Haystack / Hermitage news

[sull1102]

Heard some talk through the grapevine and then some new talk on Facebook and it really sounds like the Club never actually made payroll in March. There's more than a few former employees with paychecks bouncing and now obviously no HR or anything to call and complain other than going through the state.

 

[sull1102]

Tax Sale scheduled for June per the Brattleboro Reformer on Facebook. On the website you can only book a room at the Inn through May. I would guess between now and then things will happen.

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[drjeff]

Rumor I heard today, from someone who isn't a member, but makes his living in the Wall St Realestate/finance world is that KSL is looking at buying the Hermitage.... Big picture, it would make sense on some levels.... Time will tell if this has any legs or not.....

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[Hawkshot99]

Rumor I heard today, from someone who isn't a member, but makes his living in the Wall St Realestate/finance world is that KSL is looking at buying the Hermitage.... Big picture, it would make sense on some levels.... Time will tell if this has any legs or not.....

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KSL?

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[sull1102]

I'd guess KSL/Aspen who also own Stratton. Makes a lot of sense when you think about it.

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[FBGM]

Fire sale? Auction?

Dibs in 6 pack. Ill start bid at $20

 

[Pez]

Ikon pass'd

 

[Hawkshot99]

I'd guess KSL/Aspen who also own Stratton. Makes a lot of sense when you think about it.

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What is the plus for doing It? A company like that wants to make $. How will they run a mtn they still can't sell public tickets to?

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[drjeff]

What is the plus for doing It? A company like that wants to make $. How will they run a mtn they still can't sell public tickets to?

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Upsell to the already established Stratton Club Members + the existing Hermitage Members, and offer access to other Ikon pass members, for a premium....

Get's a bunch of high wealth people, who wouldn't think too much about dropping big $$ at one of their other Western properties for a ski week or weeks per season, into their customer base.....

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[drjeff]

I'd guess KSL/Aspen who also own Stratton. Makes a lot of sense when you think about it.

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Yup, that's them... KSL/Aspen/Ikon pass....

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[Jcb890]

Upsell to the already established Stratton Club Members + the existing Hermitage Members, and offer access to other Ikon pass members, for a premium....

Get's a bunch of high wealth people, who wouldn't think too much about dropping big $$ at one of their other Western properties for a ski week or weeks per season, into their customer base.....

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Seems like an unwise investment to be honest.

If you can afford to join or be a part of the Hermitage Club, I doubt you're sweating dropping $600 or $900 on an Ikon Pass.

 

[sull1102]

Think about it like the cruise lines that operate their own little island. Hey Ikon Passholders you can now go to the private Ikon only resort and Stratton.

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[benski]

Seems like an unwise investment to be honest.

If you can afford to join or be a part of the Hermitage Club, I doubt you're sweating dropping $600 or $900 on an Ikon Pass.

I see your point, but same is true with an epic pass or a trip to Europe or Japan. If they go threw with it I bet they could easily get a week trip at Aspen out of all of them. But I doubt they would acquire it unless it could become profitable by itself.

 

[Jcb890]

Think about it like the cruise lines that operate their own little island. Hey Ikon Passholders you can now go to the private Ikon only resort and Stratton.

Ehhhh, maybe.

I see your point, but same is true with an epic pass or a trip to Europe or Japan. If they go threw with it I bet they could easily get a week trip at Aspen out of all of them. But I doubt they would acquire it unless it could become profitable by itself.

I just don't see it being a profitable investment for them.


Another thought... how would that work anyways if the mountain is not for public use? Would Ikon Pass holders be considered part of a private club/membership?

 

[VTKilarney]

Upsell to the already established Stratton Club Members + the existing Hermitage Members, and offer access to other Ikon pass members, for a premium....

Get's a bunch of high wealth people, who wouldn't think too much about dropping big $$ at one of their other Western properties for a ski week or weeks per season, into their customer base.....

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I’m still not seeing the ROI, but who knows.

 

[slatham]

I see such a move as much more a move by Vail than KLS.

But in all other similar situations regarding clubs that I am aware, it's been the members that have done the bail out.

 

[sull1102]

In this case I think many members are already a part of the Aspen crowd. They're certainly Aspen-type people. I could see this working if KSL can find a way to make it so the resort is not really private. You don't have to start selling day tickets, but can you open to all Ikon passholders(unlimited days at Hermitage) and still be within the deed restrictions.

 

[bigbob]

It may not have immediate value, but the cost of permitting and starting a ski area close to a population center is cost prohibitive. They may be looking at it as a long term investment beside a feeder hill of deep pocket customers.

 

[EPB]

It may not have immediate value, but the cost of permitting and starting a ski area close to a population center is cost prohibitive. They may be looking at it as a long term investment beside a feeder hill of deep pocket customers.

This is where I see the logic for a purchase making the most sense. ROI has been mentioned here, but it's hard to assess ROI without knowing:
1) What type of discount a buyer could purchase the distressed resort relative to building-out a comparable resort from scratch.
2) How would a buyer get the club to at least a break-even run rate. It seems fair to assume that they are losing money as the club stands today, but who knows why: it could be more management waste/fraud than a nonviable business model.
3) The club's willingness to bail itself out. It might not be that difficult to get the club on board depending upon how dire they perceive the club's financial situation to be.
4) How difficult the logistics would be to move from a club model to a club/limited access hybrid model.

I haven't been up to the resort myself (didn't feel like asking the guy at the huge gate they have if I could poke around because I assumed the answer would be a firm "no" anyway), but the place seems next-level posh by NE standards save perhaps Stowe. At 2hrs 36 mins from Boston, or 4hrs from NYC (using google maps as I write this post at ~12:30 on a Sunday), the Hermitage is relatively close to the population centers - especially when you consider how upscale the resort must be.

I would hazard a guess that eastern Vail or Aspen pass holders would appreciate limited access to the club (10 or less days and perhaps the option to access to on-mountain lodging at an very high market-rate price). Tough to handicap a potential sale either way, but it will be fun to monitor the developments as an outsider.

 

[icecoast1]

If Hermitage or Stratton weren't so close it might make sense. But the type of person that would join Haystack or the Stratton club are basically the same type of person. Haystack might be more ritzy but it's still not much of a difference to justify owning 2 places that are so similar only 30 minutes apart