in contributing positive EBITDA, can be transformative.
Our separate brief memorandum on metrics and this program (at right) discusses this in detail. The separate memorandum is intended as a format for the City’s ongoing pursuit of a “living” strategic asset management process.
Best Targets for EBITDA Growth
For Five‐Year Period ending FY 2027
Increase IWGR’s Marketing Budget –to 3% of revenues. IWGR exists in a crowded visitor market. Troon Golf could make good use of additional promotional dollars.
Our thought though is less on advertising and more on direct (guerilla) sales efforts to key accounts and constituencies.
Prime players at prime rates – a 3,000 round increase in this player segment has a material impact on EBITDA.
Lease The Vue 2nd Level to a 3rd‐Party –incentivize tenant prospecting with an easy base rent with participation in restaurant sales. Structure the tenant sales participation to gradually increase through the term of the lease.
Open a L1 clubhouse Golfer’s Grill and the Fairway Grill – include a signature treatment of the Wash bridge to make the Golfer’s and Fairway grills part of an F&B continuum anchoring both sides of the bridge.
Aggressive Promotion of The Academy – to beginner golfers living in the 2‐hour drive‐in market that would book a package with friends. Package with a compelling experiential product name, something evoking the idea of “Women’s Weekends Away.” The enhanced driving range provides an attractive setting for a Golf+Social getaway weekend.
Revamped IWGR Logo – to propel logo’d apparel and gear merchandise sales.
Play Improvements on both courses –reducing and/or simplifying bunkers without diminishing play satisfaction, good opportunity to reduce maintenance costs.
Restructure IWGR Oversight to a Traditional Model – of Owner, Asset Manager, Facility Manager. Form a Resident’s Member Committee to advise the Asset Management function. Unleash Troon Golf to focus on what they do best.
Incentivize Facilities Manager –with revised Base + Profit participation.
IWGR Strategic Asset Plan
23Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
The Common Metrics re IWGR’s Performance
Performance Metrics
MDSE.
GOLF
CATERING
F&B
IWGR is a hybrid facility, as municipal court with Resident benefits, and a for‐profit POV for the larger potion of rounds played.
Common metrics / benchmarks for such hybrid facilities are difficult and need to be carefully applied.
Even with the calculation and funding of a Resident Amenity reimbursement to the facility, that process does not account for the Facility Manager and staff’s hybrid approach to managing and handling the guest day. Facility staff working a private golf club require a different sensibility than the facility staff working a resort golf venue. Between these two kinds of facilities and golfers there is no primacy of any kind, they simply operate differently.
In reviewing IWGR’s EBITDA for the first time, and again with the final figures for FY 2022, our reaction was that the facility’s bottom‐line is low. For this kind of facility in the Coachella Valley marketplace we would expect a result somewhere in the 15 to 25% range depending additional factors. If operated strictly for‐profit, we would expect EBITDA at the upper end of this range.
Another issues is that EBITDA does not account for capital reserves. A fully for‐profit facility would include at funded reserve for replacements or an owner that knowingly elected to for replacements as needed from other available funds.
There are all kinds of metrics and benchmarks to apply across a golf facility’s departments. We have provided a working example for the City of such, under separate cover.
But the best possible metric, always, is to establish an EBITDA objective, a business and marketing plan that attempt to meet or exceed that objective, and a clear facilities management relationship by and between an owner and manager. Leaving a qualified facilities manager free (within proscribed business plan guardrails) to manage to the bottom‐line ‐however it can be best accomplished ‐is the best way to administer a golf facility, or most any real estate property.
GROUP
IWGR Strategic Asset Plan
24Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Performance Metrics
Baseline Financials
Constant 2022 dollars
Management fee adjusted
on January 1, 2023
Exhibit 01
Baseline
NET OPERATING CASH FLOW
IWGR Strategic Asset Plan
25Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Performance Metrics
Exhibit 02
Dept. Margins
IWGR IWGR 2.0
IWGR Compared to Benchmarks
% of Sales
NET OPERATING CASH FLOW
IWGR Strategic Asset Plan
26Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Performance Metrics
Exhibit 03
New Benchmarks for IWGR
NET OPERATING CASH FLOW
IWGR Strategic Asset Plan
27Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
To help in understanding the IWGR “economic engine,” we prepared several financial runs to test assumptions such as differential inflation rates (for revenue and expenses), increased rounds play, and the like.
It is important to note that these runs are not focused on prediction, but rather, how sensitive the IWGR operation is, to typical economic changes.
We have used nominal 2022 dollars as the basis for any financial assumptions, and then applied an inflation factor.
For an inflation factor, we use the latest “10‐year breakeven inflation rate,” which measures the earnings rate difference between the 10‐year Treasury Bond and the Treasury Inflation Protected Securities (TIPS). The 10‐year breakeven rate provides an indication of market inflation expectations over a 10‐year horizon. As an example, the 10‐year TIPS breakeven rate was 2.67% on March 7, 2022, while the long‐term historic average of this breakeven rate was 2.05% on this same date. On April 1, 2022, the 10‐year TIPS breakeven rate had moved closer to 2.8%, which we have used here.
These financial runs are included on following pages.
Sensitivity Analysis
Performance Metrics
Exhibit 04 shows the Baseline FY 2022 results, with an additional 3,000 prime player rounds.
Exhibit 05 shows differential inflation. A cursory depiction of a recessionary environment with revenues increasing at 1% per annum, while expenses increase at 3%.
•Exhibit 06 shows the impact of a 6.5% reduction in FY 2022 Golf Maintenance expenses based on reworking select bunkers on both courses.
IWGR Strategic Asset Plan
28Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Exhibit 04
Performance Metrics
Constant 2022 dollars
3,000 additional prime
player rounds at prime rates.
NET OPERATING CASH FLOW
IWGR Strategic Asset Plan
29Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Exhibit 05
Performance Metrics
Differential inflation:
Revenue: 1% per annum
Expenses 3% per annum
NET OPERATING CASH FLOW
IWGR Strategic Asset Plan
30Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Exhibit 06
Performance Metrics
Constant 2022 dollars
6.5% reduction in FY 2022
maintenance costs based on
decreasing bunkers and
decreasing complexity of
other bunkers.
NET OPERATING CASH FLOW
IWGR Strategic Asset Plan
31Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Performance Metrics
Select IWGR Performance Metrics are included below:
Exhibit 07
IWGR Strategic Asset Plan
32Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Post‐Covid Rebound
Performance Metrics
From an asset management perspective, it is helpful to understand how IWGR has performed “post Covid,” compared to a baseline, and with inflation included in the consideration.
The calculations below assume an FY 2018‐2019 baseline operating result, applied to an inflation index since the baseline period through mid‐year 2022.
The inflation index used is the CPI for All Urban Consumers (CPI‐U) ‐Riverside‐ San Bernardino‐Ontario, CA dataset published by the U.S. Bureau of Labor Statistics.
As shown below and with inflation since FY 2018/2019 considered, IWGR generally outperformed the Inflated Baseline for FY 2022. Golf fees, pro shop, and course F&B each did better than the Inflated Baseline.
Golf range, rental and other, and the VUE restaurant, underperformed compared to this Baseline.
IWGR Strategic Asset Plan
33Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
FISCAL
IMPACT
Fiscal Impact
Indian Wells Golf Resort was initially conceived as a City investment that would generate transient occupancy taxes (“TOT”) derived from IWGR resort hotels that would co‐invest at the resort.
Part of the underwriting for the two on‐site convention hotels (the Hyatt and the Esmeralda) was a presumed golf participation of hotel guests. Over the years, the golf play at IWGR derived by hotel guests has declined, while transient occupancy taxes derived from these hotels has increased (the Covid Pandemic period being the exception).
There is no direct financial relationship between IWGR, and TOT generated by the five Hotel Partner properties. At this time, the TOT that is derived by the City’s five Hotel Partners including the two IWGR hotels, is driven by factors more essential to the hotels than golf play at IWGR.
The current website promotion of each of the five Hotel Partners, confirms this situation (see Marketing and Promotion section herein). With an exception here and there, the City’s hotels generally do not highlight and certainly do not promote, IWGR on their websites.
We note as well that IWGR’s monthly reports no longer separately account for golf play derived from IWGR hotel guests, we presume due to the decline of the current (on‐site) hotel guest golf play.
While there is no direct financial relationship as noted above, IWGR was part of the origin story (per the original Easement Agreement) for the City becoming a major resort hotel destination among Coachella Valley communities. And the scale and beauty of IWGR’s grounds and facility reputation remain the essential location premise for the Hotel Partners.
So long as IWGR is a quality operation, and its landscaping is of excellent quality, that is sufficient for the hotels. Their own facilities, targeted guest mix (outside of golf), and market capture, is more important to the TOT yield.
Exhibit 08 on the next page shows TOT collection since FY 2017, reaching $10.7 million in FY 2022.
IWGR Strategic Asset Plan
34Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Fiscal Impact
Exhibit 08
IWGR Strategic Asset Plan
35Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Fiscal Impact
TOT Contribution to City General Fund
Each year, the five Hotel Partners are the largest contributor of funds (taxes) to the City’s General Fund. The table below shows Transient Occupancy Tax payments expected at the time of preparation for the City’s 2021‐ 2023 biennial operating budget. As noted in the prior exhibit, actual TOT collected for FY 2022 significantly exceeded what was projected in May 2021. The time period in which this estimate of TOT was made was a difficult one, as no one knew how the golf industry would emerge from the Pandemic.
General Fund Five‐Year Projected Cash Flow
Source: City of Indian Wells, Biennial Operating Budget for FY 2021‐2023, prepared May 20, 2021.
IWGR Strategic Asset Plan
36Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Attribution of TOT to Indian Wells Golf Resort
Fiscal Impact
During this assignment, we have been asked whether some portion of TOT collected by the City should be attributed to IWGR. The rationale for making such an assignment is provided below, along with a rationale for not doing so.
The rationale for assigning some portion of TOT to IWGR, would include the following:
The presence of IWGR as part of the master‐planned setting that includes two of the City’s hotels, is part of the placemaking for the two hotels. Placemaking as used here refers to the scenic views of the golf envelope enjoyed by hotel guests from each of the hotel properties.
The rationale for not assigning any portion of TOT to IWGR, would include the following:
IWGR and the two Partner Hotels involved in the Easement Agreement have pursued largely unrelated business plans since the execution of the Agreement. It would be difficult to assert that IWGR and its golf offering is a direct causal factor in the success of the Partner Hotels.
IWGR Strategic Asset Plan
37Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
The confirmation of IWGR as Community Amenity (First) recognizes that the golf courses at IWGR are a popular amenity for residents of Indian Wells.
Residents with their guests booked between 29.3% and 38.1% of rounds played on the two courses, during FY 2018 through FY 2022. Fiscal year 2020 is an outlier given the Covid‐19 Pandemic that was underway at the time.
Exhibit 09 on the following page summarizes Resident play (including Resident guest rounds) and total rounds played at IWGR. The exhibit includes monthly information and fiscal year totals for the period of FY 2018 through 2022, as well as partial years for FY 2017 and FY 2023 to‐ date. We note that our information collection started with the 2017 calendar year.
Fiscal Impact
Resident & Resident Guest Golf Rounds Resident Amenity Calculation Over the year, the City has calculated the opportunity cost for providing City residents with golf rounds, food and beverage, and retail merchandise, at a discount. The discounting of such items is based on the original Easement Agreement, as amended, and made effective over the years through various City enabling resolutions For FY 2018 through FY 2022 and including FY 2023 through October, this recapture calculation has totaled just under $7.7 million. This is tallied in the table below.
This Resident Amenity (opportunity cost) recapture is a discretionary matter, that may not be required for the City and its Resident Stakeholders. We suggest the City consider:
If the Facility Mission is as we suggest, there is no reason to make this calculation.
Rather, each year a business plan is executed with EBITDA expectations and means to reach breakeven. If there is a loss, the City funds that loss. If IWGR is not first and foremost a resident amenity and is operated instead as a hybrid for‐profit / nonprofit entity, we suggest the Resident Amenity Calculation is still not required. We used the hybrid description since with the Resident “club privileges” in place, IWGR cannot be considered a fully for‐profit entity.
IWGR Strategic Asset Plan
38Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Fiscal Impact
Exhibit 09
IWGR Strategic Asset Plan
39Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Resolution No. 2017‐28 (May 18, 2017) amended policies for the issuance of resident benefit cards, such changes being effective for calendar year 2018 Resident Benefit Cards.
Resolution 2007‐44 (September 20, 2007) modified the criteria for issuance of Property Identification Cards establishing a calendar year basis for the program, referencing prior resolutions of January 7, 1993, February 20, 1997, November 4, 2004, and June 2, 2005.
Resolution No. 2005‐27 (January 2, 2005) provided for changes to Exhibit “A” concerning Property Owner Identification Cards modifying the determination of eligibility requirements and referenced prior resolutions on the same subject approved on January 7, 1993 (97‐14), February 20, 1997, and November 4, 2004.
Resolution No. 2004‐58
A Reduced Golf Fee Policy for the Golf Resort at Indian Wells was established on April 17, 1997, by and between the Indian Wells Golf Resort Joint Venture, Grand Champions LLC, and the Redevelopment Agency of the City of Indian Wells. This agreement confirmed the original easement agreement dated April 8, 1985, and the Reduced Golf Fee Agreement dated January 7, 1993 (see below). This agreement again clarified policies for reduced fee players.
Resolution No. 2007‐44
Resolution 97‐14 (January 7, 1993) provided for modification of the policy for issuance of Property Owner Identification Cards that had been established through prior Resolution 93‐75 (see below). The resolution clarified how cards would be issued to the Property Owner, spouse or domestic partner, and each dependent child under twenty‐one years, and that those with interests in a lease or time share property would not qualify for the Property Owner Identification Cards. Resolution 97‐14 also confirmed other enabling details for card issuance.
Resolution 93‐75 (June 3, 1993) provided for a first amendment to the prior resolution regarding complimentary golf play (Resolution 93‐5), with a modification to the prior agreement’s Paragraph 6. The modification confirmed the resident green fee rate not to exceed $35.00 and confirmed that the criteria for issuing Property Owner Identification Cards would be at the sole discretion of the Indian Wells City Council.
Resolution 93‐5 (January 7, 1993) authorized an agreement with Stouffer Esmeralda Resort, Hyatt Grand Champions Resorts, and American Golf Corporation to provide a complimentary golf play policy and included Exhibit “A” Complimentary Golf Policy for the Indian Wells Golf Resort. Exhibit “A” to Resolution 93‐5 provided detailing of the complimentary golf policy, including a definition of complimentary play and identification of categories of complimentary play. Per Exhibit “A,” categories included City Council and city staff, senior management at IWGR partner hotels, IWGR staff, professional members of golf sanctioning organizations, visiting government officials, tour and travel professionals, and select event participants. This Agreement included a 30‐day cancellation provision.
Exhibit “A” also established a green fee not to exceed $35.00 with proper resident identification and family relationship.
The resolution also rescinded prior Resolution No. 85‐71, which has first established a resident classification of participants for the Indian Wells Golf Resort, on November 21, 1985, wherein an identification card and script would be established to enable resident play at the golf resort.
Resolution 85‐68 (November 7, 1985) amended the schedule of fees for the operation of IWGR at its opening, setting rates for on‐season, shoulder season, and off‐season, and for regular and twilight play, along with car fees. The resolution also confirmed fees for use of the driving range.
Resident Amenity Policy Resolutions
Fiscal ImpactThis information included for background reference only.
IWGR Strategic Asset Plan
40Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
FACILITY
ENHANCEMENTS
Enhancements
We evaluated a wide variety of opportunities for enhancing and/or repurposing IWGR facilities, pursuant to our Agreement with the City.
The intention of exploring opportunities was to test the limits of “highest‐ and‐best‐use” for the facility and grounds as an additional means of identifying what Stakeholders desired as the Facility’s Mission.
In this section, we include those opportunities that were of interest to many of the Stakeholders, many of which are of an enhancement nature, while some involve new ideas or repurposing parts of the facility.
Some opportunities that we evaluated were not of interest to enough Stakeholders to merit inclusion in this section. Those concepts are deemed “Opportunities Not of Interest” and are included in this report’s Appendix simply as a part of the record of this work.
IWGR Strategic Asset Plan
41Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
There are many ideas for enhancements and additions to existing IWGR facilities.
We recommend that once a slate of projects are identified that should proceed, that planning proceed with an “area development” approach. There are many synergies, and guest experience boosts among the various ideas, with area development the best possible benefits can be sought in combining these during implementation.
We suggest these districts within IWGR are:
Area A – the clubhouse interior, visual cues, and immediately‐ adjacent terraces and walkways.
Area B – the practice areas and outdoor nighttime golf / social activities at the driving range, putting area, etc.
Area C – the Wash bridge, with its potential for providing a signature visual and aesthetic experience.
Area D – the IWGR North area, with numerous elements that can be enhanced together in a synergetic way.
Area E – the approach zones, wayfinding, and arrival sequences that characterize the greater IWGR resort experience.
Area Development is a planning approach borrowed from the attractions (theme parks) industry that focuses on defining districts within an overall project, each of which take on specific guest experience roles, activities, aesthetics, and the like. The approach is steeped with placemaking traditions, to bring the best possible tactics in creating compelling destination places.
Enhancements
Area Development & Placemaking
B
D
C
A
E
B
IWGR Strategic Asset Plan
42Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
FAIRWAY
GRILL
CLUBHOUSE
GOLFER’S
GRILL
BEVERAGE
CART(S)COMFORT
STATIONS
Golf Food & Beverage Offerings
CATERING/
EVENTS
CLUBHOUSE
2ND LEVEL
TENANT
BRIDGE
EXPERIENCE
Enhancements
We suggest a comprehensive adjustment to the food and beverage strategy that focuses in these three areas:
Golfer F&B – to include a relocated “golfer’s grill” in the Stonehaus style, on the ground floor overlooking golfer’s starting and finishing, starter activity, the Wash Bridge, and part of the entry / exit sequence along with the pro shop. Golfer F&B would also include a reactivated Fairway Grill, two comfort stations, and reimagining of the Wash Bridge to provide an iconic experience visually and during crossing. Placing the food truck in semi‐permanent location at or about the putting area and driving range, has a nice merchandising appearance to help created “busy energy” at the location. Catering F&B – IWGR has operated a successful catering business, with substantial annual covers. This business can be increased through insulation and climate control of the Event Pavilion, and promotion of the already enhanced driving range for group events.
Catering Banquets Kitchen – A banquets kitchen is needed to support all group F&B except for activity at the Clubhouse 2nd Level. The Fairway Grill kitchen now used to support the Event Pavilion, should be expanded to allow full support of all golf F&B without support from the clubhouse’s 2nd floor kitchen.
3rd‐Party Destination F&B – as part of the “Unleash Troon” strategy, we suggest closing the VUE Restaurant and leasing the entire 2nd level to a 3rd‐ party restaurant operator. There are many options here, and the intention is to identify an operator with a strong brand following and/or a track record for creating destination dining experiences.
The diagram at right summarizes the three F&B focuses.
DRIVING
RANGE
PUTTING
AREA
SHOTS
IN THE NIGHT
FOOD
TRUCK
IWGR Strategic Asset Plan
43Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
New Clubhouse Golf Grill at Ground Floor
A golfer’s grill would have best participation among golfers if situated at the clubhouse’s first level, situated indoors and outdoors along the cart path facing the Wash bridge.
A limited kitchen; possibly a serving kitchen only, would be required. As an aesthetic and scale example, we like the Stonehaus Grill operation in Westlake Village (California). The Stonehaus is a Tuscan‐style coffeehouse and wine tasting room, somewhat an extension of the F&B offerings at Westlake Village Inn. In its earliest days after opening in 2012, the 3,560 square foot was the gathering place for the adjacent tennis club (since demolished) but quickly established itself as the social gathering place for surrounding communities.
The informal and charming setting, and ample seating, accommodated the many locals coming and going. Where The Stonehaus derives some of its aesthetic from a tiny adjacent vineyard; at the IWGR clubhouse, the existing landscaping and views provide an equally compelling environment. www.the‐ stonehaus.com While this new golfer’s grill would serve golfer needs, the location and format would be attractive to Indian Wells residents for casual dining and meet‐ups. A side benefit of an active golf grill would be a more active ground level at the clubhouse.
Sometimes this visual cue creates more business; people respond favorable to palpably busy energy.
Shown above: views of The Stonehaus Grill in Westlake Village (California). The clubhouse’s “inside‐ outside” guest flow and service style would adapt well to IWGR’s clubhouse ground floor. Shown at left: views of part of the outdoor area adjacent to the clubhouse lobby.
Enhancements
IWGR Strategic Asset Plan
44Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Golf Grill revenue at $18 /
round including unrelated
additional social business.
VUE space leased to 3rd
party, at 5% of restaurant
tenant sales, NNN lease.
Assume Food Truck sales
can be held steady.
Constant 2022 dollars.
New Clubhouse Golf Grill at Ground Floor Enhancements
Exhibit 10
IWGR Strategic Asset Plan
45Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Fairway Grill
The Fairway Grill building situated adjacent to the Events Pavilion, is in an excellent position to provide upgraded food and beverage service to golfers and Event Pavilion guests.
We suggest the Fairway Grill be opened if it can be combined with one or more of the additional changes identified herein, namely, placement of a golfer’s grill at clubhouse level 1, and, leasing of the VUE to 3rd‐party restaurant operator.
The kitchen / seating area here is a good location for serving players on the courses, both food and beverage as well as a “quick grab” assortment of golf balls, suntan lotion, gloves, and snacks.
At Players Course, 1st tee;
At Players Course 8th hole, and tee area for 9th hole. At Players Course 18th hole, as players finish the course, is the City pursues repurposing the Players Course to start and finish north of the Wash. At Celebrity Course 1st tee;
At Celebrity Course 9th hole, before crossing The Wash to the 10th tee; The Fairway Grill can also serve a Lit Night Golf experience on the Celebrity front nine, if the concept is pursued.
Being adjacent to the Pavilion, the Fairway Grill can also support event guests as an outdoor bar on the grounds.
The kitchen supporting this snacks/grill has also supported the Pavilion.
Since Players and Celebrity courses do not have classic settings for their respective 18th holes leading to the clubhouse, the Fairway Grill can provide some of that finishing quality for tournaments and groups.
Fairway Grill will require close coordination with the ground floor Golf Grill that is suggested, the beverage cart(s) and the food truck. Each provides a somewhat different F&B experience for different guest moments at IWGR.
The small kitchen area now being used to support the Event Pavilion, should be expanded to serve the golf F&B functions described in this section.
Enhancements
A view of the outdoor seating area at the Fairway Grill.
IWGR Strategic Asset Plan
46Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
EnhancementsFairway Grill
Shown above, various views of Fairway Grill and environs. At the time of our fieldwork, Troon Golf was exploring areas at or about the Fairway Grill that could be level‐graded to provide kitchen expansion area and additional outdoor settings for small group events. See photo at far right below, of an area overlooking the Wash bridge near to the Fairway Grill.
IWGR Strategic Asset Plan
47Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Destination Restaurant at Clubhouse 2nd Level The difficulties of IWGR for general commercial purpose, are not a limitation in the case of a so‐called “destination restaurant.” Most every region has one or more unique destination restaurants. These can be particularly intriguing for customers when just a bit off the beaten path and/or requiring a short journey.
Some “critical success factors” for destination restaurant include a compelling if not unique setting, whether location‐based, story‐based, or thematic. Remote locations can be preferable, where the journey (anticipation), approach, and arrival are part of the experience. Other factors critical to a destination restaurant include a compelling menu, a special food preparation method, and possibly a noted chef.
Destinations restaurant typically fulfill unique trip purposes, such as “doing something special,” or commemorating a special occasion. In today’s world, such an experience can fulfill the unique need for “selfie” shares on social media. Some examples of regional destination restaurant around the U.S include:
Fox & Hounds Restaurant & Tavern (Hubertus, Wisconsin) ‐is such an example, situated outside of Milwaukee. First established in 1933 after decades of family experience hosting fox hunts from their Kettle Moraine cabin and basement bar. Blue Bill at Stone Barns (Pocantico Hills, New York) – Chef Dan Barber’s farm‐to‐ table restaurant serving tasting menus in a refurbished barn. Located about 30 miles north of Manhattan.
Single Thread Farms (Healdsburg, California) ‐Guests of the restaurant are treated to an 11‐course tasting menu, showcasing the seasonal bounty from the owner/chef’s farm.
Popeye's on Lake Geneva (Southern Wisconsin) ‐is another example. Lake Geneva and environs has long been a 2nd home and weekend escape destination for residents of norther Illinois, and the Milwaukee metro area. Customers may enjoy these restaurants more in having to travel for the experience.
IWGR’s Vue Restaurant exists in a region that is highly competitive among a myriad of full‐service restaurants. Part of the fun in visiting “the Desert” is dining out at a restaurant with some unique aspect (whether menu, vibe, and/or venue aesthetics) and often al fresco. All the better if an F&B offering is situated within a “restaurant row” or at least with some street life for wandering after dinner.
A destination restaurant can be based on one or more factors. Working with a celebrity chef, or a chef with a “foodie following” in the region, is one way to go.
Here are some examples of lesser‐known chefs or fresh ideas:
Nancy Silverton ‐Osteria Mozza, Pizzeria Mozza and Mozz2Go, Los Angeles ‐ Nancy won the James Beard Foundation's Outstanding Chef Award in 2014 and her restaurants in Los Angeles have a cult following. It is arguably the most innovative Italian in LA and can be hard to book a table. www.la.osteriamozza.com
Walter Manzke ‐Republique, Los Angeles ‐Before opening Republique, a wildly successful, hip eatery in LA, Walter opened three successful restaurants in Carmel, CA and two more in LA. www.republiquela.com Jose Acevedo ‐Mercado, Los Angeles ‐I believe an upscale nouveau style Mexican offering would be well received in the Coachella Valley. Mercado co‐ owner and Executive Chef, Acevedo began his extensive career training in the kitchens of Wolfgang Puck and the Hillstone Restaurant Group. Acevedo comes from Guanajuato, Mexico. www.cocinasycalaveras.com Galpão Gaucho Brazilian Steakhouse, multiple locations, US ‐Brazilian Steakhouse are becoming increasingly popular in the US. I believe an upscale chain would be a welcome addition to the Coachella Valley. www.galpaogauchousa.com
Enhancements
IWGR Strategic Asset Plan
48Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
EnhancementsFairway Grill
Fairway Grill revenue at
$14 / round
Assume Beverage Cart
sales can be held steady.
Constant 2022 dollars.
Exhibit 11
NET OPERATING CASH FLOW
IWGR Strategic Asset Plan
49Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Increased Banquets / Meetings Capacity
IWGR’s landscaped grounds and views offer some of the most compelling settings in the Coachella Valley. With a larger, more versatile meeting facility, IWGR can earn more meetings business of all types (the so‐called MICE and SMERF segments).
The difficulty of course is the limitation of existing parking, and the need to cross the Wash Bridge for gatherings at the Event Pavilion. Operating a primary banquet kitchen at the Fairway Grill (adjacent to the Event Pavilion) requires food and beverage deliveries across a bridge with limited weight capacity.
To operate year‐round, the Event Pavilion also requires insulation to allow efficient cooling in the warmest weather months.
Enhancements
IWGR Strategic Asset Plan
50Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Merchandise the Pro Shop Threshold
Enhancements
The Pro Shop can better merchandise its entry, to take advantage of its location along the arrival and departure route throughout the clubhouse. The Pro Shop entry threshold should be activated starting at point A in the diagram at right. That is, the Pro Shop and its merchandise needs to be palpable to those arriving and leaving from the clubhouse, as they pass by the shop threshold.
The next part of the store entry sequence (point B) also needs activation. If this were a mall, the first 15 FT from the entry threshold is most important, with the view onto a 50 to 60 FT store depth being next important. We believe this tactic from the mall industry works well in considering activation of its entry sequence.
The Store Threshold and Entry Sequence should provide an enhanced “retail rhythm” for those entering. As diagrammed below, retail rhythm is a moving 160‐degree point‐of‐view for customers as their eyes dance and glance at the retail space in search of visual cues. Great stores, malls, and retail streets, offer top retail rhythms for their shoppers.
A B
CLUBHOUSE
MAIN ENTRANCE
Shown at far left, the pro
shop as viewed from the
clubhouse lobby. Shown
above, the customer path as
it moves past the Pro Shop
entry threshold. At near left,
customer “retail rhythm” is
a moving 160‐degree POV
through the space, with the
eyes dancing to gather
environmental cues during
this journey.Shown here, a LUSH store entry threshold with attention to 160‐degree customer “retail rhythm.
IWGR Strategic Asset Plan
51Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Logo Redesign for Greater Retail Sales
Enhancements
We suggest a design exploration with focus group testing, to determine if a better logo design might be achieved that can cause increased logo’ d merchandise sales.
It is difficult to prove out without testing through design alternatives, but we believe the IWGR logo is not as aesthetically compelling as it could be.
And we are all aware that a great logo helps to sell the logo’ d apparel and gear.
Great graphic designers and logo specialists can create remarkable designs and branding guidelines that have measurable impacts on sales. IWGR offers a golf experience among the finest in the U.S. The logo should match and propel the branded experience.
We notice the Integration of a Troon Golf tagline with the IWGR logo, in at least the one logo treatment we include at below right. In general, unless the facilities manager is an investment partner or has paid fee for such co‐branding, it is not advisable to allow such co‐ branding.
If allowed to co‐brand in this way, the City would have some branding issues to mitigate for should Troon Golf exit from its current facilities management role. We say this simply for the sake of Owner protection.
We do agree with idea that Troon Golf’s brand can and will lift IWGR’s brand; but this can be done in other ways in collateral, social media, and website presentation.
IWGR Strategic Asset Plan
52Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Enhancements
Commemorating Great Moments at IWGR
Indian Wells is a remarkable place ‐the host community for two world‐class sports and recreation facilities and associated events. As we have noted, there are few communities that have venues of the caliber of IWGR and the Indian Wells Tennis Garden. This sensibility about Indian Wells is not now part of the aesthetic of the clubhouse.
We suggest that commemorating and celebrating this rich community sports heritage can help propel word‐of‐mouth about the club and help to shape golfer and golf critic reviews.
Some thoughts on this:
The clubhouse lobby could include a commemoration of the Skins Games hosted in 2007 and 2008, won by Stephen Ames and K.J. Choi, a couple of great moment in IWGR’s history.
We recommend somewhere along the primary circulation path in the ground floor lobby. Identify the Indian Wells Tennis Garden as something akin to a sister facility with IWGR (with IWTG’s active collaboration of course). IWGR with the Tennis Garden is a terrific co‐ branding opportunity that can lift the brands of both facilities. Given the ongoing major tournament hosting over at the Tennis Garden, the IWGR clubhouse presence for the Tennis Garden would take on a more active, ongoing approach which is exciting. Commemorating these great moments, we think is like the Los Angeles Lakers hanging their NBA championship banners in the arena rafters. Displaying commemorative items also serves as a challenge for all concerned to match those glory years. There are undoubtedly other great moments of which we are unaware but could also be considered for similar treatment.
As part of lifting the heritage of IWGR and the community, into the facility, we suggest exploring a commemorative monument or two on the courses, where great golfers and great moments have occurred.
This placemaking tactic could take on a “selfie moment” edge with the right kind of design.
Any selfie taken at the facility which clearly notes IWGR is a free ongoing content drop to social media.
Shown above: Zach Johnson hitting from the 17th fairway during the 2007 Skins Game at IWGR’s Celebrity course.
IWGR Strategic Asset Plan
53Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Improving Satisfaction of Play and Reducing Costs
Enhancements
The golf architects on the SCP team – Mark Mungeam and his associate firm, John Robinson Golf, have suggested various changes to the Players and Celebrity courses. The Facilities Review section of this report includes detailed field observations from a golf architect’s POV (Mark Mungeam).
There would be several objectives for any changes to the courses:
Enhance the golf experience for beginning players and expert players alike, whether Resident Stakeholders or other golfers.
Reduce expenses associated with maintenance of bunkers, and landing areas not typically in play.
Designate exceptional locations for future comfort stations on the courses, exceptional both from a scenic POV and with consideration for speed of play.
A “play enhancement” plan for one or both courses could include consideration of such factors as those identified below.
Celebrity Course:
Revise routing to convert two par‐4 holes to par‐3’s. Lengthen two par‐4 holes to par‐5 length to maintain a par of 72.
Reduce the bunkering on the Celebrity course, by about 40%. Many bunkers can be removed or made smaller without impacting the beauty of the golf experience, or play. Most of the bunkers that can be removed are behind greens and at the approaches. These hazards are frequented by the poor player and rarely in play for accomplished players.
Add “family tee” markers that shorten course to about 4,700 yards. Same at Players course.
Adjust bunker configurations, where some steep‐sloped and high sand face bunkers are particularly expensive to maintain at top quality. Tweak design of bunkers to remain. Raise floors, soften inside slopes and slightly modify edge to allow majority of bunkers to be maintained with a mechanical sand trap rake. Install a hard liner in bunker floors to reduce sand erosion and maintenance requirements. As noted in the field visit notes (see Facilities Review section), some approach bunkers could be eliminated such as some on Holes 1, 2, 3 and 7 on the Front 9.
Integrate televised tournament logistics, to support the promotion of such events at IWGR. Camera tower placements, conduit and pre‐wired power runs, consideration of spectator areas and crowd flow, all these staging considerations can be included in course redesign for efficient flex‐up during media events.
Players Course:
•Soften difficulty of course for the average player while maintaining the challenge for accomplished golfers.
Redesign the first two holes of the Player course to mitigate what is now an “overly challenging” start for the average (and resort) golfer. Some rework would allow a golfer to get off to a more satisfying and memorable start. This will improve overall speed of play.
Reduce number/area of formal sand bunkers by about 20%. Consider changing the look of the remaining bunkers to a more traditional grass face and flatter sand style to better differentiate the two courses.
Reduce density of landscaping where it impacts playability of the golf hole. Consider adjusting routing to locate the 9th green and 10th tee at the Pavilion. This will better enable the selling of 9‐hole rounds, which are popular. Consider development of an additional compact, 18‐hole “Short” or “Executive” length course within the area of Holes 1‐16 of the Player Course. Use of the Short Course would take the place of the Player Course on alternate days or during the summer when the championship course is less frequently used.
IWGR Strategic Asset Plan
54Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Improving Satisfaction of Play – both Courses Enhancements Baseline Financials
Decrease golf maintenance
expense by 5%, by reducing
bunker count and
associated maintenance.
Constant 2022 dollars
Exhibit 12
NET OPERATING CASH FLOW
IWGR Strategic Asset Plan
55Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
There is the potential for repurposing IWGR’s Players course to fully play north of the Wash. The repurposing could be part of a transaction relating to the original Easement Agreement and involving the Renaissance and IWGR’s 17th and 18th holes. We are not aware of a specific transaction in discussion, but we understand that a design exploration is underway to show the Players course fully routed on the north side of the Wash.
There are several benefits for IWGR and the City, in repurposing Players course towards this end, including:
Resident Stakeholders have commented about the unpleasant path from Players Hole 16 across the Wash to the 17th hole. This would be mitigated with full play of Players course north of the Wash. Other Stakeholders commented about the possibility of shortening the Players course and additional changes to increase speed of play. This too can be accomplished.
Holes 17 and 18 of Player, traverse along portions of the perimeter of the Renaissance Esmeralda hotel. The owner of the Renaissance is interested in making changes to the 1985 Easement Agreement that would recover land contributed to create the current 17th and 18th holes of the Players course. The Renaissance property would be substantially upgraded and expanded with this additional property made available.
There may be some trading of land by and between the Renaissance and IWGR properties, such that IWGR gets an expanded site adjacent to the clubhouse for expanded parking and possibly driving range acreage.
Should a trade and financial transaction be accomplished as described above, the City would benefit from significant new construction with likely additional TOT paid to the City.
Repurposed Players Course / North of Wash
The original land use plan delineated in the Easement Agreement, allows for such repurposing due to the primarily “core course” golf course envelop. A core course without residences flanking fairways, allows for significant flexibility in rerouting.
On the next page, a concept sketch by golf architect Mark Mungeam is included, showing a re‐routing of Players course entirely north of the Wash.
Enhancements
PLAYERS COURSE
Envelope North of the Wash
1718
Shown above, the 17th and 18th holes of Players course, and the “core course” golf course available north of the Wash. The green marks within the Players Course envelop are the locations of existing golf holes.
IWGR Strategic Asset Plan
56Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Repurposed Players Course / North of Wash
Shown above: as part of this SAP study, a concept sketch was prepared by SCP team member (and golf architect Mark Mungeam) for re‐routing the Players course entirely north of the Wash.
Enhancements
IWGR Strategic Asset Plan
57Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Back 9 Comfort Stations
IWGR should consider placing two comfort stations IWGR, one on the Back 9 of each of the two courses. While it is common for comfort stations to be placed in the vicinity of holes 4‐5 and holes 13‐14, we suggest introducing the amenity with holes 13‐14 on each course.
We believe comfort stations at IWGR would provide an additional customer touchpoint that signatures the golf experience as rivalling the finest private clubs.
The comfort stations need not compete with IWGR’s Fairway Grill, and beverage carts, but simply be an extension of the facility’s customer service and comfort sensibilities.
Comfort stations on golf courses range considerably in what is offered. For IWGR we recommend a small but iconic overhead (shade) structure be placed, with chilled bottled water and fruit. The water and fruit provided gratis, of course. These same comfort structures can be staffed and operated as additional concessions during tournaments and group events. During these flex‐up times the comfort stations would resemble the fuller offerings of private clubs, where comfort stations sometimes include bartenders, chefs and servers, and prepared food offerings.
In the same way as tournaments and group events, the offerings at these comfort stations can be upgraded during hot summer days and late day starting times as a customer recognition gesture. Attention to player comfort and free stuff can make for a more satisfied customer.
We note that comfort stations were first introduced by Discovery Land’s Michael Meldman and have become a common feature at upscale resorts and private clubs.
Shown at left, the Ayla Golf
Resort in Aqaba (Jordan)
includes on‐course architecture
that introduces shade
structures sculpted with local
materials to reflect area desert
terrain. Shown above, a food
offering at an enclosed comfort
station at Ozark National at Big
Cedar Lodge.
Enhancements
IWGR Strategic Asset Plan
58Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Enhancements
Expansion of Short‐Game Practice Area
We suggest consideration for development of an expanded short‐game practice facility in the area of the current Player course first tee. Practice facilities and Short Game areas provides a casual “alternative” golf offering for golf enthusiasts learn and improve their game. These facilities also provide an experience for golfers with limited time on a particular day.
Many private golf courses in the Coachella Valley have practice areas superior to what is offered at IWGR (Madison Club, Tradition Golf Club, Bighorn Golf Club, etc.) – providing a well‐conceived short‐game practice area would help IWGR to match what is offered at the best private courses.
This concept can be pursued as part of an area design study that includes the Event Pavilion, the Fairway Grill, a possible Wash bridge experience, and the potential rerouting of Players course to play entire north of the Wash. This area is highlighted in the diagram at right.
We believe this expanded / enhanced short‐game area, combined with the enhanced primary driving range, can assist in transforming IWGR’s practice facilities to a well‐regarded status among golfers.
Safety – provide ample space to provide a margin of error for novice golfers. Have bunkers not in line with other bunkers.
Variety ‐at a minimum, a practice area should replicate shots that might be required regularly on the course. If space is available, the design should cater to all types of golfers.
A great practice facility will emulate the golf course, with target greens that copy those on the golf course(s). Mowing patterns should copy the course with rough, fairway, cut and green length grass cutting definition. Also, ample available grass tee space is a big plus. Beauty ‐features should all relate to one another and be cohesive with the landscape. Maintenance ‐for consistency, the short game areas should be maintained in the same condition as the rest of the golf course. Green speeds, sand, type, grass, heights, etc. should match the facility’s golf courses.
Location – visibility of the practice area(s) from the clubhouse, is important to encourage use..
Space – the best short game practice areas are typically in the 2‐5‐acre range. Fun – practice areas that encourage the golfer to use their imagination and to get lost in the improvement process, are compelling.
Some Practice Area planning factors:
IWGR Strategic Asset Plan
59Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Expansion of Short‐Game Practice Area
Enhancements
Some examples of “best practices” short‐game practice facilities include those listed below. IWGR does not have the site area to provide all aspects of some of these examples, but it can offer some of the most appealing aspects.
Cabot Citrus Farms ‐the practice facility and Practice Park at World Woods Golf Club (soon to reopen as Cabot Citrus Farms after an acquisition and major renovation) in Brookfield, Florida, has been ranked by Golf Magazine as the “Best Practice Facility in the USA.” The practice areas include a 360‐degree driving range, and a 2‐acre putting course with undulations that simulate the course. Pebble Beach Golf Links – was renovated in 2014 to include the Pebble Beach Golf Academy and has earned rave reviews. The renovation replaced the old driving range that featured hitting off mats. A 40,000 SF short‐game complex offers bunkers, chipping areas and a large putting green, among other facilities. Pinehurst Resort ‐expansive practice facility and putting course that support the five main‐campus courses.
Madison Golf Club – the practice facility emulates the shots a player would hit on its members’ course.
University Facilities ‐Numerous universities with golf programs are constructing short game areas for their men’s and women’s teams.
Some of the top “university” short game areas are at the University of San Diego, Arizona State, Abilene Christian, Florida State, Iowa State, and the University of the Pacific. Some schools poor weather regions developing indoor short game facilities with artificial turf.
Shown above, a concept drawing for the Pebble Beach Golf Academy and practice area prepared in 2013 as the facility commenced construction. Shown below, a covered hitting bay at Pebble Beach.
IWGR Strategic Asset Plan
60Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Enhancements
Expansion of Putting Venue
An expansion of the putting course should be considered, to 9 holes (perhaps utilizing the putting green for two “holes”) with the some “hazards” and contouring added to make them play more like golf holes.
The landscape could be formed to create a look somewhere between a miniature golf course and putting green. Instead of “windmills and ponds” there could be mounds and sand bunkers with the intent of creating strategy and interest. The holes could be designed to be reversible to enhance the variety and better spread wear and maintenance requirements.
Most importantly, we would suggest keeping the putting course open through the summer to try to attract hotel patrons who may desire an activity in addition to pools and water slides.
IWGR Strategic Asset Plan
61Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Enhancements
Promoting the Academy
The Academy for golf instruction is a terrific way to package and promote the lessons that have been part of IWGR for a long time but never with a significant revenue contribution. We note that Troon Golf offers Bird Golf Academy at Classic Club (Palm Desert), so some thought should be given to differentiate IWGR’s Academy from what is offered at Classic Club (as well as PGA West Golf Academy). With its association with the well‐regarded Indian Wells Golf Resort, and, supervised by Troon Golf, the program should be particularly well‐received by beginner golfers.
Among professional golfers, scratch golfers, and the very serious golfer, there are many places for instruction, and the Academy will get some of that business. But we believe that there is large opportunity among novices among the huge Southern California drive‐in market. Although always a sport of niche interest, there are many young people who are interested in golf and would take lessons, if there were an easy and unintimidating way to learn.
We suggest a dedicated social media channel devoted to young, beginner golfers living in Southern California. As part of this customer segment, we think there is a directly related customer segment selling to parents would like their older children able to play golf socially, as one means of moving along in their careers. Southern California parents are always a reliable source of funding for the betterment of their kids.
The IWGR social media channel should include the channels listed here, at a minimum. Content should be edgy and irreverent, and over time featuring many customers of the Academy. A regional social media influencer could be signed to a short‐term contract to get the channel follower counts to an early impressing number.
TikTok
Instagram
YouTube
IWGR Strategic Asset Plan
62Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Facility Wayfinding as Placemaking Tactic
We suggest taking a fresh look at wayfinding throughout Indian Wells Golf Resort – from hotel lobbies, parking, to clubhouse entrance.
Wayfinding is an opportunity to enhance a resort experience, simply with the engaging aesthetic of the messaging.
If the wayfinding is effective, it is also an ever‐present promotional presence, to explore, to do more, as part of a guest stay. The Disney Decade program (noted at below right) called for fresh effective wayfinding within Walt Disney World resort as one means to encourage on‐site discovery.
Some specific ideas:
Creation design guidelines and brand identity kit, to coordinate a resort‐wide look and feel for this wayfinding.
At the street level, attractive low‐rise signage with integrated aesthetic LED panel.
LED panels do not have to be bright and garish.
Within the same design guidelines, placement of wayfinding placards within each hotel lobby indicating walking time to the IWGR Clubhouse. Should golfers need bag pick‐up and a quick shuttle over to the Clubhouse, a cart could be summoned from this wayfinding location.
Shown above, an example of IWGR’s wayfinding, in this example one of the major signs at the resort. An experienced graphics design firm could create an integrated wayfinding program that has presence throughout the master‐planned resort.
Enhancements
The Walt Disney World example ‐The contribution of wayfinding to the guest experience cannot be overstated. When Michael Eisner assumed leadership of Walt Disney Co., one of his first moves at Walt Disney World was a complete change in its signage and wayfinding – part of his “Disney Decade program.” His intent was to make the wayfinding match the resort’s guest experience and encourage on‐site discovery.
Of course, guest experiences also need ongoing refreshing, and this iconic wayfinding system was almost fully replaced in 2022.
IWGR Strategic Asset Plan
63Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Enhanced Presence and Pathways for Hotels
There is a large opportunity to improve the paths and trails at or about IWGR.
Although a master‐planned resort campus, the pedestrian paths at IWGR are poor or nonexistent.
The guest path from the Hyatt Regency to the clubhouse current consists of a stroll through a parking garage, and across IWGR clubhouse parking spaces, on to the clubhouse entrance.
With collaboration with the Hyatt Regency Indian Wells, a more direct walking path could be provided from the north side of the main hotel building, along the Wash, and onto the clubhouse’s north entrance. This new path would be a beautiful one featuring views of golf north of the Wash and would culminate with arrival at the new Stonehaus‐style Golf Grill at the Clubhouse ground level. The guest path from Renaissance Esmerelda over to the IWGR clubhouse is not clear or inviting. A guest standing at the hotel drop‐off would not be aware of the clubhouse unless they were told where it was and where to look. From the hotel’s front entrance there is no wayfinding or path to encourage a stroll over to the clubhouse.
The problem with paths from the Renaissance can be easily remedied with a rework of the parking areas upon a property swap as part of repurposing of the Players course.
We reviewed the $276,242 capital improvements work in the City’s IWGR Sidewalk Improvements project, and believe it begins to address this pathways deficiency.
Aligning the sidewalks to be more intuitive and safer, and providing access ramps for ADA compliance, are quite helpful. More can be done, as noted, to improve pathways and related wayfinding to improve the overall “resort campus“ experience.
Shown at upper right, the service road north of the parking structure adjacent to the Hyatt Regency Indian Wells. An actual path could be placed along the north side of this access road, ss shown at below right. Shown at middle right, a view from the west edge of the hotel front guest entry, at the Renaissance Esmeralda.
Enhancements
IWGR Clubhouse
Hyatt Regency Indian Wells
IWGR Strategic Asset Plan
64Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
IWGR should create a promotional “method” for prominent display in each of its five Partner Hotels. This would be helpful no matter which enhancements, if any, are embraced by Stakeholders for the Strategic Asset Plan.
As more activities are offered at IWGR, the more important these lobby activations will become.
There are various ways of providing such a promotional activation, including physical freestanding, projected, and wall‐mounted approaches.
There are also augmented reality pop‐ups, smartphone QR code triggers, text for sign‐up offers, and such. We’d suggest that the displays be Internet‐connected, so that “activities of the day,” special offers, and other information can be changed with circumstances. As an example, an evening “sensory park” experience that delights with point‐source sound, digital projection mapping, lighting effects, and a bit of SFX, could be signaled to the five Partner Hotel lobby activations.
There is no specific requirement in the Easement Agreement or other agreement, for this kind of cooperation by the City’s five Hotel Partners. But this kind of co‐marketing that creates a more compelling overall resort experience would seem to be a win for all concerned. We recognize that this kind of lobby activation program, would need to have an adaptive design since each of the Hotel Partners will have space constraints, their own environmental aesthetics, and their own promotions which may take primacy. Early involvement of the hotels in activation design would assure this messaging platform’s effectiveness.
Hotel Lobbies & Guestroom Activations
Enhancements
1,506 guest rooms
3,012 potential guests
1,800 guests on a 60% day
IWGR Strategic Asset Plan
65Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
IWGR is well‐located in its role as a community facility for Indian Wells residents and as an impressive, convenient amenity for the City’s five Partner Hotels.
The approach and entry to Indian Wells Golf Resort is situated along Highway 111, between Eldorado Drive and Miles Avenue. Fred Waring Drive bounds the north boundary of the resort.
The intersection at Highway 111 and Indian Wells Lane is signalized and provides the primary highway identity and presence for IWGR. A portion of the clubhouse roofline is visible from this intersection once a turn onto IWGR property is made.
Shown above and upper right, Highway 111 as it traverses past IWGR’s main entrance, the and ingress/egress point to Indian Wells Golf Resort.
Approach Zone & Entry
Enhancements
IWGR Strategic Asset Plan
66Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
ASSET
MANAGEMENT
IWGR Strategic Asset Plan
67Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Asset Management
Appointment of 3rd‐Party Asset Manager
We recommend the appointment of a 3rd‐party Asset Manager to act as owner’s representative on behalf of the City and a new Resident Member’s Committee (as described at right). We believe this will be a more effective and streamlined oversight function than the present Golf Resort Advisory Committee advises the City Council.
At present, there is no party providing this oversight and advocacy for IWGR. Troon Golf is an excellent facilities manager not unlike a management company such as Ritz‐ Carlton in the luxury hotel industry. The Ritz‐Carlton Hotel Co. (part of Marriott) routinely works with owner asset managers in the fulfillment of its property management role. Property managers handle day to day matters, while asset managers take the strategy and ROI role, among other matters of top owner interest. No matter the expertise of Owner, a top asset manager acts as an advocate of Owner’s interest, a role that is helpful in achieving the best results from an asset. The owners of substantial assets such as IWGR are routinely represented by professional asset managers that monitor facility manager performance, and analyze facility manager business plans and budgets, monthly financial reports, sales effectiveness, and the like.
An asset manager takes on the liaison role with the City’s Hotel Partners, assuring that hotels as stakeholders, are heard. Troon Golf as facilities manager, works with the Hotel Partners at a co‐marketing and play fulfillment level. Asset managers are paid, ultimately, for directing and collaborating with a facilities manager to achieve a bottom‐line. In this way, an asset manager is very much responsible for performance.
IWGR Strategic Asset Plan
68Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Asset Management
The Facilities Management Agreement and its Addendums:
The Original Agreement including Restaurant Lease and True‐Up Agreement (June 1, 2009) – setting forth termination on May 31, 2012. Annual Base Management Fee of $260,000, paid in equal monthly installments of $21,667. In addition to the Annual Base Management Fee, Troon would earn an Annual Incentive Fee of 3.5% of defined Gross Revenues above an agreed minimum revenue base, such Gross Revenues to include Golf and Food & Beverage revenues as defined. The Gross Revenue Minimum for the purpose of the Annual Incentive Fee was set at $9 million for Golf and $4 million for Food & Beverage, each to be calculated separately for purpose of incentive fee. No Incentive Fee would be paid where the Golf Resort was losing money.
Addendum (First) to Agreement (May 1, 2012) – setting forth termination extension to May 31, 2014. City in addition, to fund Troon taking of IT services at the Golf Resort.
Second Addendum to Agreement (March 21, 2013) – setting forth extension of term to May 31, 2015.
Third Addendum to Agreement (January 1, 2014) – setting forth extension of term to June 30, 2019. The Annual Base Management Fee was adjusted to $285,000 per annum, paid in equal monthly installments of $23,750. Beginning on January 1, 2016, and each January 1 thereafter, the Annual Base Fee to be increased by the lesser of the CPI for the preceding year, or 3%. The Annual Incentive was deleted. Article V of the Agreement was replaced in its entirety. Troon agreed as well to a competitive pricing (most favored nations) provision.
Fourth Addendum to Agreement (January 1, 2019) – setting forth extension of term to June 1, 2022.
Fifth Addendum to Agreement (May 5, 2020) – setting forth extension of term to June 1, 2024. This amendment also called for the deferment of Base Fee payments for months June through September of each fiscal year, and then paid out in eight equal installments during the months of October through May. A CPI Increase was waived for the 2021 Fiscal Year, with CPI increase to resume on January 1, 2022.
Facility Management Agreement
The Troon Facilities Management Agreement was first executed in June 2009 and has been amended five times.
In general, management fee paid to Troon is within industry expectations for facilities management.
Some comments:
Troon is not being paid enough through the management agreement, to be held financially responsible for poor operating results.
Our firm’s perspective on facility managers placing “skin in the game” by co‐ investing in capital improvements, covering operating losses, or otherwise buying in, is that we don’t recommend seeking this relationship with an operator if it creates a long‐term binding relationship. If the “skin in the game” includes a financial commitment that does not affect an owner’s rights to terminate the management agreement.
With a facilities manager, we always prefer seeking the lowest possible base management fee, a fair sharing of EBITDA earnings with a Manager, and an easy termination provision for an owner should EBITDA earnings fail to reach a business plan target. Facility managers work at their best having the ability to earn more than a typical management fee when an owner has also done well, and with the prospect of termination always present.
Facility owners and asset managers typically have the view that the most important provision of a facilities management agreement is the owner’s right to termination.
IWGR Strategic Asset Plan
69Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Facility Management Agreement
Troon Organization at IWGR
The Troon Golf organization makes sense for the current business as now operated. Should IWGR F&B adapt to some of the suggestions herein, the organization would adapt as well.
We believe that the IWGR Marketing budget should be increased to at least 3% of gross facility sales, with much of that in staff (versus program) costs. That suggestion would impact this organization chart as well.
Nick Leithner Vacant
IWGR Strategic Asset Plan
70Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
IWGR Hotel Partners
The Indian Wells Golf Resort was established to provide an amenity sufficient to encourage the development of two major convention hotels to be directly associated with the golf facility. An Easement Agreement (April 1985) provided for the contribution of real property, easements, development envelopes, and golf‐related polices pertaining to the two hotels and two golf courses. ` Hotel Partner that are a party to the Easement Agreement, include:
Hyatt Regency Indian Wells Resort & Spa – first established in 1986. The Hyatt’s current owner is the successor to Desert Horizon, Inc. and GSH Limited, parties to the original 1985 Easement Agreement. In September 2020, the HyTides Plunge Waterpark and Desert Twist Lazy River, opened at the hotel. Prior to its recent change in ownership, the hotel changed hands in November 2018 with Grand Champion LLC selling to Hyatt Corporation. The hotel first opened as the Grand Champions Resort.
Renaissance Esmeralda Resort & Spa – The hotel’s current owner is the successor to Daon Corporation and Stouffer Investment Corporation, who together were a party to the original 1985 Easement Agreement. The hotel first opened in 1989 as the Stouffer Esmeralda Resort.
Other Hotel Partners include:
Miramonte Indian Wells Resort & Spa – the 11‐acre property was first established in 1963 with an Asian themed design as the Erawan Gardens hotel. The Miramonte’s owner is not a party to the 1985 Easement Agreement but is certainly an interested party to Indian Wells Golf Resort. Indian Wells Resort Hotel – first established in 1962. The hotel’s owner is not a party to the 1985 Easement Agreement but is certainly an interested party to Indian Wells Golf Resort.
Sands Hotel & Spa – was first established in the late 1950’s. The 46‐room hotel was redesigned and repurposed in 2018, with interior design by Martyn Lawrence Bullard. As with the Miramonte and Indian Wells Resort Hotel, the Sands Hotel is not a party the 1985 Easement Agreement.
IWGR Hotel Partners
IWGR Strategic Asset Plan
71Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Meeting Space at Partner Hotels
Hyatt
Regency
Renaissance
Esmeralda Miramonte Indian Wells
Resort Sands Hotel
Indoor Space ‐SF 37,626 53,291 15,983 6,120 700
Largest Space ‐SF 20,000 18,392 6,000 4,800 ‐‐
Notes / comments Includes space
in Mezzanine
and
Conference
Center. Does
not include
indoor pre‐
function space
and outside
terraces.
Includes
Esmeralda,
Crystal, and
Valencia
ballrooms, and
meeting
rooms. Does
not include
lawn and pre‐
function.
Includes
Upper Level,
Lobby, and
Mesquite
ballroom.
Excludes pre‐
function and
outside
terraces.
Includes
Ballroom,
Rooms 3 and
4, and Club
100.
Note ‐each IWGR Partner Hotel has additional outdoor meeting space available to groups. As explained in the table, the indoor space SF shown excludes pre‐function space including terraces and lawns. Source: Cvent, Inc., Partner Hotel websites, StoneCreek Partners, LLC
IWGR Hotel Partners accommodate groups for their MICE
events (meetings, incentives, conferences, and exhibitions), in addition to accommodating their FIT’s (free and
independent travelers) guests. In fact, the facilities program for the two hotels developed pursuant to the 1985
Easement, assumed a significant portion of business from groups.
The Pandemic caused a virtual cessation of group business for hotels. The hotel industry watches now for recovery in group travel. The rise in videoconferencing during the Pandemic is a factor that may impact the nature of future group travel.
IWGR Hotel Partners
Meeting and Event Space
Rooms Etc. at Partner Hotels
Hyatt
Regency
Renaissance
Esmeralda Miramonte Indian Wells
Resort Sands Hotel
Guest rooms 530 560 215 155 46
Spa / Wellness Agua Serena
Spa
Spa Esmeralda The WELL Spa n/a The Sands Spa
Water features “Water park”
added in 2020.
Beautiful
resort‐style
pool.
Hollywood‐
style gathering
pool.
Well‐sized
resort pool.
Hollywood‐
style gathering
pool.
Source: Cvent, Inc., Partner Hotel websites, StoneCreek Partners, LLC
IWGR Strategic Asset Plan
72Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Overnight Accomodations
Food & Beverage
Meetings ‐37,626 SF
Hyatt
Food & Beverage
Meetings
IWGR
Golf
Golf Lessons / Retail
Scenic Open Space
Agua Serena Spa
Banquets
Overnight Accomodations
Food & Beverage
Meetings – 61,000 SF
Renaissance Esmeralda
Banquets
Spa Esmeralda
Banquets
Overnight Accomodations
Food & Beverage
Meetings ‐35,000 SF
Miramonte
Banquets
The WELL Spa
530 rooms, including 43 villas and 35 suites
88,000 SF of flexible indoor and outdoor
event space
HyTides Waterpark with two 30 ft dueling
slides and a 450 ft lazy river
Fitness CenterFitness CenterFitness Center
HyTides Waterpark
Shots in the Night
560 rooms215 rooms
IWGR Hotel Partners
IWGR and Hotel Partners – Business Area Overlap
One objective for ongoing IWGR business planning may be the avoidance of business overlap with the City’s Partner Hotels. Any business opportunities placed with the Partner Hotels, earns the City the TOT payment. If the same opportunity is pursued by IWGR, IWGR must earn the EBITDA to match or exceed the foregone TOT payment.
We note that each of the Partner Hotels is under relatively new ownership, so that facility programs noted here may be modified in the near future.
IWGR Strategic Asset Plan
73Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
SCP and this team are aware of the quality of the subject facilities which include two championship golf courses, as first established by parties to the 1985 Easement Agreement which established the Indian Wells Golf Resort.
The golf facility, then called the Golf Resort at Indian Wells, was first established in 1986 with two 18‐hole courses (designed by golf architect Ted Robinson. The courses were named simply, the East Course and the West Course.
The IWGR facility consists of the Players and Celebrity courses, driving range, and clubhouse. The two courses are of a “core course” configuration but requires golfers to cross the Wash as part of their play experience. Players Course ‐the John Fought‐designed Players course opened a year after the Celebrity course, in November 2007. The golf resort facility itself was renamed the Indian Wells Golf Resort in 2007 with the opening of this course. Celebrity Course ‐The Celebrity course was designed by Clive Clark and opened in November 2006.
Facility Review
FACILITY
REVIEW
IWGR Strategic Asset Plan
74Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Facility ReviewGolf Operations
Exhibit 13
IWGR Strategic Asset Plan
75Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Facility Review
Exhibit 14
Golf Operations
IWGR Strategic Asset Plan
76Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Despite the abundance of sand bunkers (103 total), the Celebrity Course is fun to play. The play areas are generally wider and the green complexes more receptive than the Player Course.
Wayward shots tend to be collected and kicked back into play rather than being repelled. A negative aspect of the course is the lack of variation in hole length and par. The majority of 18‐hole courses have a par of 72 with 10 par‐4’s, 4 par‐5’s and 4‐par‐3’s. The Celebrity Course is unique in that it has 14 par‐4’s and only 2 par‐3’s and 2 par‐5’s. This isn’t an issue except that par‐3’s are generally the most popular hole to play and having only two makes the course less appealing, especially for outings where there is a “closest to the pin prize” at each short hole. The bunkering is overdone on the Celebrity Course. The number of bunkers varies greatly on courses, but the average number is about 50‐60 per 18‐holes. We found the back bunkers to be way overdone. Many could be removed (or made smaller) without negatively impacting the beauty of the layout. There are also too many fairway bunkers, especially those that are 30‐80 yards from the green. These bunkers rarely come into play for the good player and severely penalize the average resort user. All bunkers are expensive to build and maintain. This is certainly the case for the steep sloped, high sand faces designed here. Examples of “approach” bunkers that could be eliminated are those on Holes 1, 2, 3 & 7 on the front nine. Fewer bunkers would reduce maintenance costs and we believe that thirty or so bunkers could be removed from this course without negatively impacting its beauty or strategic interest. The Celebrity Course finishes closer to the Clubhouse then the Player Course and the 10th tee situated next to the clubhouse provides more opportunity for nine‐hole rounds. It has a much better circulation than the Player Course, which is mostly on the north side of the dry wash. The Celebrity Course includes wonderful water features and waterfalls. We question the position of the stream feature on Hole 6 as the water restricts access from the cart path to the green to a single location at the back, and its position to the right of the green makes it a difficult hazard for the average player who slices the ball. The green complexes have nice variety. Even though there are too many par‐4’s, each hole looks and plays differently.
Field Notes ‐the Celebrity Course Experience
Facility ReviewGolf Operations
Shown above: The 16th hole at Celebrity an example of the beauty and challenge of the course.
IWGR Strategic Asset Plan
77Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
While there are several locations where tees and greens are close together (such as 12 tee to 13 green and 14 tee to 15 green), the grading and landscaping create a nice separation.
We found the Celebrity Course to be more receptive to the average golfer than the Player Course. The 15th green is an example, with slopes adjacent to the putting surface that collect shots and kick them toward the putting surface. In this location, golf courses are planted with Bermuda grass that can withstand the extremely hot conditions, but Bermuda grass goes dormant and turns brown in the late fall and winter. To retain the green color, most courses overseed with rye grass or use colorants to paint the brown turf green. The Director of Agronomy uses different strategies for the two courses. The Celebrity Course is completely overseeded, whereas on the Player Course, only the tee surfaces, fairways and greens are overseeded and the roughs are allowed to stay brown. It is more expensive to overseed the roughs than not.
Field Notes ‐the Celebrity Course Experience (continued) Facility ReviewGolf Operations
Shown above: the 15th green at the Celebrity course is more receptive to the average golfer than the Player course, with slopes adjacent to the putting surface that collect shots and kick them toward the putting surface. Shown below: Hole 5 is a good example of the dramatic bunkering on the Celebrity course.
IWGR Strategic Asset Plan
78Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Field Notes ‐the Players Course Experience
The hole routing of the Player Course has the 8th green, and 9th tee near the Pavilion. Most new courses have “returning nines” (with 9th green and 10th tee near clubhouse) to enable play to be started on both nines or for players to only play nine holes if desired. Not having returning nines is a weakness in this layout.
We found the first two holes of the Player Course to be overly challenging for the average user. The first is a medium length par‐5 that parallels the dry wash on the right. As most players tend to “slice” their shots, this hole location puts the wash very much into play. To shift play away from the wash area slope, a lot of landscaping was planted on the right side of the hole. The plant material has become overgrown making the right side of the hole unplayable. The hole is further made difficult by a large, deep bunker on the left side of the landing zone. With a fairway that slopes sharply to the left, this bunker occupies the position most players would like to land their tee shot. Hit your tee shot right and it’s a lost ball. Hit it left and risk being in a deep bunker. Most golf architects try to ease the player into their round with a few easy holes. The Player course asks you to hit your best shot off the first tee.
Once past the tee shot, the hole becomes more playable, and fair. The tee shot on Hole 1 has the dry wash to the right and deep bunker directly in front of the player. The left to right slope of the fairway requires that tee shots be played toward the bunker. Landscaping on the right side of the hole is overgrown and results in many lost balls. Another golf design “rule of thumb” is to start play with a series of medium length par‐4’s and medium/long par‐5’s and not have a par‐3 hole prior to the 4th hole because par‐3 holes are slower to play and having one early in the round will cause a delay. Based on our observations, consideration should be given to making these first two hole more playable with less penal hazards.
While the Player’s Course is more challenging, which is fine, there are places on the course that aren’t receptive to the average player. A course should strive to be challenging for good players but playable and fun for those less skilled … especially at a resort, where you will get both clients. The Player Course is beautiful, but we think it could be more fun to play.
Facility ReviewGolf Operations
Shown here: The Hole 2 Player course Tee shot, noting the lack of visibility of the putting surface.
IWGR Strategic Asset Plan
79Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
The Player Course currently has 67 sand bunkers. The bunkering is similar in style/appearance to the Celebrity Course. There are about 40 fewer bunkers than the Celebrity Course, and these bunkers can be raked with a mechanical trap rake, which is less costly to maintain. The bunkers appear to have a fabric liner material.
Based on our review, we feel that there are more bunkers than necessary on this course and that several could be eliminated without changing the character of the course. Along with some elimination, consideration should be given to softening some of the fairway bunkers (there are several that are 5‐7 FT deep) and changing the style to a traditional simple shape with grass faces, less sand flash and easier to enter and exit. A classic bunker style would blend well with the square‐ cornered tee boxes and provide differentiation from the Celebrity Course. The classic designs of the golden age of golf design are very popular so a tweak to the bunkering style could work well. The shortest set of markers (Red) plays to 5,108 yards. When combined with the difficulty of the features and the age of the players, this may be too long for many women and beginners. There are already 7 markers, so we would not want to add another, but there should be some additional tees established that allow the course to be shortened to about 4,700 yards. We would move the Red markers to these tees, eliminate the current Red marker length from the scorecard, but have a “blended” tee distance of about 5,200 yards that utilizes some of the “Red” tees and some of the “Green” tees. An evaluation should be made of the sandy waste areas and landscaping and its impact on playability and speed of play. We think the volume of plant material may be overdone and has contributed to the difficulty of the course. We noticed several areas where the landscaping was recently cut back (Hole 18 being the best example) and other areas where mulch has been added that covers the waste areas. We noticed that the Capital Cost file provided by the City has a line item for new drip irrigation and mulching of the sandy waste areas. The Club should seek to determine the least costly and most sustainable treatment/maintenance practices for these “out of play” areas. We have concerns about the addition of mulch because the annual replenishment can be time consuming and expensive, although that is our experience elsewhere in the U.S. it may not require replenishment as frequently in the desert.
Field Notes ‐the Players Course Experience (continued)
Facility ReviewGolf Operations
IWGR Strategic Asset Plan
80Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
IWGR’s main driving range and putting venue are situated in an excellent location, just outside the pro shop and adjacent to the cart barn.
During daylight hours golfers hit in an east/northeast direction which is not ideal for morning use but workable considering that the primary golf season is winter when the sun is rising in the southeastern sky.
During evening hours, the driving range is lit, operates with Top Tracer technology, and has comfortable seating at each driving bay intended for comfortable group use. From our original fieldwork ‐the grass teeing ground was about 220 FT wide by 180 FT deep.
The depth is important to rotation of play. A deep tee allows the turf to fully recover before the tee shifts back to starting location. The tee area was recently renovated to eliminate a change in elevation and expand the surface area to the front. There is a row of synthetic turf along the back of the tee with about 20 stations. The synthetic turf (known as Turf Hound) is used to reduce the wear on the real grass tee and is a better surface for IWGR’s night activities.
We note that at the time of our original fieldwork, the issue with the driving range was that it did not match the topnotch caliber of IWGR’s golf courses.
Driving Range & Putting Facility / Shots in the Night
Facility ReviewGolf Operations
Shown at top above: the driving range at Indian
Wells Golf Resort, as it recently improved with Top
Tracer technology. Shown at right, the existing 9‐
hole putting venue adjacent to the IWGR
clubhouse situated on just under an acre. At left,
the IWGR Food Truck parked adjacent to the
driving range during evening hours.
IWGR Strategic Asset Plan
81Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Enhancements
We like what we read about the improvements made to the driving range over the last year, since our primary fieldwork for this SAP study. We understand that the range now includes 17 bays, each with seating for six guests. We note that we have not observed the new driving range in person, as now configured.
Some comments:
The driving range as now improved has a “look and feel,” and F&B service, that evoke a TopGolf kind of place.
That’s terrific. As lit and with the activity at or about the range, putting venue, and food truck, IWGR hotel guests and other visitors to IWGR at night will appreciate the palpable “busy energy.” There is a concept in the destination attractions industry about the “critical mass” of a facility’s offerings. A difficult concept to define exactly but we all know it when we visit a facility that does have a critical mass of activities. We believe that the driving range enhancements have addressed a missing aspect of the grounds outside the clubhouse and have progressed the overall facility into more of a “resort village” sensibility – which we believe is important to IWGR’s future.
Utilizing Toptracer’s technology adds a cutting‐edge aspect to the improvements, and a fun feature for golfers of all skill level.
The addition of the (200 by 45 FT) overhead structure adds a sense of destination to the IWGR clubhouse grounds. This helps towards creating a “resort village” sensibility for IWGR as we have discussed (see the Opportunities / No Interest section in the Appendix).
We believe this new trajectory for the driving range will call for steady organic improvements as the improved facility is used. We would expect that social experience and group bookings potential will drive next enhancements here.
The fact that the overhead structure supports an installed solar panel array, makes for a great marketing story.
We recognize that the experimentation allowed with the Shots in the Night program, helped to yield these current improvements. An important lesson in allowing such exploration of new ideas.
Shown above: The aerial drone footage taken by Golf Property Analysts in 2021 did not include the dramatic improvement to the driving range. Shown at top above, a photo from local press coverage about the improved driving range.
Driving Range & Putting Facility / Shots in the Night
IWGR Strategic Asset Plan
82Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Alternate Driving Range
Indian Wells Golf Resort also makes use of an alternate range in the Wash with tees located under the Wash bridge. The alternate range is used when the primary range is being worked on and as an overflow area.
Tees on both sides of the Wash bridge allow golfers to hit in either direction (east or west). Due to the tee location being a wash, the alternate range does not receive the level of maintenance as the primary range.
We suggest that the aesthetics here can be improved with fine shaping and mowing lines.
Facility ReviewGolf Operations
Shown here, the alternate driving range location under the Wash bridge.
IWGR Strategic Asset Plan
83Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Short‐Game Practice and Putting
Facility ReviewGolf Operations
There are two short‐game practice areas with chipping greens. One is located at the back of the primary practice range, and the other is adjacent to the larger putting green next to the Pavilion.
The larger short‐game area at the range occupies an area of about 27,000 SF and includes a practice bunker and fairway area around the approximately 4,000 SF green.
At the larger putting green near the first tees, there is a small chipping green for warm‐up use only.
Putting Greens:
There is a small, 2,200 SF green adjacent to the clubhouse and a larger 9,100 SF green in front of the Event Pavilion (across the Wash bridge from the clubhouse).
There is also the putting course used for “Shots in the Night,” with 7 greens (holes) of about 1,500 SF each.
We feel that the location and size of the putting greens is good. The larger green is appropriately located near the first tee area and the smaller green can be used by those waiting to start their round.
Shown at top above: the larger 9,100 SF putting green next to the Event Pavilion.
Shown below, the short‐game practice at the far end of the primary driving range.
IWGR Strategic Asset Plan
84Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Shown at left and above, various views of the Wash bridge and the Whitewater River Stormwater Channel.
The Bridge
The bridge over the Wash that bisects IWGR is a major aspect of the golf and Event Pavilion event experience. The bridge structure itself is about 400 feet in length and has a posted weight limit of 2 tons. There is an emergency vehicle access problem when events are in progress at the Events Pavilion.
IWGR operates with several permits granted by the Coachella Valley Water District, concerning Whitewater River Stormwater Channel (the “Channel”).
The permits concern the operation of the golf courses, two drop structures, and maintenance responsibilities. The permits have no term and are cancellable upon 30‐day’s notice.
We explored an option to allow emergency vehicle and event guest access from the north side of IWGR, at an entry point along Fred Waring Drive. The idea is included among those in this report’s appendix, among Opportunities that were not of interest to Stakeholders.
Facility ReviewGolf Operations
IWGR Strategic Asset Plan
85Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Exhibit 15
Facility ReviewGolf Operations
IWGR Strategic Asset Plan
86Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
IWGR Retail Department
The IWGR pro shop is located off to the right, at the main entry to the clubhouse. Stakeholder comments were generally quite positive about the pro shop, including the layout, merchandise, staff, and knowledge of the team there.
The retail space includes about 6,587 SF.
The exhibit on the following page summarizes Retail Dept. gross revenue compared to Golf Rounds revenue.
The exhibit includes monthly information and fiscal year totals for the period of FY 2018 through 2022, as well as partial years for FY 2017 and FY 2023 to‐date.
Our information collection started with the 2017 calendar year.
Facility ReviewRetail / Operations
IWGR Strategic Asset Plan
87Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Exhibit 16
Facility ReviewRetail / Operations
IWGR Strategic Asset Plan
88Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
IWGR Vue Restaurant & Bar
The Vue is situated on the 2nd floor of the clubhouse. The restaurant includes two large terraces, one facing north and one of the terraces facing south. Each of the terraces are large, making table placement relatively straight‐forward.
Total space at this 2nd level is about 18,267 SF, including meeting space. We note that operating a 2nd floor restaurant that requires elevator or spiral staircase access, is a difficult proposition.
In terms of gross revenue using metrics such as revenue per golf round, The VUE does well compared to other golf restaurants. But The VUE aspires to be more than just a golf restaurant and from that perspective the venue underperforms compared to area restaurants.
Some examples of top line results for nearby restaurants are noted here. According to Data Axle and ESRI database services, area restaurants are generally performing in this range (as at Q3 2022):
Cheesecake Factory $7,685,000
Yard House Rancho Mirage $6,148,000
La Quinta Cliffhouse $3,331,000
PF Chang’s Rancho Mirage $5,124,000
Okura Robata Grill & Sushi Bar $2,050,000
Boutique dinner house restaurants generally perform at the median or below compared to these examples.
The exhibit on the following page summarizes VUE departmental gross revenue compared to Golf Rounds revenue.
The exhibit includes monthly information and fiscal year totals for the period of FY 2018 through 2022, as well as partial years for FY 2017 and FY 2023 to‐date. Our information collection started with the 2017 calendar year.
Facility ReviewF&B Operations
IWGR Strategic Asset Plan
89Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Exhibit 17
Facility ReviewF&B Operations
IWGR Strategic Asset Plan
90Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Facility ReviewF&B Operations
IWGR Strategic Asset Plan
91Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Each member of the SCP advisory team toured the clubhouse facility, including the Vue Restaurant.
The Facility
The restaurant’s 2nd floor location feels remote from the “busy energy” of the facility. Access by stairs is awkward for older guests; the elevator alternative is noted. It is somewhat unusual for a golf course restaurant to be so large; many courses have smaller F&B offerings more specifically catering to golfers.
Golf course restaurants are not usually patronized by non‐golfers, an inherent problem with such a large restaurant.
The upstairs patio is sparsely tabled and lacked essential components of ambiance, such as spot lighting for the tables and any foliage or wall pieces that make it more welcoming. Among the disappointingly decorated areas of the clubhouse.
IWGR’s general manager is a highly experienced, and knowledgeable F&B executive. IWGR has had difficulty in attracting and retaining restaurant staff following the Pandemic; this issue is not unique to IWGR, it is a significant problem throughout the U.S. restaurant industry.
The Unique Selling Proposition
The Vue Restaurant seeks to meet several primary objectives, making its overall mission quite difficult. It exists first, for the convenience of its golfers – call it the “golf grill” objective. It also seeks to provide a social / private club / country club experience for residents of Indian Wells. As well, in its various menu concepts over the years, the restaurant has also been positioned to compete among other restaurants, if not destination restaurants, throughout the Coachella Valley. It is difficult to be all these things. In general, overnight guests at the City’s five Partner Hotels will make their restaurant selections for reasons that include 1) trip purpose, 2) convenience, 3) business meeting/gathering, 4) menu/cuisine, and 5) to experience the local community. Each of the hotels has its own F&B offerings which can sometimes meet their guest’s needs. It is difficult for The Vue to compete in this marketplace. Each day, guests in the more than 1,500 rooms associated with the five Partner Hotels make their choices for breakfast, lunch, and dinner, and perhaps some socializing and/or nightlife as part of these decisions. For each of these dayparts, these hotel guests have an array of options.
Field Notes – the VUE Restaurant
Operations’ Financial Review
We reviewed financial results for The Vue Restaurant
for annual periods through 2019, 2020, and for 2021
through the dates of our fieldwork. See Volume 2 of
this report.
There was a clear demonstration of active management
of Cost of Goods Sold (COGS) at the restaurant. COGS
in most recent monthly periods was just under 30%,
which was below the COGS % achieved in 2020.
Operating the restaurant with the COGS % at or about
30% is a good result given the business disruptions
IWGR management has faced.
Top‐line revenue for the restaurant, during and just
after the Pandemic, was significantly less than
budgeted, and for prior years. This of course was
expected.
The Name
The Name ‐The name is a bit of a misnomer, there are
very limited “views” of the golf course and the
surrounding mountains while seated in the restaurant
due to the many walls obstructing the views.
Facility ReviewF&B Operations
IWGR Strategic Asset Plan
92Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Golf Restaurants in the Region
Cimarron Golf Resort Cathedral City Public
“On the Rocks”
Restaurant
Classic Club Palm Desert Public
Bellatrix
Restaurant Classic Grille
Desert Princess Country Club Cathedral City Public
Mountain View
Grille Mountain View Grille
Desert Willow Golf Resort Palm Desert Public/Muni Terrace Restaurant Cook's Grill, two bar
areas
Eagle Falls Golf Resort Indio Public Snack Bar
Beverage cart and other
casino F&B
Escena Golf Club Palm Springs Public Grill
Heritage Palms Golf Club Indio Public Palms Dining Room Grill Room, Tiki Bar Indian Canyons Golf Club Palm Springs Public South Restaurant North Course Bar Indian Wells Golf Resort Indian Wells Public/Muni The Vue JW Marriott Desert Springs Palm Desert Resort Two snack bars La Quinta Resort La Quinta Resort MD Grill
Marriott's Shadow Ridge Palm Desert Resort Grill closed Mission Hills North Rancho Mirage Public Lakeview Grill Mission Lakes Country Club Desert Hot Springs Public
San Jacinto Dining
Room Sand Wedge Café
Palm Desert Country Club Palm Desert Public
Cactus Club
Restaurant
Palm Royale La Quinta Public n/a
PGA West Golf Club ‐public La Quinta Public Ernie's Bar & Grill Wallaby's West, Pete's
Grill
Rancho Las Palmas Rancho Mirage Resort
Between The 9s At
The Club Snack Bar
Rancho Mirage Country Club Rancho Mirage Public
Shadow Hills Golf Club Indio Public
Shadows
Restaurant
Montecito Café, Santa
Rosa Bistró, Snack Bar
SilverRock Resort La Quinta Public/Muni SilverRock Grill Tahquitz Creek Golf Resort Palm Springs Public/Muni Traditions Café Terra Lago Indio Public
Coral Mountain Golf Club La Quinta Public The Scene (closed) Irons Club (closed) The Lights at Indio Golf Course Indio Public Snack Bar
Woodhaven Country Club Palm Desert Public
The Vue restaurant as a physical facility and in its food and beverage offerings, compares favorably to other public golf restaurants in the Coachella Valley.
Facility ReviewF&B Operations
IWGR Strategic Asset Plan
93Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Exhibit 18
Facility ReviewF&B Operations
IWGR Strategic Asset Plan
94Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Facility ReviewF&B Operations
IWGR Food Truck
IWGR’s food truck provides quick beverages and snacks just outside the ground floor lobby of IWGR’s clubhouse. In the evenings, the food truck is repositioned as part of the enhanced driving range.
Food Truck covers and revenue since FY 2017 are shown in Exhibit 19 on the next page. IWGR’s Food Truck first appeared in the facility’s monthly reports in September 2018.
Some Stakeholders expressed a concern about the presence of food truck at a high‐ end golf facility such as IWGR.
Should a Golfer’s Grill be implemented on the ground floor of the clubhouse, the Food Truck would not be required where is now parks during parts of the day. During the evening, the Food Truck becomes part of the driving range, putting venue, and Shots in the Night Program.
We like the Food Truck in its evening hour location and role. Its presence adds to the “busy energy” that will assist in the evening program feel like a destination activity.
Shown here: IWGR’s Food Truck parked at its typical position outside the golf clubhouse and adjacent to the Wash bridge.
IWGR Strategic Asset Plan
95Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Exhibit 19
Facility ReviewF&B Operations
IWGR Strategic Asset Plan
96Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
BANQUETS DEPT.
Indian Wells Golf Resort offers several facility options for meetings, social events, and weddings.
The Event Pavilion is the signature event space at IWGR, first opened in January 2014 offering a large, enclosed space in a setting with beautiful landscaping and mountain views. 2017 ‐Indian Wells Golf Resort recently completed a renovation and expansion project on its 5,600 square foot Event Pavilion.
A 25,000 square foot Event Lawn has been added directly east of the Pavilion with easy walkout access from the Pavilion. The Event Lawn can host 700 for alfresco dining or more than 1,000 for a reception.
Added an 800 square foot Pavilion Suite directly behind the Pavilion. The Pavilion Suite was designed with input from wedding planners and can be used as a bridal salon, a bridal party suite, a green room or a private room for executive meetings.
We note that the Fairway Grill (former halfway house) is in the vicinity of the Event Pavilion and is used for restrooms, storage, and as a banquet finishing kitchen.
The exhibit on the following page summarizes Banquet Dept. EBITDA compared to total departmental revenue. The exhibit includes monthly information and fiscal year totals for the period of FY 2018 through 2022, as well as partial years for FY 2017 and FY 2023 to‐date. Our information collection started with the 2017 calendar year.
Facility ReviewF&B Operations
IWGR Strategic Asset Plan
97Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Exhibit 20
Facility ReviewF&B Operations
IWGR Strategic Asset Plan
98Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Exhibit 21
Facility ReviewF&B Operations
IWGR Strategic Asset Plan
99Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Shown above, the 2nd level meeting room at IWGR’s clubhouse.Shown above, a separate 2nd level dining room available for private dining. Shown below, the 2nd
level outdoor South terrace that faces Highway 111.
Shown above, the Event Pavilion at Indian Wells Golf Resort.
Facility ReviewF&B Operations
IWGR Strategic Asset Plan
100Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
IWGR G&A Department
General and administrative expenses (“G&A”) are all those expenses that are not attributable to operated golf, retail, and food and beverage departments.
G&A expense includes management fees paid to the facility manager, as well as general manager related payroll and expenses.
The exhibit on the following page summarizes G&A departmental expense, compared to Golf Rounds revenue.
The exhibit includes monthly information and fiscal year totals for the period of FY 2018 through 2022, as well as partial years for FY 2017 and FY 2023 to‐date.
Our information collection started with the 2017 calendar year.
Facility ReviewGeneral & Administrative Expense
IWGR Strategic Asset Plan
101Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Exhibit 22
Facility ReviewGeneral & Administrative Expense
IWGR Strategic Asset Plan
102Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
IWGR Building Maintenance Dept
The IWGR clubhouse opened in 2008, a 53,000 square foot venue designed by Douglas Fredrikson Architects. It is a quality facility but could include some design “layering” to encourage its role as a central gathering place at the resort – at this time it is bit austere for a fun place of informal gathering.
Note ‐Insert “new” energy efficiency, solar, new HVAC, lighting etc. review.
The exhibit on the following page summarizes Building Maintenance expense, compared to Golf Rounds revenue.
The exhibit includes monthly information and fiscal year totals for the period of FY 2018 through 2022, as well as partial years for FY 2017 and FY 2023 to‐date.
Our information collection started with the 2017 calendar year.
Shown above, a view of the south elevation of the IWGR clubhouse.
Facility ReviewBuilding Maintenance Expense
IWGR Strategic Asset Plan
103Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Exhibit 23
Facility ReviewBuilding Maintenance Expense
IWGR Strategic Asset Plan
104Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
GOLF
MARKET
Golf Market
In this section, we review the Coachella Valley marketplace focusing on the competitive set of properties that IWGR competes with.
The relative market performance of Indian Wells Golf Resort (rounds played) is compared here to the market performance of a competitive set of area golf facilities (the “Competitive Set”). Exhibit 24 on the subsequent following page provides a review of IWGR’s actual rounds played, as compared to a calculated fair share of “competitive set” rounds.
The competitive set is listed on the next page – with IWGR making up 15.4% of 234 total golf holes in the group.
For FY 2022, IWGR achieved a greater than fair share of rounds played, as compared to the competitive set. During FY 2022, IWGR achieved 76,500 rounds played versus a fair share 68,522 rounds.
This is an improvement of fair share rounds played over recent years, where IWGR generally captured more in the range of 90% (excepting the 83% in FY 2021).
For green fee revenue, IWGR earned 18.2% of estimated Competitive Set green fee revenue, a greater than fair‐share capture given IWGR’s 15.4% of Competitive Set golf holes.
IWGR Strategic Asset Plan
105Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
We believe the three most directly competitive properties to IWGR (within the competitive set) are Desert Willow (owned by City of Palm Desert), Silver Rock (owned by City of La Quinta) and PGA West in La Quinta.
While holding at about the current level Resident play (with guests), we believe there are ways to increase rounds played at IWGR. The enhanced driving range now operating at IWGR will help with IWGR’s notoriety and word‐of‐mouth. There is capacity in shoulder seasons as an example, to target additional 9‐ hole play perhaps as part of new sales packages (see The Academy promotion ideas in the Enhancement section).
We should note though that since FY 2017, the number of rounds played at IWGR has remained consistent, including the Resident play portion.
Some background about the three direct competitors, according to Golf Property Analysts, a part of the SCP team on this assignment:
Desert Willow (DW) reported annual rounds of 97,000 (36 holes) which significantly exceeds IWGR’s volume of rounds.
At Desert Willow only 15,000 rounds (15.5%) were discounted resident rounds, as compared to compared to IWGR which has a larger share of rounds attributed to resident play (not including resident guests). Desert Willow DW achieves about 127% of its “fair” market share. Desert Willow also does about $2 million in Food & Beverage revenue and a gross revenue of $12 million ($123.71 per round).
Silver Rock (18 holes) did 45,000 rounds in 2019 and 34,182 in 2020. Gross revenue was $3.4 million in 2019 ($75.56/rd.) and $2.4 million in 2020 ($70.21).
PGA West in 2020 (having been closed from March 15 to April 30) did 75,000 rounds on the Stadium and Nicklaus courses, therefore it can be presumed that they, too are exceeding their market share. Guest green fees are competitive with those at IWGR, but Silver Rock also does fewer resident rounds than IWGR (at about 20% of total).
Coachella Valley Golf Market
Golf Market
COMPETITIVE SET
Desert Willow 36 holes
JW Marriott 36 holes
La Quinta 36 holes
Marriott’s Shadow Ridge 18 holes
PGA West 54 holes
Silver Rock 18 holes
Indian Wells Golf Resort 36 holes
Shown above, Desert Willow Golf Course (Palm Desert),
managed by Kemper Sports.
IWGR Strategic Asset Plan
106Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Golf Market
PGA West‐(Stadium, Nicklaus, and Norman courses)‐very popular courses, but challenging. The Stadium course is the most well known, but also the toughest by far. It is not a course you would like to play regularly, but fun to test yourself. The Nicklaus and Norman courses are more friendly, but still require more skill than most resort courses.
JW Marriott Desert Springs Resort ‐(Palm and Valley Courses)‐Both courses work well in the resort classification. It offers something for more casual guest who simply want to enjoy a relaxing round on a beautiful course, while at the same time, offering enough challenge and risk reward options for more serious players.
La Quinta Resort‐(Mountain and Dunes courses)‐both courses are enjoyable to play. The Mountain course is more popular because of its setting against the desert hills and mountains. Course conditions can vary throughout the year, but more playable for most.
Marriott Shadow Ridge ‐a Nick Faldo design. Fun course for all level of golfers with a variety of holes. The fairways are typically generous, but bunkering makes the course more challenging. Course is usually in great shape with fast, smooth greens.
Silver Rock Resort‐is set against the Santa Rosa mountains in La Quinta. Water comes into play on more than half the holes requiring quality ball striking. Silver Rock is very scenic, but not very playable for the average player.
Playing the Competitive Set
Desert Willow Golf Resort (Firecliff and Mountain View course)‐desert willow courses are generally considered among the favorites with desert golf enthusiasts. The Mountain View course is slightly easier than the Firecliff. Like all other luxury golf resorts in the area it has a big, beautiful clubhouse and excellent practice facilities. both courses are very popular and do just under 100,000 rounds per year. Currently both courses are also very playable for all level golfers and in very good condition all around.
IWGR Strategic Asset Plan
107Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Golf Market
Exhibit 24
IWGR Strategic Asset Plan
108Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Fiscal Impact
Exhibit 25
IWGR Strategic Asset Plan
109Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
The table at right identifies more top municipal course owners and their facilities, in the U.S.
Indian Wells Golf Resort is certainly among such top facilities, as noted. The table is sorted by year established and is not intended as an ordered ranking.
Municipal Owners of Golf Facilities
There are a many municipally owned golf courses throughout the U.S. Among these, there are some that offer golf experiences equaling and/or exceeding the best privately‐owned golf facilities. IWGR is one of those places.
Within the Trade Area, and elsewhere in California there are several municipal courses of note:
SilverRock Resort – Owned by the City of La Quinta and managed by Landmark Golf Management.
Desert Willow Golf Resort ‐Developed and owned by the City of Palm Desert, Desert Willow Golf Resort is operated by Kemper Sports Management.
Tahquitz Creek Golf Resort (Palm Springs)‐Oswit Land Trust has been trying to purchase for environmental purposes. Tahquitz Creek consists of two 18‐ holes golf courses, the Legends Course that was bought by the city as it was being built in 1959, and the Resort Course that was built with city bond money and opened in 1995. There is also a clubhouse and parking lot and a driving range. The Legend Course runs through a residential neighborhood, often with houses on both sides of a hole. The Resort Course runs east and west through the Tahquitz Canyon wash and has no homes along the fairways.
The City of San Diego Parks & Recreation Department operates three municipal golf courses. Torrey Pines, Balboa Park, and Mission Bay Golf Course and Practice Center. The adjacent Lodge at Torrey Pines is owned and operated by Evans Hotels (San Diego).
The San Francisco Recreation and Park Department maintains six public golf courses, each with a unique identify and mission. Gleneagles is considered one of the most challenging nine holes of golf in the U.S. TPC Harding Park is a championship caliber venue. In 2020, TPC Harding Park hosted the PGA Championship, elevating the course as just the fifth municipal course ever to host a Major Championship.
Municipal Golf in the Region
Golf Market
IWGR Strategic Asset Plan
110Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
We believe that the golf industry will enjoy a prosperous future in the U.S.
However, we also believe that the industry will continue with an even more active period of reinvention to meet the leisure‐time expectations of up‐and‐coming generations.
We note that he fundamentals of golf economics still have challenges. Golf is still largely a white, male activity. For long‐term sustainable growth golf needs to promote to, and experience success, in recruiting millennials, minorities, and moms (women), a group that noted golf consultant Larry Hirsch describes as “the 3 M’s.” Over the years, the 3 M’s have not been embraced by the golf industry.
The Millennials and Gen‐Z generations seek activities with diversity, so as with the 3 M’s, golf needs to make meaningful efforts at diversity, equity, and inclusion. In resort settings, traditional golf courses will continue to adapt to modern sensibilities. Such factors as easy (if not quick) access, shorter play, increased entertainment value, palpable technology, will combine in different ways to meet today’s consumer.
There is a reason “golf entertainment” is currently among the hot (albeit niche) asset classes. TopGolf‐type driving ranges, next‐generation miniature golf, social venues with mini‐golf, are products of interest. Many cite the similarity with such “golf entertainment” to the enduring acceptance (and reinvention) of bowling. Golf is not unusual in its need to innovate. All major sports have adapted to modern sensibilities in one way or another. The NFL rules protect quarterbacks to increase scoring. NBA basketball games are a produced live event, with music bumpers and light show. Snowboards are now covered in prime during the Winter Olympics. Golf maybe more than any other sport, has remained as a traditional offering.
At resorts, younger adults have largely different leisure‐time interests. There are more options than decades ago when golf and tennis ruled resorts. An afternoon at the pool with smartphone in hand, with selfies a top priority, is “the point” for many. For some, the smartphone has replaced the social intersection of a tennis game, or a round of golf.
The Future of Golf Covid‐19 and its Impact
The two years following the introduction of severe acute respiratory syndrome coronavirus 2 (SARS‐CoV‐2) and resulting Covid‐19 disease in early 2020, is among the most difficult periods we have experienced. The virus has impacted all of us at all levels: personally, as families, as employees and employers, and as communities.
While we can be hopeful that the worst of the impacts are behind us, there are lingering worries of next variants, supply chain issues, vaccine efficacy, and similar matters.
Over the course of the Pandemic, the golf industry as an outdoor “safe” activity has been somewhat a refuge for many. With all the protocols for safety and social distancing, golf has not required much adjustment. After years of declining golf play nationwide, rounds have increased. A portion of increased rounds have been from players new to the sport. Many golf courses have been (at least temporarily) saved from closure by this phenomenon.
Given the COVID surge, the cost of golf play has increased significantly in some places, and such increased prices could feel downward pressure should rounds and membership experience a decline that could occur as people go back to the office, have less time for golf, and feel the bite of inflationary pressures and increasing interest rates.
Whether the increased interest in golf, and increased play will continue, is an open question. We can’t know the future of course, there are too many offsetting variables right now.. For sure, some folks will stick with golf and those who continue to work from home will play more frequently than before, but it is also reasonable to assume that some who took up golf during COVID will return to their pre‐COVID activities.
There are countervailing trends including changing leisure‐time preferences and the looming possibility for economic recession, among other factors that may make the Pandemic upturn short‐lived.
All the above is important. But we note that in preparing a Strategic Asset Plan for IWGR, the focus should be on the long‐term, at least ten years in the future and perhaps beyond.
Golf Market
IWGR Strategic Asset Plan
111Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
IWGR Customer Acquisition / Retention
It is helpful to think about customer acquisition and return in terms of the customer touchpoints, in all the formal and informal ways that each occurs.
IWGR’s current customers derive from these core segments:
Golfers staying overnight at a Partner Hotel
Other visiting golfers
Residents, sometimes with guests
Tournament play
Special program participants, wholesalers, and the like Troon Rewards – Troon’s loyalty program is a complete one, allowing rewards members to earn free rounds of golf, status at facilities, merchandise discounts, Troon’s e‐magazine, and other benefits, at Troon facilities.
INSERT HISTORICAL ROUNDS / CUSTOMER SEGMENTS
Marketing and Promotions
MARKETING &
PROMOTIONS
IWGR Strategic Asset Plan
112Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
On a direct search with Google, IWGR shows up easily as first result, with the prominent screen‐right display (see screenshot at right). Direct search refers to typing in Indian Wells Golf Resort, without quotes.
In the direct search result, the four prominent items displayed include “Book Tee Times,” “Celebrity Course,” “Players Course,” and “Shots in the Night.” These are efficient and helpful results to display for a golf facility search. The “People also ask” section of results also shows helpful information. On an indirect search for “best golf courses in Palm Springs,” IWGR appears among the first nine (9) facilities featured at the top of search results (with photo). On an indirect search for “best place to play golf in Palm Springs,” and “best public golf course in Palm Springs,” IWGR does not appear among the first featured results (with photo) but does appear as part of results at websites such as GolfPass.com, 10best.com, and similar sites.
Indirect search results refer to instances where a user does not know they are searching for IWGR but simply see IWGR identified as part of searching with specific search terms or phrases. Essentially, indirect search is about being found when a user does not initially know to find you. Indirect search results from various likely user search terms, as improved through quality SEO (search engine optimization) tactics, are the most important of results.
Most golfers will look for courses and play recommendations, by clicking on well‐ known course rating websites. On most of the rating websites we reviewed, IWGR appears among the listings when we used the most common initial web search terms and phrases.
The Google search engine maintains a 60%+ share in the U.S., making it the first search engine to check for website search results. We did not review search results through other search engines.
Online Search Results
Marketing and Promotions
Online Reviews ‐Facility and Customer Service
We reviewed a sampling of online review about IWGR, the VUE, the five Partner Hotels, and Indian Wells generally. We found nothing out of the ordinary – simply a mix of those ecstatic who are pleased with IWGR or The Vue, or those claiming to be very disappointed about their experiences. Online reviews are always at least a little suspect.
Negative and online reviews should always be responded to by a facility’s management, as quickly as possible. It is often more cost effective to hire a 3rd‐ party to monitor online search and a facility’s various online channels, and to collaborate with Facility staff to provide responses.
IWGR Strategic Asset Plan
113Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Branding, Marketing and Sales
Indian Wells Golf Resort is well known in the U.S. golf industry, with an established brand equity extending back many years. IWGR is joined by the additional co‐brand offered by its facility manager, Troon Golf, and its five City Hotel Partners.
The logos IWGR and its co‐branding partners are noted at right.
Marketing and Promotions
IWGR Strategic Asset Plan
114Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
We like the aesthetics of the IWGR website landing page, with its attractive graphics and autostart full‐screen video at the top of the page.
Some comments:
The IWGR website is located at www.indianwellsgolfresort.com . The site loads quickly and on first look the facility’s smartphone app is promoted.
The full‐screen video that plays on the landing page is well done and appears well optimized for play.
The main landing page navigation options at the top of the page, are easy to view and the click‐throughs are quick.
The link and landing on the Booking page work well. The Booking portal and engine are quickly responsive.
We notice that as the app promote displays on‐screen, the background behind the promotional placard goes black. This may be specific to our desktop/browser combination (PC/Brave, Microsoft Edge).
Here is a screenshot (at right) of the IWGR landing page. The top 3rd‐ appears on most browsers upon initial landing, and from there the user scrolls down to view the rest of the landing page.
IWGR Website
Marketing and Promotions
IWGR Strategic Asset Plan
115Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
IWGR Website – Landing Page Promotion
Marketing and Promotions
Shown above, the pop‐up promotional placard that presents itself on the IWGR landing page.
Shown at left, a higher resolution version of IW’s Winterfest promotion.
We like the way the forced promotional placard appears on the IWGR website but is not difficult to click “Close” and avoid.
Some comments:
We like the design for the Winterfest logo. The font makes sense, the various graphic symbols are fun, and it seems appropriate that this is offered as an Indian Wells event, versus indicating IWGR as part of the event logo.
A small point but we suggest making the “Close” button a more visible bold color such as dark black or blue (to go with color scheme). While the Close button is not as difficult as some promotional placards are, the moment to find a way to exit the pop‐up is always an irritant on so many websites. Intentionally so in many cases. We think its good to make it truly obvious for the quick exit if that is the desire. We notice that the promotional placard does not appear on all IWGR sub‐ landing pages such as Booking. We did not check every possibility arrival to the website from various SEO search and clicks, from Google. We suggest the placard appear on most landing pages to get the best value from whatever promotion is active at the time.
IWGR Strategic Asset Plan
116Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Marketing and Promotions
Shots in the Night
We appreciate the current version of the “Shots in the Night” logo. It has an elegance to it that the prior logo did not. We think the treatment of the “O” is clever and makes for a true piece of graphic design work.
The new program for the driving range will significantly change the gravitas of the night‐time offering. We have included a discussion about the improvements in the Enhancements section of this report.
Shown above, the “Shots in the Night” logo as it appears in current promotions.
Shown below, the prior SITN logo that we have previously indicated did not match the quality of the IWGR facility.
IWGR Strategic Asset Plan
117Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
We like the aesthetics of the IWGR App, as it appears on an iPhone and iPad. We did not review its appearance on other maker’s tablets.
Troon maintains a smartphone app, with the technical support of SwitchCase Group LLC / Gallus Golf. The app is offered on the IWGR website landing page, requiring a click to close.
The app’s look and feel is attractive and provides easy navigation. We suggest a redesign of the app icon button –while the app itself has nice color the app icon (button) itself is all‐white and is lost among all other app icons on a typical user’s smartphone or iPad screen. A screenshot of the white app button is included below.
IWGR App
Marketing and Promotions
Shown above, the IWGR App as it appears on an iPad. Shown at far left are the App button among other Apps on a smartphone, and at near left, the smartphone App main landing page.
IWGR App button
IWGR Strategic Asset Plan
118Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Marketing and Promotions
Partner Hotel Websites
Miramonte Indian Wells
Renaissance Esmeralda
Indian Wells Resort Hotel
Hyatt Regency Indian Wells
IWGR not a primary navigation option.
IWGR is a landing page highlight, once scrolled down, but links to an activities page.
Landing page tagline: “Relax and revive at our Indian Wells golf and spa resort.”
Instagram tagline: “Awaken the sense of wonder at #RenEsmeralda featuring stylish guest rooms, acclaimed restaurants, and much more.” IWGR not a primary navigation option.
IWGR is a landing page highlight, does link to golf page that includes IWGR and Indian Wells Country Club information.
The golf page features this top‐of‐page description about IWGR: “The only 36‐hole facility in California with both courses ranked in the Top 20 “Best Courses You Can Play” in California by Golf Week Magazine and ranked number 11 in Conde Nast Travelers’ “Top 15 California Golf Resorts.”
The golf page has two images of a hotel room (errata) to depict the two IWGR courses.
IWGR is a primary navigation option, at top of landing page. Golf link on landing page does click to specific page of IWGR golf. Headline text on the golf page: “It's Game On In Palm Springs.” Miramonte Resort & Spa is surrounded by world‐class golfing opportunities – next door and in the surrounding Palm Springs area.” Direct contact information for IWGR golf concierge services. Direct link to IWGR website “Book Tee times” page.
Instagram tagline: “A unique desert resort reminiscent of a classic Mediterranean estate located in Greater Palm Springs.”
IWGR not a primary navigation option.
No direct link to IWGR page on landing page.
No mention of golf on landing page except for golf symbol as part of hotel amenities, but no details or links.
“Indian Wells Golf Resort’s Shots in the Night” is featured among area attractions on the Area Attractions page.
No choice golf photos on the resort’s Photos + Reviews page. Instagram tagline: “Retreat to our 45‐acre desert oasis with the largest waterpark in Greater Palm Springs.”
The City’s Five Partner Hotels, in general, do not feature IWGR on their websites.
IWGR is not a primary navigation option on these websites, except for the Miramonte. Only as viewed from these hotel websites, IWGR is an incidental amenity the promotion of these hotels. Images of the landing pages of four of the five City Hotel Partner websites, is provided on the next page.
Sands Hotel & Spa
IWGR not mentioned on hotel’s landing page.
Very much a boutique without reference to golf.
Instagram tagline: “Luxury boutique hotel in Indian Wells, California.
Designed by Martyn Lawrence Bullard.”
www.sandshotelandspa.com
www.miramonteresort.com
www.indianwellsresort.com
www.marriott.com/en‐ us/hotels/pspsr‐renaissance‐
esmeralda‐resort‐and‐spa‐indian‐wells/
www.hyatt.com/en‐ US/hotel/california/hyatt‐
regency‐indian‐wells‐resort‐and‐spa/champ
IWGR should consider the creation of a City Hotel Partner program with an attractive logo and selling points and seek placement of program button on each Hotel Partners’ website landing page.
IWGR Strategic Asset Plan
119Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Marketing and Promotions
Partner Hotel Websites
Indian Wells Resort Hotel Hyatt Regency Indian Wells
Miramonte Indian Wells Renaissance Esmeralda
Landing Page snapshots
Note – the Sands Hotel & Spa is not shown in this sampling of the City’s Hotel Partner website landing pages.
IWGR Strategic Asset Plan
120Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Experiential Customer Touchpoints
Our field visit team found the golf experience at IWGR acceptable, as compared to comparable priced golf experiences in a resort setting.
Touchpoints, the series of interactions (moments) with customers, are essential to every customer‐facing business. The combined results of the various touchpoints along the way in each customer experiential “journey” influences satisfaction.
For golf facilities it is no different, and with some complexity since there are different journeys and touchpoints for each player segment, trip motivation, and skill level. And not all touchpoints are of equal importance, and some have more of an impact on dissatisfaction than more positive contributors. A relatively recent study undertaken by the United States Golf Association (“USGA”) indicated that there are more than 1,000 touchpoints that golfers can contact throughout their golf experience. This is too many touchpoints to manage but the point is made.
Our team has visited IWGR on numerous occasions, playing the courses, taking meals at the restaurant, enjoying the clubhouse ambiance and people flow, and seeing the facility in the evening with ‘Shots in the Night’ in operation. We have also received all manner of comments from Stakeholders, on these customer touchpoints.
In general, the customer to staff golf experience is well received and routinely complimented. There are comments, questions, and ideas focused on course maintenance. The Vue clubhouse restaurant was in most cases the attractor of negative comments. Many cited the difference between the positive customer‐staff interaction on the course, and that in the restaurant.
Our checklist in experiencing these touchpoints is included at right.POST Until next time
App
Email
Social media
Golf influencers? Golf Geek vlog
Lobby activation recognition
•Didn’t use
•Didn’t use
•Didn’t use
•N/A
•Limited
On arriving
Greeting / club drop / parking
Locker room
Pro shop
Practice facilities / driving range
•Typical
•Avg
•Good (had to rent clubs)
•Fair
On the course
Starter
Overall challenge of the course
Overall fairways, roughs, and
bunkers
Overall tees and greens
Pace of other players; and corrective
actions
On‐course staff
Overall “vibe and ambiance”
•N/A
•Good, Players tough
•Good
•Quite good
•Didn’t experience
slowness
•Didn’t experience
•Good
After the round
Clubs etc. clean‐up
Locker room
Promote lessons (more lessons
creases return players)
Pro shop
Restaurant
Overall “vibe and ambiance”
•Avg.
•Avg.
•Didn’t Experience
•Good
•Avg.
•Avg.
Thanks, and survey
App
Promote return
•N/A
•N/A
•N/A
PRE
Prior to arriving
Word of mouth
Internet and social media
Phone queries
Golf influencers? “Golf geek” vlogs
Website and App
Hotel lobby activation / promote
Reservations
Limited
Good
N/A
N/A
Good
N/A
N/A
Marketing and Promotions
IWGR Strategic Asset Plan
121Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Social Media – the Canary in the Coal Mine?
Generations that grew up with Arnold Palmer and Jack Nicklaus are aging out of the golf industry. Even Tiger Woods is nearing that age of near retirement, with young consumers.
Millennials follow their sports heroes through their favorite social media channels, and the term “sports hero” is going through a transition. A sports hero can simply be a social media influence that has created a niche following, for one reason or another.
Social media audiences are a direct window onto our young consumers, with their new and changed interests.
Simply as an example, we have collected the top Instagram accounts, as measured by followers. We included top sports figures such as Ronaldo, Messi, and LeBron James, along with the top celebrities including Beyonce and Gigi Hadid. The NFL’s heroes, the MLB, and some select eSports celebrities and teams are also included. The notable aspect of the list is the relatively minimal followers for the top pro golfers today, even Tiger Woods.
Major Social Media (Instagram) Accounts – Spring 2022
Golf Industry in Social Media
Marketing and Promotions
IWGR Strategic Asset Plan
122Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
SWOT
EVALUATION
This SWOT evaluation is based in part on Stakeholder comments, as well as SCP research and thoughts as to IWGR’s strengths, weaknesses, opportunities, and threats (“SWOT”), relative to competitive facilities. SWOT is the long‐accepted means for evaluating a property’s situation within its current and future competitive environment.
We note that aspects of new versions of SWOT, such as the SOLR method in development at Tamaya Ventures, is integrated with this work. Some of SOLR is like the SWOT method but with a focus on implementation (the “R” in SOLR).
SOLR is an acronym for strengths, opportunities, liabilities, and results.
Indian Wells’ focused (and successful) strategy to create a resort complex with municipal golf, is relatively rare, at least among top‐rated municipal courses.
And the City is among the few municipalities that has pursued golf course development investment on its own account, as part of a large‐scale transient occupancy tax creation strategy.
The Stakeholders might be envied for present circumstances concerning IWGR.
The preparation of a strategic asset plan is often undertaken to reposition, repurpose, and even sell assets, to solve a perilous financial situation. The City of Indian Wells is in a far different position from this: the City has the opportunity to consider changes, enhancements, and opportunities to what has been a successful municipal investment. An enviable position.
SWOT Evaluation
IWGR Strategic Asset Plan
123Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
SWOT Strengths
SWOT Evaluation
IWGR is among the top‐rated municipally‐owned golf complexes in the U.S.
IWGR’s Players course is consistently ranked among the very best of such municipal golf courses. The city and its facility manager Troon have succeeded in operating a municipal course in a way that rivals many of the best private golf clubs.
The overall “origin” strategy for IWGR has worked well. The golf complex created a desirable location for major resort hotels to be developed, each of which contribute significant Transient Occupancy Taxes to the City. In fact, the IWGR municipal strategy that creates TOT provides most of the revenue to the City’s budget.
The City’s Hotel Partners are experienced hotel owners, with an interest in investing to enhance the value of their properties. In 2019, the Renaissance Esmeralda underwent a $25 million renovation to celebrate the hotel’s 30th anniversary. The Hyatt Regency added their $8 million HyTides Plunge Waterpark and Desert Twist Lazy River as part $21 million worth of renovations in 2020‐2021.
In addition to the large Partner Hotels, PRG Hospitality Group fully repurposed and re‐opened the Sands Hotel & Spa in 2018, providing the city with its first (small) boutique hotel. The presence of a quality boutique lodging operation adds a helpful niche accommodation offering that had not existed. Although the large Renaissance Esmeralda and Hyatt Regency resorts may consider further adaptation to post Pandemic travel sensibilities, the Miramonte and Sands hotels at their scale and amenities, would seem to be relatively well‐positioned for the new era in travel.
The facility manager provides a quality golf experience, managing various customer touchpoints in an acceptable manner (see following page). The Facilities Manager has shown an ability to manage operating expenses for golf and F&B with great ability. F&B margin, has been consistently better than benchmark facilities, even while reacting to the Pandemic and post Pandemic operating conditions.
Having two “core courses” is a significant advantage, that is, courses with hole‐by‐hole routing that does not include residential or other development along both sides of fairways. The placement of the two courses in their present configuration provides substantial flexibility should any repurposing be desired in the future.
The physical setting including views offered by Indian Wells Golf Resort is spectacular, for golfers on either of the courses and for guests to the IWGR event pavilion. For non‐golf guests staying at the Hyatt Regency and the Renaissance Esmerelda, the beautiful landscaping and views provide a serene and beautiful backdrop to their stay.
The location of the property is along Highway 111, which is the main thoroughfare through the region, making the property easily accessible to residents and visitors alike.
IWGR Strategic Asset Plan
124Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
IWGR was master planned without a central gathering place or “resort village,” as is common with many destination resorts. While the clubhouse and grounds might have taken this role, as configured these facilities are not such an amenity.
Walkable access to the IWGR clubhouse from the two Hyatt and Renaissance, is not inviting and without a compelling “payoff” for making the effort.
IWGR does not have “veracity” as a general commercial destination; that is, as a place for regional residents and visitors, to come for dining or entertainment. This is due to IWGR’s lack of street presence on the approach, the “read” of the entry road, and no commercial read emanating from the clubhouse exterior.
Indian Wells Golf Resort itself, has operated at a loss over the years, where a break‐even result may be the desired objective. In the original Easement Agreement and its subsequent amendments, upon which IWGR now operates, there was no inflation index included in reference to resident (as defined) green fees. This provided a vesting for this pricing which is unusual.
The practice facility is mediocre as compared to other golf courses of this caliber.
The Players Course is considered by many to be too difficult, and modifications could be considered to ease the difficulty of play.
Shown above, an aerial view of the complicated central area of Indian Wells Golf Resort. The master plan solved for primary ingress/egress, access to each of the hotel entrances, access to the clubhouse, parking, and in particular, paths from Players and Celebrity course’s 18th greens to clubhouse.
SWOT Evaluation
SWOT Weaknesses
The existing golf envelop is physically constrained by the Wash (also known as the Whitewater River channel). The Wash divides the IWGR property into north and south sections.
The clubhouse is underutilized, the menu has not been popular, and most residents do not consider the restaurant as a place to bring visiting friends and relatives.
Most repurposing options have challenges with parking availability, the Wash bridge, and tight “development envelopes” as defined in the 1985 Easement Agreement.
There is limited parking convenient to the clubhouse for special events, and golfers on busy days.
IWGR Strategic Asset Plan
125Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
SWOT Evaluation
SWOT Opportunities
Three of the City’s Hotel Partners are relatively new owners, each of which are considering their own go‐forward business plans. This is an excellent time to explore enhancements with such potential collaborators. The Hyatt Regency is now owned by affiliates of Trinity Real Estate Investments LLC Oaktree Capital Management, L.P. (2022) The Miramonte Hotel is now owned/managed by Lowe/CoralTree Hospitality (2020).
The Indian Wells Tennis Garden is a major first‐class facility and potential co‐anchor to any consolidated “districting” of the City’s recreation assets.
It is unusual to have a partnership facility of such world‐class caliber. Changed leisure‐time choices have favored outdoor recreation including golf, following the Covid‐19 pandemic. It is helpful that participation in outdoor recreation has increased since the worst of the Pandemic, and any additional offerings at IWGR could be welcomed by consumers. Additional amenities at IWGR that assist the Hotel Partners in attracting guests, particularly in the shoulder seasons, can help to fill the large amount of unsold available room‐nights. The five Partner Hotels in the City include just over 1,500 rooms, which operated on average at a 54.1% occupancy in 2019. For 2021, the hotels averaged an estimated 37.5% for 2021.
Troon Golf has additional experience outside of traditional golf, with the new “golf entertainment” formats that are increasingly popular with consumers. This expertise may be quite helpful in considering strategic alternatives for IWGR.
So‐called “golf entertainment” venues are of high interest right now, among consumers and with investors. These new concepts are golf derivatives but at the same time are more about trending location‐based entertainment (“LBE”) sensibilities, than simply the golf. The best of new LBE place‐products have wider customer audiences than golf. Enhancing the practice facilities is a great opportunity to attract serious golfers.
The resort does not seem to be aggressively marketed as a golf destination. The Palm Springs Area is widely known but IWGR seems to take a back seat to some of its better‐known neighbors (PGA West, for instance) in the visitor market.
The 2nd level of the clubhouse, with its outside terrace facing south towards Highway 111, could be a place of perceived “busy energy” if activated. Even more so if combined with additional activities at or about the clubhouse.
The means of asset managing IWGR can be streamlined and made more effective, with a new organizational approach that more closely resembles a private‐sector approach (see Asset Management section herein for details).
See the Enhancements section of this report for projects and ideas of interest to Stakeholders. The appendix includes other opportunities that were not of interest to Stakeholders for further study.
IWGR Strategic Asset Plan
126Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
The future of the traditional golf industry is an open question as to whether Pandemic‐induced new play is the “new future” or if play will return to its declining trendline.
The travel / resort business has changed since the 2020 Pandemic; the facilities design for the Hyatt Regency and Renaissance Esmeralda may require adaptation to meet evolving consumer travel trends. Of course, this is also an opportunity for IWGR if the facility can adapt and enhance the competitiveness of Partner Hotels. And it is also true that ways of conducting business, of business travel, and leisure‐travel, were evolving before the onset of the 2020 Pandemic.
The Partner Hotels at IWGR generally send less golfers than in the past.
Golf is not the compelling anchor resort activity that it was at the time of initial IWGR development. The City’s Hotel have their own financial objectives in packaging profitable guest activities, and keeping guests at their properties is important, whether at the pool, bar, spa, or gathering places.
Of course, what may seem to be a threat can be an opportunity given that the IWGR clubhouse is situated in proximity to Partner Hotels.
Some IWGR program repurposing may allow for IWGR to offer activities of interest to the Hotel Partners.
While good for employees, for employers the post Pandemic staffing issues have been further exacerbated with the state minimum wage increased to $15 per hour (effective January 1, 2022). This has been an issue of both available workforce and its associated expense.
SWOT Evaluation
SWOT Threats Overall golf rounds played at IWGR are down from their historic high some years back.
There is the continuing prospect for the return of Covid‐19, its variants, and continuing related business impacts. This includes government‐ mandated responses to Pandemic matters and managing compliance to such mandates.
Golf courses have, in generally, experienced increased play since the Pandemic. But no one knows how sustainable the current surge is.
This is a good time for IWGR to review how best to adapt if golf participation declines return to pre‐Pandemic trends.
The State Legislature has been reviewing various potential modifications to local land use regulations, including placement of affordable housing in neighborhoods zoned for single family residential and at golf course properties.
The continuing draught in the Western U.S. is a continuing concern for golf course owners; golf could be considered a non‐essential business if the draught leads to increased rationing. Over the past decade, communities and water districts in Southern California have enforced limitations on residential water use.
IWGR Strategic Asset Plan
127Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
TRADE
AREA
Trade Area Overview
IWGR Strategic Asset Plan
128Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Drive‐time populations are helpful to know, since some IWGR facilities and activities including special events, draw support from local and regional residents.
The total population residing with a 60‐minute drive‐time is estimated to reach 637,521 by 2026. The close‐in population within a 15‐minute drive time is included in the overall total and is separately estimated at 201,596 (2026).
It is interesting to review the demographic differences between the residents of Indian Wells, and those residents within 15‐, 30‐and 60‐minute drivetimes of the IWGR clubhouse.
Drive‐times and Resident Population
Population and Median Age
2010 2021 2026
Indian Wells population 4,958 5,672 5,948
Indian Wells median age 66.8 66.4 68.0
Population within 15‐minutes 179,307 192,459 201,596
15‐Minute median age 43.5 46.4 46.9
Population, 15‐30 minutes 210,649 232,156 245,302
30‐Minute median age 37.4 39.0 39.7
Population 30‐60 minutes 158,335 180,577 190,623
60‐Minute median age 36.9 39.0 39.8
Population total, 60‐minute 548,291 605,126 637,521
Source: ESRI ArcGis, StoneCreek Partners LLC
Shown above, Regional Drive‐time Reach ‐The drive‐time map above illustrates drive‐times of 15 minutes (in red), 30 minutes (in green), and 60‐minutes (in blue), from IWGR. To the west, the 60‐minute drive‐time reaches beyond Yucaipa, and almost to Redlands. To the east, the 60‐ minute drive‐time reaches to shores of the Salton Sea, and beyond.
Trade Area Overview
IWGR Strategic Asset Plan
129Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Market Support for Major Events
The Coachella Valley is acknowledged as a place for major special events, with the East Coachella Valley hosting the largest of such gatherings.
Established Major Event Traditions ‐Events such as Coachella at the Empire Polo Grounds (Indio) attract about 125,000 guests each day, over a 5‐day festival. The polo grounds are just a 17‐minute drive from IWGR, so an interesting
comparable for what’s possible in Indian Wells.
Indian Wells is already a host community for major events. Just before the Pandemic the BNP Paribas Open attracted a record attendance of 475,372 (2019) during the event’s two‐week run.
4‐Hour Drive Population ‐There is a resident population of
26.5 million (2021), living within a four‐hour drive‐time of Indian Wells.
By 2026, ESRI estimates this 4‐hour drive‐time population will have increased to 27.3 million, in more than 9 million
households. This drive‐time population extends along the coast to Santa Barbara and south into Mexico, and to the east to include a significant portion of the metro Phoenix area. The closer‐in 2‐hour drive‐time population is still a large base for special events, estimated to be 7.8 million residents by 2026, in 2. 4 million households.Source: ESRI ArcGIS, StoneCreek Partners LLC Trade Area Overview
IWGR Strategic Asset Plan
130Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Indian Wells Partner Hotels
There are 1,506 hotel rooms within five hotels, in Indian Wells.
Four of the hotels are within IWGR or are adjacent to the IWGR resort property. The Sands Hotel & Spa is located a short distance away. All can be considered Partner Hotels.
We commissioned an STR report for just Indian Wells hotels, and the summary results are provided in the table at below right. We note that the Indian Wells Resort Hotel does not participate in reporting to STR. STR is the former Smith Travel Research company that itself was once a service of Laventhol & Horwath.
For the 2019 operating year, just before the Pandemic
impacts began, the average daily rate among these hotels was reported at $209.46. The occupancy was 54.1%.
It is difficult to draw any conclusion from operating
performance for 2020 and 2021, since hotels were either closed by public health order, or operating partially with safety protocols in place.
It is helpful to note that in a variety of studies of the market, hotel consultant HVS has described hotel demand in the
Coachella Valley as primarily dependent on FIT‐related
leisure demand, at about 65% of the accommodated lodging market. This is separately confirmed by information tracked by the Palm Springs Convention Bureau.
The balance of accommodated hotel demand includes
demand from commercial and group segments, at about 15% and 20%, respectively.
ADR & Occupancy – Partner Hotels
2018 2019 2020 2021 2022
January
Average Daily Rate n/a $209.46 n/a $257.23 $253.92
Occupancy n/a 54.1% n/a 37.5% 36.8%
Room‐nights Supply n/a 549,690 n/a 549,690 46,686
Rooms Count n/a 1,506 n/a 1,506 1,506
Notes – There were not enough hotels reporting to STR in 2018, to allow a trade area report. Areawide operating results for 2019 may have been negatively impacted by the construction of the water park at the Hyatt Regency which opened in 2020. Participating hotels include Hyatt Regency, Renaissance Esmeralda, Miramonte Indian Wells, and the Sands Hotel & Spa. Indian Wells Resort Hotel has not participated in reporting to STR.
Source: STR, Inc., StoneCreek Partners, LLC
Trade Area Overview
IWGR Strategic Asset Plan
131Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Short‐Term Rentals
Trade Area Overview
Short‐Term Rentals
Area Housing
Units
Housing
Vacancy %
Active
Rentals
Rental % of
HU’s Occ % ADR
Cathedral
City
51,840 27.9% 716 1.4% 69% $355
Coachella 42,158 7.6% 504 1.2% 50% $555
Desert Hot
Springs
32,569 18.6% 716 2.2% 67% $241
Indian Wells 4,762 43.6% 192 4.0% 67% $298
Indio 89,137 17.5% 2,326 2.6% 59% $568
La Quinta 37,860 35.1% 2,224 5.9% 68% $451
Palm Desert 50.889 36.6% 2,730 5.4% 74% $311
Palm Springs 44,397 33.1% 4,446 10.0% 73% $497
Rancho
Mirage
16,804 36.7% 596 3.5% 67% $359
CV All‐Cities
Average
319,578 23.6% 14,530 4.5%
California 14,420,313 7.9%
Source: AirDNA, State of California, Department of Finance, StoneCreek Partners LLC A particular phenomenon of the Coachella Valley ‐short‐term rentals have always been a factor in the area but the slate of major events that now occur the region has encouraged this alternative use for private residences.
Airbnb is the major booking portal for short‐term rentals, but Expedia Group (Vrbo / HomeAway Group), Tripping.com, Onefinestay.com, and Marriott’s Home & Villas, are among other booking agents. The Marriott offerings include Marriott guarantees along with its loyalty rewards program. Onefinestay.com is just now penetrating the greater Los Angeles area market.
Shown at right is a comparison of active short‐rentals, rates, and occupancies, as of November 1, 2021, according to AirDNA. The availability of short‐term rentals changes significantly throughout the year.
IWGR Strategic Asset Plan
132Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Thirteen airlines serve Palm Springs International
Airport with nonstop flights to more than 30 airports
and offer one‐stop travel possibilities to over 500
cities worldwide. Compared to other airports in the
region, the Palm Springs Airport experienced the
best recovery in 2021 activity, as compared to 2019.
In 2021, Palm Springs Airport completed a $43
million renovation and expansion of the airport’s
ticket lobby, installation of a new baggage handling
system, and replacement of passenger boarding
bridges.
In June 2021 Southwest Airlines announced its’
continued growth in Palm Springs with four new
routes. The new routes included daily year‐round
service to Sacramento, seasonal daily service to
Dallas Love Field and Chicago Midway, and Saturday
seasonal service to Portland. Southwest Airlines first expanded its flight schedule to serve Palm Springs in
2020.
Of importance, according to DK Shifflet &
Associates, approximately 85% of Palm Springs
visitors arrive by car, while 15% arrive by plane
(from “2011 Visitor Transportation Study” by TNS,
DK Shifflet & Associates).
The following table shows Palm Springs International
Airport passenger activity (total deplanements /
enplanements) for the 2018 through 2021 period.
Annual Total Passengers, 2018‐2021
Airport 2018 2019 2020 2021 2021 as %
of 2019
Palm Springs International Airport 2,327,018 2,563,955 1,252,094 2,092,943 81.6 % Ontario International Airport 5,115,894 5,583,732 2,538,482 4,496,592 80.5 % John Wayne Airport 10,664,038 10,656,986 3,794,850 7,700,489 72.3 % Los Angeles International Airport 87,533,177 88,068,013 28,779,527 48,000,000 54.5 % Source: Southern California Association of Governments, StoneCreek Partners LLC Airport Activity
Trade Area Overview
Shown above, flights coming in and out of Palm Springs
IWGR Strategic Asset Plan
133Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Age Distribution in Indian Wells
As noted, by 2026 the median age of Indian Wells’ population is estimated to be 68.0 years. Average household size is projected to be 1.81 in the same year, on average just under 2.0 persons per household.
In the surrounding region the median age is estimated for the same year at 46.9, 39.7, and 39.8 years, for residents in the separate drive‐time bands 15‐, 30‐, and 60‐minutes from the IWGR clubhouse.
By 2026, just under 84% of Indian Wells’ population is expected to be 55+ years of age. In that same year, the population is estimated to consist of 2,494 females and 2,011 males.
The graphic below shows this age distribution information by age groupings.
Source: ESRI ArcGIS, StoneCreek Partners LLC
Population by Age and Sex | City of Indian Wells
Sources: ESRI ArcGIS, StoneCreek Partners LLC
Trade Area Overview
IWGR Strategic Asset Plan
134Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Live Entertainment
Live music performance, from intimate to major festivals, are part of the charm of the Coachella Valley. The region’s temperate evening weather during much of year makes outdoor events particularly compelling. Within Indian Wells, there are ways to offer live entertainment, if of interest to IWGR as an event producer.
The Indian Wells Tennis Garden has obvious potential for large‐audience live music events.
The table below highlights existing live event facilities in the Coachella Valley.
Live Entertainment & Sports Venues, Coachella Valley
Trade Area Overview
IWGR Strategic Asset Plan
135Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
One of the reasons for visiting the Coachella Valley is enjoying the variety of restaurants and fine dining experiences offered.
Many dining establishments are founded by, or feature noted local chefs and experienced restauranteurs, each with their own followings.
In such a market, there could be a strategy for bringing in a noted chef from a market such as Los Angeles.
Select Coachella Valley Restaurants
Coachella Valley Restaurants
Trade Area Overview
Shown below, part of the outside patio at La Quinta Cliffhouse.
Source: StoneCreek Partners
IWGR Strategic Asset Plan
136Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Meetings, Conventions, and Events
Trade Area Overview
The meetings industry was devasted during Covid‐19 and its aftermath, with numerous event clients converting to online videoconferencing.
One result of the Pandemic has been a review of in‐person meetings versus the efficiency of online gatherings. While the industry finds its new level, there is optimism that in‐person meetings have returned.
The exhibit at right summarizes the major event facilities in the Coachella Valley and their respective indoor meeting space, and largest spaces.
IWGR Strategic Asset Plan
137Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Guest‐Trip Motivation
GUEST-TRIP
MOTIVATION
Out‐of‐home (or hotel room) trip motivation is important in the design of destination places and activities. Should the City proceed with repurposing the IWGR Core as suggested herein, “guest trip motivation” considerations can be helpful in design.
To illustrate this approach, consider the five Partner Hotels of IWGR. Each has a different accommodated guest mix with each kind of guest having its specific preferences for hotel facilities, amenities, and activities during their stay. Desired activities among guests at the Partner Hotels, and other area visitors to IWGR may include such motivations as:
A special activity with a partner, spouse or significant other. An activity with the kids.
An activity associated with a commemorative occasion.
A desire for enrichment or learning a new skills.
And/or numerous other motivations.
In exploring potential opportunities either suggested by Stakeholders or our own team, “trip motivation” is always an integral part of the program consideration.
We referenced our use of guest‐trip motivation in our proposed Scope of Work for this assignment. For additional information on the subject, we refer to:
https://adventure‐ entertainment.com/guest‐shopper‐trip‐motivation/
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Drone aerial photography by Golf Property Analysts.
APPENDIX
Trade Area Overview
IWGR Strategic Asset Plan
139Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Phase 1 – Strategic Asset Planning
Scope of Work items included the following:
Initial Fieldwork
SWOT Evaluation
Research and Analytics:
Analysis of the Coachella Valley Golf Marketplace.
Evaluation of the Facility’s Golf Play Experience.
Evaluation of Facility Food and Beverage.
Evaluation of Facility Maintenance and Irrigation.
Explanation of Golf Industry Experiential Trends and Products Ideas.
Analysis of Facility Fiscal Impact to City.
Evaluation of the Coachella Visitor Industry.
Evaluation of Coachella Recreation and Entertainment Offerings.
Analysis of Seasonality and Out‐of‐Home Trip Motivations.
Facility Strategic Marketing Considerations.
Best Practices Review:
The golf experience itself.
Sustainability issues re course design and resort maintenance.
Food and beverage.
All guest experience touchpoints and “mystery shopper” visits.
Opportunities:
Possibly reconfiguring golf play towards a new playing style.
Evaluate golf layout for diversification of golf offering.
Evaluation of well‐used golf practice components.
Repurposing parts of the facility towards a higher earnings / markets.
Soft programming for four‐wall produced events, teambuilding, etc.
Placemaking‐related means to improve gathering place potential.
Strategic marketing.
Consideration of visitor and rental pool transients.
Consideration of the physical aspects of the facility, vs. competitors.
Additional opportunities as may be envisioned.
Phase 1 – Strategic Asset Planning (continued)
Phase 2 – Community / Stakeholders Engagement
Scope of Work Index
The Scope of Work items included here, are as set forth in StoneCreek Partners’ agreement with the City of Indian Wells. See the Agreement for further details. 1 1
1 1
1 1
1 1
1 1
1 1
Scope of Work items included the following:
Deliverables:
Project meeting notes.
Strategic Asset Plan Report:
Highest‐and‐best‐use analysis, considering each of the four tests.
Explanation, analytics, and rationale for all recommendations.
Explanation of new facility operated departments.
Financial projections by department and bottom‐line EBITDA.
Capital plan, including alternative funding opportunities.
Best practices for facilities management.
Best practices for branding, sales, and marketing.
Best practices for customer acquisition, retention, etc.
Benchmarks and metrics for performance monitoring.
The Phase 2 Stakeholders workshops were conducted and sequenced in coordination with City staff.
Individual Council Members
Golf Committee
Residents
Hotel Partners
Tennis Partners
The Greater Palm Springs Convention & Visitors Bureau
Planning and Event partners
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Drone aerial photography by Golf Property Analysts.
INFORMATION SOURCES
Appendix A‐2
IWGR Strategic Asset Plan
141Prepared for the City of Indian Wells / Golf Committee Discussion Draft As of February 6, 2023
Drone aerial photography by Golf Property Analysts.
Stakeholder Input
SCP Simultaneous Phase 2
Several types of stakeholders were interviewed and/or attended workshops, including the stakeholder groups listed below. This community engagement effort was conducted at the same time as overall SCP analysis proceeded.
Stakeholder groups included:
City of Indian Wells residents, including Resident Golfers and those residents who do not golf;
IWGR hotels and their end‐users (the guests) (referred to herein as “Partner Hotels” and “Hotel Partners”) – which we have considered as the City’s five hotels, recognizing that two of these hotels are party to the 1985 Easement Agreement (as amended),
City Council members, interviewed individually;
The IWGR Golf Resort Advisory Committee (the “Golf Committee”), interviewed individually; and
A representative of Visit Greater Palm Springs.
Representative comments from various stakeholder sessions are included in following pages. Stakeholder sessions occurred during Fall, Winter, and Spring of 2021‐2022. The discussion at each session was informally directed along SWOT and SOLR subjects, to encourage but not inhibit what stakeholders wanted to say.
Interviews were conducted confidentially with comments not attributable to those interviewees making the comments. As well, comments made in public meetings were noted but not attributed to those speaking.
Stakeholder Input
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Drone aerial photography by Golf Property Analysts.
Golf Courses
Focus on enhancing the golf experience we have with this facility, and not on new business ideas that are not related to this experiences. I love the golf courses.
The courses themselves are real fun to play because they're different. The bunkers slow play on the courses – remove some of them. Redesign Players course for less holes and faster play. We appreciate the golf staff attitude and guest service. Going from hole 16 to 17 (of the Players course) is unpleasant because of the route one must take to get there.
Golf course maintenance could be better; was better before the Pandemic.
Don’t like the resident subsidy.
Our hotel guests might come over if there was something to do besides golf.
Our (hotel) customers “hang out” at bars, and the pool, and go to concerts when they are in town.
The City is giving away too much in subsidies (resident green fees). A small group of residents is abusing the reservation system.
The Vue Restaurant
The view from the outdoor patio(s) is tremendous, I love sitting up there.
The menu at The Venue is not good.
The Vue has no identity – it looks like a sports bar. Or is it an upscale restaurant?
There is inconsistent service at the Vue.
I wouldn’t bring my relatives, or visiting friends, to the Vue. $30+ hamburgers?
Bring in a 3rd‐party to manage the restaurant.
The Vue doesn’t have the ambiance required to attract diners. It feels like a personal restaurant for the residents
Ruth’s Chris Steakhouse and La Quinta Cliffhouse are packed during happy hours, why not the Vue?
The food truck diminishes the prestige of IWGR.
We don’t eat at The Vue anymore, quality not good.
Over the years, a lot of different menus have been attempted at the Vue, without much success.
Entrance has a private club feel, too intimidating for a public course and restaurant.
Stakeholders offered their thoughts specific to perceived strengths, weaknesses, opportunities, and threats, pertaining to Indian Wells Golf Resort.
Representative Comments:
Stakeholder Input
IWGR Strategic Asset Plan
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The facility should aspire to be like Pebble Beach.
Do something like Pebble Beach’s “Clam Bake.”
Don’t turn IWGR into Disneyland.
Lack of parking is a real problem, especially when weddings and events are underway.
Add programs and venues that the hotels could use to bring conventions.
Add outdoor concerts and festivals to bring more business. Put the waterfall to better use.
Top Golf because it is a destination which Shots in the Dark is not. We could use something new and cool for our hotel guests, that would be of interest.
The course designers decided the number of bunkers; don’t touch their design intent.
Things like Ziplines wouldn’t match the prestige of IWGR. Golf Committee is dysfunctional and power hungry. Leave the job to Troon.
“Shots in the Night” is a great idea.
“Shots in the Night” hurts our prestige.
Create more meeting space at IWGR. Group business is key to success in the valley.
Additional Representative Comments:
Stakeholder Input
There is a lot of wasted lobby space in the clubhouse, it should be better utilized.
Don’t put lights on the course(s) for night golf.
Create something like Tempe Town Lakes in Arizona
Can we add Bocce Ball; can we add Pickleball courts?
Bike paths would be great.
We love our logo, don’t change it.
Pro shop is well run.
With Southwest Airlines now flying to Palm Springs, the area may become attractive to SMERF groups (social, military, education, religious, and fraternal) which meet during summer months. Whatever the plan, make sure the community’s prestige and property values are maintained.
IWGR Strategic Asset Plan
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Documents
SCP conducted original research and evaluations for this work and used published and online GIS information available from third‐parties.
In addition, various documents were provided by the City of Indian Wells, Troon Golf, and Visit Greater Palm Springs, among other sources.
This information includes (but was not limited to) the source documents listed in the following. Some documents were not dated for their release date; in those cases, we note the “created date” recorded as file information.
Information Sources
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Information Sources
“Agronomy memo to Jonas”, Brian Hampson, Troon Golf, November 10, 2020. “Agronomy memo to Jonas”, Brian Hampson, Troon Golf, February 17, 2021. Airbnb and Vrbo Short‐Term Rental Activity, Indian Wells, AirDNA “Background Report for Infrastructure Analysis for the City of Indian Wells,” De Novo Planning Group, memorandum of January 18, 2021
“Capital Spreadsheet,” IWGR FY2021 and prior years, Troon (Brandon Kary) “Case Study, Event Pavilion, Indian Wells Golf Resort,” Structureflex “City of Indian Wells General Plan,” City Resolution No. 96‐9, adopted February 1, 1996, as amended.
“City of Indian Wells General Plan Update: Demographic, Economic, and Real Estate Profile,” Economic & Planning Systems, September 2020. “City of Indian Wells Highway 111 Specific Plan,” approved February 18, 1993. “City of Indian Wells Town Center Specific Plan,” Keisker & Wiggle Architects, Inc., January 31, 2013
Clubhouse Design Drawings, Douglas Fredrikson Architects, August 31, 2008 “Construct a Banquet Event Center and Enhance Restaurant and Bar to increase profitability,” Troon Golf, July 11, 2013.
“Covid‐19 Operations, Indian Wells Golf Resort,” March 17 – present “CVWD permits for golf course improvements in wash and water drop structures,” memorandum by Stephen P. Deitsch (Best Best & Krieger), October 8, 2015.
“Destination Experience Plan,” Indian Wells, MMGY NextFactor, March 4, 2021.
“Easement Agreement” with accompanying exhibits, effective April 8, 1985. “Event Calendar, 2018‐2021” Michael Tebbetts, IWGR
“Facility Enhancement Ideas,” Troon, June 29, 2021
“Facility Enhancement Ideas,” Troon, September 2021
“Fairway Grill + Comfort Station, Site Improvement Plans,” Golf Resort at Indian Wells, April 17, 2007, PDF
“Flash Reports,” IWGR, monthly 2021
“Food Truck/Entertainment Zone Proposal,” Troon, April 2018 GIS‐based demographics and economic analytics, various, ESRI ArcGIS “Golf Course Management Agreement,” between City of Indian Wells and Troon Golf, L.L.C., June 1, 2009.
“Golf Course Management Agreement ‐Addendum,” between City of Indian Wells and Troon Golf, L.L.C., May 1, 2012.
“Golf Course Management Agreement – Second Addendum,” between City of Indian Wells and Troon Golf, L.L.C., March 21, 2013.
“Golf Course Management Agreement – Third Addendum,” between City of Indian Wells and Troon Golf, L.L.C., January 1, 2014.
“Golf Course Management Agreement – Fourth Addendum,” between City of Indian Wells and Troon Golf, L.L.C., January 1, 2019.
“Golf Course Management Agreement – Fifth Addendum,” between City of Indian Wells and Troon Golf, L.L.C., May _, 2020.
IWGR Strategic Asset Plan
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Information Sources
“Highway 111 Specific Plan, City of Indian Wells,” Johnson Fain and Pereira Associates, November 4, 1991.
“History of Indian Wells,” City website
“Indian Wells Golf Resort Strategic Plan,” City Staff memorandum of June 18‐ 19, 2013, PDF
“Indian Wells Golf Resort Strategic Planning,” Greenskeeper.org, 2016 “Indian Wells Golf Resort Valuation Report,” City Staff report of July 1, 2013, PDF
“IWGR 5‐Year Capital Plan by Category,” through FY 2025/26 “Job Positions by Department, IWGR, Troon (Cathy Oshann) “Marketing Budget, 2019‐2020,” Troon (Brandon Kary)
“Monthly Financial Update,” IWGR, Troon, 2018 through June 2021. Placer Labs, various visitor mobile tracking, 2019 to 2021 “POI Cross‐Visitation IW Golf Resort,” City of Indian Wells, May through November 2021
Resolution No. 2018‐43, A resolution of the City Council of the City of Indian Wells, California, rescinding resolution No. 2013‐58 and reestablishing the Golf Resort Advisory Committee, effective October 18, 2018.
“Schedule of Positions FY 20‐21, IWGR” City of Indian Wells, June 4, 2020. “Shots in the Night,” financials, December 2019
“Special Council Meeting Handout,” City of Indian Wells, February 1, 2017. “Strategic Guidance for Proposed New Golf Entertainment Amenity,” National Golf Foundation Consulting, Inc., January 2017
“Town Center Specific Plan,” City of Indian Wells, Keisker & Wiggle Architects, Inc., May 15, 2008.
“Town Center Specific Plan,” City of Indian Wells Specific Plan No. 2007‐01 Amendment One, Keisker & Wiggle Architects, Inc., January 31, 2013. “Trend Report, Indian Wells Hotels,” STR, February 2022. “VUE Kitchen Renovation,” May 16, 2019, PPT
“Zero Based Staffing,”
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OPPORTUNITIES NOT OF INTEREST
Appendix A‐3
Opportunities / No Interest
IWGR Strategic Asset Plan
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Opportunities Not of Interest
Opportunities Not of Interest
We include in this appendix, various repurposing and/or enhancing opportunities that have been initially explored but were not of interest to the majority of Stakeholders.
Such opportunities are included here simply to provide a full reference of this work. Pursuant to our agreement with the City, we placed a large emphasis on opportunities. These included many different things, included some based on the research and analytics while other ideas arose during our best practices review.
Some of the starting points in exploring such repurposing included:
Possibly reconfiguring golf play towards a new playing style, freeing up property for other uses or to provide a kind of golf experience in higher demand than is now accommodated.
Evaluating golf layout at IWGR to determine opportunities for diversification of golf offering by re‐routing or re‐purposing of one of the 18‐hole courses, such as development of a par‐3 and/or executive length layout that caters to less accomplished players or beginners.
Evaluation of well‐used golf practice components to determine opportunities for expansion or improvement.
Repurposing parts of the facility towards a higher earning or deeper market opportunity. Special events, recreation, and entertainment offerings are sometimes possible with repurposing.
IWGR Strategic Asset Plan
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Putting courses are also more popular these days, after many years of underutilization. For golfers that have played, or will play an 18‐hole round, a putting course is an easy extension of the day’s golf experience.
For golfers of all skill levels, a putting course can be more about the social interaction than the golf – particularly in a resort setting and if F&B access is easy.
We considered a natural grass putting course as part of larger repurposing options at IWGR. An “easy play” golf format with ample food and beverage offerings, we believe would be popular with IWGR’s hotel guests as well as residents and visitors to the region.
Some examples of modern natural grass putting courses include:
Cascade Putting Course at Gamble Sands – The 100,000 SF Cascade Putting Course in Brewster (Washington) is a wildly shaped, pure fescue putting course inspired by the ancient and famed Himalayas Putting Course at St Andrews. Designed by golf architect David McLay Kidd. In 2021, Forbes Magazine columnist Erik Matuszewski speculated that this putting course might be the best in the U.S. www.gamblesands.com
HillTop Putting Course at Forest Dunes – Nearly a 2‐acre, 18‐hole routing.
Large groups may book the putting course exclusively for special events. www.forestdunesgolf.com
Tom Watson Putting Course at Big Cedar / Mountain Top Golf Course – A 9‐ hole routing on about an acre; part of the Big Cedar Lodge golf complex in Ridgedale, Missouri. www.bigcedar.com
The Greens at JW Marriott Desert Springs – The putting course combines all aspects of a full‐length course, sand bunkers, water hazards, strategically placed trees and rolling "fairways" all played with a putter. www.marriott.com
The Punchbowl at Brandon Dunes Golf Resort ‐a 100,000 SF putting course designed by Tom Doak, with Jim Urbina. www.brandondunesgolf.com Thistle Dhu Putting Course at Pinehurst – This 18‐hole putting course has a history dating to 1916, when James Barber, owner of the Barber Steamship Lines of New York, built an 18‐hole “Lilliputian” golf course on the grounds of his home in Pinehurst, NC. It would be the first miniature golf course in America. www.pinehurst.com
Himalayas Putting Course at The Old Course in St Andrews – According to reports, on a busy day it takes 45 minutes to play the 18‐hole course, made difficult by its extreme terrain. www.standrewsputtingclub.com Shown above, The Punchbowl putting course at Brandon Dunes Golf Resort.
Opportunities Not of Interest
Natural Grass Putting Course
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Short‐play golf courses have gained some attention in the golf industry. Short courses offer a limited course length with a golf experience of a shorter time duration. The courses allow for less of a playing time commitment, meaning more available, interested players at any time.
These courses are considered more welcoming to the next generation of new golfers, less focused on the traditions and history of the game and being more about the fun and camaraderie involved.
Well known golf pros have given these short courses some additional notoriety.
One example was Bass Pro Shops founder Johnny Morris teaming up with golf legend Gary Player to create a world‐class 13‐hole short course at Big Cedar Lodge (Ridgedale, Missouri).
Golf Short Course Venues / Location
Source: StoneCreek Partners LLC
Shown above, the No. 2 hole at Bandon Preserve, a 13‐hole par‐3 course at Bandon Dunes Golf Resort (Bandon, Oregon)
Opportunities Not of Interest
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Golf Entertainment
Venue Background
1 BigShots Golf
ClubCorp Holdings, Inc.
A Topgolf knock‐off with similar design,
2 Drive Shack
Drive Shack Inc., (Dallas)
A Topgolf knock‐off with similar design and
different ball tracking technology.
3 Great Shots
Sanford Health / Managed by Troon Golf
Like Topgolf, located at Sanford Sports Complex
in Sioux Falls (South Dakota).
4 Lounge by Topgolf
Callaway Golf Company
Features Topgolf Swing Suite technology, virtual
games, craft cocktails, local F&B.
5 OnCore Buffalo
OnCore Golf Technology, Inc.
The concept includes a hotel at the facility’s
podium. First Unit scheduled for Buffalo in
2023.
6 ZSTRICT by Golfzon
Managed by Troon Golf
First Unit for ZSTRICT opened in 2019 at Chelsea
Piers. Golfzon is a leader in the golf simulator
space, with 65 million rounds played worldwide
on its products (2020).
7 T‐Shotz
Managed by Troon Golf
First Unit opened in Kansas City.
8 PopStroke
Tiger Woods Ventures / PopStroke
Entertainment
Features a 36‐hole mini‐golf putting course, and
foosball, ping pong, F&B offerings.
9 Puttery
Drive Shack Inc. (Dallas)
A new more social take on miniature golf.
10 Puttshack
Steve and Dave Jolliffe, with Adam Breeden
A new more social take on miniature golf.
11 Suite Shots
Paul Cownie / Kevin Christianson
A Topgolf knock‐off, designed for smaller trade
areas than Topgolf may prefer.
12 Topgolf
Callaway Golf Company
The leader in technology‐fused driving range
entertainment experiences.
12 Topgolf Swing Suite
Callaway Golf Company
An indoor, luxury sport simulator, not limited to
golf.
14 Other Golf Simulators and Golf Video Games
Source: StoneCreek Partners LLC
So‐called “golf entertainment” has been gaining investor attention in recent years. The interest derives from the familiarity and enjoyment of the traditional golf experience, as well as a familiarity with the larger slate of offerings in location‐based entertainment.
These new golf entertainment concepts are generally about enhanced driving range experiences or enhanced mini‐golf experiences. Food and beverage is often an essential part of the guest experience. Most are designed with more multi‐faceted secondary guest offerings (such as simulators, other sport video games, party rooms, and the like).
Technology and an updated take on the social experience of these places, is the focus of design.
As with food and beverage, the social interaction and “gathering place” appeal of these concepts is also an essential thing for the best of these concepts. People enjoy places to be with friends, to see and be seen, to be in those places that placemaking professionals refer to as those with “gather and stare” opportunities.
The exhibit at right describes a selection of these new golf‐entertainment venues, either well established in the marketplace or getting started with their respective roll‐outs.
Golf‐Entertainment Concepts for Clubhouse
Opportunities / No Interest