Vail Buys Stowe Mountain Resort (updated title)

Discussion in 'Resort and Travel' started by Mike Thomas, Jan 24, 2017.

  1. Mike Thomas

    Mike Thomas Whiteroom Pugski Sponsor

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    There is a rumor running rampant... no confirmation, but supposedly the deal went down yesterday. The deal has been looming for a while now, this rumor might not be true at all, but there has been interest, there has been an exchange of financials. Everyone I talk to seems to think the purchase is inevitable.

    Anyone with connections on the Vail side know anything?
     
  2. cantunamunch

    cantunamunch Head First Skier

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    So...basically... with Whistler and Stowe gone... the 2017/2018 MCP is going to float like a railroad rail?
     
  3. Monique

    Monique bounceswoosh Skier

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    If they did, I'm sure there will be a press release ASAP.
     
  4. James

    James Out on the slopes Instructor

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    Gross.
    Well I guess a bowl of chili at Spruce Peak will now be $22.
     
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  5. Monique

    Monique bounceswoosh Skier

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    Rumors are worth the paper they're printed on. Let's see a press release before we go freaking out.
     
  6. quant

    quant Don't worry, just go down. Skier

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    Vail Resorts is public. An acquisition is a "material event" and no 8-K was filed. An 8-K would usually be filed before or simultaneously with a press release, although it could occur up to four business days later. Stowe is not a typical company for MTN since it is not near a metropolitan area with significant population and a large airport. Boston is a longer drive than from Reno to Lake Tahoe, Denver to Vail, etc..

    Of course, Katz is also running out of prime properties to purchase so perhaps it is true.
     
    Last edited: Jan 24, 2017
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  7. Ron

    Ron AKA Finndog Pugski Ski Tester

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    makes sense!
     
  8. NESkiBum

    NESkiBum Booting up Skier

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    Stowe may not be as close to a major metropolitan area as big as Boston or Denver but it is located between the State capital of Montpelier and Burlington with Burlington Airport 40 minutes away.
     
  9. Josh Matta

    Josh Matta Out on the slopes Instructor

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    My pass will be good at Whistler next year. If I am not working at Aspen.
     
  10. David Chaus

    David Chaus formerly known as DesiredUsername Skier

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    Somehow, just somehow, I can still see the value of places like Taos, Telliuride, Alta/Bird, Squalpine, Mammoth, Sun Valley, Jackson, Aspen/Snowmass,and Lake Louise/SSV. Not to mention Revelstoke.
     
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  11. cantunamunch

    cantunamunch Head First Skier

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    One can have lots of value and still be at a competitive disadvantage. First, it becomes exclusively a west coast pass with no driving option for right coasters. And we know that yes all of those resorts can have bad snow years in the same season - and have, in the quite recent past.

    For right coasters that can pick only one pass will the MCP be it? For right coasters that can buy two passes will the MCP be preferred?
     
  12. quant

    quant Don't worry, just go down. Skier

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    As with everything, it depends. Is the skier a "real" skier who wants to ski several resorts each month? Are the skiers a family or an individual that enjoys vacationing in one spot for a week at a time? Does the potential passholder have kids who are part of a local club or team that skis mostly one mountain? The MCP is a great deal for kids at $99 and for adults, but those 50% off days add up when staying in one resort for a week at a time. I suspect a number of "real" skiers (bums, the retired, locals, etc.) will opt for both passes. If I lived in Park City or Stateline getting both passes would make sense (EPIC Local + MCP with no blackout).
     
  13. James

    James Out on the slopes Instructor

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    No major city near Stowe? True, but very, very, false.
    In these days of loathsome high temps, the extra distance to Stowe makes sense. Mt Snow?? Maybe 50 years ago, now it's way too far south.
     
  14. David Chaus

    David Chaus formerly known as DesiredUsername Skier

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    Or they chose the Max Pass or Max-Add on, which has quite a lot of East Coast resorts. The Max Pass seems to have the most spread out distribution of the major multi-resort passes.

    I guess I'm not worrying about which pass an east coast resident chooses. If it's Epic, should Epic include Stowe, good for them. But I'm thinking about my options. If Whistler continues to offer the Edge card for Canadian and WA/OR residents, I could easily choose a Max Pass add on to my Stevens Pass season pass. Or an MCP, depending on which resorts I choose to visit. If the Edge Card is retired :( then I may reluctantly be coerced into being forced against my will to purchase an Epic Pass :eek:.

    Damn, these First World Problems really suck.
     
  15. Monique

    Monique bounceswoosh Skier

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    This is still a lot of hand-wringing over what is thus far complete fiction.
     
  16. KevinF

    KevinF Call me "Lefty" Skier

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    My question would be is my pass good at Whistler this year? Specifically, the first week of March? :)
     
  17. Josh Matta

    Josh Matta Out on the slopes Instructor

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    not this year but next.
     
  18. Sibhusky

    Sibhusky Getting off the lift Skier

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    Well, glad they looked eastward. Have seen the PR lady and the CEO doing far too much "showing people things" lately on the slopes. Had me worried.
     
  19. Muleski

    Muleski Out on the slopes Industry Insider

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    Who owns the iconic Stowe logo, with the big sweeping S? If it is the Mt. Mansfield Co., or whatever the mountain is known as, that could get very interesting around town with a change in ownership.

    Obviously there have been rumors of AIG, and now it's successor company selling for at least 35 years. I saw my first prospectus, in I think 1986. Many people did varying degrees of due diligence, and I believe there were some serious discussions, but it never happened.

    I know one group that felt that it could not work at close to the bottom line price. As I recall, it was because of the "very limited developmemt potential." Toll House was developed, there were a few houses near Spruce on on the road up to the Big Spruce Chair. I think that the thought was that acquiring more land, and getting permitting done would be very difficult.

    Obviously if you look at an aerial view of the whole Spruce side of 108 now versus 1986, they owners figured it out! Did they ever.

    But now, I guess my question is how a very opportunistic organization views Stowe, in terms of delivering the returns and upside that their shareholders demand. Particularly as I assume it would command a huge price.

    I grew up there. I LOVE the mountain. But to me this is not a true destination resort in scope or scale like the rest of their holdings tend to be. Maybe they have a vision for more of everything up on that footprint of land. I have no clue.

    Another factor is truly how big can four seasons be in terms of revenue up at the mountain, and the golf course. I think their normal model is to be as busy, or busier in terms of the summer.

    Would not surprise me, and will be interesting to keep an eye on.

    In terms of proximity to major cities, don't forget Montreal. Big draw of that crowd to Stowe, even with an unfavorable exchange rate. Has never seemed to matter to them.
     
  20. epic

    epic Out on the slopes Instructor

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    Mike, I hear that your best case scenario may be in the cards.
     
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