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Vail to buy Stowe?

thetrailboss

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My information came today through my best friend who owns a couple of restaurants in town. A top executive of the mountain has been a close family friend of his for 20 years and said there was never any real serious discussion. Now, it's certainly possible that this executive was telling a white lie to quiet rumors until a deal goes through, but I would be very surprised if that was the case.

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Sounds like they are at least kicking the tires.


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deadheadskier

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Sounds like they are at least kicking the tires.


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Negative. Nothing substantial. This executive straight up told my buddy the Vail guys came to make a visit (it's not unusual for ski area executives to visit other areas) a memo went out to alert some managers of the visit and roll out the red carpet with service and the rumor mills got churning.

Again, it could be a white lie, but I don't think so. When I lived in town rumors swirled all the time about the mountain being for sale and potential buyers coming through town. In today's age of social media it wouldn't be unreasonable if a rumor like this just ran wild.

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56fish

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Negative. Nothing substantial. This executive straight up told my buddy the Vail guys came to make a visit (it's not unusual for ski area executives to visit other areas) a memo went out to alert some managers of the visit and roll out the red carpet with service and the rumor mills got churning.

Smart folks like to learn. Stowe is "Stowe" for a reason. Definitely a great hill, serious reputation and, pulling-down big bucks for tix & real estate....Guys at Vail smart enough to know....they don't know it all.
 

cdskier

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Guess the rumors were true. Amazing how things quieted down for a couple weeks and then "boom...press release, deal done!"

Also looks like the original rumors had an extra 0 in the price. Now the interesting question, with a price of $50 million for Stowe, what does that do for the potential sale value of Jay (and Burke)?
 

Smellytele

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...Vail Resorts looks forward to integrating Stowe Mountain Resort into its Epic Pass and other season pass products for the 2017-18 winter season, subject to the acquisition closing. With the Epic Pass, Vermont skiers and snowboarders will have unlimited access locally at Stowe at an attractive price as well as the best of the West at Vail, Beaver Creek, Breckenridge and Keystone in Colorado; Park City in Utah; Heavenly, Northstar and Kirkwood in Tahoe; and Whistler Blackcomb in British Columbia, Canada.
 

cdskier

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Interesting to note that the deal does NOT include "Other facilities such as the Stowe Mountain Lodge, Stowe Mountain Club, Stowe Country Club and certain real estate owned and held for potential future development".
 

farlep99

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The $50mil number makes sense only because of this nugget...

"[FONT=&quot]Other facilities such as the Stowe Mountain Lodge, Stowe Mountain Club, Stowe Country Club and certain real estate owned and held for potential future development will be retained by MMC (Mount Mansfield Co)."

Real estate/potential future development was where any real potential value was for Vail. I am surprised that they bought it without that.[/FONT]
 

cdskier

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Real estate/potential future development was where any real potential value was for Vail. I am surprised that they bought it without that.

I am too as I tended to view the real estate/lodging side as more of Vail's money maker. I guess in this case they are looking to use Stowe more to just boost Epic pass numbers and drive more visits to their western resorts.
 

benski

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The $50mil number makes sense only because of this nugget...

"[FONT="]Other facilities such as the Stowe Mountain Lodge, Stowe Mountain Club, Stowe Country Club and certain real estate owned and held for potential future development will be retained by MMC (Mount Mansfield Co)."

Real estate/potential future development was where any real potential value was for Vail. I am surprised that they bought it without that.[/FONT]

I wonder if Vail can still develop its own real estate. Specifically says some potential real estate, not all potential real estate.
 

wtcobb

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I am too as I tended to view the real estate/lodging side as more of Vail's money maker. I guess in this case they are looking to use Stowe more to just boost Epic pass numbers and drive more visits to their western resorts.

The final paragraph gives weight to this idea:

[FONT=&quot]Vail Resorts looks forward to integrating Stowe Mountain Resort into its Epic Pass and other season pass products for the 2017-18 winter season, subject to the acquisition closing. With the Epic Pass, Vermont skiers and snowboarders will have unlimited access locally at Stowe at an attractive price as well as the best of the West at Vail, Beaver Creek, Breckenridge and Keystone in Colorado; Park City in Utah; Heavenly, Northstar and Kirkwood in Tahoe; and Whistler Blackcomb in British Columbia, Canada.[/FONT]


Specifically calls out the Epic Pass and promotes the big western resorts to the east coast.
 

thetrailboss

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Interesting to note that the deal does NOT include "Other facilities such as the Stowe Mountain Lodge, Stowe Mountain Club, Stowe Country Club and certain real estate owned and held for potential future development".

Exactly. Only the ski facilities. NOT the real estate.

Think about it though--they bought the ski lodges, ski lifts, snowmaking infrastructure, and maybe a small amount of land. Correct me if I'm wrong Stowe locals, but the wide majority of the ski terrain sits on Vermont State Land and is leased to the resort. Hence the low price tag. Just read an article that said that Vail REALLY wanted the real estate, but AIG is raking it in on those properties and refused to sell. Vail, of course, may eventually buy it down the road.


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cdskier

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I would think so. How could it not? how does K or SB justify their seasons pass price?

I'm not convinced that it will. It may slow the increase at other areas, but it will be nearly impossible for other areas to try to directly compete with Epic. Some resorts may need to take a "wait and see" approach before modifying their prices. See how their sales are impacted before making decisions. Severely dropping current prices isn't necessarily good for long term viability at other resorts if they can't increase sales enough to offset the price drop. I'm not so sure you will see a mass exodus from places like SB or K to Stowe just because Epic is lower priced even if K and SB made no prices changes. Will you lose a few people? Sure. Enough to justify a massive price drop? That I'm not so sure of.
 

from_the_NEK

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With such a cheap purchase price, does that leave Vail with some extra $$ to go after Jay and Burke and corner the northern Vermont market? Kind of like what Vail did around Lake Tahoe.

With Jay and Burke's remaining property expansion potential, they could be very attractive.
 
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