PHASE ONE
1997: North Golf Course, Grill Room and Fitness Center
Total Capital Investment: $12 Million
According to General Manager John Schultz, the seeds of transformation were really planted in 1997, six years prior to his arrival, when the club adopted a member-approved “Facilities Improvement Program” and embarked on a $12 million investment in the North course and grill room. Charlotte is a very competitive golf market, and in the late 1990s, Carmel was still very much a traditional golf-centric club. To remain relevant in that market, the club’s leadership purchased an adjacent tract of land and transformed an 18-hole executive course into a new 18-hole, par 72 championship course. A clubhouse expansion included a casual grill—a relatively new concept at the time—as well as new kitchens and a fitness center. The club gained 160 new members in the two years following completion of those projects.
Summary: Carmel Country Club purchased adjacent land to expand its executive course into a new 18-hole, par 72 course. The clubhouse was expanded to include a casual grill, new kitchens and a fitness center.
PHASE TWO
2006-2007: Resort-style Pool and Outdoor Dining Pavilion
Total Capital Investment: $5 Million
In 2005, Carmel Country Club launched its “Master Plan and Vision” and began hosting more lifestyle parties and events. The need to extend that lifestyle focus through an update to Carmel’s country-club style pool was not even on the board’s radar when Schultz first broached the idea.
“Clubs typically run about 15 years behind other hospitality venues when it comes to keeping up with trends, and I knew narrowing that gap would set us apart,” said Schultz. His vision was initially met with some skepticism, but he persevered and in 2006-2007, the club embarked on a $5 million resort-style pool and outdoor dining pavilion.
Construction plans for the pool were advertised and membership numbers began to rise before it had even opened. Abundant member communication fueled the buzz, relaying the board’s vision, gathering input and perspective, and helping members visualize the outcome. In 2008, the pool opened to record attendance and it quickly became a hub for the club’s social scene and family activities. The pool complex includes water slides, diving boards, cabanas, food service, a popular tiki bar and space for barbecues, parties and live music. There was a definite shift in membership dynamics as more families joined, and the club welcomed 131 new members, of which 100 were new social members.
Summary: Construction of a pool complex to include water slides, diving boards, cabanas, food service, a popular tiki bar and space for barbecues, parties and live music.
PHASE THREE
2009-2010: South Golf Course Redesign and Tennis Complex
Total Capital Investment: $15 Million
In 2009, installation was scheduled for a 7,000-foot-long, six-foot-wide municipal sewer line 25 feet below ground. The line cut across the property and would completely shut down the 18-hole South course. The timing seemed right to take on a complete overhaul and the board’s focus turned to a $12 million investment in the course redesign and construction of a modern tennis facility.
The Rees Jones design incorporated 14 undeveloped acres, relocated four holes and significantly increased the overall length of the course. Completed in 2010 after 18 months, the $10 million overhaul was recognized as the largest golf renovation in the country that year.
The South course redesign continues to be a great source of pride and member usage has increased steadily, from 45,000 rounds in 2003 to 50,000 rounds in 2018. Recognizing the North and South courses as treasured assets to the members, the board subsequently decided to allocate an additional $500,000 to the golf operations budget, which enables the club to maintain the pristine greens and bunkers.
The project also replaced an existing 11-court tennis complex with a new 8,000-square-foot tennis complex with two hard courts and 10 courts featuring HydroCourt technology—all of them equipped with lights for night play. A state-of-the-art, self-regulating irrigation system decreases maintenance and increases court playability, regardless of weather conditions. The facility also features multiple viewing decks and spacious shaded courtside gathering areas. A newly remodeled, two-story tennis clubhouse provides additional viewing areas, a tennis lounge, snack area, locker rooms, restrooms and a pro shop stocked with all the latest rackets and gear as well racket stringing and re-gripping services and video analysis.
Usage by members of all ages has seen a 50% increase and the tennis program is stronger than ever, with one of the biggest junior programs in the Southeast. In 2013, the United States Tennis Association recognized Carmel Country Club with an Outstanding Facility Award.
Summary: Complete overhaul of the South Course. The Rees Jones’ design incorporated 14 undeveloped acres, relocated four holes and increased the length of the course. New 8,000-square-foot tennis complex features two hard courts and 10 courts that feature HydroCourt technology, with a self-regulating irrigation system and lights for night play. A newly remodeled, two-story tennis clubhouse houses viewing areas, a tennis lounge, snack area, locker rooms, restrooms and a pro shop.
PHASE FOUR
2015: Food & Beverage Expansion
Total Capital Investment: $3.5 Million
As the club’s programming and amenities evolved, the culture gradually became younger and more family oriented. Members were clamoring for more upscale casual dining options and a $3.5 million overhaul of the club’s F&B offerings was launched in 2015.
To ensure an experience that would stand apart from traditional club design, Schultz hired a high-end restaurant designer to create four unique dining areas. The new spaces catered to a more contemporary casual, fun dining experience for a younger and young-at-heart membership. The finished spaces boast a high-spirited bar; a family-friendly grill room; an upscale fine dining space and a comfortable outdoor terrace. While that project was underway, the club also took the opportunity to upgrade and expand the adjacent fitness facilities.
Schultz takes great pride in the fact that the club remained open throughout the seven-month project, and surprisingly realized an increase in member usage of the F&B operations, compared to the same period a year earlier because the staff planned creative ways to serve the membership during the renovation. After the renovation was complete, restaurant activity increased by 50% and has steadily increased year-over-year.
Summary: The club used a high-end restaurant designer to create four unique dining areas that cater to a more contemporary casual, spirited dining experience: a high-spirited bar; a family friendly grill room; an upscale fine dining space; and a comfortable outdoor terrace. Adjacent fitness facilities were also expanding during this phase. Creative management allowed the club to remain open throughout the seven-month project with year-over-year increase in usage of the F&B operations.
PHASE FIVE
2016: North Course Renovation and Practice Facility Expansion
Total Capital Investment: $8 Million
By 2015, given the competitive nature of Charlotte’s golf market, it was time to reinvest in the North course and its practice areas. The older of the club’s two courses was renovated by award-winning golf course architect John Fought with the goal of enhancing the traditional and strategic character of the course. Featuring play from seven different tee boxes on each hole, the course is both welcoming and challenging to golfers of all abilities and interest levels. Bermudagrass was introduced to the reworked fairways and greens and bunkers were reimagined and built. As many as five of the North course’s holes were re-routed to allow for expansion of the club’s practice facility, which now includes a large short-game area with three new greens features including elevation changes, three bunkers that can be utilized for all types of shots, and it can also be used as a three-hole, par-3 course for special events.
Although one would no longer classify Carmel as a traditional golf-centric private club, the golf operations are thriving. Between 2003 and 2018, North and South course rounds increased from 45,000 to 50,000 per year and golf lesson revenue increased from $81,000 to more than $245,000 per year.
Summary: John Fought renovation of the older of the club’s two courses to enhance the traditional and strategic character of the course. Bermudagrass was introduced and bunkers were reimagined. As many as five of the North course’s holes were re-routed to allow for expansion of the club’s practice facility, which now includes a large short-game area with three new greens and features including elevation changes, three bunkers and the option to serve double-duty as a three-hole, par-3 course for special events.
PHASE NeXt
The momentum continues at Carmel with Phase NeXt, the final phase of the club’s 2013 “Road to the Diamond Jubilee” strategic plan. The $21 million investment encompasses a comprehensive renovation of the clubhouse that will touch upon every facet of the first floor and add 20,000 square feet of space. The finished product will have an upscale modern vibe with improved al fresco spaces, a Starbucks-style coffee bar with grab-and-go food options, fast casual and a high-tech tween room. The project also includes updated and reworked fitness areas, ballrooms, an expanded women’s locker room, refreshed men’s locker room with the addition of 200 lockers and updated women’s card rooms.
Carmel Country Club’s success stems from a finely tuned blend of vision and discipline. The club operates under a sustainable financial model that uses capital investments to improve the member experience, which in turn supports incremental increases in dues and initiation fees and allows continual reinvestment to enhance the value proposition and grow the club’s NWOT. Schultz is quick to point out that Carmel does not use member assessments to generate income or to fund capital projects. Over the last 10 years, initiation fee income supports ongoing aspirational capital improvements and the results are undeniable: The club’s current net worth is approaching $37 million and annual income is $25 million with $5 million of that coming from initiation fees in 2019.
As the club approaches its Diamond Jubilee in 2022, the pattern of careful planning and strategic investment continues, and the rewards have been substantial. The most profound measure of the club’s success is their claim to a culture and member experience that drives activity and fuels the desire for others to someday be welcomed into the fold.
A focus on member needs and desires and a dedication to following a strategic roadmap has made Carmel Country Club one of the financially healthiest clubs in the country and it is delivering on a bold vision: If you build the right services and amenities in the right way, they will come. The pattern of investment followed by return on that investment (in the form of initiation fee income tied to a compelling and relevant member experience) could not be clearer. Club Benchmarking refers to Carmel’s growth as “purposeful growth.” The club’s leadership has made a strategic choice to grow. The data, as manifested ultimately by growth of members’ equity, reflects the choice to grow. There is a lesson in Carmel’s experience for every club.