How Much Does It Cost to Build an Ice Skating Rink?

Do you want to start a skating rink and want to know the cost? If YES, here is a cost breakdown to build an ice skating rink and the profit margin / ROI.

Businesses that operate in the Ice – Skating Rinks industry basically manage ice rinks for recreational and professional use. These ice rinks offer ice skate rentals and ice – skating classes, and also provide other amenities including indoor sports and concessions.

If you have been following the Ice Rinks industry, you would have realized that the industry leveled out over the past five years after melting for a period during the recession. Demand for ice activities, which tend to be relatively more expensive than other forms of sports and exercise, took longer to rebound after the recession, as unemployment remained high and wages stagnated.

Starting an ice skating rink business in the united states of America can be stressful, it requires enough cash to acquire land large enough to accommodate the kind of facility that can comfortably attract families and also cash required to equip the facility to meet the standard expected by potential users.

Estimated Cost Breakdown to Open an Ice Skating Rink Arena

The real deal when it comes to starting an ice skating rink is securing a facility that is large enough to contain not just the ice skating tracks and other fun – filled outdoor games for children and adults alike, but also a restaurant, a place where parents/guardians can hangout.

Ideally, ice skating rinks save money by buying or renting a location in a commercial real estate area. According to the Ice Skating Institute, the cost for a single surface ice skating arena is between $2 and $4 million, while a twin surface ice skating area costs between $5 and $7 million. These are the key areas where you are expected to spend your startup capital;

1. The total fee for registering the business in the United States of America – $750.
2. Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
3. Marketing promotion expenses for the grand opening of the ice skating rink arena in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
4. The total cost for hiring a business consultant including writing a business plan – $5,500.
5. The total cost for the purchase of insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $10,500.
6. The cost for renting or leasing a space or property that will be converted into the ice skating rink and that can accommodate the number of guests that will come in per – time (Re – construction of the facility to feature a single surface ice skating arena, including a refrigeration system to freeze the rink surface (the refrigeration system pumps 9,000 gallons of freezing brinewater through the pipes and on top of the ice-bearing concrete slab), hangout areas and food courts et al) will cost – $5 million
7. Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500) – $3,000
8. Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $80,000
9. The cost for store equipment (cash register, security, ventilation, signage) – $1,750
10. The cost of purchase and installation of CCTVs: $2,000
11. Equipping the ice skating rink (different sizes of skaters for rent, safety gadgets, sound system, DVD players, Flat Screen TVs, computers, video games, printers, projector, furniture, telephones, filing cabinets, and electronics) will cost – $40,000
12. The cost of launching a website: $600
13. The cost for our opening party: $3,000
14. Miscellaneous: $2,000

From the rough estimate as listed above, you would need a minimum of five million, three hundred and forty – five thousand eight hundred and eighty USD ($5, 345,880) to establish a medium – scale but standard single surface ice skating arena in any city in the United States of America.

Please note that this amount includes the salaries of all the staff for the first three months of operation and while a twin surface ice skating area will cost you an additional $1 million to $3million.

Factors That Can Influence the Cost of Building an Indoor Skating Park

1. The Size of the Land and Infrastructure

One of the major factors that can greatly impact the cost of building an indoor skating park is the size of the land and infrastructure required. Come to think of it, the bigger the land you settle for, the more you are expected to spend on lease or rent.

Aside from the rent or lease, you will also be required to spend money on the construction or renovation costs including building or remodeling large open areas with structures and surfaces for roller-skating and skateboarding, practice areas, pro shop, restrooms, and any other amenities you plan to provide.

Please note that the cost of acquiring the land and installing the needed infrastructure can vary depending on the location, size of the property, design complexity, materials used, local construction costs, proximity to urban areas, and local real estate market conditions amongst other factors.

2. The Cost of Infrastructure and Utilities

Another major factor that will influence the overall cost of building an indoor skating park business is the amount you are expected to spend on infrastructure and utilities. Trust me, the amount you are expected to spend on essential utilities such as electricity, water supply, drainage systems, lighting, furnishing, electronics, gadgets, parking areas, and access roads is no doubt highly significant.

3. The Cost of Acquiring Equipment and Supplies

If you are building an indoor skating park, you should expect to spend money to acquire the needed equipment and supplies, including skatepark obstacles, skatepark surfaces, skateboards and scooters, seating and shelters, sound system, lighting, maintenance equipment, and safety equipment (helmets, knee pads, elbow pads, and wrist guards).

No doubt, the budget for acquiring indoor skating park equipment and supplies will influence the overall cost of building the park.

4. The Indoor Skating Park Design and Layout

Another major factor that will influence the cost of building an indoor skating park is, of course, the design and layout you have in mind.

As expected, there are different designs and layouts that an indoor skating park can take. When you contract an architect to help you design an indoor skating park, they will charge you based on the complexity or simplicity of the design and layout.

In essence, the more complex the design you want for your indoor skating park, the more money you will pay, and the simpler the design and layout for your indoor skating park, the cheaper it will be.

5. The Types of Permits, Licenses, and Approvals Needed

If you are looking to build an indoor skating park in any city in the United States of America, or any country of the world, you will be expected to obtain all the needed permits, licenses, and approvals from all the appropriate authorities in your jurisdiction.

Trust me, the amount you are expected to spend in this regard is going to be a significant part of the budget you have for building your indoor skating park.

6. The Cost of Landscaping and Aesthetics

Another major factor that can influence the cost of building an indoor skating park is the cost you are expected to spend on landscaping and aesthetics. As expected, you should not only budget on indoors but also outside. That is where landscaping and aesthetics come in.

Come to think of it, people will first be drawn to how beautiful your indoor skating park looks from the outside before they even consider coming in. This is why you must make sure you have a robust budget for landscaping and aesthetics when drawing your budget for your indoor skating park.

The amount you are expected to spend in this regard will be based on your preference and the class of customers you want to attract.

7. Miscellaneous Expenses

Lastly, aside from all the factors listed above, other factors may be unique to each entrepreneur that can also influence the overall cost of building their indoor skating park. For that reason, we will classify such factors as miscellaneous expenses.

Miscellaneous expenses vary and could cover expenses such as land mortgages, construction loans, equipment financing, working capital, interest rates, insurance, taxes, professional consulting fees (such as architects, engineers, lawyers, and planning, design, legal compliance, and financial matters), and unforeseen contingencies.

Also, costs associated with legal fees for consulting with an attorney and drafting necessary contracts and agreements should be considered miscellaneous expenses.

In Conclusion,

Please note that this is a rough estimate and we usually advise our readers who are interested in opening a ice skating rink business to have a clear picture of what they want to achieve, go to the market or directly contact contractors, wholesalers and suppliers of the types of ice skating rink supplies they want to have in their arena in order to get the real time prices of these items.

The truth is that, if you are a good bargainer, you can get a better deal that will help you beat down the estimated price as listed above.