Why CNL can't sell resorts

Have to say knowing the REIT business, I'm confounded that CNL went into the ski biz then decided to abandon after such a short time frame. REIT business you have to be in it for the long haul. How many ski resort transactions are there in a year ever; across the whole industry? Not many, and now CNL wants to dump a huge pile of supply into that? good luck. The exit strategy will take many years unless a 'magic unicorn' buyer comes along.
 
They big problem to try and sell is if you buy you don't get to be the operator, just the landlord collecting a rent check hopefully. Doesn't necessarily mean a good ROI.
 
Tom Moriarty":2b2ozevb said:
They big problem to try and sell is if you buy you don't get to be the operator, just the landlord collecting a rent check hopefully. Doesn't necessarily mean a good ROI.
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Yep. That's why they needed to look at it for the long haul as REIT collecting rent. The vast majority of buyers out there for ski areas or other resort properties are ones that want to also operate. So a very, very limited buyer pool. Huge supply of 'for sale' and very small # of buyers means pricing is impacted greatly, or you have to hold on to the properties. Not a great exit strategy. It'll take many years unless they want fire sale pricing is my best guess. Again barring some completely random 'unicorn' buyer that magically appears and wants most of them.
 
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