Killington Capital Investments & Summer discussion

[Killington Resort]

I have seen several threads about our summer business and our capital investment this year so I wanted to share our new press release on these topics. While we are not putting in a new ski lift (which I understand many of you are focused on), we are continuing to invest in our resorts at a very substantial rate.

Thanks
Mike Solimano

Also, there is a story in the Rutland Herald:

KILLINGTON — The parent company of Killington Resort and Pico Mountain is pumping $6.5 million into its two Vermont resorts this year, including upgrades before the start of the ski season.

Last season, skier visits at Killington were up 9 percent over the 2013-2014 season.

“We had a tremendous winter with snowmaking production to match, and remained open for skiing and riding through Memorial Day, once again owning the longest season in the East,” Mike Solimano, Killington and Pico president and general manager, said in a statement announcing the latest investments. “Building on that energy, we added the Snowshed Adventure Center with 10 attractions and a host of new mountain bike trails.”

Solimano said summer business at the resort has doubled compared to last year.

Powdr Corp. of Utah is spending $600,000 to upgrade Killington’s K-1 and Skyeship gondolas installing electronic lift drive systems. Upgrades at a number of lifts at Killington and Pico include new communication lines, haul ropes, and upgrades at lift loading and unloading terminals.

Another $600,000 is being spent on new ticket scanners, trail edging and widening, paving, and a new terrain park grooming machine.

Major snowmaking system pipelines are scheduled for replacement at both Killington and Pico. Other snowmaking upgrades include rebuilding hydrants, water pumps and new snowmaking hose.

To improve snowmaking along the Superstar trail, the snowmaking infrastructure has been redesigned and relocated to the lower part of the trail. Killington said the relocation would improve snowmaking coverage and snow depth especially toward the end of the ski season.

The resort, in collaboration with Killington Mountain School, is also investing $600,000 to improve race and training venues. Those improvements include a new mid-station unload at the Snowdon triple lift, and a permanent bag jump venue on lower Superstar.

Other improvements include:

— A $750,000 remodeling of Ovations restaurant at the Killington Grand Resort Hotel. The restaurant will undergo a facelift creating a new atmosphere and a new menu will be introduced.

— Signed a 20-year purchase agreement with Namaste Solar to receive 3 megawatts of power from six, 500-kilowatt solar arrays. The 4,700 megawatt-hours of new solar power will cover all of Killington and Pico’s snow gun energy needs.

Since acquiring Killington and Pico eight years ago, Powdr Corp. has invested more than $40 million in its two Vermont resorts.

Parker Riehle of the Vermont Ski Areas Association said the investments are a strong indication of how well Killington and Pico have performed.

“Knowing that companies with multiple resorts will reward and invest in those that perform well, Powdr’s major investments in Killington are a real tribute to Mike Solimano and his team’s very successful management of that resort,” Riehle, the VSAA president, said in an email. “Also, I think Powdr’s sale of Park City Mountain Resort, albeit under difficult circumstances, made Killington Resort the premier jewel in Powdr’s crown.”

Killington spokesman Michael Joseph said the reaction from visitors to the recent upgrades have been “overwhelmingly positive.”

Joseph said Solimano’s focus since he took over as Killington president has been to improve the guest experience and customer service.

“So I think when you have the physical investment that Powdr’s done with lift upgrades and snowmaking upgrades and the Peak Lodge,” Joseph said, “and you couple that with the leadership of Mike, who has made it such a focus to improve service and experience on mountain, that you end up with a really fantastic product that increases every single year.”

He also said competition is a motivating factor to keep pace with resorts in Vermont and around the country.

“We’re investing in summer and fall and four-season attractions,” Joseph said. “We’re really investing in mountain biking because that entire industry is growing at such a rapid pace.”

Killington’s $3.5 million Snowshed Adventure Center with its 10 attractions, including the Beast Mountain Coaster, opened this summer.

In partnership with Gravity Logic at Whistler Resort, Killington began a five-year mountain bike park expansion, investing more than $175,000 on trail building.

Based in British Columbia, Gravity Logic is assisting Killington in designing and building more beginner and intermediate-friendly mountain bike terrain while also continuing to add more expert trails.

Six new mountain bike trails are also being integrated under and over the Beast Mountain Coaster.

Powdr Corp. operates eight resorts across the country. In addition to Killington and Pico, the privately held company also owns Copper Mountain, Colo.; Mount Bachelor, Ore.; Boreal Mountain Resort, Nev.; Las Vegas Ski and Snowboard Resort; Gorgoza Park, Utah; and Soda Springs, Calif.

Press Release:

CAPITAL INVESTMENT AT KILLINGTON RESORT AND PICO MOUNTAIN EXCEEDS $6.5 MILLION THIS YEAR
Improvements to lifts and snowmaking improve reliability and sustainability across resorts

KILLINGTON, Vt. (August 20, 2015) – Vermont’s Killington Resort, the largest ski and snowboard destination in Eastern North America, continues to invest in capital improvements, adding year-round attractions, expanding its mountain bike trail network, and upgrading lifts and snowmaking systems for the upcoming 2015-16 winter season. Since Powdr Resorts purchased Killington Resort and Pico Mountain in 2007, infrastructure improvements have exceeded $40 million, including lifts, lift drives, snowmaking systems and Killington’s signature Peak Lodge.

“We had a tremendous winter with snowmaking production to match, and remained open for skiing and riding through Memorial Day, once again owning the longest season in the East. Building on that energy, we added the Snowshed Adventure Center with ten attractions and a host of new mountain bike trails. Already our summer business has increased 100% compared to last summer,” stated Mike Solimano, president and general manager for Killington Resort and Pico Mountain. “We invested significantly in the Beast Mountain Coaster and other attractions for this summer, and will operate many year-round, adding depth to what was already the best winter destination experience available in the East.”

Killington continues to invest in infrastructure and guest-experience projects, including efforts to increase the reliability of the most expansive lift network in the East. This year’s capital improvement budget includes investment at the new Snowshed Adventure Center in excess of $3.5 million, and lift and snowmaking improvements exceeding $1 million.

In addition to the significant investment in projects to improve guest experience, Killington recently signed a 20-year purchase agreement with Namaste Solar to receive 3 MW of power from six new 500 kW solar arrays constructed in Vermont. Building on the resort’s commitment to sustainability and being the greenest resort in Vermont, the 4,700 MWh’s of new solar generated electricity will cover all energy needs required to pump water to snow guns on ski trails at both Killington and Pico.

Another large-scale project underway at Killington is a $750,000 reimagining of the Ovations restaurant at the Killington Grand Resort Hotel. New plans call for remodel of the restaurant, creating the premier destination for après ski dining and drinking in the Killington region.

This summer, Killington Resort formally kicked off a five-year mountain bike park expansion, directing over $175,000 to trail building efforts, with many new trails already open for riders. Killington’s mountain bike park initiative is in partnership with Gravity Logic, the Whistler, British Columbia-based mountain bike trail design experts. Gravity Logic is working with the resort to transform Killington’s mountain bike offerings to include more beginner and intermediate-friendly terrain while continuing to add more flow and freeride trails for experts.
New mountain bike trails are also being integrated seamlessly with the new Beast Mountain Coaster, with six trails passing under and over the coaster on bridges built from recycled steel from the original Killington Gondola’s Skye Peak terminal.

Over $600,000 has been earmarked for installing new electronic lift drive systems on the K-1 Express and Skyeship Express Gondolas, plus communications lines, new haul ropes, component upgrades, and improvements at load and unload terminals for a number of lifts across Killington and Pico resorts.

Another $600,000 is allocated to mountain improvements directly improving visitor experience including ski trail edging and widening, new ticket scanners, paving projects and a new park-specific grooming machine. Winter visitors will also feel the positive effects of snowmaking improvements including the replacement of key artery water pipelines to Killington Peak and Pico Peak, plus the rebuilding of hydrants, water pumps and additional new snowmaking hose.

Snowmaking infrastructure has been redesigned and relocated on the lower section of Superstar trail. This investment will enhance snow production on the signature trail by utilizing fans guns to make snow faster and more efficiently. This snowmaking improvement will impact the guest experience through the final day of the spring ski season with better snow coverage and depth.

In partnership with Killington Mountain School, over $600,000 is being invested to further improve the race and training venues at the resort. A new mid-station unload for the Snowdon Triple lift, and a permanent bag jump venue on lower Superstar will be constructed, setting the stage for future competitions and training programs. The bag jump will feature a full ramp and will be used year-round, creating a much more extensive jump site than existed before, capable of hosting summer jump camps, bringing additional energy to the resort.

“Our mountain crews have been very busy this summer with the extensive investment in both summer and winter improvements at the resort,” stated Jeff Temple, director of mountain operations and facilities maintenance for Killington Resort and Pico Mountain. “With construction completed in record time for the highly successful Beast Mountain Coaster, new gravity-fed mountain bike trails and other summer activities, our focus now is on the many lift and snowmaking upgrades.”

“During the 2014-15 ski season, skier visits were up 9% over the 2013-14 season, and that helped drive significant growth in lodging, retail and food and beverage,” said Rob Megnin, director of sales and marketing at Killington Resort and Pico Mountain. “Summer business has been growing rapidly as well, and we plan to carry that momentum into this winter.”

Killington Resort continues to focus on improving the overall on-mountain guest experience by providing unparalleled access to the most extensive trail network in the northeast. During winter 2015-16, Killington skiers and riders will enjoy over 200 trails and nearly 2,000 acres of skiable terrain on one ticket, plus access to 20 other resorts across the country with the M.A.X. Pass add-on. The best prices on Killington and Pico Season Passes are available through October 15, 2015.
Weather permitting, Killington snowmaking will resume in mid-October, once again setting the stage for the longest season in the East.
###

About Killington Resort
Killington Resort is a four-season destination that sits on 3,000 acres in the heart of the Green Mountains in Central Vermont. The Resort boasts more than 73 miles of diverse snow sports terrain spread out over six peaks and offers the most expansive lift network and snowmaking system in the East. After the snow melts, Killington features an 18-hole championship golf course as well as 35 miles of mountain biking trails and 15 miles of hiking trails, and the new Snowshed Adventure Center which features 10 attractions including the Beast Mountain Coaster. The numerous après, dining, shopping and lodging options in the area have made Killington a world-class destination for East Coast skiers and riders for over 50 years. Killington.com

About Pico Mountain at Killington
In 1937 on Thanksgiving morning, a legend was born: Pico Mountain Ski Resort. Though humbly equipped with only a 1,200’ rope tow powered by a Hudson motor car engine, skiers – true skiers – loved it. No other big mountain has so much quaint charm. Since then a lot has changed; families and skiing traditionalists now enjoy 57 trails and the Triple Slope Terrain Park serviced by seven lifts, including two high-speed detachable quads. PicoMountain.com

[Mister Moose]

Condensed version:



Stuff you've heard before, infrastructure improvements, and

Snowmaking infrastructure has been redesigned and relocated on the lower section of Superstar trail. This investment will enhance snow production on the signature trail by utilizing fans guns to make snow faster and more efficiently. This snowmaking improvement will impact the guest experience through the final day of the spring ski season with better snow coverage and depth.

In partnership with Killington Mountain School, over $600,000 is being invested to further improve the race and training venues at the resort. A new mid-station unload for the Snowdon Triple lift, and a permanent bag jump venue on lower Superstar will be constructed, setting the stage for future competitions and training programs. The bag jump will feature a full ramp and will be used year-round, creating a much more extensive jump site than existed before, capable of hosting summer jump camps, bringing additional energy to the resort.

[madhatter]

[daytripper]

So is lower SS now to be lined with fan guns or did they just put one here or there? Snowmaking upgrades are great as are summer improvements not if they take money away from new lifts.

[jimmywilson69]

So they are putting Fan guns on Lower SuperStar???

[Highway Star]

Last season, skier visits at Killington were up 9 percent over the 2013-2014 season.

About $6-7M more revenue (on top of ~$15m normal profit) with very little increase in expenses. PURE PROFIT! MONEYMONEYMONEY! Maybe they'll throw us some scraps from the table.

Powdr Corp. of Utah is spending $600,000 to upgrade Killington’s K-1 and Skyeship gondolas installing electronic lift drive systems. Upgrades at a number of lifts at Killington and Pico include new communication lines, haul ropes, and upgrades at lift loading and unloading terminals.

This is how you maintain lifts. Most resorts barely talk about about this, let alone lead off a press release with it.

Another $600,000 is being spent on new ticket scanners, trail edging and widening, paving, and a new terrain park grooming machine.

Again, this is a normal cost of maintaining a resort. Not any sort of improvement.

Major snowmaking system pipelines are scheduled for replacement at both Killington and Pico. Other snowmaking upgrades include rebuilding hydrants, water pumps and new snowmaking hose.

Again, this is a normal cost of maintaining a resort. Not any sort of improvement.

To improve snowmaking along the Superstar trail, the snowmaking infrastructure has been redesigned and relocated to the lower part of the trail. Killington said the relocation would improve snowmaking coverage and snow depth especially toward the end of the ski season.

Somebody said something about fanguns on lower Superstar? Finally, we get to the improvements. Woohoo! I mean, we've only been talking about better snowmaking on superstar for like 10 years, glad to see it finally happening!!!

The resort, in collaboration with Killington Mountain School, is also investing $600,000 to improve race and training venues. Those improvements include a new mid-station unload at the Snowdon triple lift, and a permanent bag jump venue on lower Superstar.

This is KMS's money, not Killington's. They had to settle for a midstation on a 1973 vintage triple chair, because nothing better could be afforded.

— A $750,000 remodeling of Ovations restaurant at the Killington Grand Resort Hotel. The restaurant will undergo a facelift creating a new atmosphere and a new menu will be introduced.

I've never set foot in Ovations, nor to I know anybody who has. It's interior was nearly 20 years old, real deal 90's cheap-chic:

http://www.oyster.co.uk/vermont/hotels/ ... -and-bars/" onclick="window.open(this.href);return false;

Badly in need of an update.

— Signed a 20-year purchase agreement with Namaste Solar to receive 3 megawatts of power from six, 500-kilowatt solar arrays. The 4,700 megawatt-hours of new solar power will cover all of Killington and Pico’s snow gun energy needs.

Seriously? First of all, what about all the rental and installed DIESEL AIR COMPRESSORS they use to make snow? How do they run on solar power? No, they are just talking about the water pumps, where the 4,700 mWh figure does pass the sniff test. Though, I'm not sure how they are are going to get solar power when they are making snow at night. As much as I hate Jiminy Peak in the Berkshires, at the least the wind turbine they installed is the real deal.

Since acquiring Killington and Pico eight years ago, Powdr Corp. has invested more than $40 million in its two Vermont resorts.

Fuzzy math, inflated figures, and the vast majority is maintenance.

“Also, I think Powdr’s sale of Park City Mountain Resort, albeit under difficult circumstances, made Killington Resort the premier jewel in Powdr’s crown.”

Part of the reason they are so far behind, and last time I checked, Copper was their crown jewel, where they are going to unsuccessfully compete with Vail in CO.

Killington’s $3.5 million Snowshed Adventure Center with its 10 attractions, including the Beast Mountain Coaster, opened this summer.

It's popular this year because its new. Lets see how it's doing 3 years from now. Not to mention being fugly. Really going to add to the appeal of the village - not.

In partnership with Gravity Logic at Whistler Resort, Killington began a five-year mountain bike park expansion, investing more than $175,000 on trail building.

Based in British Columbia, Gravity Logic is assisting Killington in designing and building more beginner and intermediate-friendly mountain bike terrain while also continuing to add more expert trails.

Six new mountain bike trails are also being integrated under and over the Beast Mountain Coaster.

Killington has been squandering it's natural advantages for mountain biking for 15 years. Glad they could follow along and finally get with the program.

Powdr Corp. operates eight resorts across the country. In addition to Killington and Pico, the privately held company also owns Copper Mountain, Colo.; Mount Bachelor, Ore.; Boreal Mountain Resort, Nev.; Las Vegas Ski and Snowboard Resort; Gorgoza Park, Utah; and Soda Springs, Calif.

So, go around and ask the people at those resorts how it has been to have POWDR run their resorts. Won't hear many positive things.

[Highway Star]

IT'S 2015. BUILD THE DAMN INTERCONNECT ALREADY, BEFORE HALF YOUR CUSTOMERS ARE TOO OLD TO SKI ANYMORE.

[madhatter]

So is lower SS now to be lined with fan guns or did they just put one here or there? Snowmaking upgrades are great as are summer improvements not if they take money away from new lifts.

pretty sure those summer improvements are generating add'l revenue for the mtn that could possibly be used for a new lift(s)...ideally fanguns would be placed on SS based on review of melt patterns and traffic "erosion"...

Hoping to see K make a good go of the expanded activities and fulfillment of their long range plans...

[madhatter]

IT'S 2015. BUILD THE DAMN INTERCONNECT ALREADY, BEFORE HALF YOUR CUSTOMERS ARE TOO OLD TO SKI ANYMORE.

SUGARBUSH HAS AN INTERCONNECT...

[Highway Star]

“Also, I think Powdr’s sale of Park City Mountain Resort, albeit under difficult circumstances, made Killington Resort the premier jewel in Powdr’s crown.”

PURE BS.

Killington is a cash cow for POWDR. They've put in roughly $5M per year in upkeep (a fake inflated number, actually ~$3M) and taken out roughly $10-20M in profits PER YEAR which are sent back to POWDR in Utah. Then they turn around and plan on spending huge money on Copper in CO. to hopelessly attempt to compete with Vail Resorts.

POWDR's Copper Mountain gets 14 new lifts! viewtopic.php?f=1&t=40585" onclick="window.open(this.href);return false;

[Highway Star]

Best thing ever for Park City was to have POWDR and John Cummings run out of town. Now Vail is running PCMR, and actually spending money on it. $50M to connect with the Canyons:

http://www.parkrecord.com/ci_27790835/v ... a-approved" onclick="window.open(this.href);return false;

Just read Vail's yearly earning report to see why they are a titan in the resort industry - they know what the heck they are doing!



Killington in comparison:

[skibikeclimbguy]

The interconnect will be completed for the 1998-99 season.

Interconnect.jpg (355.73 KiB) Viewed 2435 times

[Skivt2]

Want a bunch of whiners. The internet exists and you can ski it to Killington, you can hike to Pico on it and you can also get to And from Pico in about 10-15 minutes on the bus. How is that a bigger priority than a South ridge chair to get from Bear to the Canyon without dropping down to KBL? Give it a rest already. Most of you wont make the effort to ski Pico now anyway so why do you even care?

[madhatter]

Want a bunch of whiners. The internet exists and you can ski it to Killington, you can hike to Pico on it and you can also get to And from Pico in about 10-15 minutes on the bus. How is that a bigger priority than a South ridge chair to get from Bear to the Canyon without dropping down to KBL? Give it a rest already. if only he would... Most of you wont make the effort to ski Pico now anyway so why do you even care?

yep the interconnect is a non starter, but for clarification purposes highwaystar seems to be the only one whining about it... I was just suggesting a place he can ski where there is an interconnect...the current timetable of "never" suits me just fine...and if not building one sends el homo packing for somewhere else I don't really see any downside to that either...

[Coydog]

pretty sure those summer improvements are generating add'l revenue for the mtn that could possibly be used for a new lift(s)...ideally fanguns would be placed on SS based on review of melt patterns and traffic "erosion"...

That would be awesome. The melt pattern is very consistent and predictable. If they apply even a bit more management to that, SS will go longer and better in the spring. Add a $100 worth of Beer Bucks and this definitely works for me.