18 replies to this topic

[NoPainNoJane]

from today's rocky mountain news:

http://www.rockymountainnews.com/drmn/othe...4844927,00.html

Quote

Steamboat ski area owner explores sale of resort


By Joanne Kelley, Rocky Mountain News
July 14, 2006
The parent company of Steamboat Ski Resort said its board has launched a strategic review that includes the possible sale of the Colorado ski area.
"Our intent is to drive the maximum value for the company’s stakeholders," said BJ Fair, CEO of American Skiing Co., in a regulatory filing with the U.S. Securities and Exchange Commission.

American Skiing, based in Park City, Utah, noted that the company "is coming off its second straight record year which has created a number of opportunities for us to pursue."

Should be interesting considering they backed out of the deal with Mueller's a couple of years ago.

[SkiBachelor]

It will be interesting to see who purcahses it if ASC does decide to sell it. It could be a big ski resort company or someone new like Marriot/Starwood.

[truckintr]

here we go AGAIN.
Wsn't a few years ago, ASC was trying to sell DA BOAT?
ASC should do a favor to the ski industry, sell everything, close up shop.
They buy a resort,, spend tens of millon of dollors, in a single summer on uprades, and sill can't show a profit.

My $$ says Vail would like to add them to thier family. Yes i know Steamboa isn't next door, but i'm sure Vail could come up with some ype of marketing plan to include the 'boat' in thier ticket packeges.

next guess Powder Corp. They are already in Califorina, Utah, why not Colrado?

[Peter]

I say it will be the Muellers, although they probably have their hands full with Crested Butte.

[skiersage]

SkiBachelor, on Jul 14 2006, 09:25 PM, said:

It will be interesting to see who purcahses it if ASC does decide to sell it. It could be a big ski resort company or someone new like Marriot/Starwood.

Who would want to bet that ASC crumbles within five years of the day that they sell Steamboat?

To be serious though, steamboat is the best resort that ASC has. They would be much better off to sell one like killington before they got to such drastic measures.

[Peter]

I think Killington is a moneymaker. The ones I don't know about ar Attitash, Sunday River, and Sugarloaf

[jclark]

Sugarloaf is the only one that doesn't make money on operations from what I've heard.

[SkiBachelor]

I believe Sunday River makes a decent amount of money while I can't say anything about Attitash. I would say the resorts that loose money are Sugarloaf and Pico.

[Peter]

If they sell Steamboat will they still be in the "big 3" resort operators or will Powdr or someone else pass them? I think it goes Vail, ASC, then Booth Creek, but ASC keeps selling off resorts. Theyve got to pay for those new lifts at The Canyons somehow!

[SkiBachelor]

I believe ASC will still be one of the big three because Powdr Corp only owns three big ski areas while Booth Creek owns about six.

[Powdr]

Hmm....let's see ACS selling one their biggest assests & cash cows. The end must be near. A business NEVER sells its cash cows unless it is under duress or it doesn't fit into their current business model. Seeing as skiing is their business model, one can only assume that debt load is starting to crush them. Must be desperate times at ASC.

[vons]

Vail cannot buy steamboat due to anti trust reasons, they had to sell A-basin when they bought Kestone and Breck in the 90s. I don't think Interwest is interested.

[K2Trav]

jclark, on Jul 16 2006, 08:45 PM, said:

Sugarloaf is the only one that doesn't make money on operations from what I've heard.

You have heard wrong, Sugarloaf does make money, all of the resorts make money.

If they sold heavenly for about $90 million and were going to sell Steamboat for $92-94 million whatever it was, that comes to around $180 million, as I recall they paid around $288 million for the resorts

K2Trav's Guide To Sugarloaf/USA

[SkiBachelor]

I believe Vail had to sell A-Basin just because of the monopoly it had in the area. Out of the 7 I-70 ski areas in the area, Vail owned 5 of them. The Aspen Skiing Company is a monopoly for the most part, but unlike Summit County, it would be very hard to compete in Aspen for skiers.

So I believe Vail could buy Steamboat since it's far enough away from the other resorts with no real competition.

[Powdr]

SkiBachelor, on Jul 17 2006, 06:11 PM, said:

So I believe Vail could buy Steamboat since it's far enough away from the other resorts with no real competition.

Question is: would they want too?

Vail Resorts, just like any corporation wants to diversify their revenue stream. Putting more money into CO exposes them further to CO weather patterns. They were quite happy to buy Heavenly because of the completetly different weather patterns of the Tahoe area. I'm not so sure another CO resort fits their portfolio needs. That's again why I'm so surprised ASC wants to sell. Their very survival depends on a postive cash flow (no bank/lender in the country will extend them any more credit), and spreading the resorts around the country helps mitigate fickle weather patterns, at least bringing in cash flow in some parts fo the country.

Powdr

[cookiepuss]

Steamboat is ASC's cash cow for sure. But The Canyons is their resort with the most potential growth in real estate $. The problem is ASC needs millions to pay off Kenny G, because they breached their contract with him.
I don't think Vail or Intrawest is all that interested in Steamboat, they already have their hands full with ski areas in Colorado. The only other option is the Meullers, but they just bought a resort in Colorado and probably have their hands full dealing with CB. It seems like ASC has once again missed the boat and should have sold Steamboat last time (they only had to pay $5M to back out, no wonder I haven't had a raise in 3 years). I'm sure Steamboat locals won't shed a tear when ASC leaves town but I think ASC would be smart to hold onto Steamboat, it's the only resort they have in "Ski Country USA".
I'm sure no matter what happens ASC will continue to make bad financial decisions, remain so far in debt it's sad, and still give upper management bonus' that frontline employees never see.

[Nordo]

even though it's not probable, it sure would be nice if the muellers bought the 'boat. after seeing what they did for crested butte, especially concering locals, such a purchase would be a god-send.

[yetigonecrazy]

as a resident of Crested Butte, i would hope for the steamboat local's sake that the Muellers buy it. Not only do they have the right ideas of expansion and new terrain, but they are super cool and want to preserve the local flavor. they tried to buy it a few years ago and failed; theres a good chance they might go for it again. its tough to say. CB has beeen good to them thus far, and they might just be content with it for now. not sure. ill ask around with the management here in the butte, and see what i can find out.

[skibum603]

yetigonecrazy, on Jul 25 2006, 12:07 PM, said:

as a resident of Crested Butte, i would hope for the steamboat local's sake that the Muellers buy it. Not only do they have the right ideas of expansion and new terrain, but they are super cool and want to preserve the local flavor. they tried to buy it a few years ago and failed; theres a good chance they might go for it again. its tough to say. CB has beeen good to them thus far, and they might just be content with it for now. not sure. ill ask around with the management here in the butte, and see what i can find out.

I hope they go for it. I see it as that cute girl in high school that turned you down. Now it's a few years later, she's older, hotter, and desprate! I do not see why they would not try at least? I don't think that a wrench as myself would hear of it in the company. That is a plan that they would keep behind closed doors I am sure of. Since they investigated it a few years back, I don't think that they would send scouts from VT or CB, so it is likely that no one in the industry, and few in the company would hear of it untill it's being signed. Those are my thoughts.