# Peak Resorts -- New Resort Targets?



## skiatomic (May 13, 2011)

With Peak going public -- much of it to pay down debt, clearly...their offering documents clearly speak towards future acquisitions.

Any thoughts on acquistion targets in New England?

Thoughts?


----------



## deadheadskier (May 13, 2011)

would love to see them take on Ragged.  Tons of potential with the right investment.


----------



## thetrailboss (May 13, 2011)

I doubt that they will be expanding.  I think that they are more focused on putting things in financial order right now and operating their "portfolio" rather than going on an LBO buying spree.


----------



## threecy (May 13, 2011)

Peak Resorts history:  http://www.newenglandskihistory.com/skiareamanagement/peakresorts.php

The IPO is reportedly for about $40M.

They have ~$136M in debt.

Of that debt, $33.6M is due in less than a year.


----------



## bobbutts (May 13, 2011)

I heard whittier and maple valley


----------



## Edd (May 13, 2011)

How about Wildca...oh, wait.


----------



## EPB (May 13, 2011)

bobbutts said:


> I heard whittier and maple valley



Wait a minute. This is a joke, right?


----------



## Newpylong (May 13, 2011)

bobbutts said:


> I heard whittier and maple valley



Whitiwhere? lol


----------



## thetrailboss (May 13, 2011)

Newpylong said:


> Whitiwhere? lol


 
I doubt that Whittier is in any condition to be started back up.  I know that there was a small tubing operation, but nothing major.


----------



## Puck it (May 13, 2011)

Killington


----------



## john1200c (May 13, 2011)

Well they have something in Vermont and a few in NH....perhaps time to reach into Maine.

I'll go with Sunday River or Shawnee due to their proximity to MWV....probably the latter.


----------



## thetrailboss (May 13, 2011)

Puck it said:


> Killington


 
Yeah, and I know that someone here has a lease for Cannon available as well!  :lol:


----------



## vcunning (May 13, 2011)

I can't believe it's been over 6 hours and nobody has mentioned the Sundown word.


----------



## EPB (May 13, 2011)

vcunning said:


> I can't believe it's been over 6 hours and nobody has mentioned the Sundown word.



I know right..... Best are east of NYC, west of 91, north of Hartford and south of MA...


----------



## Nick (May 13, 2011)

Out of curiosity, is there any prime undeveloped land that could turn into a new mountain anywhere?


----------



## roark (May 13, 2011)

Nick said:


> Out of curiosity, is there any prime undeveloped land that could turn into a new mountain anywhere?



Ever been to nelsap.org?


----------



## AdironRider (May 13, 2011)

roark said:


> Ever been to nelsap.org?



While NELSAP is really cool to cruise around and see what used to be there, there are very few if any areas that I really feel that bad about as if Im missing something. 

I don't see really the need for any more ski areas, there are plenty as it is. I like the Shawnee prospect. Ive always thought that place was really underrated. I bet the new summit lift has only made it better. Two distinct base areas, pretty much lakefront property, should still be plenty of real estate to develop if they wanted. Seems like all the pieces are there.


----------



## drjeff (May 14, 2011)

Nick said:


> Out of curiosity, is there any prime undeveloped land that could turn into a new mountain anywhere?



Yup.  But then there's that little issue of getting the multiple permits, environmental impact studies, etc, etc, etc that a potential from scratch new devloper would have to face, which would likely already consume a few years and millions of dollars BEFORE construction could begin


----------



## RootDKJ (May 14, 2011)

I'd love for Peaks to buy Blue Mountain.


----------



## mrksn (May 14, 2011)

RootDKJ said:


> I'd love for Peaks to buy Blue Mountain.



I second that but with JFBB in their portfolio that probably won't happen.  Blue has come a long way in the past few years.. I would think they are ripe for the right investor


----------



## 4aprice (May 17, 2011)

RootDKJ said:


> I'd love for Peaks to buy Blue Mountain.



They shopped Camelback before they bought BB/JF.  Art beat them to the punch.  

Alex

Lake Hopatcong, NJ


----------



## Mapnut (May 18, 2011)

AdironRider said:


> I like the Shawnee prospect. Ive always thought that place was really underrated. I bet the new summit lift has only made it better. Two distinct base areas, pretty much lakefront property, should still be plenty of real estate to develop if they wanted. Seems like all the pieces are there.



Important piece:  change the name back to Pleasant Mountain!


----------



## OldsnowboarderME (May 19, 2011)

Midnight Madness at Shawnee Peak ( Pleasant Mountain) would be sweet..


----------



## millerm277 (May 19, 2011)

thetrailboss said:


> I doubt that Whittier is in any condition to be started back up.  I know that there was a small tubing operation, but nothing major.



They're kidding. Trails are eroded as can be, lift is so far from being operable it's comical, there's no infrastructure....etc. (Not to mention that I believe Whittier had issues with too much difficult terrain and lack of snowmaking water, neither of which would be changeable).


----------



## threecy (May 19, 2011)

millerm277 said:


> They're kidding. Trails are eroded as can be, lift is so far from being operable it's comical, there's no infrastructure....etc. (Not to mention that I believe Whittier had issues with too much difficult terrain and lack of snowmaking water, neither of which would be changeable).



In fairness, very little of Crotched's infrastructure was reused when Peak reopened it - they completely rebuilt one lift, put in new snowmaking, and built a new Home Depot.

Whittier does have the potential - there is good less advanced topography on the back side that could be easily developed in a dream world.  There is a river on the front side, as well as a decent brook on the back side, that could be tapped in a dream world.

That said, last I knew, the gondola line is owned separately from the ski area.  In addition, the bottom of the back side is Federally conserved.

Someone with very deep pockets could get an interesting ski area going there.  Someone looking for a ROI, on the other hand, would have a very, very tough time.


----------



## Glenn (May 19, 2011)

I'm thinking they're going to focus on paying down some debt before they buy more places. That new lift at Mt Snow is going to cost some bucks.


----------



## threecy (May 19, 2011)

Glenn said:


> I'm thinking they're going to focus on paying down some debt before they buy more places. That new lift at Mt Snow is going to cost some bucks.



With $33M in debt due next April, they don't have much choice!


----------



## Glenn (May 19, 2011)

threecy said:


> With $33M in debt due next April, they don't have much choice!



I hear ya. I hope they use this to pay down some debt, and slowly make improvements to areas they already own. 

The local paper in the Mt Snow area had an editorial titled "Here we go again" when they announced they were going public. It was very ASCish as they saw it. But only time will tell.


----------



## threecy (May 19, 2011)

Glenn said:


> I hear ya. I hope they use this to pay down some debt, and slowly make improvements to areas they already own.
> 
> The local paper in the Mt Snow area had an editorial titled "Here we go again" when they announced they were going public. It was very ASCish as they saw it. But only time will tell.



The IPO's for $40 million, so when that April $33 million debt is paid off, they'll have very little remaining investment cash...and they'll still have over $100 million in debt, some of it at a 10% interest rate!  I can't imagine they'll be buying more areas anytime soon, unless they're able to transfer more assets to the REIT.


----------



## mtsnownotcool (Aug 5, 2011)

The word on Wall Street is that Peak Resorts refiled for an additional 50 mil bringing their IPO up to 86.25mil. The reality of this increase is 33 mil goes to pay down 136mil of debt, 8.25 mil for renovations at Mt snow and 45 mil on a down payment to buy Stratton Mountain. Check out the firm representing the IPO if you dig deep enough you'll discover the truth.


----------



## AdironRider (Aug 5, 2011)

Now thats interesting.


----------



## deadheadskier (Aug 6, 2011)

A. A Stratton/Snow pass would be quite the hit.  It would absolutely steal market share from Okemo and probably a bit from Killington too I'd imagine.

B. Interesting handle.  I take it you're not a fan of Mt. Snow.  :lol:


----------



## mtsnownotcool (Aug 6, 2011)

no i miss typed the name in and don't know how to change it. Being a moderator maybe you can help.

I would be excited if Peak bought Stratton. Then they would have a Carinthia Park at Stratton. Mt Snow is a great mountain for parks but the free-skiing and riding is way better at Stratton.


----------



## deadheadskier (Aug 6, 2011)

elaborate how Stratton would have a Carinthia Park?  Are you suggesting that they'd potentially turn the Sunbowl area into 100% park terrain like Carinthia is at Mt. Snow?

and what would you like your handle to be?  I'll see if I can change it.  I've never tried.

Welcome to the boards BTW.  Great first information in your first post. Where are you from?


----------



## deadheadskier (Aug 6, 2011)

You're a brave man (assumption as Alpinezone is like 99% male) coming strong with calling Stratton the best ski mountain in the east.  A bit of background.  If you weren't aware, Stratton and Okemo get blasted fairly regularly on ski forums.  Flatton, SloKemo etc. 

Personally? Everyone's an individual and what mountains they enjoy is entirely personal.  I skied Stratton this winter for pretty much the first time.  The only other time I had been was a race in HS and I only skied like 5% of the terrain then.  I had a total blast.  Great glades, not a lot, but a few old school narrower fall line trails like Spruce.  Great lifts, though the Snowbowl chair seems slow as hell after riding all the other Highspeed.  I loved the mountain.  Not my favorite, but outside of the crowds and a few too many superwide boulevard type trails, I don't really understand why so many ski forum members hate on the place.  Their obviously in the minority in real life as Stratton is a pretty darn popular place.

I took a look into trying to change your handle and wasn't able to do it.  Mind you, I am the least computer savvy moderator on these forums, so there very well could possibly be a way.  I'll have one of the other mods check it out and get back to you tomorrow.


----------



## vcunning (Aug 6, 2011)

mtsnownotcool said:


> The word on Wall Street is that Peak Resorts refiled for an additional 50 mil bringing their IPO up to 86.25mil. The reality of this increase is 33 mil goes to pay down 136mil of debt, 8.25 mil for renovations at Mt snow and 45 mil on a down payment to buy Stratton Mountain. Check out the firm representing the IPO if you dig deep enough you'll discover the truth.



Interesting first time post.


----------



## thetrailboss (Aug 6, 2011)

mtsnownotcool said:


> The word on Wall Street is that Peak Resorts refiled for an additional 50 mil bringing their IPO up to 86.25mil. The reality of this increase is 33 mil goes to pay down 136mil of debt, 8.25 mil for renovations at Mt snow and 45 mil on a down payment to buy Stratton Mountain. Check out the firm representing the IPO if you dig deep enough you'll discover the truth.



Really? That would be one heck of a jump for them.


----------



## thetrailboss (Aug 6, 2011)

And re: Stratton. I skied it in '06 and enjoyed my visit. I liked it. Amazing lifts and a big mountain. It is what you make it to be. I prefer being positive.


----------



## mtsnownotcool (Aug 6, 2011)

Let me rephrase what I said about Stratton. It is the best resort in the east in my opinion outside of Jay peak and Stowe. Most of those ski magazine polls are based on advertising and politics. I make my mind up based on my experiences not what people babble in Magazines.

Those people who call it Flatton, well they just never got off trail with a local who knows where to go


----------



## AdironRider (Aug 6, 2011)

The thing with ASC is they owned pretty much all the big names at the time, and tried to massively expand every single one of them at the same time. I havent seen that with Peak, and their portfolio isnt filled with resorts sporting massive amounts of infrastructure to support. Mt. Snow and Stratton would be by far their largest.


----------



## mtsnownotcool (Aug 6, 2011)

good point. I don't think i'll put my money on it though. I hope it all works out if they do buy them. It will offer the best 2 resorts in southern VT an exchangeable pass I would hope.


----------



## Glenn (Aug 6, 2011)

Very interesting angle. I guess anything is possible. We'll have to see what happens with the IPO.


----------



## Newpylong (Aug 6, 2011)

mtsnownotcool said:


> mtsnowsnotpool. No I see them turning mt snow into 50 percent terrain park and stratton into the best ski mountain in the east
> 
> I'm from mass living in VT



You're out of your mind!


----------



## Nick (Aug 7, 2011)

roark said:


> Ever been to nelsap.org?



For the first time this year  Although I was thinking brand new territory, but there is probably so much available elsewhere that could be fixed up and improved already. Thanks for the reminder on that link.


----------



## bigbob (Aug 8, 2011)

mtsnownotcool said:


> good point. I don't think i'll put my money on it though. I hope it all works out if they do buy them. It will offer the best 2 resorts in southern VT an exchangeable pass I would hope.



Same idea with the purchase of Wildcat, two close by areas that can share a pass. Buy the competition and eliminate splitting the customers.


----------



## drjeff (Aug 8, 2011)

bigbob said:


> Same idea with the purchase of Wildcat, two close by areas that can share a pass. Buy the competition and eliminate splitting the customers.



I don't know if #1 there's any validity to the Stratton rumor,  and then #2 if there is some validity to that rumor,  I highly doubt that Peak would be able to acquire Stratton for as relatively "cheap" price as they did Wildcat.  It seems more like an apples-oranges situation than a aplles-apples situation


----------



## vcunning (Aug 8, 2011)

In reading through the updated SEC filing, I didn't see anything that would lead me to a Stratton idea.  There was clearly a funding increase, but that could go a number of ways.  Even think of Mount Snow . . . there are a number of long term plans in place from a redesigned base area to improved snow making resources (i.e. water).  Maybe that's what they're looking at.

I'm not sure that eliminating the competition is a good business model either in this environment.  Ski areas tend to be a capital intensive, low margin industry.  I think Peak Resorts would look more at how to attract new skiers to a different area in a different market for growth.


----------



## mtsnownotcool (Aug 9, 2011)

It would be easier for me  to have 1 pass as I work in Mass.,  my kids go and ride MT Snow while I ski Stratton. This could open up new business in the area like cab and shuttle company's. I didn't think about what it would do to some of those less fortunate valleys surrounding the two resorts. Only time will tell if it was rumor or the truth.


----------



## thetrailboss (Aug 9, 2011)

FWIW Intrawest (or what is left of Intrawest) might be keen on unloading Stratton to focus on Whistler-Blackcomb and their other resorts.


----------



## drjeff (Aug 9, 2011)

thetrailboss said:


> FWIW Intrawest (or what is left of Intrawest) might be keen on unloading Stratton to focus on Whistler-Blackcomb and their other resorts.



I gotta think that Stratton is a bit of a cash cow for Intrawest.  Basically a set length season with a solid summer business too,  a pretty modern lift system.  A solid, and loyal core customer base. A base area village that currently has (and pretty much always has seemed to have) a high occupancy rate of tennants.  From a real estate perspective, the only real projects they're looking at there now are smaller, close to build only when sold high end townhomes in the sunbowl area.  A bit different than many of their other properties where they've got a bunch of both private residential and commercial real estate development to do in their master plans


----------



## jerryg (Aug 9, 2011)

Perhaps that could buy Big Squaw and restore it to its' former glory!


----------



## Tin Woodsman (Aug 10, 2011)

drjeff said:


> I gotta think that Stratton is a bit of a cash cow for Intrawest.  Basically a set length season with a solid summer business too,  a pretty modern lift system.  A solid, and loyal core customer base. A base area village that currently has (and pretty much always has seemed to have) a high occupancy rate of tennants.  From a real estate perspective, the only real projects they're looking at there now are smaller, close to build only when sold high end townhomes in the sunbowl area.  A bit different than many of their other properties where they've got a bunch of both private residential and commercial real estate development to do in their master plans



Intrawest's roots prior to buying Whistler are as a real estate development company.  That's never really changed.   In that light, I think the last two sentences in your post render your first sentence inaccurate and/or unlikely.  With not much in the way of development opportunities, I anticipate that Intrawest is eager to divest Stratton as one piece in their balance sheet repair process.


----------



## vcunning (Aug 10, 2011)

Peak Resorts has historically focused on the Ski Area and not the Real Estate aspect of the business.


----------



## drjeff (Aug 10, 2011)

Tin Woodsman said:


> Intrawest's roots prior to buying Whistler are as a real estate development company.  That's never really changed.   In that light, I think the last two sentences in your post render your first sentence inaccurate and/or unlikely.  With not much in the way of development opportunities, I anticipate that Intrawest is eager to divest Stratton as one piece in their balance sheet repair process.



All I meant is that with Stratton bascially close to its master plan build out point now,  Intrawest in this slow housing/tight credit market doesn't need to be looking at ways to find large amounts of $$ to continue with large scale construction projects at Stratton, whereas they do for a large percentage of their other resort holdings, especially at the resorts they've acquired in the last 5 to 7 years in the Western US.  While they won't see the potentially large profits that high dollar, new real estate *can* bring a developer at Stratton, they're also not looking at having to spend a bunch of cash at Stratton in the near future for development, so it can kind of just sit there, making some money on their balance sheet as opposed to some of their other properties where based on their financials they're loosing money right now.  Nice to sell it off and make some $$ for their debt? sure.  A sense of urgency to sell it? Likely not


----------



## AdironRider (Aug 10, 2011)

With Stratton being close to its major buildout, I think it makes the most sense for Itrawest to dump it to Peak (whose business model is more oriented towards running resorts as opposed to developing them) then take the money and dump into the other resorts. 

The only way you could describe it as pressing was if they were going to default or something. I dont think thats the case, but I wouldnt bet against them entertaining offers. That deal makes sense on first glance.


----------



## threecy (Aug 10, 2011)

Last I knew, Intrawest has a big loan (ie debt consolidation) due in 2014.


----------



## Tin Woodsman (Aug 10, 2011)

drjeff said:


> All I meant is that with Stratton bascially close to its master plan build out point now,  Intrawest in this slow housing/tight credit market doesn't need to be looking at ways to find large amounts of $$ to continue with large scale construction projects at Stratton, whereas they do for a large percentage of their other resort holdings, especially at the resorts they've acquired in the last 5 to 7 years in the Western US.  While they won't see the potentially large profits that high dollar, new real estate *can* bring a developer at Stratton, they're also not looking at having to spend a bunch of cash at Stratton in the near future for development, so it can kind of just sit there, making some money on their balance sheet as opposed to some of their other properties where based on their financials they're loosing money right now.  Nice to sell it off and make some $$ for their debt? sure.  A sense of urgency to sell it? Likely not



I guess my point is that Intrawest is more of a builder than an operator.  With nothing left to build at Stratton, and a lot of debt still outstanding at the corporate level, it wouldn't surprise me in the least if Stratton were sold to someone.


----------

