ASC selling more resorts

[ski_resort_observer]

With a season of alot of changes already among ski resort ownership, the rumors are getting pretty hot and heavy. Here is the latest news.
http://firsttracksonline.com/index.p...ticle&sid=1553 The Editor of FT has already advised on another forum that this is still at the rumor stage, nothing confirmed...officially.

Word on the street is also abound that Intrawest is currently courting another major New England resort, this will be a real shocker to many.....

[random_ski_guy]

Thought #1

I can't help but guess that Intrawest/Fortis is kicking the tires on Stowe. I have no facts to back this up, just pure speculation. I wonder, are the sales at Stowe there to match the product that has been released thus far? Their product, while grand, its very pricey for the east coast second home ski market. I wonder, how long can AIG keep this expensive and risky real estate project & ski area on its books now that Hank Greenberg isn't around to protect it. I think AIG has done a good job with the mountain. I wouldn't be cheering for a change in ownership here. Stowe + Whistler = Something? Anything. Dunno.

Thought #2

I would love to see the ASC empire finally broken up. Anything is better than ASC. Too bad for Win though, a rejuvenated Killington or an interconnected Pico-Killington wouldn't be helpful for Sugarbush. It will still be the same over crowded Killington, but judging by the crowds, most don't care.

[Mike_451]

but I like ASC? I thought they were the good guys.

[BushMogulMaster]

but I like ASC? I thought they were the good guys.

nope.

[Mike_451]

No Seriously, look at what ASC Does, look at the magic they work, look at their carfull, conservative development methods, that leave resorts in great financial shape.
Look at how they tame terrain, and make it safe. Nobody wan'ts to even have anything to do with dangerous ski slopes.
If they had had Sugarbush a bit longer, mabey we would even have some 6 Packs.

[sugarboarder]

No Seriously, look at what ASC Does, look at the magic they work, look at their carfull, conservative development methods, that leave resorts in great financial shape.
Look at how they tame terrain, and make it safe. Nobody wan'ts to even have anything to do with dangerous ski slopes.
If they had had Sugarbush a bit longer, mabey we would even have some 6 Packs.

[shadyjay]

but I like ASC? I thought they were the good guys.

I used to feel that way. Look at the $$$ they invested right here at the 'Bush. It used to take 15 minutes just to get to midstation... now it takes 5. Gate House was a 10-minute double, now a 3-minute quickie. Sure, their logic behind relocating the original GMX wasn't all there (wonder what they were smoking with that one), but they laid yet another layer on the foundation that helped Sugarbush become what it is today. They had the $$$ at the time to do what needed to be done. Then they got out. Now we got a small company with owners who don't sit in a skyscraper or out west counting the $$$ (not that ASC people are doing that these days). We've got owners who are out there with the public, not only riding/skiing, but also communicating directly with us'all right here on this forum.

So, while ASC did do some good stuff (lift/snowmaking), they are more of a large corporation. And what happens to large corporations eventually? Here's a clue: Enron.

'Nuff said.

-Jay

[Tin Woodsman]

1) Intrawest is NOT kicking the tires on Stowe - they have more than enough EC exposure as it is in the form of Snowshoe, Mountain Creek, Stratton, and Tremblant

2) ASC, while widely reviled in these parts, did more to improve the on-mountain experience than any owner since the Gadds. Lincoln Peak was a larger version of MRG, with just 30% snowmaking and an antiquated lift system. They blew it with the Green Mtn chair, but I'd say the Slide Brook Express was a nice touch, and the new North Ridge didn't hurt either. It's not every day that you'll have a nice group of people drop $28MM into your favorite ski hill and then sell it to competent local operators for 25% of book value.

[random_ski_guy]

$28MM into your favorite ski hill and then sell it to competent local operators for 25% of book value.

A what a gift to the valley. What a score for Win and Company.

[random_ski_guy]

1) Intrawest is NOT kicking the tires on Stowe - they have more than enough EC exposure as it is in the form of Snowshoe, Mountain Creek, Stratton, and Tremblant

Well, I was following SRO comment that another eastern ski area maybe acquired by Intrawest/Fortress. What mtn's sale in the northeast would surprise you the most? Regardless of the surprise aspect, care to guess anyway? C'mon. Truth is, the sale will probably never close and so we'll never find out anyway. But don't let that stop you from guessing!

[Mike_451]

but I like ASC? I thought they were the good guys.

I used to feel that way. Look at the $$$ they invested right here at the 'Bush. It used to take 15 minutes just to get to midstation... now it takes 5. Gate House was a 10-minute double, now a 3-minute quickie. Sure, their logic behind relocating the original GMX wasn't all there (wonder what they were smoking with that one), but they laid yet another layer on the foundation that helped Sugarbush become what it is today. They had the $$$ at the time to do what needed to be done. Then they got out. Now we got a small company with owners who don't sit in a skyscraper or out west counting the $$$ (not that ASC people are doing that these days). We've got owners who are out there with the public, not only riding/skiing, but also communicating directly with us'all right here on this forum.

So, while ASC did do some good stuff (lift/snowmaking), they are more of a large corporation. And what happens to large corporations eventually? Here's a clue: Enron.

'Nuff said.

-Jay

Didin't you catch the fact I was joking ?

[Tin Woodsman]

1) Intrawest is NOT kicking the tires on Stowe - they have more than enough EC exposure as it is in the form of Snowshoe, Mountain Creek, Stratton, and Tremblant

Well, I was following SRO comment that another eastern ski area maybe acquired by Intrawest/Fortress. What mtn's sale in the northeast would surprise you the most? Regardless of the surprise aspect, care to guess anyway? C'mon. Truth is, the sale will probably never close and so we'll never find out anyway. But don't let that stop you from guessing!

1) MRG

2) Cannon

3) Whiteface/Gore/Belleayre

As for SRO's post, I don't believe the word on the street, in this case. I think that ITW has more than enough exposure/leverage to the EC. Truth be told, if it were going to be anyplace, it would probably be Stowe. Not b/c it's for sale (I doubt it is), but b/c it fits the profile of how PE firms operate. They want to get in and out in 5-7 years. The funds they raise only have a 10 year life, after which time they are liquidated, so they need to act quickly to achieve an exit. You won't see ITW doing a GInn/Burke type thing or even a K-Mart that requires a long-term vision. Since Stowe's real estate component is well underway, this would fit the M.O., but I highly doubt this would take place. Jay may have the requisite short to medium term upside with the golf course coming on stream and the whole West Bowl expansion permitted and on private land, but I doubt Mt. St Savieur would want to sell, unless they need the cash.

Mt. Snow, K-Mart, Sunday River (back to the future with Les Otten, me thinks), and Attitash will all be sold within the next 6 months. I sure hope the Loaf finds a good home. They seem like nice people up there, managers and customers. Great mountain too. They deserve a local equivalent of Summit Ventures that won't go out of business every 3 minutes.

[random_ski_guy]

MRG = they can lean on their share holders, can't they? they are debt free, right? there is no way MRG is sold under the cover of night for a litany of reasons...i imagine you put this up to rabble rouse.

Cannon = that's no surprise; the state of NH owns it. and it’s been up for long term lease like sunapee before.

NY's State Ski Areas = you really think NY ORDA is going to try to sell Gore and Whiteface after all the $$ they have poured in over the past 5 years? They would sell just like Sugarbush did, for 25% of book value because none of these mtns have a good real estate play. I know there's a delusional catskill developer up their with Belleayre, but the local environmentalist and the City of NY (watershed) have killed much of the proposed expansion, particularly the critical part which would add the best new skiing and shorten the drive time. Plus it would take an act of the state legislature to make any of these three sales happen, if it even could happen, given the state lands these mtns operate on (aka forever wild).

I'm going to chalk this one up to late night drowsiness

[sugarboarder]

MRG = they can lean on their share holders, can't they? they are debt free, right? there is no way MRG is sold under the cover of night for a litany of reasons...i imagine you put this up to rabble rouse.

I heard SuperParx is buying MRG and has plans to turn it into a "jib" park with night snow tubing and a roller-coaster.

[Tin Woodsman]

MRG = they can lean on their share holders, can't they? they are debt free, right? there is no way MRG is sold under the cover of night for a litany of reasons...i imagine you put this up to rabble rouse.

Cannon = that's no surprise; the state of NH owns it. and it’s been up for long term lease like sunapee before.

NY's State Ski Areas = you really think NY ORDA is going to try to sell Gore and Whiteface after all the $$ they have poured in over the past 5 years? They would sell just like Sugarbush did, for 25% of book value because none of these mtns have a good real estate play. I know there's a delusional catskill developer up their with Belleayre, but the local environmentalist and the City of NY (watershed) have killed much of the proposed expansion, particularly the critical part which would add the best new skiing and shorten the drive time. Plus it would take an act of the state legislature to make any of these three sales happen, if it even could happen, given the state lands these mtns operate on (aka forever wild).

I'm going to chalk this one up to late night drowsiness

No late night drowsiness here. I was responding to the question "What mtn sale would surprise you the most?" I can't imagine that any of the mountains listed above will ever be sold in my lifetime. Cannon and the NY State ones could be leased, but I doubt would ever be sold.