Financing renovations in clubhouses

The investment and financing aspects of clubhouses remain understudied in hospitality literature. Clubs, while typically nonprofit organizations, operate under similar principles as do investor-owned organizations. To maximize social benefits for their owners, clubs must undertake investments effectively to ensure provision of quality products and services. This paper analyzes renovation investments in clubhouses using a combination of continuous and discrete regression processes. Key findings suggest that the renovation expenses of the sample were influenced more by the amount of secure and unsecured loans than by the equity financing of such investments. Renovation investments were also associated with higher sales turnover and with a smaller link to return on assets. The size of club membership was found to be the predominant characteristic associated with the size of renovation expenses.