*A CGI impression of the new Lahinch Clubhouse.
CASH-rich Lahinch Golf Club is set to spend €6.1m on its club-house redevelopment on the back of bumper green fee receipts since Covid-19.
Work is due to commence on the project next month with Chairperson of the Golf Club, John Gleeson confirming the €6.1m spend in an update to members following the award of the main building contract.
Mr Gleeson has told members in a mid-year update that the contract price “was higher than anticipated with the total development cost of the clubhouse at €6.1m”.
Mr Gleeson has told members that the golf club’s Council “is confident that, given our existing financial resources and the borrowing of €3m approved at the AGM, we can cover the entire cost of the project”.
In a previous update last December on the club-house project, Mr Gleeson told members that the then anticipated spend was €4m plus on the redevelopment.
Mr Gleeson told members that the project was required as the current clubhouse built just under 60 years ago in 1965 “is no longer fit for purpose with many of its components reaching end of life stage”.
Mr Gleeson said that the clubhouse council ruled out demolishing the existing clubhouse and constructing a new clubhouse due in part to the then estimated cost of €9m.
He said that this option was also ruled out on the basis that if permission to demolish was granted, “the professional advice was somewhat surprisingly, that there was a reasonable probability that we would not get permission to rebuild in the same location”.
Mr Gleeson said that it is important “that we enhance the clubhouse experience as befits a World Top 50 Golf Course, similar to what a number of our peers clubs have achieved over recent years”.
Visitors to the golf links course pay €325 green fee for a round of golf from April 22nd to mid-October and Mr Gleeson has told members that green fee income is expected to be on budget for 2024 at €3.2m.
In his mid-year update, Mr Gleeson has told members, “Our finances are in a very healthy state with in excess of €4m held in cash and bonds, having completed payment of our new irrigation system which cost in excess of €2m”.
Mr Gleeson said that the cash of €4.28m at the end of June includes €1.4m in pre-payments. He said that annual subscriptions received to date €1.18m which exceeds budget.
The club also benefits from the sale of branded Lahinch Golf Club clothing and merchandise and Mr Gleeson said that golf shop sales at the end of June were €682,000 (ex VAT) “which is ahead of projections”.
Mr Gleeson said that expenditure to the end of June of €1.7m is in line with budget. Mr Gleeson told members “Rest assured, your Club Council will continue to manage the club’s finances in a very careful and prudent manner”.
He said, “The capital projects mentioned previously are necessary to keep Lahinch at the forefront of not just Irish Golf, but World Golf and we will invest our resources wisely and prudently”.
