Vail Resorts and Whistler Blackcomb Agree To Strategic Combination

[RachelV]

This is a good article, I thought:
http://mountaintownnews.net/2016/08...omponent-of-vail-resorts-swallowing-whistler/

Really interesting that even though Whistler already gets mid-winter rain, and VR only expects its weather to get more erratic during ski season, the geographic diversity it adds and the summer activities there still make this worthwhile.

I have to admit that my first reaction to this deal was surprise that VR wanted what's probably going to be one of the first big resorts to really be effected by climate change. More evidence that it's becoming less and less about skiing for the big places, I guess.

 

[skibob]

This is a good article, I thought:
http://mountaintownnews.net/2016/08...omponent-of-vail-resorts-swallowing-whistler/

Really interesting that even though Whistler already gets mid-winter rain, and VR only expects its weather to get more erratic during ski season, the geographic diversity it adds and the summer activities there still make this worthwhile.

I have to admit that my first reaction to this deal was surprise that VR wanted what's probably going to be one of the first big resorts to really be effected by climate change. More evidence that it's becoming less and less about skiing for the big places, I guess.

And that corporations have a fairly short event horizon. Which is a major cause of climate change in the first place.

10 years of profitability will justify VR's investment. Any point after that, they could sell off pieces or total at what appears to be a "loss" but isn't when you consider the years of operating profit, tax impacts, etc.

 

[TonyC]

Whistler is arguably the most snow reliable resort VR owns now. Yes, it rains in the village a lot, but 90% of terrain is above 4,000 feet and most of the best terrain is above 5,000. Adjusting for latitude 5,000 at Whistler is like 8,000 at Tahoe. So yes it rains every once in awhile, but it's going to take a much bigger temperature move than we've seen in the past 50 years to affect those elevations. I skied Whistler in both PNW disaster seasons, 2005 and 2015 (when the lower Washington State resorts were completely washed out), and the signature alpine skiing was still great. What the PNW has going for it is consistency. Drought on the level of Colorado in 2011-12 or the Sierra in some recent seasons is very rare.

 

[Tricia]

I was looking around for some information on Whistler, because I'm getting my ducks in a row for the GTG, and stumbled upon this.
http://vancouversun.com/business/lo...billion-takeover-offer-for-whistler-blackcomb

Its kind of interesting to read things related to Whistler and see the view of those who will benefit from Vail's presence.
It will be interesting to see what changes take place when VR takes the reins.

 

[Jilly]

This is going to be one the big things. Currently an unlimited pass is $ 1500 + HST. I'm sure they will keep a local/WB pass only, but the Epic pass will be the popular one for anyone. Right now with your season pass there are all kinds of perks. The Epic pass won't have that. So no discounts on food on the mountain.

It states that development plans will be on going. And talking to ski instructors I know, they're happy too.

 

[michael]

It states that development plans will be on going. And talking to ski instructors I know, they're happy too.

Interesting - especially in light of the ongoing discussion about instructors and Vail. What feedback have you gotten?

 

[Jilly]

I've been staying out of that discussion. There are a lot of labour laws in Canada. And there is a minimum wage policy in all provinces. BC's is lower than Ontario. But the instructors I've been talking to seem to think there will be more clientele, more tourists, more money.

 

[Tricia]

And so the changes begin.
Press Release
DAVE BROWNLIE, WHISTLER BLACKCOMB COO, TO STEP DOWN

I would like to share with you that Dave Brownlie, Whistler Blackcomb Chief Operating Officer, has made the personal decision to step down from his role. After nearly 30 years at the resort, Dave and his family are ready to take the next step toward exploring new personal and professional opportunities that will allow him to engage in the strategic leadership of a business. He will be staying on through mid-summer to ensure a smooth transition for the resort, its employees and the community.
Dave began his impressive career at the resort in 1989 when he joined as the Director of Finance following a brief tenure with the Vancouver accounting firm, KPMG. He has since served as the Vice President of Finance & Corporate Development, the resort’s President and he was appointed Chief Executive Officer in 2012.
Dave’s most significant contributions include co-leading the merger of Whistler and Blackcomb mountains, the development and implementation of the PEAK 2 PEAK Gondola, playing a key role in the world-class hosting of the 2010 Winter Olympics in Whistler and guiding the resort for its Initial Public Offering (IPO) on the Toronto Stock Exchange in 2010 as well. In 2016, he was the recipient of Business in Vancouver’s BC CEO of the Year Award and, most recently, in February 2017, he was instrumental in securing new 60-year Master Development Agreements with the Province of British Columbia in partnership with the Squamish and Lil’wat Nations on whose traditional territories the resort operates.
We are incredibly grateful and proud of Dave’s contributions throughout his long tenure at the resort, but most especially during the integration of Whistler Blackcomb into our Company over this past year. His leadership during this transition has been critical to the resort’s continued success during the
2016-2017 winter season and its offering of exceptional service to our guests and experience for our employees. Undoubtedly, Dave leaves a legacy of exceptional leadership, an incredible team and dedication to the resort and the local community that will not easily be replaced nor forgotten. I am confident that the terrific team Dave has built and led will carry his legacy forward in the months and years to come.
In a recent interview with Dave, SBC Business Magazine asked him if he could have any job in the world, what would it be, to which he replied, “I guess I would have to go back to my hockey roots and be the President & CEO of the Vancouver Canucks or maybe a heli-ski guide.” Whether we next see Dave on a hockey rink or helicopter, please join me in congratulating Dave on an incredible career at Whistler Blackcomb and we wish him nothing but the best on his next adventure.
Pat
Pat Campbell
Mountain Division President

 

[DanoT]

After reading that snapshot of Dave Brownlie's career, I would say that Vail Resorts would have an impossible task of replacing him with someone better and more qualified. Brownlie may in fact be the one deciding to leave but more likely it is a firing and he is just better off being gone.

When I was at CMH Rotor Lodge earlier this year I ended up at supper one evening sitting beside a guy who turned out to be the Guide Manager for all CMH's 12 lodges. We got to talking about Vail-WB and he said that the intel that he was getting was that it was the Vail management people that were learning things from the Whistler management.

 

[Tricia]

Jump/pushed - such a fine line.

 

[noncrazycanuck]

one change of note since Vail purchased Whistler.
This year a 5-10 day edgecard for 2018 no longer offered that great spring skiing add on, only the early season freebies remain
Best deal for locals now is the WB season pass -as rates are down significantly. Epic pass was also offered but not a lot of value in it for those who primarily ski BC
That seemed to result in less Vancouver locals in April and May. International visitors were the majority.

Skiing was pretty good right up to closing day on our Victoria Day long weekend.
Alpine coverage was still close to winter level with fresh snow falling even in the last week of ops.

 

[trailtrimmer]

We got to talking about Vail-WB and he said that the intel that he was getting was that it was the Vail management people that were learning things from the Whistler management.

I wouldn't be at all surprised. Given that WB has stellar, modern infrastructure and makes good money at only $99 CAD for a daily lift ticket, Vail could learn lots. I have zero reason to go to any American resorts on vacation when I can round trip to Vancouver for $450 USD and a lift ticket is about $70 a day.

 

[Tony]

I wouldn't be at all surprised. Given that WB has stellar, modern infrastructure and makes good money at only $99 CAD for a daily lift ticket, Vail could learn lots. I have zero reason to go to any American resorts on vacation when I can round trip to Vancouver for $450 USD and a lift ticket is about $70 a day.

While I am not a fan of Vail ownership based on how they have managed Kirkwood (no lift improvements, no longer allowing overnight parking and closing on 4/16 with 200" base), I have to question the daily lift ticket prices you are using. You should compare walk-up vs. walk-up or advance purchase vs. advance purchase, etc. Walk-up at Whistler during the Gathering in March 2017 was $145 CAD based on the $54.14 I paid for 1/2 price extra day on Mountain Collective (54.14 * 2 * 1.34 exchange rate). While that is quite a bit less than other Vail owned or managed Western US ski resorts (except Kirkwood), there are large ski areas in the West where daily walk-up price is $120 USD or less. I did see that $99 CAD is the price of a Buddy ticket at Whistler next year, but that requires a passholder who has Buddy tickets.

 

[DanoT]

IMO, one of the reasons Vail was comfortable paying above market price to get all of the available shares of WB is that the $350mCDN Renaissance Project is about to be approved or has already been approved.

This redevelopment project will have some lift replacement and new runs but is primarily focused on expanding summer and shoulder season infrastructure and activities and of course increased customer visits. This project will serve as a basic template for similar summer renovations/upgrades/expansion to Vail's other resorts with considerable ground work savings.

 

[noncrazycanuck]

Renaissance is under way - although current snow pack will slow the alpine progress
new gondola base already in place lower hill.

 

[trailtrimmer]

While I am not a fan of Vail ownership based on how they have managed Kirkwood (no lift improvements, no longer allowing overnight parking and closing on 4/16 with 200" base), I have to question the daily lift ticket prices you are using. You should compare walk-up vs. walk-up or advance purchase vs. advance purchase, etc. Walk-up at Whistler during the Gathering in March 2017 was $145 CAD based on the $54.14 I paid for 1/2 price extra day on Mountain Collective (54.14 * 2 * 1.34 exchange rate). While that is quite a bit less than other Vail owned or managed Western US ski resorts (except Kirkwood), there are large ski areas in the West where daily walk-up price is $120 USD or less. I did see that $99 CAD is the price of a Buddy ticket at Whistler next year, but that requires a passholder who has Buddy tickets.

The $99 CAD price was pre-purchase online a couple weeks ahead of my January trip. Even walk ups were about $120 CAD at the time, after exchange, you are looking at $90 USD a ticket. With five days of skiing, it's about $300 cheaper than going to Vail. That buys a lot of après drinks.

 

[noncrazycanuck]

The current exchange rate is the reason Canadian skiers south of the border are relatively rare.
Whistler is our most expensive ticket but we have a lot of other very good hills.
Although for some they are best done as a road trip and for many stops only the skiing is exciting.

 

[Tricia]

Mike Douglas' contract with Whistler Blackhomb will not be renewed.
Snip from article:
"It's no surprise, really. The new ownership of Whistler Blackcomb has changed the strategy of how they work and changed the whole structure of the company on the inside. Given the new structure, they didn't see the need to have a person like me involved anymore," he said in an Oct. 2 interview. "I have a lot of friends that work at other Vail Resorts (operations) and I understand the style of business that they do and it's quite different than what's been done in the past.

"I would have been more surprised if they had kept me on, to be honest."

 

[DanoT]

The current exchange rate is the reason Canadian skiers south of the border are relatively rare.
Whistler is our most expensive ticket but we have a lot of other very good hills.
Although for some they are best done as a road trip and for many stops only the skiing is exciting.

And the part in bold is really all that I am looking for.

 

[fatbob]

I get the Douglas thing. Shame though that the Vail cookie cutter doesn't have space for a talented guy like Mike. How VR captures the post millenial crowd seems interesting to me - SKI mag ads no longer cut it. Maybe they've run the numbers and figure that if your parents didn't take you skiing there (or you're not in a social group whose parents did) then you're not worth going after.