By far the biggest news is the fall of the American Skiing Co. empire which once owned 10 ski resorts from Maine to California. Saddled with a mountain of high-interest debt, ASC's board decided last summer to stop the hemorrhaging, dissolve the company and sell its resorts including six in New England. Founded in 1996 by Maine ski entrepreneur Les Otten, ASC quickly expanded acquiring resorts, adding lifts, upgrading snowmaking and building quarter-share owned condo/hotels. Yet it never made a profit since going public a year later. As debt mounted, Oak Hill Capital Partners, a New York equity firm, became the majority preferred stockholder and eventually pushed for the company's liquidation.
In the wake of ASC's collapse, enter a new series of owners in what's the biggest shakeup of eastern ski area ownership in decades. Many are hailing the departure of ASC as a positive turning point for New England areas with the hope the new owners will reinvigorate resorts that had been affected by ASC's financial problems.
Parker Riehle, president of the Vermont Ski Areas Association, said ASC's fall was "a classic case of overextending themselves." The result was very little money left to reinvest in on-mountain improvements and expansion. "Most revenue was just being sent back to the [ASC] mothership," he said. "Given our competition throughout New England and including
Michael Berry, president of the National Ski Areas Association, expects the new owners to shake up the New England market. "Pricing, service levels, capital improvements all will become more competitive with these multiple companies" now owning Eastern areas.
A trend in the ski industry, Berry said, are the joint ventures between established ski companies and deep-pocked investment firms, equity groups and LLCs financing the resort acquisitions. It's already happening here in New England, but what's it going to mean for skiers and snowboarders this season? Here's a look:
KILLINGTON/PICO IN VERMONT. ASC sold the resorts to SP Land Co. and Powdr Corp. for $85.5 million. SP Land, which had already owned several hundred acres at Killington, is affiliated with SKI Partners and E2M Partners, a Dallas-based private equity firm. Powdr Corp, owns Park City ski resort in Utah; it will run Killington ski operations and will call the shots on what happens on the mountain.
What to expect: As its name suggests, SP Land is a real estate development company. So expect it to focus on the long-sought base village at Killington with years of condo building in the forecast. About $3 million will be spent on snowmaking pipe replacement, additional low-energy snowmaking equipment, base lodge upgrades and many non-sexy infrastructure items. No terrain expansion has been announced so far, but Powdr will likely be better running the East's biggest resort than cash-starved ASC. The new owners have announced that Pico — now in its 60th season — will only be open Thursdays-Mondays; seven days during prime holiday weeks. Chances of a Pico/Killington interconnect have improved, but still years away. Snowmaking on Pico's upper trails will also be bolstered this season. MOUNT SNOW IN VERMONT AND ATTITASH IN NEW HAMSHIRE. ASC sold the two areas to Peak Resorts for $73.5 million. Peak Resorts, based in Missouri, owns 11 areas in the U.S., including the revitalized Crotched Mountain in New Hampshire. Since the lion's share of the company's resort business comes from daytrippers, the Mount Snow purchase was a wise move since it's the largest ski resort closest to southern New England and the New York megalopolis.
What to expect: Shortly after the sale, Tim Boyd, Peak Resorts founder and president, announced $2 million in upgrades at Mount Snow including a fresh coat of paint for its base buildings. "Mount Snow is the flagship for Peak Resorts and we want its loyal guests to see our commitment as quickly as possible," Boyd said. Snowmaking will also be improved which should allow the resort to open more trails earlier.
Attitash is getting a $2..5 million snowmaking upgrade with 100 new fan guns that will be added on Illusion at Bear Peak and the primary runs at Attitash.
SUGARLOAF AND SUNDAY RIVER IN MAINE. Last summer, ASC sold its two Maine resorts to Boyne USA for $77 million. Boyne outbid Otten, who made a last-minute effort to regain Sunday River, a once sleepy area that he transformed into one of the East's most successful resorts and birthplace of his skiing empire.
A few weeks later, Boyne sold the two resorts to Orlando's CNL Income Properties. CNL subsequently leased the resorts back to Boyne USA. This capital partner arrangement isn't unusual; CNL Income Properties also owns and leases ski operations back to former owners at Bretton Wood Mountain Resort and Loon Mountain in New Hampshire.
Headquartered in Michigan, Boyne owns seven other areas including Big Sky in Montana and Brighton in Utah. The family-owned company was started in 1947 by Everett Kircher, a pioneer in ski area development. The world's first triple, four-person and sixth-person chairs were introduced at Kircher's Boyne Mountain in Michigan.
What to expect: While no specific plans have been announced, look for major improvements at both areas based on Boyne's track record of developing four-seasons "escape" resorts. A season pass is being offered that's good for both mountains. Like many ASC resorts, capital improvements were neglected in recent years. The resorts have added one lift each in 10 years.
BOLTON VALLEY, VERMONT. Longtime ski industry veteran Bob Fries has sold out his share of this northern Green Mountain area to locals Larry Williams and Doug Needle, owners of a Burlington-based real estate development firm. Under Fries' ownership, Bolton added lifts, improved snowmaking and ended the jinx of losing seasons. After a series of changing owners, Bolton's now cruising.
MAGIC MOUNTAIN IN SOUTH-CENTRAL VERMONT. Things are looking up at this hardscrabble area that has had four different owners in a decade. JLS Magic LLC. took over ownership and management last fall.
Magic is a unspoiled mountain with a 1,700-foot vertical, narrow twisting trails and glades that can't be beat in southern Vermont when there's plenty of natural snow. Think Mad River South with snowboarders. An antiquated snowmaking system has provided an inconsistent surface leading most skiers and snowboarders to head to nearby Stratton and Bromley.
Jim Sullivan, the managing partner for JLS Magic LLC said improving snowmaking is the key to the mountain's success. "One of the primary things that we're going to do this year is make more snow," he said. "This has been a kind of Achilles heal of the mountain in the past."
The new owners have already renovated the base lodge renovations, and added a mid-mountain. Other pluses: the mountain is nearly deserted midweek and ticket prices are some of the lowest in Vermont; last year just $25 midweek.
HAYSTACK CLUB. Vermont's first gated ski community at Haystack Mountain in southern Vermont opens this season. Sold for $5 million in 2005 by ASC, Haystack was part of the Mount Snow complex, but not linked by trails.
Haystack Club's five-year $450 million project includes new lifts, 100-percent snowmaking coverage, and as you would expect, a spa, five-star restaurant, ski valet and business center. All very, very nice, if you're a member. RAGGED MOUNTAIN: Last May, RMR-Pacific, an affiliate of Utah developer Pacific Group, bought Ragged Mountain in Danbury, New Hampshire, reportedly for about $10 million. Its previous longtime owners, Al and Walter Endriunas, were unable to keep up payments on a $4.75 million loan.
Bob Fries, formerly of Bolton Valley in Vermont, has joined them in revitalizing the area with plans for a large resort village.
WHAT'S NEW
The condo-building boom continues across New England including new developments at Jay Peak, Sugarbush and Okemo in Vermont, even at rustic Catamount on the Massachusetts/New York border.
From Mohawk Mountain in Connecticut to Camelback in Maine, you'll find ski area owners tweaking their mountain operations. New snow guns, groomers, air compressors, hoses, cables, even a new kind of trans-fat free cooking oil for French fries. To them, this infrastrucure minutiae is major, but not here. Here's the big stuff, for us. NEW HAMPSHIRE.
LOON: The opening of its new South Peak area gets top billing in New England ski resort expansion this season. Two quad chairlifts will start turning this year; the high-speed, detachable Lincoln Express and the Tote Road Quad, which will connect the summit of South Peak to the existing mountain, at the top of Upper Speakeasy.
Along with the new lifts, last summer's $10-million project has added nearly 50 acres of new intermediate and advanced terrain. What's opening in December is about a third of 12 new trails to be added.
The expansion is a real estate driven endeavor between Loon's owners, Boothe Creek, and Centex Destination Properties, to develop 400 acres between the mountain and the Pemigewasset River into a four-season resort. Like most resorts these days, the amenity-rich development will be marketed to an upscale clientele and retiring Baby Boomers.
BRETTON WOODS: While most resorts saw a drop in skier visits, Bretton Woods saw business rise 10 percent. Eversince Celebration Associates and CNL Income Properties bought the resort and adjacent properties including the grand Mount Washington Hotel in 2006, they have expanded programs between the resorts and the mountain.
The Mount Washington Hotel's exterior recently had a $1 million restoration. Also planned are a full-service spa. At the mountain, work on a pedestrian village will begin next year with shops, lodging dining and 1,000 new residential units.
Unlike previous years that made it New Hampshire's largest area, there is no large expansion of skiing terrain. It's more refinement of on and off-mountain programs, with some upgrades to snowmaking.
GUNSTOCK: This area in Gilford isn't planning anything on the grand scale at Loon, but it's turning 70 this year. That's worth celebrating, besides it was the first ski area in New England to have a chairlift. Birthday bash plans are in the planning stages.
PAT'S PEAK: Pats Peak's improvements include snowmaking upgrades; increased night lighting; new rental equipment; completely reconfigured beginners area; and expanded snowtubing hours. VERMONT
MAD RIVER GLEN. Now this is history — a new single chair at this hallowed ground that has a religious following of skiers. The cooperative that owns this northern Vermont area realized that no matter how much they loved the 58-year-old chair, they had to do something to keep the tradition and lift turning.
The solution? A $1.5 million "historic rehabilitation" of the lift that uses the original lattice towers which were removed, sandblasted, re-painted, and re-installed on new concrete bases. There will also be new mechanics for operating the lift and new single chairs. The lift will essentially look the same as "Old Faithful," have the same capacity and provide the legendary smooth and silent ride up General Stark Mountain. The grand opening of the lift is Dec. 15.
STOWE IN NORTHERN VERMONT. Owned by insurance/financial giant A.I.G. since 1988, a $400 million transformation of Stowe into a Beaver Creek East is underway. Yes, commoner skiers and snowboarders have benefited with new lifts and (opened last year) a connecting lift between Mount Mansfield and Spruce Peak. Yet, the real action this season is the opening of the Stowe Mountain Lodge, a luxury resort hotel at the base of Spruce.
Architects call the six-story, 139-room lodge's style "Vermont/Alpine" with towering timbers and stone from local quarries. Add a spa, wellness center, "artisan-inspired cuisine," and just about any customized service you want (within the law) and you've got THE place to stay in New England Ski Land this winter.
And if you have to ask how much it will cost to stay there Christmas/New Year's week, there's the Holiday Inn in Waterbury about a dozen miles down the road.
COCHRAN'S SKI AREA in Richmond is finally getting snowmaking. Two trails, I-89 and Mitey-Mite — the area's two most heavily-used runs — will have snowmaking this season. Future plans are to offer 100 percent coverage. OTHER CHANGES
As the dust settled on the sale of Sugarloaf and Sunday River in Maine, Saddleback Ski Area in Rangeley, Maine, received approval for its plan to develop a four season resort village and to construct nine new lifts and associated trails, snowmaking and skier facilities.
In Massachusetts, Jiminy Peak has installed "Zephyr," a 368-foot wind turbine, the first ever for a North American ski area. The turbine will generate about a third of the resort's electrical consumption.
TICKET PRICES: As usual, expect lift tickets prices to rise several dollars, into the mid-seventies at the prime resorts. High, but lower than the $87 Aspen will charge during peak times.
One good thing ASC did do was the reasonably priced All East pass (once below $300 for a mid-week one) for its eastern resorts. The move did allow some resorts to also lower their prices. That still remains the case with some resorts like Okemo and Stratton in Vermont and Mount Sunapee in New Hampshire offering a reciprocal pass (a midweek one went for $329 in pre-season).
No details yet on future of the Mobil Ski3 discount program that shaved $15 off ASC resort lift tickets (except Saturday) if you bought three fill-ups at Mobil stations.
Finally, with New Hampshire's early January presidential primary, don't be surprised if you run into some candidates as they travel around the Granite State. Historically, New Hampshire's primary has been one of the most significant votes in the national race.
Yet there's one election that's already been decided — Springfield, Vermont has been voted the official hometown of "The Simpsons." The town, not far from Okemo and Magic Mountain, beat out 13 other Springfields in a Twentieth Century Fox studio contest.
Hopefully, will all the new resort and changes, the New England ski season will also hit a "Homer" too.
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