Prestonwood Golf Club vs Dallas (Ennis, Van: 2013, HOA, home)

[highcotton]

Originally Posted by CheerBeer

If they are not attracting enough dinner customers then they should make it open to public. You pay to eat, you pay to play. One time high price would attract more people compared to little fortune of current membership. If prices are higher then "riffraff" wouldn't be an issue and they'll generate more revenue.

CheerBeer,

The Hills course had a Valentine dinner at the club on Friday, February 14th. I'm told by a friend who is a Prestonwood member that lives near the clubhouse in the Hills that at 7 pm that evening there was less than a dozen cars in the parking lot. That should tell you what members think of the situation at the Hills location. That said, I understand that the members who primarily use the Prestonwood Creek location are not as troubled as the members who primarily use the Hills location. But, members are leaving for other local area clubs at a much faster pace than new members (if there are any new members) are joining, and that's not a good thing...and has little or nothing to do with the economy/recession, etc.

Also, I was told today by yet another member that Prestonwood Country Club has steadily increasing losses that are mounting with little or no hope of turning things around regardless what may be done to turn things around. How much longer the Miller family (owners) are willing to fund a losing business is not known, but at some point-in-time something's got to give...which may be that one of the two potential buyers that ended up not being interested may end of buying the club at far less than what the Miller family 'thinks' it's worth. There's a whole lot of multi-million dollar work that needs to be done to just the Hills location golf course and clubhouse, and I suspect some sizable outlay of money is also needed at the Creek location too.

And for whatever it's worth, the reason why members are leaving is not the economy/recession (because area residents are in good shape financially and with very low employment), it's because Prestonwood Country Club is not meeting the expectations of their members (especially at the Hills location) and the other local area clubs are, which is where Prestonwood members are going.

[LFC74]

highcotton:

this is interesting and you obviously have a lot of connections with members or people close to what is happening at the club. as a resident close by to the hills and someone that has thought about becoming a member due to its proximity and lower initiation fee of area clubs such as gleneagles and castle hills, why are the members more disgruntled at the hills course as opposed to the creek and where are they going to?

Also, what do you predict happening over the coming year or so? Might Clubcorp get it on the cheap as you say?

[CheerBeer]

Highcotton, Thanks for the update. It's a nice course in a nice area and they can attract more than enough clients with an effective business strategy. I wish them well.

[highcotton]

Originally Posted by LFC74

highcotton:

this is interesting and you obviously have a lot of connections with members or people close to what is happening at the club. as a resident close by to the hills and someone that has thought about becoming a member due to its proximity and lower initiation fee of area clubs such as gleneagles and castle hills, why are the members more disgruntled at the hills course as opposed to the creek and where are they going to?

Also, what do you predict happening over the coming year or so? Might Clubcorp get it on the cheap as you say?

As you probably already know, there are many reasonably priced clubs nearby the Prestonwood Hills location in West Plano, however the number of clubs are far fewer and more exclusive near the Prestonwood Creek location on Preston Road in Dallas. Plus, the Prestonwood Creek clubhouse is in far better condition that the Hill's clubhouse. Another thing about the Hills location is that it is deep inside an aging residential neighborhood, whereas the Creek location is on a heavily traveled Dallas city road.

It's like anything else - when there is competition and choices (which is the case nearby the Hills) it is important to provide a level of service equal to your competition or your members will become disgruntled and eventually drop out and go elsewhere.

I'm told that many members are just in the waiting mode to see what happens with the club. Some have moved on...and others are dropping their memberships fairly often (I'm told by people that know). I doubt very seriously that anyone new has joined the club (with the purpose of using primarily the Hills location) 'if' they have reached-out to talk with some current members, or done any investigation and research on their own to speak of.

I'm guessing either (1) the current Miller family owners will buyout various family members that don't have any desire to have a sizable investment in a troubled country club and the eventual reduced number of Miller family owners will (probably 'slowly') try to improve the club (using either their own money or getting a loan) to remodel the Hills clubhouse, dredge the ponds and lakes and improve the infrastructure...and also settling with the city of Dallas for $500k-$1MM plus legal expenses for [so-called] stealing water from the creek for decades. Or, (2) the Miller family owners will elect to sell the property for a fair price to a buyer like Dallas-based ClubCorp and they will quickly spend $5-$15+ million on a nice clubhouse, dredge the ponds/lakes, improve the looks of the property (and settle the water theft issue with Dallas)...and maybe use someone like local D.A. Weibring to renovate parts of the course(s).

A new owner could spend as little as a few million dollars or over $25 million. The issue for someone like ClubCorp that may be interested in buying the club becomes - will spending X amount of money really be worth the investment? What's the payback? Will it bring in new members? How elite will those members be? Will they come from areas and neighborhoods miles away and be willing to spend 25%, 50%, 100% or 200% more than current members? The bottom line is - will spending big bucks retain current members and bring in new members that are to willing to spend more to join and pay a higher monthly dues? Dunno... Again, the Hills location is deep inside an aging residential neighborhood, whereas the Creek location is on a heavily traveled Dallas city road that is not near as much tied to a singular neighborhood. The Hills neighborhood is nice, but it's aging now and far from an exclusive neighborhood with $750k-$3MM+ homes like Gleneagles for instance. In other words, it's not like Gleneagles, Preston Trails, Lakewood, etc. where the club (or the club's owners) can spend an unlimited amount of money on the clubhouse and golf course and have it paid for by owner-members or reasonably expect a return on investment (in the case of ClubCorp) within 4-10 years...

[highcotton]

It is my understanding that ClubCorp now believes they will eventually acquire the Prestonwood Country Club property located in West Plano, which is known as the "Hills" golf course and clubhouse. It's questionable if the "Creek" property (golf course and clubhouse) located in North Dallas will also be acquired as part of the deal. I understand that none of the Miller family members care about (or want to have to deal with) the property....preferring to have the cash proceeds instead. This has all been a rumor for about a year now, but apparently things are progressing toward a deal...but any number of things could alter the deal, or even totally spoil it from happening.

[MustangPro]

It would be great for members if Club Corp takes it over. This course has shockingly good terrain for rather plain North Dallas area. Club Corp already maintains other popular options under $10k/year courses like Stonebridge Ranch Country Club, Trophy Club Country Club, Brookhaven Country Club, Hackberry Creek Country Club and few other.

[MckinneyOwnr]

Just got an email from Club Corp today, announcing they've bought Prestonwood, both Hills and Creek locations. ONE members will have access as of May 1st.

[SilverGold]

Great news for members and homeowners.

[highcotton]

ClubCorp Buys Prestonwood Country Club in Dallas and Plano

ClubCorp Announces the Addition of the Clubs at Prestonwood

[bencronin04]

Played the Hills Course yesterday for a charity tournament and there was quite a bit of work going on. Looked like they were drilling a well and also working on 2 holes. All in all the course looked nice, nothing spectacular, but nice.