TWO BIG BREAKING NEWS STORIES FOR WINTER PARK!
$1.5 Billon deal ROCKS Colorado Ski Industry, as Aspen Skiing Co. acquires Steamboat & operator of Winter Park Resort!
Aspen Skiing Co. and Denver’s KSL Partners on Monday acquired Intrawest Resorts By JASON BLEVINS | firstname.lastname@example.org | The Denver Post PUBLISHED: April 10, 2017 at 7:11 am | UPDATED: April 10, 2017 at 12:13 pm
$1.5 billion deal rocks Colorado ski industry as Aspen Skiing Co. acquires Steamboat and operator of Winter Park resort Denver Post Aspen Skiing Co. and Denver’s KSL Partners on Monday acquired Intrawest Resorts in a $1.5 billion deal that gives Aspen Skiing and KSL control of Steamboat and Winter Park ski areas.
The new investment group also gets Quebec’s Tremblant, Ontario’s Blue Mountain, West Virginia’s Snowshoe and Vermont’s Stratton ski areas as well as Canadian Mountain Holidays, the world’s largest heliskiing outfit. Aspen Skiing will expand from its four hills in the Roaring Fork Valley and private equity firm KSL, which formed in 2005 and controls about $7.5 billion in hotel and resort properties, adds to its Squaw Valley – Alpine Meadows ski resort in California.
And suddenly Colorado is ground-zero for what will become the most hawkish rivalry in the U.S. ski resort industry, with Aspen Skiing – KSL vying against the world’s largest resort operator Vail Resorts in an escalating battle of consolidation. In the past year Vail Resorts has spent $1.1 billion for three-quarters of Canada’s Whistler Blackcomb ski area and $50 million for Vermont’s Stowe in an aggressive expansion plan anchored in a strategy to sell more of its wildly popular Epic Passes. Intrawest, which once ruled the resort world as the world’s largest ski area operator, has been on the block since last fall, when its owner, New York hedge fund Fortress Investment Group, began exploring a potential sale. Japanese telecommunications and energy giant SoftBank Group Corp. in February acquired Fortress in a $3.3 billion deal and the ski industry was watching what would become of Denver-based Intrawest.
In a statement, Intrawest chief Thomas Marano said the deal “delivers tremendous value” to shareholders, who get $23.75 a share, roughly 40 percent more than the company’s $17 share price in mid-January. “We are excited to work with Aspen and KSL. Our new partners bring additional financial resources and a shared passion for the mountains and our mountain communities. Both Aspen and KSL are committed to helping Intrawest accelerate our plans to bring more value to our guests, more opportunities for our employees and more investment into our local communities,” Marano said in a statement.
Intrawest, which in the late 1990s saw its total revenues lean away from skiing and toward slopeside condo sales, triggering fears that skiing would become an amenity for real estate sales, has about 1,100 acres of land available for real estate development at the six resorts it owns or controls. The recession, which hit resort real estate markets hard, left Intrawest in a holding pattern for the past several years. The company was straddled with monster debt after Fortress took Intrawest private for $2.8 billion in 2006. The company jettisoned resorts, including Copper Mountain and its flagship Whistler Blackcomb, in a scramble to make debt payments through the economic decline. As the economy rebounds, the company is expected to begin exploring those development opportunities, especially at Winter Park ski area. The company in 2002 inked a 76-year operating agreement with the city of Denver, which owns Winter Park. That agreement required Intrawest to invest more than $50 million in the ski area’s infrastructure and pay the city annual payments that recently have totaled about $3.5 million a year. In exchange, Intrawest would develop and sell village-based real estate around the ski area. While Intrawest pumped an estimated $60 million into the resort, that development has stalled in the last several years as the economy stumbled.
“Intrawest is a collection of remarkable properties in exceptional locations. Each has its own unique story and its own unique sense of place,” said Eric Resnick, chief executive officer of KSL, in a statement. “We are committed to honoring the deep traditions of each resort, while working with Intrawest’s talented management team and employees to continue to serve both their guests and local communities.”
The Vail Effect: How Is It Impacting Utah Real Estate? Will Winter Park and surrounding area experience the “Aspen Bounce Effect?”
By Nuria Martindale|January 5th, 2017|Blog|Comments Off on The Vail Effect: How Is It Impacting Utah Real Estate? Red comments those of Jack Gerstein aka WinterParkJack.com
The Snow Gods have spoken, ski season is underway, and more visitors than ever are pouring into resorts all across Utah. Last season, Utah hosted 4.5 million skiers, a new record credited in part to the “Vail Effect.” Vail Resorts acquired Park City Mountain Resort in 2014 and later revealed a $50 million construction plan that would combine PCMR and Canyons Resort, producing the largest ski resort in the United States.
The expansion provided a total of 7,300 acres of skiable terrain and other renovation projects and additions including restaurants, a new base area, expanded parking and upgraded chairlifts. And that’s only the beginning of improvements which have been announced for the new Park City Vail Resorts project.
This was big news for Park City, and for the ski industry at large. But what has the ‘Vail Effect’ had on Utah real estate. Is it real? How has it impacted not only local residents, but the Utah real estate market as a whole? Let’s take a look…
As tourism capital increases in Utah, so does the demand for both vacation rental homes and homes for sale . According to the most recent U.S. Census Bureau Report, Utah’s population crossed the 3.0 million mark and became the nation’s fastest–growing state last year. This population growth, coupled with the rise in tourism, caused local home values — as well as home sale prices — to rise substantially. Many are attributing these rising home values to the ‘Vail Effect.’
Initially, back when the acquisition was first announced, ultra high-end ski/in out homes at Canyons jumped 20-25% overnight, and low-priced condos around the base of the Park City Resort got the attention of real estate investors and quickly disappeared off the market.
Now that we are over two years into the ambitious improvement plan, it’s hard to deny that the Vail Effect is real. At 2016 third quarter end, both the median sales price and the number of closed sales continued to trend upward (7.5% annually since 2012) despite historically low levels of inventory. Summit and Wasatch County property values continue to rise and limited inventory has forced buyers who felt priced out of the resort market to expand their search south/east into Heber and Kamas Valleys, and west into Salt Lake County.
Looking ahead, home prices around these areas are expected to rise at a steady rate through 2017 as all types of real estate buyers are lured into Summit and Wasatch Counties. Finding affordable property in these micro-markets remains challenging and demand in surrounding neighborhoods is higher than in previous years. Additionally, millennials are a new class of buyers who are becoming more and more active in this market.
The Greatest Snow on Earth is living up to its reputation and continuing to attract the attention of a growing number of tourists and home buyers. If you’re in the market to purchase a home this year and want to learn how to take advantage of the Vail Effect, reach out to an expert who can provide you with some insight into where home prices are heading in your desired neighborhood. WinterParkJack.com
Now…where to Aprés-ski?
Coldwell Banker Mountain Properties
PO Box 202
Winter Park, CO 80482
(303) 886-9616 C
We can help home sellers understand buyer expectations and establish realistic pricing for your home under the current market conditions.
For home buyers, our knowledge of the Winter Park Jack real estate market is second to none. We know the neighborhoods, the current market conditions, and the opportunities for buyers in today’s market. Our buyer specialists are committed to helping you find the home you want at the best possible price.
Finding your dream home or finding a buyer is only part of the challenge of a successful transaction. There are many details that need to be managed through closing, and Coldwell Banker Mountain Properties brings the depth and breadth of skills and experience required to ensure your transactions go smoothly. Our commitment is to provide you the quality of service and communication you desire and deserve.
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