In an article entitled, Ski Resorts Seen as Buyout Targets Amid U.S. West Drought, Bloomberg.com has noted the number of ski resort acquisitions that have closed over the last 3 years which have coincided with a decrease in snowfall in the west. From Canyons, in Utah, to Afton Alps in Minnesota, Mount Brighton in Michigan, and Squaw Valley in California, companies like Vail Resorts, KSL Capital and CNL Lifestyle Properties, Inc. have been acquiring properties and diversifyig their portfolio. The diversifictaion helps smooth out the revenue fluctuations resulting from poor snowfall in certain areas of the country in each year. Definitely worth the read. http://bloom.bg/1e9XChG
Mount Snow plans to fund the $52 million construction of a 120 million gallon snowmaking pond and a 36,000 sq. ft. lodge through the federal government’s EB-5 program. The EB-5 programs gives green cards or permanent residency to foreigners who invest at least $500,000 in a U.S. business.
Skyline Mountain Base has purchased Wolf Mountain in Ogden Valley, UT. Skyline in comprised of local and foreign investors and they plan to continue to opeate the resort. Termsd of the deal have not been made public yet.
First Tracks has reported that the owners of Mount Washington Alpine Resort located on Vancouver Island is up for sale. The small group of local private investors has hired CBRE to assist in the marketing and sale of the resort which features 5 lifts and 1700 acres of terrain. Mount Washington has struggled this season as a result of the decreased snowfall that has plagued the Pacific Northwest.
Market data collected from retailers through November of 2013 shows that snow sports retail sales have rocketed up 14% from 2012 with sales now topping $1.2 billion. With more access to the back country than ever before and skiers and boarders pushing the limits, the sale of accessories for back country skiing has partly fueled the growth. But the popularity of the GoPro is likely the single largest contributor to the growth with sales expected to top $1.0 billion for the company.
SAM Magazine is reporting that lodging properties at a sample of Eastern mountain resorts are showing a 13% increase in projected reservations revenue for 2013-14 over last year, according to the most recent data released by Denver-based DestiMetrics. DestiMetrics has been collecting research data in the Eastern U.S. and Canada for the past three years, supplied by lodging properties at nine mountain resorts in Maine, Massachusetts, New Hampshire, New York, Vermont, West Virginia, and Tremblant, Quebec. The results are based on all reservations taken for arrival in the winter season as of Nov. 30. DestiMetrics reports that each month in its winter season analysis (November through April) is showing an increase in reservations and room rate for the season, with the high-volume months of January and February leading the way with 12.1 and 9.5 percent occupancy gains and 19 and 16 percent revenue gains, respectively. “The data not only indicates a positive outlook, but one that is more balanced than has been seen in recent memory,” said DestiMetrics director Ralf Garrison.