Golf Services - Success Stories

Isla Maya Golf Course - Market and Financial Feasibility Study, Appraisal

• Study Type: Market and Financial Feasibility Study, Appraisal
• Location: Cozumel, Mexico
• Client: The Bushwood Group

The resort island of Cozumel is well known for its exquisite beaches, tropical weather and world class diving. The assignment was performed for a golf course development company pursuing the development an opportunity within the Isla Maya planned destination resort community. The development was programmed as a mixed-use development targeting the second home market. Uses on the site include single family and patio homes, condominiums, a wildlife preserve, hotel, commercial development, horseback riding and additional uses.

This analytical dilemma posed by the site was unique because although Cozumel is a well-established resort destination, this would be the first 18-hole golf course on the island. The study focused on detailed analysis of several aspects of tourism in the region, focusing on the following issues:

• The ability of the hotel base to provide a clientele for the golf course;
• Possible affiliation with an on-site all-inclusive resort hotel;
• Selling limited memberships to second home owners, expatriates and local businessmen;
• The depth of the cruise ship market for golf play.

The financial feasibility aspect of the study analyzed the impacts of affiliation with an all-inclusive hotel, and issues relating to tee time priorities and pricing. On the operating side, the salary structure and supply of adequate materials and supplies were unique items that were quantified.

The market and financial feasibility study was converted to an appraisal to determine value in support of a construction loan. Unique valuation methods were employed to delineate the parameters that affected development.

The project is under development and the projects owners and developers have teamed with Jack Nicklaus and Club Corp to produce a world class facility and resort community.