Top Five Fridays: August 30, 2024
Is Vail pursuing a purchase of Switzerland’s LAAX Ski Resort? Maybe. Is Vail pursuing the acquisition of more European ski resorts? Almost definitely. More on that below. Image: LAAX on Facebook
#1: It’s Official: With North America’s First Snowfall of the 2024-2025 Winter, Preseason is Underway:
A screengrab from the top of Lake Louise Ski Resort in British Columbia, showing the first snowfall of the year on 8/28/2024. Image: Lake Louise Ski Area on Facebook
Hello, and welcome to Top Five Fridays, the August 30, 2024 edition! There's excitement in the air this week, as it’s starting to feel a lot like preseason around these parts for two big reasons. First, we kicked off our annual comparison series just yesterday, with a look at 20 different mid 100mm freeride skis. Alongside our annual Ski Test, which is coming very soon, our comparison series has become one of the go-to guides for those finding themselves in the market for new skis. If that’s you, we highly recommend checking it out. The second reason it feels like preseason this week is pretty straightforward: North America received its first snowfall.
Last Saturday, just a day after our last Top Five Friday report, our snow alarms started blaring as we caught wind that Mammoth Mountain and Palisades Tahoe in California were both reporting their first snowfall of the season. While Palisades shared a video showing flurries in the air, Mammoth shared footage of what we’d consider a “legitimate dusting,” to use meteorology-speak. From there, it was seemingly game on, as a few days later we began seeing reports from British Columbia, where Lake Louise and Revelstoke joined the party, both who shared snow news via social media posts of their own. A day later, the cold front dipped further south into the continental United States, bringing snow to Bridger Bowl and Whitefish Mountain Resort in Montana, as well as Jackson Hole in Wyoming.
While total accumulations were minimal, the fact that measurable snowfall occurred in August took everyone by surprise, begging the question, “what kind of winter are we in for?” At the moment, there’s little consensus between the different long range forecasts, as you might expect. So, while we unfortunately can’t promise you that August snowfall means we’re in for an incredible winter, we can promise you that winter is coming and that it’s time to get excited.
#2: Vail’s European Intentions Are Slowly Becoming Clear as it Eyes the Acquisition of LAAX::
Rumor has it Vail Resorts is showing interest in acquiring LAAX, widely regarded as one of the top ski resorts in Switzerland, as its third European ski resort. Image: LAAX on Facebook
In other news this week, we find ourselves reporting on a bit of a rumor. While it’s not something we typically do, we’re starting to see quite a bit of smoke surrounding the idea that Vail is looking to expand its European footprint by acquiring more Swiss ski resorts. Typically we stay away from speculative headlines until they become actual news, but in this case, there’s enough information at play in this week’s news that we believe it to be the start of a bigger story, regardless of how this particular chapter plays out. Allow us to explain.
Late last week, Swiss news publication Blick shared an article in which it stated the “U.S. Giant” that is Vail Resorts is “hungry” for more Swiss ski resorts. The article itself is pretty sensational, and reads a bit like a tabloid, so when it came across our computer screens last week, we decided not to highlight it. This week though, another Swiss publication, Blue News, elaborated on the initial piece and between the two reports, we’re starting to have a pretty good understanding of what’s going on here, as well as why LAAX is in the spotlight.
First, let’s talk about the contents of the Blick report. In that article, it’s suggested that Vail’s approach to acquisition in Europe has been to find ski resorts where one person is the majority shareholder. Then, Vail simply makes an offer that person can’t refuse, acquires their share, and effectively becomes the owner of the resort. In the Blick report, it’s said that Vail used this approach to attempt an acquisition of Verbier, which is majority owned by one man: Christian Burrus. That deal didn’t happen as Burrus allegedly denied the offer. Still, it’s that strategy that’s the foundation of this week’s reports that LAAX is the next resort being targeted by Vail.
Piecing together the information in the Blick report as well as the Blue News report, the picture we’re getting is that LAAX is operated by a company called the Weisse Arena Group, which is majority owned by the Schröcknadel family. The chairman of the board of directors for the Weisse Arena Group is a man named Reto Gurtner, who is generally considered to be the person responsible for LAAX’s prosperity. In other words, the resort is owned by the Schröcknadels, while Gurtner is their frontman. In this week’s reports, it’s suggested that Gurtner and Vail have been in talks regarding the possible sale of the resort. At the moment, the sale of the resort is being denied by the Schröcknadel family, while publications seem all but sure that one is imminent. As a result, there’s an air of uncertainty surrounding the whole issue.
Now, zooming out a little, let’s take a look at why we consider this newsworthy despite the fact that it’s purely speculation at the moment. For starters, with this much information available, we have to conclude that at the very least, Vail has put feelers out to multiple Swiss ski resorts to assess their purchasability. Noting that Crans Montana was purchased by Vail back in December of last year, we also know for a fact that the company has an interest in European expansion. Prior to that, it had also been two years since Vail’s last U.S. acquisition, when it took over a trio of small ski areas in Pennsylvania. In other words, its spending on U.S. based acquisitions has slowed considerably. Taken in summation, the picture that’s being painted is essentially this: Vail Resorts has shown a decreased interest in continuing to acquire U.S. based ski resorts, as well as an increased interest in acquiring European ski resorts, proven through both backroom chatter and actual acquisitions. So, do we know for sure that Vail will acquire LAAX? Definitely not, although it sounds likely. What we do have a much stronger belief in though, is the idea that Vail is entering a more European phase of its consolidation model. Should this story continue, you can be sure we’ll keep you updated. Until then, read the report from Blick here, and Blue News here.
#3: As Local Group Forms in an Attempt to Buy Mt. Bachelor, the Question Becomes, “Who Will Buy the Rest of POWDR’s Ski Resorts?”:
Mt. Bachelor presents a unique opportunity to ski resort operators of any size, and early signs suggest that there could be quite a bit of competition for it now that it’s up for grabs. Image: Mt. Bachelor on Facebook
In other news this week, we have a bit of a followup to last week’s news regarding the sale of POWDR’s resorts. In case you missed it, here’s the long and short of last week’s update: POWDR Corp, once the owner of 11 ski areas, has begun pivoting away from its ski resort centric business model. In doing so, it announced the sale of Killington & Pico Mountain to a pair of local shareholders last week, as well as intentions to sell Mt. Bachelor, Eldora, and SilverStar ski resorts. This of course has left us all with the question, “who will buy these resorts?” Of the three, Mt. Bachelor is of particular interest as it’s not only the largest of the group, but also one of the most unique and iconic resorts in the United States. This week, while we don’t have answers, we do have a pair of articles that lead to some interesting ideas regarding the possibilities for Mt. Bachelor in particular. Let’s dive in.
The first of the two articles we’ll take a look at comes to us by way of StormSkiing.com, who always does an excellent job of sharing in-depth coverage. Unfortunately, a significant portion of the article is blocked by a paywall so we can’t share all of the article’s insights, but the portion that’s free to read still provides some excellent thoughts in regards to what might lie ahead for the resort. With that in mind, let’s consider the first concept: the idea that one owner might purchase all three resorts together, in one transaction. The likelihood of that happening, according to StormSkiing? Pretty small. As is accurately pointed out, the location of the three resorts are British Columbia, Oregon, and Colorado. For that reason alone, it’s unlikely that a regional operator would buy the three pack. Instead, the purchaser would have to be a bigger group like Alterra, or Vail, or what POWDR Corp once was. Noting that POWDR Corp isn’t an option, and Vail’s reduced interest in more North American acquisitions, it stands to reason that Alterra would be the only possible candidate in terms of a triple acquisition. That said, when separated from the group, interest in Mt. Bachelor is expected to be significant.
According to information gleaned from conversations that StormSkiing author Stuart Winchester had with multiple ski resort owners, Mt. Bachelor is a hot commodity across all levels. While the resort is of interest to independent parties and locals for obvious reasons, it’s also of interest to multi-resort owners at every level. While he wasn’t at liberty to discuss specifics, Winchester does write, “there doesn’t appear to be any established North American multimountain operator who isn’t interested in Mount Bachelor.” That list includes the likes of Vail and Alterra, as well as regional operators like Mountain Capital Partners (who recently made inroads in South America) or California Mountain Resort Company, who owns four resorts in California, with Bear Valley being its crown jewel. For any of these operators, adding Mt. Bachelor would be seen as a valuable move.
Interestingly though, despite the overwhelming interest from multi-resort owners, headlines coming out of Oregon seem to be more centered around an effort being put forth by local buyers who are interested in owning the resort. Perhaps inspired by the recent sale from POWDR to Killington locals, or last year’s sale of Jackson Hole to local passholders, two men in the Bachelor area are looking to organize a local effort in attempts to purchase the resort. While this effort is understandably very young, as the news broke just over a week ago, Chris Porter and Dan Cochrane are hoping to find a way to purchase the resort and return it to the community. In their minds, the goal would be to turn the resort into either a non-profit, or put it in the hands of a trust. While the idea of a resort of this caliber being sold to the local community might’ve been laughable just a handful of years ago, POWDR’s recent decision to do just that with Killington, as well as immense local support for the movement, suggest that it’s not out of the realm of possibilities. Whether or not it will play out like this is yet to be seen, but for now, there is hope. To learn more about this local effort, check out the latest from Central Oregon Daily.
#4: Powder Mountain Owner Reed Hastings Announces Plans to Build “Outdoor Art Museum” Throughout the Mountain:
James Turrell’s “Ganzfeld Apani”, which is set to be installed in a trailside pavilion at Powder Mountain. Image: PublicDelivery.org
Finally, for our last topic this week, we’ve got what we think is a pretty interesting highlight, albeit one coming to us from a somewhat controversial ski resort. This week, Forbes shared the news that Netflix co-founder and Powder Mountain owner Reed Hastings is moving forward with plans to transform the semi-private ski area into what he’s calling an “outdoor art museum”. More specifically, this means that Hastings has plans to implement art installations and sculptures all throughout the mountain, as well as in a visitor center located in the base area. While the concept of an outdoor art museum could mean a variety of things, what makes this news particularly interesting is that in this case, the concept isn’t a simple, low budget ploy to get extra eyes on the mountain. Rather, Hastings has enlisted a whole suite of high-end professional curators and artists to bring his dream to reality.
Leading the outdoor museum project will be Reed Hilderbrand, who has previously worked at the deCordova Sculpture Park and Museum in Massachusetts, as well as the Storm King Art Center in upstate New York. For the visitor center, Johnston Marklee, the architectural firm behind the Chicago Museum of Contemporary Art, will be tasked with design duties. In addition to these two foundational players, Hastings has also hired Matthew Thompson to be the director of Powder’s arts program, while a whole slew of renown artists such as Nancy Holt, Paul McCarthy, Jenny Holzer, and James Turrell have been enlisted to provide work for the resort.
As for what we should expect some of this artwork to look like? Well, that’s where it gets interesting as the limited information we have leads to equal amounts of intrigue and confusion. For starters, let’s take a look at this quote from Thompson, the director of the arts program: “The curatorial vision is rooted in the intentional integration of art into the landscape and the seasonal rhythms of the mountain, drawing deep connections to the legacy and enduring influence of the historical land art projects of the American West.” That’s more or less what we’d expect this museum to be, however things get interesting when we look into the three art pieces that are already on the mountain or planned for installation. The first of the three is called, “Relay (Powder Mountain),” and is essentially a covered magic carpet. The second is called, “We’ll All Go Together,” and is, in essence, a loudspeaker strapped to a tree in which a recording of an untrained vocal artist is playing. The third, and most interesting, albeit disconnected from Thompson’s vision, is an installation called, “Ganzfeld Apani,” from artist James Turrell. This piece of art is an “immersive light sculpture”, or in other words, a large, sterile looking room that’s capable of glowing in an array of muted colors. This art piece is set to be installed in a trailside pavilion. To be clear, the installation itself looks very cool, although it’s hard to imagine navigating it in ski boots.
Like we said at the top of this one, it’s a highlight that we simply find interesting. Generally speaking, we love the idea of bringing more art into mountain communities, and even the concept of installing sculptures to be discovered throughout the resort. After seeing the examples of art either at the resort or planned for it though, it’s a bit harder to digest what this vision will turn into. Still, it’s a unique idea, and one we felt was well worth a share. To learn more, check out the report from Forbes.