Vail buying Peaks

[daytripper]

http://news.vailresorts.com/corporate/peakresorts.htm" onclick="window.open(this.href);return false;

[skixc2]

Whelp, sh*t.

[hillbangin]

These numbers look goofy...Vail has become the industry bank for these groups that can't find a good equity partner.

They are almost out of runway here - except for the onezy twozies and the independents.

Won't be long for the Powdr Aspen merger.



Additional Transaction Details
The aggregate purchase price for all Peak Resorts common stock is estimated to be approximately $264 million (calculated on a treasury method basis), which Vail Resorts intends to finance through a combination of cash on hand, its existing revolver facility and an expansion of its existing credit facility. In addition, Vail Resorts will be assuming or refinancing Peak Resorts' outstanding debt.

The acquisition is expected to generate incremental annual EBITDA of approximately $60 million in Vail Resorts' fiscal year ending July 31, 2021, the first fiscal year with the full benefit of the synergies of the acquisition, with additional revenue upside in future years. Synergies are expected to come from additional revenue across the Vail Resorts network of resorts and cost reductions from the elimination of certain duplicative administrative functions and greater efficiencies brought by Vail Resorts' size and scale. Vail Resorts' annual ongoing capital expenditures are expected to increase by $10 million to support the addition of the Peak Resorts ski areas. After closing of the transaction, Vail Resorts plans to invest approximately $15 million over the next two years in one-time capital spending to elevate the guest experience at these resorts.

[RustyK]

Yup.

Mt. Snow on the Epic pass now also..

[Highway Star]

Looking forward to slaying Mt. Snow again this winter. HYYYYYYPPPPPE!!!!

[Dickc]

Maybe there is hope for the Attitash peak triple getting replaced now..............

[da Pimp]

Holy Moly. How will anyone compete with VR in New England? $699 gets you Stowe, Okemo, Mt. Snow plus all the other smaller places, and then you get to vacation out west at Vail, Whistler, etc. for 10 days.

As mentioned previously, you now have to predict something happening between POWDR and Alterra. Their attendance (and cash flow) will suffer every season whether east or west.

One gauge for the effect of these acquisitions: My ski club of 300 now bases all their trip planning on Alterra or Vail passes. We schedule two separate full week trips (plus a bunch of weekend bus trips), and select those destinations based on what pass do you need to ski there. Then see what that pass gets you in New England. So far in the last two years the winner has been Vail. With this new acquisition, its hard to imagine not going to an Epic property in the future.

[hillbangin]

Holy Moly. How will anyone compete with VR in New England? $699 gets you Stowe, Okemo, Mt. Snow plus all the other smaller places, and then you get to vacation out west at Vail, Whistler, etc. for 10 days.

As mentioned previously, you now have to predict something happening between POWDR and Alterra. Their attendance (and cash flow) will suffer every season whether east or west.

One gauge for the effect of these acquisitions: My ski club of 300 now bases all their trip planning on Alterra or Vail passes. We schedule two separate full week trips (plus a bunch of weekend bus trips), and select those destinations based on what pass do you need to ski there. Then see what that pass gets you in New England. So far in the last two years the winner has been Vail. With this new acquisition, its hard to imagine not going to an Epic property in the future.

Except that the lines just got longer at both places. See Stowe.

And the weekend or 3 new england skier is not going to pony up 700 bucks per for those resorts. Imo.

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[Nikoli]

Holy Moly. How will anyone compete with VR in New England? $699 gets you Stowe, Okemo, Mt. Snow plus all the other smaller places, and then you get to vacation out west at Vail, Whistler, etc. for 10 days.

As mentioned previously, you now have to predict something happening between POWDR and Alterra. Their attendance (and cash flow) will suffer every season whether east or west.

One gauge for the effect of these acquisitions: My ski club of 300 now bases all their trip planning on Alterra or Vail passes. We schedule two separate full week trips (plus a bunch of weekend bus trips), and select those destinations based on what pass do you need to ski there. Then see what that pass gets you in New England. So far in the last two years the winner has been Vail. With this new acquisition, its hard to imagine not going to an Epic property in the future.

Except that the lines just got longer at both places. See Stowe.

And the weekend or 3 new england skier is not going to pony up 700 bucks per for those resorts. Imo.

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I am thinking the opposite will happen at Okemo.

[boston_e]

Holy Moly. How will anyone compete with VR in New England? $699 gets you Stowe, Okemo, Mt. Snow plus all the other smaller places, and then you get to vacation out west at Vail, Whistler, etc. for 10 days.

As mentioned previously, you now have to predict something happening between POWDR and Alterra. Their attendance (and cash flow) will suffer every season whether east or west.

One gauge for the effect of these acquisitions: My ski club of 300 now bases all their trip planning on Alterra or Vail passes. We schedule two separate full week trips (plus a bunch of weekend bus trips), and select those destinations based on what pass do you need to ski there. Then see what that pass gets you in New England. So far in the last two years the winner has been Vail. With this new acquisition, its hard to imagine not going to an Epic property in the future.

Except that the lines just got longer at both places. See Stowe.

And the weekend or 3 new england skier is not going to pony up 700 bucks per for those resorts. Imo.

Sent from my SM-N960U using Tapatalk

I'm not sure about that... from what I can tell, for the crowd that does not already have a "home" mountain, these passes are very popular and are turning many of the weekend or 3 skiers into 4 or 5 weekends plus a western trip skiers.

One thing for sure, for nomad skiers in the Boston area, the Epic or Ikon pass would be a whole lot more appealing than a straight up Killington pass.

[Yellowman]

I really dont think this is a good thing for Killy at all.... Where are the new skiers gonna come from to rationalize the interconnect??

[Mistergiff]

I agree this only makes the Powdr / Alterra merger inevitable. Now who's next for Vail? Smuggs? Jay? What happens to Haystack?

[TheRat]

Could some Eastern resorts now on the Ikon pass become desirable to Alterra to compete with Vail?

[Mister Moose]

Killington = dedicated skiers that want the snowmaking, long season and terrain. Occasional weekenders that want to ski the biggest. Nightclub on Saturday night skiers. Express pass skiers that do 5-ish days at K. Ikon 5 days a season skiers. Vacation week package skiers. Those skiers aren't going to Snow or Okemo et al.

I for one don't relish any increased crowding from selling to Alterra, and I didn't see a decrease in attendance last season.

I can see where Vail's Eastern strategy will need to evolve away from unlimited Eastern skiing. Too much day tripping brown bag toting crowding going on, not enough $25 burgers getting sold. The solution would be more of what they have done in the past, the cheaper passes only get 5 (or 7 or 10) days per resort, more unlimited days where they are more likely to get more food and lodging out of you, and it's too far to ski every week and crowd the resort. If you own property at a Vail Eastern resort, and want to eliminate the 5 day restriction to your home mountain, well you'll have to ante up more than the Epic price. Think about it - would you rather sell 20,000 season passes to local people who are going to crowd your liftlines and leave, or sell those 20,000 passes to people who live so far away all they can do is ski your trails just 1 week a year?

Many people on this board already buy more than one pass. That will only happen more as skiers buy a travel pass and a home mountain pass. Skiers that already base out of Snow, Okemo and Stowe will just have to suck up the crowding for now and take respite out west for "free" when they can.


These are the good ol' days.

[Big Bob]

I would guess that Killington will become unlimited on the Ikon Pass in order to compete with Vail east. Maybe not this season, but next if ticket/pass sales take a noticeable hit.