Big Burke announcement

[dlague]

That's the article we've been talking about.


Sent from my iPhone using AlpineZone

Late to the party I guess wondered where speciation came from.

 

[Smellytele]

Well the dust has settled and Burke Mountain is getting ready to celebrate one of its biggest milestones to date with the official opening of the Burke Mountain Lodge (formerly the Q Burke Hotel & Conference Center) on Thursday, September 1st. Reservations are LIVE and you can be one of the first guests to stay in the Lodge over Labor Day Weekend with rates starting at just $192/night (based on 2 people staying in a studio suite). You can book online or call our reservations team at (866) 966-4820. Click here from complete details and for a look inside the Lodge. If you missed NEMBAfest this past weekend you're in luck because we are doing it all again next year with the dates already set: June 16-18, 2017. Situated mid-mountain with easy access to the Burke Bike Park and Kingdom Trails, the Burke Mountain Lodge even has safe and secure bike storage inside on the first floor. Bike n' Stay packages are available now (and will be next year too for NEMBAfest). Bike storage is FREE for every guest staying in one of our suites. Time continues to move quickly as next week we are already celebrating the 4th of July. Burke Mountain will be celebrating Independence Day on Sunday, July 3rd with one of the areas largest firework displays. Gates open at 5pm ($5.00/pp, children under age 5 free) with fun for the entire family including a bounce house, coloring contest, children's bike park (kids are encouraged to bring their own bikes and helmets), scenic chairlift rides, and live music by Beg Steal or Borrow. Click here for complete details. Burke Bike Park is dialed in with our trail crew continuing to do a fantastic job tuning the trails. From weed whacking to rock removal to new rollers and berms riders are enjoying every lap. Never rode in a downhill park before? No problem. Let one of our talented instructors show you the fundamentals of riding in the Burke Bike Park getting you comfortable and relaxed to ultimately defy-gravity. Click here for lesson information. Burke Mountain Campground is also open and weekends are filling up fast. Remember you can book online here or call guest services at (802) 626-7300. [FONT=&quot] [/FONT]DON'T FORGET - First tier winter season pass pricing ends Monday, July 11th.[FONT=&quot] Click here for complete details and to purchase. Upgrades and expected snow making improvements will be announced by the end of the month as we finalize and prioritize what is possible to complete before we head into the 2016/17 winter season. [/FONT]

 

[thetrailboss]

Love it. Also nice nod that they changed the name of the hotel to the Burke Mountain Lodge. Simple and easy.

 

[steamboat1]

Love it. Also nice nod that they changed the name of the hotel to the Burke Mountain Lodge. Simple and easy.

What a waste of $50m

 

[Edd]

"Q Burke Hotel and Conference Center". It probably didn't take a very long meeting to come up with a better name than that.

I've never been there in the summer but I'm a bit curious now.

 

[MEtoVTSkier]

Love it. Also nice nod that they changed the name of the hotel to the Burke Mountain Lodge. Simple and easy.

 

[slatham]

What a waste of $50m

How so? Could it have been built for $25M? Is Burke not worthy of a nice Hotel? Or are you just below quota for negative posts?

 

[steamboat1]

How so? Could it have been built for $25M? Is Burke not worthy of a nice Hotel? Or are you just below quota for negative posts?

The ski area isn't worth $50m hotel & all. Peak just paid $36m for Hunter hotel & all.

 

[deadheadskier]

Well the Hunter hotel did cost $26M to build and I'd imagine the ski area alone is worth more than $10M. So, the resale on the hotel was likely at a bit of a loss, especially when factoring what that hotel would likely cost to build today 12 years later.

That said $50M does seem like a lot for what the property is.

 

[mister moose]

If I'm an investor, do I care what some EB-5 group spent on it, or do I care about what proven income stream it can generate?

 

[steamboat1]

If I'm an investor, do I care what some EB-5 group spent on it, or do I care about what proven income stream it can generate?

The hotel has no proven revenue stream, it hasn't even opened. As for the ski area it has gone under several times over the past couple of decades. It would be very hard for anyone to put a number on Burke's potential revenue stream.

 

[mister moose]

The hotel has no proven revenue stream, it hasn't even opened. As for the ski area it has gone under several times over the past couple of decades. It would be very hard for anyone to put a number on Burke's potential revenue stream.

i think that's my point.

 

[thetrailboss]

So is the Hotel worth the $50 million that was invested? Likely not. As has been revealed, the costs were allegedly inflated to ensure that some money went to Q himself.

What to watch will be the next two seasons to see if it increases skier days to above 100k.

 

[Edd]

What to watch will be the next two seasons to see if it increases skier days to above 100k.

That's going to require an unprecedented (for Burke) level of marketing dollars. I hope they find and spend the money.

 

[steamboat1]

Saddleback couldn't make money attracting 100k plus skier visits & investing $40m plus.

 

[thetrailboss]

That's going to require an unprecedented (for Burke) level of marketing dollars. I hope they find and spend the money.

Yep.

 

[thetrailboss]

Saddleback couldn't make money attracting 100k plus skier visits & investing $40m plus.

That's true, but I'd say that Burke has a lot of differences including new lifts, much better location, easy access, a major ski racing academy, a now established bike trail system, etc. Ideally Burke needs as many skier days as it can get.

And did Saddleback actually have over 100k skier days? I recall it being pretty close to Burke at the 75-90 range.

 

[steamboat1]

And did Saddleback actually have over 100k skier days? I recall it being pretty close to Burke at the 75-90 range.

Last available figure is from the 11/12 season with 97k skier visits. It was stated at that time by Farmer (the manager I believe) that skier visits were expected to increase to 130k.

Quoted from a Dec 2012 Portland Herald article: "Its annual skier visits have increased from 15,000 to 97,000, said Farmer, who expects 130,000 visits this season."

 

[steamboat1]

Well the Hunter hotel did cost $26M to build and I'd imagine the ski area alone is worth more than $10M. So, the resale on the hotel was likely at a bit of a loss, especially when factoring what that hotel would likely cost to build today 12 years later.

That said $50M does seem like a lot for what the property is.

So what do you estimate Burke is worth? Don't forget contractors are still owed close to $5m.

 

[deadheadskier]

I don't have a clue what it's worth. I was just pointing out that the investment into your example of Hunter likely greatly exceeded its sale price. The cost of the hotel, new six pack and moving the quad to the west side probably exceeded the sale price alone especially when factoring inflation.

That's kind of the way these things work. The value of the asset creation often doesn't add up to what it would sell for on the open market. So, the hope for the developers is that they recoup their investment with operating profits over time.

Take a look at a place like Stratton and their village. They probably have spent 100s of millions on that resort over the years. It wouldn't sell for that, but maybe they made it back over the years through operating profits.