Mon Jun 04, 2018 9:32 am
Mon Jun 04, 2018 11:59 am
Mon Jun 04, 2018 2:08 pm
EMSC wrote:The buy-out of resorts continues with Vail buying up the Muellers resorts - Crested Butte, Okemo and Sunapee; and also is adding the first PNW resort outside of Whistler to be added to the big passes buying Stevens Pass, Washington.
Details on the purchase prices, etc...
Stevens pass would not be a concern, but one has to wonder if the justice dept will get involved at some point with all the acquisitions/joint passes. Vail will be up to 7 Colo resorts on the Epic pass, and Ikon pass will be at 8 resorts for next season. That's more than half of all ski areas in Colo and WAY more than half of total skier visits by a long shot.
Tue Jun 05, 2018 10:02 am
berkshireskier wrote:Wall Street likes the purchase.
Thu Jun 07, 2018 12:12 pm
EMSC wrote:berkshireskier wrote:Wall Street likes the purchase.
The real test of Vail Resorts will be the next downturn. They already have nearly $1.2B in long term debt. Debt based financing works great in the "up" part of the cycle. And cash flow wise is a horrible thing to have too much of in the 'down' part of the cycle. Add in a several hundred $M more for these purchases and it could go the way of Intrawest depending on when/how severe the next downturn end sup...
They are buying a lot at the upper part of the business cycle. No guarantee when the next downturn will hit, or why, but I would not want to be adding quite so much debt financing this long into the business cycle.