Vail buys Okemo, Sunapee, Crested Butte

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MC2 5678F589 MC2 5678F589
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Re: Vail buys Okemo, Sunapee, Crested Butte

marznc wrote
MC2 5678F589 wrote
Buy a bunch of resorts with debt. Use the debt as an excuse to cut wages, benefits, jobs. Eventually try to hike lift ticket prices. Lose tons of money as people rebel against the shitty conditions of the mountains & start to ski elsewhere. Eventually collapse.

It works until it doesn't work. Maybe a few people will get rich, but it doesn't seem like a sustainable way to run a business (or a dependant ski town like Stowe, Ludlow, or Crested Butte).
What makes you think that Triple Peaks or Stevens Pass have a lot of debt?
I meant that it costs money to buy ski resorts and, in buying those resorts, MTN is taking on debt. And they already had $1.22 Billion before the purchase.

TheGreatAbyss TheGreatAbyss
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Re: Vail buys Okemo, Sunapee, Crested Butte

In reply to this post by Z
I'm not so convinced there is a large overlap of Okemo skiers and those wanting to travel out west.  Most people I know who go to Okemo take one or maybe two ski weekends a year.
Benny Profane Benny Profane
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Re: Vail buys Okemo, Sunapee, Crested Butte

Hey, I'm one of the last to defend the Dark Lord, Vail Corp., but, hold on with the disaster predictions and moaning and groaning. Remember high priced one mountain season passes? Well, you're a bunch of easterners, so, you're maybe still paying well over a grand for one mountain. Not out west. Vail has made skiing very affordable to the masses for some time now with their Epic pass, and the competition has reacted in a very consumer friendly way by joining in. And, at this moment, my Epic local pass that I bought this Spring for about 600 bucks gets me a holiday restricted season pass at Stowe, which used to cost in the high teens just a few years ago, and now Okemo and Sunapee in the East, and, a hell of a lot of skiing out west. 600 bucks! So, add to that my basic Ikon pass, which, I forget, cost me about 700 bucks(?), and for the old price of a Killington or Stowe (not even!) one mountain pass, I have an enormous amount of ski mountain days available to me, east and west.
Now, I get over leveraging and all that, but, Vail Corp. seems to be a pretty well run company, with solid profit results and a strong stock. It ain't ASC all over again. And this pricing model has been around for what, almost twenty years now? Seems to work. Ask a Denver resident. Now we're getting some.
Besides, even if interest rates are going up, debt is still dirt cheap. Now is the time to borrow. I only wish our government would do this to fix infrastructure, but, I digress.

This subject came up over at TGR, and somebody posted this great Louis CK rant. https://m.youtube.com/watch?v=q8LaT5Iiwo4 That might be a way of saying, calm down and enjoy this. These may be the golden years, and you're whining that it won't last. Sheesh. 600 bucks!
funny like a clown
Benny Profane Benny Profane
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Re: Vail buys Okemo, Sunapee, Crested Butte

Btw, how's Sunapee? Never been.
funny like a clown
Z Z
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Re: Vail buys Okemo, Sunapee, Crested Butte

Vail is not ASC
Ottens model was really about selling timeshares
Vail is not dependent on selling real estate for thier profits

While Okemo and Sunapee are not my cup of tea this buy is a home run from a biz sense for Vail
"It is better to go skiing and think of God, than go to church and think of sport."
Artic Explorer Fridtjof Nansen
raisingarizona raisingarizona
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Re: Vail buys Okemo, Sunapee, Crested Butte

In reply to this post by TheGreatAbyss
TheGreatAbyss wrote
I'm not so convinced there is a large overlap of Okemo skiers and those wanting to travel out west.  Most people I know who go to Okemo take one or maybe two ski weekends a year.
They certainly didn’t have the incentive like they do now.
raisingarizona raisingarizona
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Re: Vail buys Okemo, Sunapee, Crested Butte

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I agree with Z here. I think we were all waiting for this one knowing that Vail had to be eying something like this up.

Now I’m waiting to see their Smuggs purchase and interconnect announcement
Benny Profane Benny Profane
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Re: Vail buys Okemo, Sunapee, Crested Butte

In reply to this post by raisingarizona
raisingarizona wrote
TheGreatAbyss wrote
I'm not so convinced there is a large overlap of Okemo skiers and those wanting to travel out west.  Most people I know who go to Okemo take one or maybe two ski weekends a year.
They certainly didn’t have the incentive like they do now.

I can't think of a more perfect "client" pool for Vail inc. than the Okemo skier. Those people are gonna love Keystone. Vail will make them think they are "extreme" skiers.
funny like a clown
marznc marznc
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Re: Vail buys Okemo, Sunapee, Crested Butte

In reply to this post by TheGreatAbyss
TheGreatAbyss wrote
I'm not so convinced there is a large overlap of Okemo skiers and those wanting to travel out west.  Most people I know who go to Okemo take one or maybe two ski weekends a year.
I don't think of the target market as the current Okemo season pass holders or <10 days a season skiers/boarders.  The question is whether someone who hasn't ever thought about driving past Mount Snow to Okemo but lives in Philly, NYC/NJ or CT would consider an Epic Pass because of they also want to take a trip out west.  The goal seems to be to sell Epic Passes before October.  Whether or not a pass holder uses it within driving distance of their house doesn't matter.  Especially if it turns out to be a bad snow season.

I know people who ski Okemo midweek.  A few of the advanced skiers who do travel are very interested in checking out Crested Butte.
marznc marznc
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Re: Vail buys Okemo, Sunapee, Crested Butte

In reply to this post by MC2 5678F589
MC2 5678F589 wrote
marznc wrote
MC2 5678F589 wrote
Buy a bunch of resorts with debt. Use the debt as an excuse to cut wages, benefits, jobs. Eventually try to hike lift ticket prices. Lose tons of money as people rebel against the shitty conditions of the mountains & start to ski elsewhere. Eventually collapse.

It works until it doesn't work. Maybe a few people will get rich, but it doesn't seem like a sustainable way to run a business (or a dependant ski town like Stowe, Ludlow, or Crested Butte).
What makes you think that Triple Peaks or Stevens Pass have a lot of debt?
I meant that it costs money to buy ski resorts and, in buying those resorts, MTN is taking on debt. And they already had $1.22 Billion before the purchase.
Ah, didn't think of it that way.  Has Vail shown a profit or a loss in quarterly reports the last couple years?
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