Expansion of The Rooms
During the AGM you, the members, have voted to add 7 Club (hotel) rooms in favor of the bowling alley, as per the proposal of the Main Committee. We thank you for your support. The lively discussions during the AGM are proof that this topic is at the heart of the members. The MC is taking this opportunity to explain the reasons and financial background, address some of the concerns and show you what the rooms will look like. Financial background
The club is, financially, in dire straits. Twelve years of continuous losses have diminished the Club’s reserves. We currently still have enough reserves to make the investment. We are seeing a choice: either add a revenue generating facility like the Club rooms or increase the monthly membership fees with an additional amount of 15-20 SGD per month per membership. The problem with simply increasing the fees is that we’ll end up being the most expensive club, without the facilities and location to match. Of course the Club’s management and the MC is looking at many other measures to make the club profitable again and to start adding to our reserves rather than dipping in. But now is the time to make the investments, otherwise it is simply too little too late.
The fear of losing the Club’s identity with hotel guests wondering around on our premises was also hotly debated at the AGM. Here the MC likes to point at the high rate of members’ guest. In practice, it turns out that the vast majority (80%) of the guests are friends and family of our members. This actually enhances the identity as these members and their guests use our F&B facilities during the off-peak hours. The feedback we receive from the guests is, without exception, very positive.
What will the rooms cost?
The total investment is 610k SGD based on firm quotes. The additional income generated by the 7 rooms is between 100k and 150k SGD per year. This very conservative estimate means the Club rooms will almost close the current gap between revenues and expenses.
Key issues
During the AGM three key issues were discussed; the loss of a members’ facility, the cost of operating the bowling alley and the loss of the Club’s identity or fear of becoming a hotel. The loss of a key facility is undeniable. Although the bowling alley isn’t used a lot and caters mainly for children’s birthday parties, it is a unique facility. The MC has reserved some funds to add or upgrade a facility to make up for the loss of the bowling alley. We are looking forward to suggestions from the members. In the meantime the Club has procured an inflatable assault course and a bouncy castle to be used for children’s parties and other events at the multi-purpose court. Another issue the Club faces with the bowling is that it isn’t a full sized alley and it can’t be used for competitions. Servicing and maintenance is becoming quite difficult. The facility was bought from a Chinese manufacturer that does not make this type anymore and now spare parts are difficult to obtain. Operating the alley has its own challenges as there is a demand only in the afternoons or weekends, with peaks that are not easy to manage staff-wise. For the avoidance of doubt: the bowling alley is operated at a loss.
What will the rooms look like?
The new rooms will be side-by-side and accessible via a corridor between the Gym and the rooms. Each room will be bigger than the existing rooms and with plenty of daylight coming through the windows facing the main club building. The interior will be similar to that of the existing rooms; basic, elegant, contemporary and of good quality. Construction is expected to take 3 months. If you have any questions please don’t hesitate to contact the Club’s management or any of the MC members. The Main Committee. www.hollandseclub.org.sg Hollandse Club 27