California/Nevada Mt Rose Ownership In 2016-17

[David Chaus]

Just noticed that Mt Rose has designated October 31st as their opening day. Is the snowmaking that good that they can pretty much count on that? Are they usually the first to open in Tahoe?

If so I imagine that fact, plus having reliable X-mas/New Year's coverage would make it a compelling purchase for a buyer who is able to market it as a holiday destination, in conjunction with some Reno hotels/casinos. I know they've offered packages with casino/hotels in the past. Might even be some traction with offering discounts for pass holders at other Tahoe areas when they are not open yet.

 

[ScotsSkier]

At the moment October 31 is of course a target. We do have pretty good snowmaking capabilities but, as always, it is going to be dependent on the weather outlook and overnight temperatures as to whether or not it will be achievable.

Yes, a lot of the holiday traffic is also closely aligned to Reno area hotels and has a major impact on revenues. Interesting aspect though is that even with high numbers over these periods, which does put some pressure on lodge facilities, it does not have too much of an adverse impact on lift lines that would make it too much of an issue for the locals market. The lift layout design, with 2 high speed six-packs servicing most of the mountain works well to move people and makes it easy to move around the mountain and also to find your ski buddies on the hill

 

[Muleski]

SS,
As mentioned, I have skied there for just three days, but it REALLY struck me as a place that I would ski a ton, were I local. I worked on some skiing during a conference.

What I'm also hearing is that various constituencies, including the long time owners, would ideally like to keep it moving forward on the same track. In other words....not morphing in to a resort.

That might work. I wonder if an ownership group might surface who have the money to buy if, and be happy operating it in the black. No expectations to drive up the value over 8-10 years, then flip it for the big score. I think that second plan, which most who ski at MT. Rose would probably hate, would never happen. Then I guess it boils down to price.

I've been hearing all sorts of "chatter" related to the breakup and sale of the CNL properties. Some of it I've discounted, as it makes no sense. However, I have heard that there may be a couple of buyers for two properties who fit that "operate it in the black" model. People with very, very deep warchests who have strong emotional attachments to a couple of the mountains, and might be interesting in almost being caretakers or stewards, forgoing anything close to the returns the see in other businesses. Also might do this as a group.

$5-10 Mil for that group is short money to preserve something they and their families love. I think that may be a new model for some of these areas. Money is available an cheap. If you are content to operate around break even, that's a huge shot in the arm.

When you hear an outfit like VR, or KSL outline plans, and explain where the revenue comes from, it's such a different business than operating a ski area. Just the income from retail leases, and high end restaurants alone is so different, and evidently huge. Then add it the hotel, timeshare, and overall development piece.

Mt. Rose seems very special.