I want to take a moment to wish all of you a Merry Christmas and a Happy Holiday season. I trust that whether you celebrate Christmas or a different holiday that you will have a wonderful time with the people that are special to you.
We had a wonderful day here with our family seeing Alden and Neve enjoy the wonders of the holiday. It was really cool to see Alden so very excited while at the same time making sure that his little sister Neve always had a present to open or felt welcome to sit on his new mini excavator. Kids bring the purest form of joy to special occasions and daily life so I feel lucky to get to share it with them on a daily basis. They can be quite a challenge but anything from the slightest smile, a run to greet you with a hug to "You are the best Daddy in the whole world and my best friend too" can instantly transcend even the sore leg or dirty diapers we so often wake to at 3am.
Parenthood has been the best Christmas present of all for me and I feel like I get something better than Chrismas everyday from Alden, Neve and my wonderful wife Wendy. She talked me into all of this and does her best to make our lives special everyday. I am blessed in more ways than I can count.
The other highlight of my day was the chance to work at and contribute to the Steamboat Community Christmas dinner. This is a great chance to spend time with the great people that live in Steamboat and give people a place to come for a full on Christmas dinner. This is probably my favorite event all year and I need to make time to do more of this all year long.
I hope that Santa brings all of you more trips to ski deeper powder and time to experience summer here in Steamboat. HO HO HO, Merry Christmas from Steamboat!!! Back to the Steamboat Springs blog main page for more.
Monday, December 25, 2006
Wednesday, December 20, 2006
Intrawest is Investing in the Steamboat community not just the ski resort
That's music to my ears. Intrawest takes over and unveils their vision for Steamboat after the sale closes in March of 2007. I think that Intrawest will be great for Steamboat but how much they would care about the community was a concern for me. I am looking forward to seeing them back up that statement with their short and long term actions. I think it is up to all of us to hold them to that commitment. They clearly see value in what is unique about Steamboat to pay the price that they did and it is nice to hear that they see Steamboat as a long term hold.
Selected quotes from the Steamboat Pilot: "“The town environment in Steamboat is what attracts people there, he said Tuesday from Intrawest headquarters in Vancouver, British Columbia. “It is the asset that differentiates it from other resorts, so we are investing as much into our relationship with the community and the town as we are with the assets that we are purchasing.
Wasilov said it is too early to say what sort of improvements or changes Intrawest might make at Steamboat. Those announcements will come once the sale has closed. “Because (American Skiing Co.) has not invested significantly in Steamboat ski resort improvements over the years, that leaves it open for Intrawest to make some improvements in the maintenance and in capital,” said Rob Perlman, president and CEO of Colorado Ski Country USA.
Steamboat would be one of Intrawest'’s largest ski resorts with almost 3,000 acres of skiable terrain. Intrawest has interests in 10 North American ski resorts. It owns Copper Mountain and manages Winter Park, which is owned by the city and county of Denver.
We believe we are affiliating ourselves with an incredible consumer base in our industry, Wasilov said. “We're betting on the fact that demand will not only sustain itself, but with our involvement and our investment in the mountain and the community, that we will be able to grow the business over time.”
Wasilov said the development potential at Steamboat is somewhat “restrictive” because of the lack of land. We'’re not acquiring Steamboat for the redevelopment opportunity,” Wasilov said. We'’re really acquiring Steamboat because of its mountain operations business and its ski business.
If anybody was in doubt about Fortress’ seriousness about being in the ski business, they should not be in doubt any longer, said Mike Berry, president of the National Ski Areas Association. At the end of the day, it bodes well for Steamboat. They will probably address some of the issues that everybody in this community wants to be addressed, whether it is capital improvements or other areas the community wants improved. Link to the full article here
Back to the Steamboat Springs blog main page for more.
Selected quotes from the Steamboat Pilot: "“The town environment in Steamboat is what attracts people there, he said Tuesday from Intrawest headquarters in Vancouver, British Columbia. “It is the asset that differentiates it from other resorts, so we are investing as much into our relationship with the community and the town as we are with the assets that we are purchasing.
Wasilov said it is too early to say what sort of improvements or changes Intrawest might make at Steamboat. Those announcements will come once the sale has closed. “Because (American Skiing Co.) has not invested significantly in Steamboat ski resort improvements over the years, that leaves it open for Intrawest to make some improvements in the maintenance and in capital,” said Rob Perlman, president and CEO of Colorado Ski Country USA.
Steamboat would be one of Intrawest'’s largest ski resorts with almost 3,000 acres of skiable terrain. Intrawest has interests in 10 North American ski resorts. It owns Copper Mountain and manages Winter Park, which is owned by the city and county of Denver.
We believe we are affiliating ourselves with an incredible consumer base in our industry, Wasilov said. “We're betting on the fact that demand will not only sustain itself, but with our involvement and our investment in the mountain and the community, that we will be able to grow the business over time.”
Wasilov said the development potential at Steamboat is somewhat “restrictive” because of the lack of land. We'’re not acquiring Steamboat for the redevelopment opportunity,” Wasilov said. We'’re really acquiring Steamboat because of its mountain operations business and its ski business.
If anybody was in doubt about Fortress’ seriousness about being in the ski business, they should not be in doubt any longer, said Mike Berry, president of the National Ski Areas Association. At the end of the day, it bodes well for Steamboat. They will probably address some of the issues that everybody in this community wants to be addressed, whether it is capital improvements or other areas the community wants improved. Link to the full article here
Back to the Steamboat Springs blog main page for more.
Steamboat Real Estate is Booming
That is the headline of a Rocky Mountain News article that runs today. Joanne Kelley from the Rocky Mountain News called me for some background info and was kind enough to quote me in her article about Steamboat Real Estate. I think that it would be closer to say that we have a strong market here with some significant potential for growth as the benefits of Steamboat's family environment, relative value, demographics over the 20 years, redevelopment and the ski area sale some into play. It's just that booming to me sounds more like speculation. What we have in Steamboat is a great value supported by an enhanced experience.
Quoted from the Rocky Mountain News:
Steamboat real estate booming: 2006 area sales a record; new ski resort owner may lift market even more. The Steamboat Ski Resort rises above the town of Steamboat Springs in northwestern Colorado. The possibility of a new owner for the ski area has been a boon for the Steamboat Springs-area real estate market in recent months.
By Joanne Kelley, Rocky Mountain News
December 20, 2006
Steamboat Springs and the surrounding area have posted a record $1 billion in real estate sales even before the year ends, with talk about a potential new ski resort owner helping buoy an already strong market. By the end of November, total sales in Routt County exceeded $1.023 billion, outstripping the roughly $886 million in sales for all of the previous year. A whirl of development projects - both downtown and at the base of Steamboat Ski Resort - helps account for some of the interest.
"The ski area sale is a big deal, but it's not the only show in town," said Jon Wade, a broker and owner of Colorado Group Realty in Steamboat.
You can find the full article here in the Rocky Mountain News Plus another great article by Joanne Kelley, Big Deal for Steamboat that gives more details including the expected closing in March 2007.
Back to the Steamboat Springs blog main page for more.
Quoted from the Rocky Mountain News:
Steamboat real estate booming: 2006 area sales a record; new ski resort owner may lift market even more. The Steamboat Ski Resort rises above the town of Steamboat Springs in northwestern Colorado. The possibility of a new owner for the ski area has been a boon for the Steamboat Springs-area real estate market in recent months.
By Joanne Kelley, Rocky Mountain News
December 20, 2006
Steamboat Springs and the surrounding area have posted a record $1 billion in real estate sales even before the year ends, with talk about a potential new ski resort owner helping buoy an already strong market. By the end of November, total sales in Routt County exceeded $1.023 billion, outstripping the roughly $886 million in sales for all of the previous year. A whirl of development projects - both downtown and at the base of Steamboat Ski Resort - helps account for some of the interest.
"The ski area sale is a big deal, but it's not the only show in town," said Jon Wade, a broker and owner of Colorado Group Realty in Steamboat.
You can find the full article here in the Rocky Mountain News Plus another great article by Joanne Kelley, Big Deal for Steamboat that gives more details including the expected closing in March 2007.
Back to the Steamboat Springs blog main page for more.
Tuesday, December 19, 2006
More details on the Steamboat Ski Area Sale to Intrawest
The following article has more details on the $265M price for Steamboat and some insights into Intrawest from Dave Hill a former Intrawest Exec that leads the team developing Wildhorse Meadows. ASC's CEO B.J. Fair does his best to take credit for the value of Steamboat but we all know it happened in spite of ASC's flawed strategies. Let me emphasize here that I think that our local resort staff has done an excellent job making Steamboat a great place to ski despite the mis-steps of ASC.
Steamboat's charm, improvements that proceeded depsite ASC's apathy, the changing demographics of resort markets like Steamboat and most importantly the quality of the people that come here & live/work here is what drove the increase in value. ASC just barely managed to hold onto Steamboat after many serious misteps and mounting debt from other failed ventures was compensated for by Steamboat's appeal despite ASC's efforts. If ASC was so good at creating value as B.J. Fair says in the article why is Steamboat a rare truly successful resort in their portfolio. There won't be many tears shed around town when ASC is finished here.
I'm sure that Intrawest won't be perfect but they have the potential to do a lot of good here if they remember the reasons that Steamboat is special. You can find the full text of Tom Ross's excellent artcle here in the Steamboat Pilot.
Back to the Steamboat Springs blog main page for more.
Steamboat's charm, improvements that proceeded depsite ASC's apathy, the changing demographics of resort markets like Steamboat and most importantly the quality of the people that come here & live/work here is what drove the increase in value. ASC just barely managed to hold onto Steamboat after many serious misteps and mounting debt from other failed ventures was compensated for by Steamboat's appeal despite ASC's efforts. If ASC was so good at creating value as B.J. Fair says in the article why is Steamboat a rare truly successful resort in their portfolio. There won't be many tears shed around town when ASC is finished here.
I'm sure that Intrawest won't be perfect but they have the potential to do a lot of good here if they remember the reasons that Steamboat is special. You can find the full text of Tom Ross's excellent artcle here in the Steamboat Pilot.
Back to the Steamboat Springs blog main page for more.
Intrawest Buys Steamboat Ski Area for $265M
It looks like we have a deal for the Steamboat Ski Area after many rounds of bidding (scroll down through the last few months for some history) Ski areas are becoming much more attractive to buyers because of changing demographics as the baby boomers age and look for places to spend more time with their familes and eventually retire. Steamboat is particually interesting because it is a real town with a diverse set of attractions for retirees, familes and other vacationers. Steamboat will also benefit from existing plans to redevelop much of the base area and downtown. Intrawest will quickly bring a much better experience to the mountian and the pieces of the base area the resort controls. Indications are that ASC is serious about closing the deal this time. Let me know if you are curious about the implications and what to expect in hte near future.
From the Steamboat Pilot:
Intrawest to buy Steamboat $265 million deal announced today By Tom Ross
Tuesday, December 19, 2006 Updated 08:59 a.m.
Steamboat Springs — Intrawest ULC has agreed to buy the Steamboat Ski Area and related assets for $265 million, American Skiing Co. CEO B.J. Fair announced today.
The deal will bring an end to ASC’s 10-year run as the ski area’s owner. Included in the sale are the resort and all resort-owned operations, all of Steamboat's resort-owned real estate assets, the commercial core of the Steamboat Grand Hotel and Condominiums and the company's interest in the Walton Pond Apartments complex.
Intrawest, which was acquired by Fortress Investment Group in October, is expected to close on the Steamboat deal by March 31. Fortress is a rapidly growing hedge fund and private equity fund managing $26 billion in assets. Fortress purchased Intrawest, which is based in Vancouver, British Columbia, in a $2.8 billion deal. Intrawest has an interest in 10 North American mountain resorts including Copper Mountain and Winter Park in Colorado and Whistler-Blackcomb in British Columbia.
“The acquisition of Steamboat represents another milestone in our long-term strategy to develop, market, operate and provide our customers with access to the world’s premier network of experiential destination resorts,” said Alex Wasilov, president and chief operating officer at Intrawest. “This acquisition marks the resurgence in our strategy to grow through acquisitions and to leverage our platform to enhance value for our customers throughout the Intrawest network of resorts.”
Today’s sale marks the second time in five years American Skiing prepared itself to part with Steamboat. But today’s announcement is different from the last time around.
See the full article here in the Pilot
Back to the Steamboat Springs blog main page for more.
From the Steamboat Pilot:
Intrawest to buy Steamboat $265 million deal announced today By Tom Ross
Tuesday, December 19, 2006 Updated 08:59 a.m.
Steamboat Springs — Intrawest ULC has agreed to buy the Steamboat Ski Area and related assets for $265 million, American Skiing Co. CEO B.J. Fair announced today.
The deal will bring an end to ASC’s 10-year run as the ski area’s owner. Included in the sale are the resort and all resort-owned operations, all of Steamboat's resort-owned real estate assets, the commercial core of the Steamboat Grand Hotel and Condominiums and the company's interest in the Walton Pond Apartments complex.
Intrawest, which was acquired by Fortress Investment Group in October, is expected to close on the Steamboat deal by March 31. Fortress is a rapidly growing hedge fund and private equity fund managing $26 billion in assets. Fortress purchased Intrawest, which is based in Vancouver, British Columbia, in a $2.8 billion deal. Intrawest has an interest in 10 North American mountain resorts including Copper Mountain and Winter Park in Colorado and Whistler-Blackcomb in British Columbia.
“The acquisition of Steamboat represents another milestone in our long-term strategy to develop, market, operate and provide our customers with access to the world’s premier network of experiential destination resorts,” said Alex Wasilov, president and chief operating officer at Intrawest. “This acquisition marks the resurgence in our strategy to grow through acquisitions and to leverage our platform to enhance value for our customers throughout the Intrawest network of resorts.”
Today’s sale marks the second time in five years American Skiing prepared itself to part with Steamboat. But today’s announcement is different from the last time around.
See the full article here in the Pilot
Back to the Steamboat Springs blog main page for more.
Monday, December 18, 2006
Steamboat Ski Area sale announced this week?
We are getting close to an announcement of a sale of our beloved Steamboat Ski Area. There have been quite a few twists and turns as ASC and the potential buyers have thrown in several curve balls but it is looking more likely that they will announce a deal this week. I won't divulge who the likely winner is for a couple of reasons but if it doesn't happen this week I think that ASC is spending more time gaming the deal than making it. You can bet I will have some more thoughts to share once we have an announcement. From a real estate perspective I have seen a strong uptick in the market demand wise. If history in other ski area is any guide things are likely to get a lot more interesting from here even without a ski area sale. Why? Because there are so many other improvements quality and experience wise coming together right now here in Steamboat. Scan down if you want to see more history on how this has unfolded. Stay tuned...
Back to the Steamboat Springs blog main page for more.
Back to the Steamboat Springs blog main page for more.
Bear Claw III Ski In Ski out plans
The Atira Group has given the city two options for the Bear Claw III site that is just below the older Bear Claw units. Atira purchased this 4 acre site recently for $25M and plans to built luxury Ski In Ski out condos, townhomes or both. The Atira Group is composed of partners that developed Catamount Ranch & Club here in Steamboat and Cordierra in Vail among other things. They have a track record of putting together very high quality developments.
The interesting twist with this site is that they have existing entitlements for an 11 story condo building that dates back to the 1980's. Everyone including Atira hopes that this building won't be built here but with the current lack of coherence in the city planning process it could be a fall back. Since they would also like to build something nicer they are giving the city an alternative proposal of building a combination of several condo and townhome buildings styled like ranch buildings. Knowing Atira's track record they will be very nice if they get their wishes.
what makes this the most interesting of all is the chance to see how council will react to a very clear choice of good vs. bad given the sometimes drifting course they take in the planning process. The other nearly as interesting twist is that the 11 story building was approved decades before the existing affordable housing rules. How they will handle that twist in trying to work for the greater good of a new development plan could turn out to be quite a show.
If you have any further questions about this project or what is happening at the base of the Steamboat Ski area in general feel free to drop a line. I can give you quite a bit more background on any of the new developments and the status of the URA improvements, it worth a little time if you love Steamboat. I love to talk about all of the improvements that are planned and how we should end up with a great base village with cool public spaces surrounded by more things to do year round as a result.
Back to the Steamboat Springs blog main page for more.
The interesting twist with this site is that they have existing entitlements for an 11 story condo building that dates back to the 1980's. Everyone including Atira hopes that this building won't be built here but with the current lack of coherence in the city planning process it could be a fall back. Since they would also like to build something nicer they are giving the city an alternative proposal of building a combination of several condo and townhome buildings styled like ranch buildings. Knowing Atira's track record they will be very nice if they get their wishes.
what makes this the most interesting of all is the chance to see how council will react to a very clear choice of good vs. bad given the sometimes drifting course they take in the planning process. The other nearly as interesting twist is that the 11 story building was approved decades before the existing affordable housing rules. How they will handle that twist in trying to work for the greater good of a new development plan could turn out to be quite a show.
If you have any further questions about this project or what is happening at the base of the Steamboat Ski area in general feel free to drop a line. I can give you quite a bit more background on any of the new developments and the status of the URA improvements, it worth a little time if you love Steamboat. I love to talk about all of the improvements that are planned and how we should end up with a great base village with cool public spaces surrounded by more things to do year round as a result.
Back to the Steamboat Springs blog main page for more.
Tuesday, December 12, 2006
Reinventing Downtown Steamboat Springs
There was an excellent editorial in the Sunday Pilot that I want to point out and recommend you read because it has a good summary of what is going on in downtown Steamboat. Howelsen Place should contain some new first class retail for the shoppers and a great new restaurant. Riverwalk will be a really great place to hang out along the river, get a nice meal and see some smaller public performances. Overall we expect to see more fun things to do downtown and nice public spaces to just hang out. Yampa Street is expected to evolve into the primary pedestrian corridor and will be a nicer place to have lunch than on main street. The editorial doesn’t mention it but downtown we need to do something about parking in the same sort of timeframe. That said if you walk 1-2 blocks a space is almost always available.
So far I think that what is happening will make Downtown a much nicer place to hang out while maintaining the things we all love about it.If you would like more details on what is happening downtown just drop me a line by phone or email. The following are selected quotes and a link to the full article.
"The approval last week of The Olympian, a 41,100-square-foot commercial and residential building at the corner of Fifth and Yampa streets, continues the radical transformation of our downtown area. We believe this transformation will have a significantly positive impact on the community, raising the vibrancy of downtown, helping existing small businesses, enhancing downtown as a retail and entertainment destination for visitors and driving sales tax revenues even higher.
It is worth noting that this transformation is being driven not by government, but by private investors and their faith in our resort economy. Developers have shown a growing willingness to take chances on major projects in the area between Third and 13th streets. And as each project is approved and completed, it encourages others to make similar investments. We think their investments will pay off, for them and the city as a whole.
These are no small undertakings. A summary of what has been done in the past three years: Waterside Village, Alpenglow, Howelsen Place, Riverwalk, the Olympian and the Victoria (see the full article below for details) These six projects will add nearly 200 residential units to downtown, an eighth of which will be affordable units. New stores, shops and restaurants are being added. And buildings and spaces that needed to go away: the Harbor Hotel, the Alpiner, Rocky Mountain Discount Liquors, Emerald City and Westland Mobile Home Park are going away.
Throw in some of the other projects of recent years: the new Ski and Bike Kare building, the new Cugino's, the renovations at Lyon'’s Corner Drug and Azteca Taqueria and the Chieftain Building— and you can see what Realtor and developer Jim Cook means when he says downtown Steamboat is being reinvented. Cook, who is involved in half of the big six projects going on downtown, sees downtown Steamboat becoming an attractive entertainment district." I encourage you to read the full piece here
Back to the Steamboat Springs blog main page for more.
So far I think that what is happening will make Downtown a much nicer place to hang out while maintaining the things we all love about it.If you would like more details on what is happening downtown just drop me a line by phone or email. The following are selected quotes and a link to the full article.
"The approval last week of The Olympian, a 41,100-square-foot commercial and residential building at the corner of Fifth and Yampa streets, continues the radical transformation of our downtown area. We believe this transformation will have a significantly positive impact on the community, raising the vibrancy of downtown, helping existing small businesses, enhancing downtown as a retail and entertainment destination for visitors and driving sales tax revenues even higher.
It is worth noting that this transformation is being driven not by government, but by private investors and their faith in our resort economy. Developers have shown a growing willingness to take chances on major projects in the area between Third and 13th streets. And as each project is approved and completed, it encourages others to make similar investments. We think their investments will pay off, for them and the city as a whole.
These are no small undertakings. A summary of what has been done in the past three years: Waterside Village, Alpenglow, Howelsen Place, Riverwalk, the Olympian and the Victoria (see the full article below for details) These six projects will add nearly 200 residential units to downtown, an eighth of which will be affordable units. New stores, shops and restaurants are being added. And buildings and spaces that needed to go away: the Harbor Hotel, the Alpiner, Rocky Mountain Discount Liquors, Emerald City and Westland Mobile Home Park are going away.
Throw in some of the other projects of recent years: the new Ski and Bike Kare building, the new Cugino's, the renovations at Lyon'’s Corner Drug and Azteca Taqueria and the Chieftain Building— and you can see what Realtor and developer Jim Cook means when he says downtown Steamboat is being reinvented. Cook, who is involved in half of the big six projects going on downtown, sees downtown Steamboat becoming an attractive entertainment district." I encourage you to read the full piece here
Back to the Steamboat Springs blog main page for more.
Monday, December 11, 2006
Steamboat Real Estate Sales set record
Real Estate Sales in Steamboat Springs hit the $1B mark as over November 30th up from $886M in all of 2005 according to Routt County records compiled by Land Title in Steamboat. Hitting $1B for the year was by no means certain and it was an unusually strong month in November that pushed us over the top despite thin inventory. Unit sales are just barely up. Higher average prices for new and existing units are the result of Steamboat's appeal, relative value, strong demographics and the anticipation of a ski area sale in recent months. We are also seeing an increase in the overall quality of new construction and new high-end Land Preservation Subdivisions.
If you would like to see a copy of the detailed data just drop me a line and I will send it to you. Give me a call if you would like some more insight into the numbers or what is behind them. I am a pretty low key guy if you haven't figured that out already from reading my blog so don't expect a sales pitch if you call, I prefer to stick to the facts and my interpretations of what is going on here in Steamboat. You cna reach me at 970-819-6930.
Back to the Steamboat Springs blog main page for more.
If you would like to see a copy of the detailed data just drop me a line and I will send it to you. Give me a call if you would like some more insight into the numbers or what is behind them. I am a pretty low key guy if you haven't figured that out already from reading my blog so don't expect a sales pitch if you call, I prefer to stick to the facts and my interpretations of what is going on here in Steamboat. You cna reach me at 970-819-6930.
Back to the Steamboat Springs blog main page for more.
Wednesday, December 06, 2006
Lifestyle based transition in Ski Towns
I've attached some quotes from an article in the weekend edition of the Wall street Journal. The broader investment market is starting to see the potential of changing demographics in resort towns and most are not seeing the whole picture. In addition people increasingly have the ability to choose where they want to live by the quality of the lifestyle and not work location. An increasing number of people are realizing they can live here without giving up a great career. Based on my experience here in Steamboat people that have made a lot of good choices in their lives now are realizing that they can work from almost anywhere or now have the flexibility to spend more time here so they are looking for a new primary of second home in Steamboat. The majority are either buying with their retirement in mind and plan to spend most of the year in Steamboat once they do retire, are ready to retire, or are looking to move their family here since they can work from anywhere and want to live / raise their kids in Steamboat.
One very important point the article misses is the transition of mountain towns to an economy based more on their overall lifestyle than just skiing. Skiing is an important part but as people spend more time in the mountains they realize Summer and Fall are just as nice and sometimes even better. Steamboat visitors start to come in the winter but what really attracts people over time it the overall lifestyle that is possible in places life Steamboat Springs, at that point skiing becomes a bonus. I can vouch for that. There is a growing body of research to support this as a broader trend. The percentage contribution of tourism to the economy in Steamboat has been on the decline for about a decade and that doesn't mean it isn't growing. It is just being eclipsed by a stronger trend of people coming here for the lifestyle then wanting to join and then contribute to the community here. It is amazing how quickly people feel a sense of ownership and want to help enhance it even if they don't live or own here yet.
The article also misses the fact that people are staying much more active. I skied a great powder run last week next to a guy only to find out at the bottom that he is 75. He had a couple of friends with him. The key here is that it wasn't surprising even though I still naturally assumed he was closer to my age. I'm sure this more than offsets the increase in the average age of skiers, I know plenty of 60 year olds here that can ski or bike me into submission.
Selected quotes from the article follow: Ski Resort Sales hit Brisk Pace By CONOR DOUGHERTY December 2, 2006 - "What's the must-have item this ski season? A resort. Some of North America's best-known ski areas have changed hands in the past year, in some cases fetching record prices, as private-equity firms and wealthy individuals are pouring money into mountains. Buyers have snapped up everything from destination resorts like Whistler Blackcomb in British Columbia to smaller ski hills in New York and Pennsylvania's Pocono Mountains. New owners are betting that with the number of ski resorts declining, the remaining players will get a bigger slice of the market. "I think the pace of deals will remain brisk," says Chris Woronka, an analyst with Deutsche Bank in New York. "We are only in the early to middle innings of activity in the ski industry."
In October, New York investment firm Fortress Investment Group LLC completed the purchase of Intrawest Corp. for $2.8 billion in cash and assumed debt, a buyout deal that included the Stratton ski resort in Vermont, Copper Mountain resort in Colorado and Whistler Blackcomb. Mammoth Mountain Ski Area was bought late last year by a group of investors led by Greenwich, Conn.-based Starwood Capital Group Global LLC. Industry analysts say rising investor interest may have played a role in American Skiing Co.'s decision in July to explore "strategic options" for its Steamboat resort in the Colorado Rockies.
Ski resorts are in some ways a perfect target. The resorts generally have low debt, and their upscale clientele is less affected by economic fluctuations. But for investors, ski resorts come with plenty of risk. Despite efforts to become year-round venues, resorts remain a seasonal business largely dependent on Mother Nature to provide good snowfall. Resorts have spent millions updating their snowmaking equipment over the past decade, but the resort business still has generally better years when there is more natural snowfall.
And there's the issue of the aging skiers and snowboarders: The average resort visitor last season was 35.1 years old, up from 33.2 in the 1997-98 season, according to the NSAA. About 30% were 45 or over. While the industry has recorded a string of record seasons -- 59 million skier visits last year, compared with an average of about 55 million over the past decade, according to the NSAA. Investors say all of this is precisely what makes ski areas attractive. Over the past two decades, competition has pushed hundreds of smaller resorts out of business because the areas couldn't afford upgrades or snowmaking equipment to weather lean snow years. There were 478 ski areas in the U.S. last year, compared with 735 in 1984."
Back to the Steamboat Springs blog main page for more.
One very important point the article misses is the transition of mountain towns to an economy based more on their overall lifestyle than just skiing. Skiing is an important part but as people spend more time in the mountains they realize Summer and Fall are just as nice and sometimes even better. Steamboat visitors start to come in the winter but what really attracts people over time it the overall lifestyle that is possible in places life Steamboat Springs, at that point skiing becomes a bonus. I can vouch for that. There is a growing body of research to support this as a broader trend. The percentage contribution of tourism to the economy in Steamboat has been on the decline for about a decade and that doesn't mean it isn't growing. It is just being eclipsed by a stronger trend of people coming here for the lifestyle then wanting to join and then contribute to the community here. It is amazing how quickly people feel a sense of ownership and want to help enhance it even if they don't live or own here yet.
The article also misses the fact that people are staying much more active. I skied a great powder run last week next to a guy only to find out at the bottom that he is 75. He had a couple of friends with him. The key here is that it wasn't surprising even though I still naturally assumed he was closer to my age. I'm sure this more than offsets the increase in the average age of skiers, I know plenty of 60 year olds here that can ski or bike me into submission.
Selected quotes from the article follow: Ski Resort Sales hit Brisk Pace By CONOR DOUGHERTY December 2, 2006 - "What's the must-have item this ski season? A resort. Some of North America's best-known ski areas have changed hands in the past year, in some cases fetching record prices, as private-equity firms and wealthy individuals are pouring money into mountains. Buyers have snapped up everything from destination resorts like Whistler Blackcomb in British Columbia to smaller ski hills in New York and Pennsylvania's Pocono Mountains. New owners are betting that with the number of ski resorts declining, the remaining players will get a bigger slice of the market. "I think the pace of deals will remain brisk," says Chris Woronka, an analyst with Deutsche Bank in New York. "We are only in the early to middle innings of activity in the ski industry."
In October, New York investment firm Fortress Investment Group LLC completed the purchase of Intrawest Corp. for $2.8 billion in cash and assumed debt, a buyout deal that included the Stratton ski resort in Vermont, Copper Mountain resort in Colorado and Whistler Blackcomb. Mammoth Mountain Ski Area was bought late last year by a group of investors led by Greenwich, Conn.-based Starwood Capital Group Global LLC. Industry analysts say rising investor interest may have played a role in American Skiing Co.'s decision in July to explore "strategic options" for its Steamboat resort in the Colorado Rockies.
Ski resorts are in some ways a perfect target. The resorts generally have low debt, and their upscale clientele is less affected by economic fluctuations. But for investors, ski resorts come with plenty of risk. Despite efforts to become year-round venues, resorts remain a seasonal business largely dependent on Mother Nature to provide good snowfall. Resorts have spent millions updating their snowmaking equipment over the past decade, but the resort business still has generally better years when there is more natural snowfall.
And there's the issue of the aging skiers and snowboarders: The average resort visitor last season was 35.1 years old, up from 33.2 in the 1997-98 season, according to the NSAA. About 30% were 45 or over. While the industry has recorded a string of record seasons -- 59 million skier visits last year, compared with an average of about 55 million over the past decade, according to the NSAA. Investors say all of this is precisely what makes ski areas attractive. Over the past two decades, competition has pushed hundreds of smaller resorts out of business because the areas couldn't afford upgrades or snowmaking equipment to weather lean snow years. There were 478 ski areas in the U.S. last year, compared with 735 in 1984."
Back to the Steamboat Springs blog main page for more.
Olympian Downtown Steamboat
City council approved the development plan for The Olympian, a 41,000 sq ft mixed use commercial building at Fifth and Yampa streets across from the river by the bridge to Howelsen Park and River Road. The building combines brick, stone, steel and timbers and consists of almost 7,000 sq ft of ground level commercial space, 23 residential units (3 restricted affordable units) underground parking, and improvements to the surrounding sidewalks. It is located just north of Riverwalk Steamboat and at the entrance to what the city is planning to be an improved pedrestrian and shopping area along Yampa Street as it flows down to the new Alpenglow and Howelsen Place buildings.
Paul Franklin plans to break ground this spring. Constuction for this type of building typically takes 18 months. Paul included a transfer tax on any sales in the building to benefit the Steamboat Springs Winter Sports Club. He has two daughters and they are both skiers involved in the club. He is the second developer down town to voluntarily impose a transfer tax. Jim Cook started with the Sheila Cook fund for arts in the downtown area.
If you would like to know more about the Olympian, the overall revitalization of Downtown Steamboat or see plans for any of the projects. Give Jon Wade a call at 970-819-6930 or email jon@mybrokers.com
Back to the Steamboat Springs blog main page for more.
Paul Franklin plans to break ground this spring. Constuction for this type of building typically takes 18 months. Paul included a transfer tax on any sales in the building to benefit the Steamboat Springs Winter Sports Club. He has two daughters and they are both skiers involved in the club. He is the second developer down town to voluntarily impose a transfer tax. Jim Cook started with the Sheila Cook fund for arts in the downtown area.
If you would like to know more about the Olympian, the overall revitalization of Downtown Steamboat or see plans for any of the projects. Give Jon Wade a call at 970-819-6930 or email jon@mybrokers.com
Back to the Steamboat Springs blog main page for more.
Monday, December 04, 2006
Steamboat is #4 destination for Dogsledding
Time to shake up your winter vacation plans a bit? Ski.com rates Steamboat the number 4 destination for dog sledding in North America. I have actually met a couple of the people that run dogsleds out at Stagecoach Lake in the winter but haven't had a chance to try them. If you are looking for a different activity this winter check out: (the descriptions are their own)
- Red Runner Dog Sled Tours offers the most thrilling Dog Sled Adventure available! Travel at the speed of dog" on beautiful backcountry trails. 970-879-DOGS "
- Grizzle T Dog & Sled Works guarantees you an adventure to remember for a lifetime. Come experience the thrill of learning to drive a team of Alaskan Huskies along our pristine backcountry trails. This is a true wilderness adventure that the whole family will enjoy! Call (970)870-1782 for details.
Top Five Destinations for Dogsledding: 1. Snowmass, Colo., 2. Jackson Hole, Wyo., 3. Banff / Lake Louise, Alberta, 4. Steamboat Springs, Colo. 5. Winter Park, Colo.
Back to the Steamboat Springs blog main page for more.
- Red Runner Dog Sled Tours offers the most thrilling Dog Sled Adventure available! Travel at the speed of dog" on beautiful backcountry trails. 970-879-DOGS "
- Grizzle T Dog & Sled Works guarantees you an adventure to remember for a lifetime. Come experience the thrill of learning to drive a team of Alaskan Huskies along our pristine backcountry trails. This is a true wilderness adventure that the whole family will enjoy! Call (970)870-1782 for details.
Top Five Destinations for Dogsledding: 1. Snowmass, Colo., 2. Jackson Hole, Wyo., 3. Banff / Lake Louise, Alberta, 4. Steamboat Springs, Colo. 5. Winter Park, Colo.
Back to the Steamboat Springs blog main page for more.
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