Ski Resort Ownership in North America

Topics of a general nature regarding snowsports, which don't easily fit into one of our other Liftlines categories. This is also the place to post Letters to the Editor.

Re: Ski Resort Ownership in North America

Postby Geoff » Sun Jul 31, 2011 8:54 am

Tony Crocker wrote:
Mike Bernstein wrote:Does it matter that CNL owns so many resorts when they don't appear to have any day-to-day influence on operations and act solely as landlords?

This is the topic where I have questions. What is in all of this for CNL? Presumably the long term lease income is a projected reasonable rate of return on what they paid for each property. Who is in trouble if the resort doesn't meet revenue projections? At Mammoth it is prevailing opinion that the mountain ops are as successful as ever, though they have to cover an onerous debt load that Starwood assumed to buy it from Dave McCoy in 2006. But the now CNL-owned (also since 2006) village has underperformed from the time it started a decade ago due to lack of parking and high prices that the SoCal weekenders (90+% of business) are unwilling to pay. I have heard that the ski area/Starwood would like to buy the village at a cheaper price reflecting the current economy/real estate market.


I pay no attention to Mammoth.

Is Starwood the giant hotel corporation?

Is Mammoth Village the developable land and Starwood just operates the ski resort?

From my observation at Killington, decoupling the ski business from the real estate business doesn't work.
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Re: Ski Resort Ownership in North America

Postby Mike Bernstein » Thu Aug 04, 2011 10:28 am

Geoff wrote:
Tony Crocker wrote:
Mike Bernstein wrote:Does it matter that CNL owns so many resorts when they don't appear to have any day-to-day influence on operations and act solely as landlords?

This is the topic where I have questions. What is in all of this for CNL? Presumably the long term lease income is a projected reasonable rate of return on what they paid for each property. Who is in trouble if the resort doesn't meet revenue projections? At Mammoth it is prevailing opinion that the mountain ops are as successful as ever, though they have to cover an onerous debt load that Starwood assumed to buy it from Dave McCoy in 2006. But the now CNL-owned (also since 2006) village has underperformed from the time it started a decade ago due to lack of parking and high prices that the SoCal weekenders (90+% of business) are unwilling to pay. I have heard that the ski area/Starwood would like to buy the village at a cheaper price reflecting the current economy/real estate market.


I pay no attention to Mammoth.

Is Starwood the giant hotel corporation?

Is Mammoth Village the developable land and Starwood just operates the ski resort?

From my observation at Killington, decoupling the ski business from the real estate business doesn't work.


I think Killington under the new ownership is an object lesson in what not to do across the entire operational spectrum. that said, it's only one data point, and I wouldn't draw conclusions based solely on PWDR/E2M's incompetence.
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