This^^^^^.
It is just beginning. It's a multi year plan. Alterra is being built to increase in value, and for KSL{and their investors in this fund} along with the Crowns to benefit from the ultimate liquidity event. Timing, TBD. Five years? Seven? But Alterra will continue on at that point. Perhaps as a pubic entity. The number of changes, deals, acquisitions, sales that may occur over that intervening time period is "considerable."
I have suggested before, as hard as it may be, to try to separate Alterra's longer term strategy to create value, from the current Ikon pass. They are different things. I would also suggest that we think about the fact that a lot of experimentation, research, data gathering etc. is going on with this brand new company, and that their leadership and management teams are just starting to gel and figure out how how to operate in their new environment.
Ikon is important, but the value isn't going to come from pass sales. I realize that many feel like this is Vail 2.0, all about pass sales. MTN leads and closes every single interaction with Wall St analysts by talking about the growth in Epic sales. Every deal is geared to drive up that number. The analysts buy it, and MTN's market cap keeps increasing. Good stuff. It's to Atterra's advantage to have MTN continue to prosper. I'll leave it at that.
All so very, very new. It's very easy to jump to conclusions and throw darts, and forget the timeline. I happen to believe that they will get it right. I happen to believe that there are many more acquisitions on the way over the next few years. Many. Big. Names.
The acquisition of Crystal is interesting. Forget any strategy, etc. John Kircher bought it in April 2017. He separated from his brother, and Boyne, in doing so. I have heard it mentioned, dozens of times that "John Kircher will NEVER sell Crystal." Yet, he did. many feel that he was presented with a compelling offer that he and his wife could not ignore. Others feel that he sees a real sea change in the industry, and felt that he had to make the move. His deal is a simple one. Not a giant, not a huge amount of complex real estate, no partners. It might well be that Alterra is active right now on a number of other deals that are much more complex. Bigger. Perhaps.Deals that take longer to get done.
Their vision does not play out unless they are working that way. And they have a huge number of very, very serious and demanding investors who have invested with KSL to fund this. These are not people who buy a few shares of stock. It's pension funds to family offices. Average investment is, also, "considerable." Think eight figures, or more. And that group is not stupid. That have more than just a hunch in this plan.
It's very early......Good point by @David Chaus. Lots could develop, including looking just like Vail and falling flat on their collective faces. We'll see.
Making assumptions about next year's Ikon pass? I think that's a bit premature.
I keep focusing that the end game is duopoly. It has happened faster than just about anyone would have guessed. John Kircher said it in the interview quite openly and plainly, it is very hard to compete against the multi-resort passes and that is why he sold Crystal.
I feel there are only a handful of resorts strong enough to survive as true independents at this point.
I'm much less focused on the tweaks to IKON pass (or Epic pass) that could be made versus the fact that industry duopoly has now arrived and what that is going to mean for the ski industry going forward.
And as much as I enjoy the convenience and low-cost of multi-resort passes, industry duopolies are really never end up being good for consumers.