KSL Capital, a Denver, CO based private equity firm with a focus on hospitality has agreed to buy Squaw Valley USA.
KSL plans to invest over $50 million into the resort over the next 3-5 years.
http://www.bloomberg...sl-capital.html
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KSL Capital to buy Squaw Valley USA
Started by SkiBachelor, Nov 23 2010 06:23 PM
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Posted 10 December 2010 - 05:57 PM
New owners KSL Capital Partners has pledged to spend $50 million in capital improvements in the next three to five years, which represents a very aggressive investment plan, said Andy Wirth, Squaw Valley's president and chief executive.
Annual capital investment rates for ski areas typically average 2 to 4 percent of gross revenue, Wirth said, and KSL's commitment greatly accelerates that ratio.
“By virtually every standard that is a strong commitment to our guests and the future of Squaw Valley,” Wirth said.
Wirth and his management team will spend the next 30 to 45 days developing a long-term strategic plan to present to KSL. The resort had no previous long-term investment plan, which allows the management team to plan the resort's future with a clean slate.
Capital improvements will focus on anything that has a substantial positive impact to guest services and the guest experience, Wirth said. One priority is culinary service. Another is facilities at the base lodge and at High Camp. Squaw Valley also will be investing in on-mountain facilities and taking a close look at its lift infrastructure and overall mountain design.
“We will be calling in some of the world's most-renown mountain planners to assist the development team to formulate plans and take back to the owners for consideration,” Wirth said. “The good news is that we have owners who are committed to investing substantial capital.”
Eric Resnick, managing direct for KSL Capital Partners, said guests will see improvements in Squaw Valley's food and beverage outlets, its grooming capabilities and in upgraded chairlifts. The new owners also plan to expand the mountain's intermediate and beginner terrain.
“A fair amount will go toward the family side of the experience,” Resnick said.
Annual capital investment rates for ski areas typically average 2 to 4 percent of gross revenue, Wirth said, and KSL's commitment greatly accelerates that ratio.
“By virtually every standard that is a strong commitment to our guests and the future of Squaw Valley,” Wirth said.
Wirth and his management team will spend the next 30 to 45 days developing a long-term strategic plan to present to KSL. The resort had no previous long-term investment plan, which allows the management team to plan the resort's future with a clean slate.
Capital improvements will focus on anything that has a substantial positive impact to guest services and the guest experience, Wirth said. One priority is culinary service. Another is facilities at the base lodge and at High Camp. Squaw Valley also will be investing in on-mountain facilities and taking a close look at its lift infrastructure and overall mountain design.
“We will be calling in some of the world's most-renown mountain planners to assist the development team to formulate plans and take back to the owners for consideration,” Wirth said. “The good news is that we have owners who are committed to investing substantial capital.”
Eric Resnick, managing direct for KSL Capital Partners, said guests will see improvements in Squaw Valley's food and beverage outlets, its grooming capabilities and in upgraded chairlifts. The new owners also plan to expand the mountain's intermediate and beginner terrain.
“A fair amount will go toward the family side of the experience,” Resnick said.
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