Boyne becomes the 3rd player in the ski wars

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Z Z
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Boyne becomes the 3rd player in the ski wars

https://unofficialnetworks.com/2018/05/09/boyne-secures-footing-by-purchasing-of-6-ski-areas/

This sets Boyne up to become the 3rd major player in the ski industry.  I’d predict that they make some big moves in the next year along the lines of trying to buy Jay / Burke, going after Okemo or the truly big play of trying to merge with Powdr creating the 3rd mega brand.
"It is better to go skiing and think of God, than go to church and think of sport."
Artic Explorer Fridtjof Nansen
Milo Maltbie Milo Maltbie
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Re: Boyne becomes the 3rd player in the ski wars

If I read that correctly, they are only buying resorts that they already hold by long term leases, is that correct?  That seems like a financial transaction that shouldn't have any effect on operations or marketing. I'm guessing the new tax law favors owning over leasing, or maybe it was just a good time to convert leases to fee deeds. I'm not sure how any of that increases their ability to buy other new assets, unless the leases were restricted in some way that prevented mergers and acquisitions.

mm
Marcski Marcski
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Re: Boyne becomes the 3rd player in the ski wars

Milo Maltbie wrote
If I read that correctly, they are only buying resorts that they already hold by long term leases, is that correct?  That seems like a financial transaction that shouldn't have any effect on operations or marketing. I'm guessing the new tax law favors owning over leasing, or maybe it was just a good time to convert leases to fee deeds. I'm not sure how any of that increases their ability to buy other new assets, unless the leases were restricted in some way that prevented mergers and acquisitions.

mm
Yes, you are correct.
riverc0il riverc0il
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Re: Boyne becomes the 3rd player in the ski wars

Isn't this old news? Maybe it was just finalized today but I thought this was already done.

Unofficial Networks shows continues to show off their horrid journalism:

They now include everything from massive urban centers such as Vancouver, Salt Lake City, Portland (*Maine), and Seattle.
First and last time you'll ever see Portland, ME (~67k population) listed as a "massive urban center" and put on par with world class cities. Strong city for Maine and Northern New England in general. But, yea.
PeeTex PeeTex
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Re: Boyne becomes the 3rd player in the ski wars

Next thing you know they’ll go after Platty which is near the major city of Breakabeen
Don't ski the trees, ski the spaces between the trees.
Z Z
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Re: Boyne becomes the 3rd player in the ski wars

Those leased areas could have easily been sold to Epic or Ikon and now Boyne has them locked up.  From here they can become a player for other areas instead of just being what they were an manager not an owner.
"It is better to go skiing and think of God, than go to church and think of sport."
Artic Explorer Fridtjof Nansen
Milo Maltbie Milo Maltbie
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Re: Boyne becomes the 3rd player in the ski wars

Maybe those properties could have been sold to a third party, but more likely Boyne had the right of first refusal on any sale.  Maybe this simplifies Boyne's ownership and makes some merger easier by taking one party out of it, and maybe their already talking to someone about a merger somewhere, but it's hard to see how this puts Boyne in a better position to buy anyone out.  That's all just speculation, and the simpler explanation is that it makes sense to buy out the leases now for financial reasons.
I was disappointed when Max Pass blew up, but this one means nothing to me.

mm
marznc marznc
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Re: Boyne becomes the 3rd player in the ski wars

In reply to this post by Milo Maltbie
I don't think the change in ownership is going to make much difference to most skiers and boarders for a while. That's based on reading the press release on 3/12/18.  Boyne already had the New England Pass that covers Sunday River, Sugarloaf, and Loon.  Plus a points program for money spent at a Boyne resort that could be used for season passes.

EXCERPT OF 3/12/18 PRESS RELEASE

Boyne Resorts to Acquire Ownership of Seven Resorts and Attractions

" . . .
Our intention all along has been to regain and acquire ownership of these resorts," said Stephen Kircher, president and chief executive officer of Boyne Resorts. "We are pleased to see this come to fruition and also really proud of our long-term achievements and diligence that primed us for this acquisition. Boyne Resorts has been a long-term operator of these assets—some for decades. This transaction therefore poses no business interruption or integration risk. This opportunity now at hand will enable us to accelerate and fine tune the execution of our reinvestment plans for these spectacular properties, which will boost our competitive advantages and support our focus on continuous enhancement of the guest experience. . . ."


The locations covered included the Gatlinburg Sky Lift in TN, which also serves some ski terrain but is more important for spring, summer, fall tourists.  The terrain is pretty good for anyone in the area who wants to learn to ski before driving a little farther to WV or NC.  Also has an indoor skating rink and other rides that operate year round.  I stopped by to take a look last summer.

Sunday River, ME
Sugarloaf, ME
Loon, NH
Brighton, UT
The Summit at Snowqualmie, WA - did not own before
Cypress Mountain, BC

The Boyne flagship resort is Big Sky, which recently joined Ikon and MCP. Also have two ski resorts in the midwest, where the Boyne family started out. One of the Kircher sons became the sole owner-operator of Crystal, WA in 2017.

The sale to CNL was in 2007 and long-term lease agreements of several resorts worked out well considering the recession in 2008. Apparently the agreements had some sort of buy-back included that didn't work out when CNL was ready to sell.  So CNL sold to other real estate company.  Guess the timing is right for Boyne to regain ownership in 2018.

What I learned from the Wiki page is that Boyne started expanding out to the midwest by buying Sunday River, Sugarloaf, and Brighton.  Boyne also owns 11 golf courses scattered around the U.S.  They know how to run 4-season resorts.  I don't know about the others, but Sunday River, Loon, and Big Sky have been successful 4-season resorts for a while.
marznc marznc
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Re: Boyne becomes the 3rd player in the ski wars

In reply to this post by riverc0il
riverc0il wrote
Unofficial Networks shows continues to show off their horrid journalism:

They now include everything from massive urban centers such as Vancouver, Salt Lake City, Portland (*Maine), and Seattle.
First and last time you'll ever see Portland, ME (~67k population) listed as a "massive urban center" and put on par with world class cities. Strong city for Maine and Northern New England in general. But, yea.
Agree.  All Unofficial did was quote a statement in the referenced article from a Vancouver news outlet.  I doubt the original author has even visited Boston and Portland in the same trip.  Or heard all the Boston accents at Sunday River Sugarloaf, or Loon.  Probably wasn't even that aware that Boyne started in the midwest.

In some ways, Boyne has been thinking about how to encourage Midwesterners to ski out west (Big Sky, Brighton) long before Vail brought out the Epic Pass. Big Sky was purchased in 1976 and Brighton in 1986.  Golf courses were added to the mix for Boyne Resorts in the 1990s.  I know they wanted to buy Solitude in 2014 but couldn't make the financing happen for some reason so the owners of Deer Valley got Solitude . . . and then sold DV to Alterra a few years later while keeping Solitude.
marznc marznc
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Re: Boyne becomes the 3rd player in the ski wars

In reply to this post by Z
I think the announcement a few years ago about the major capital improvements at Big Sky will have far more impact on people in the northeast who take ski vacations out west than this recent change in ownership for the smaller Boyne-operated resorts.  Used to be Big Sky 2020 but recently extended the timeline to Big Sky 2025.  

http://bigsky2025.com

Going to have a lot of brand new high-speed lifts, included 4-pack or 6-pack bubble lifts.  Given the size of the mountain, that adds up to a lot of skiing for ski vacationers spending a week at Big Sky.  Joined the Ikon Pass and still on the MCP.  Plus have the ongoing connections for Boyne pass holders.  I bet Boyne can easily build on MAX Pass expertise in terms of knowing where people came from to take advantage of the MAX Pass for a trip to Montana.
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