Vail Resorts Cancels All 2020 Lift Construction

Ski industry fallout from the global pandemic continues.  Vail Resorts today announced the deferral of lift construction projects slated for Beaver Creek, Breckenridge, Keystone and Okemo due to a dramatic decline in revenue, which is expected to continue into fiscal year 2021.  The suite of projects was first announced last December, the same month COVID-19 first appeared in Wuhan, China.  While the virus spread across Asia, lift manufacturers were gearing up to build lifts that now won’t happen this year.  Beaver Creek had planned a major expansion into McCoy Park and Okemo earmarked a new bubble six pack for Jackson Gore.  Both Breckenridge and Keystone planned new chairlifts to increase uphill capacity in high traffic areas.

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McCoy Park, Beaver Creek’s deferred terrain expansion, would include two new lifts and 15 trails.

Vail said weeks ago coronavirus will cost the company between $180 and 200 million in March and April alone.  Eliminating lift construction, terrain expansions and discretionary base area improvements will save the publicly-traded company $80 to 85 million while allowing the vast majority of maintenance capital projects to proceed.  “The circumstances surrounding COVID-19 are unprecedented and the financial impact to our Company and the broader travel industry has been significant,” noted Rob Katz, Chief Executive Officer of Vail Resorts.  “We are taking proactive steps to align our capital spending and return of capital approach to ensure that we remain positioned for long-term success.”  Other steps revealed today include the furlough of nearly all year-round hourly employees, suspension of the company’s shareholder dividend, salary reductions for non-hourly employees and elimination of cash compensation for the CEO and board of directors.

The decision to postpone lifts is a blow to both major lift manufacturers but particularly Leitner-Poma, which like Vail itself, is Colorado-based.  The firm had been awarded contracts to build three detachable chairlifts and move another this summer.  Doppelmayr USA had planned to install the two machines at Beaver Creek.

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The second largest Vail project this summer was to be replacement of Quantum Four at Okemo with a larger bubble lift.  The existing quad was slated to move over to Green Ridge.

As goes Vail, often go others.  While I’m hopeful some lifts (and the jobs that come with them) are safe, more deferrals are possible.  Rival Alterra Mountain Company planned to add only two lifts this year, both six place chairlifts at Mammoth Mountain.  The privately-held group has not announced any changes to its capital plan thus far.  In tough times, every company is understandably revisiting capital budgets and commitments, however.

The sudden onset of such deep uncertainty in this critical period of the lift production cycle is unprecedented.  With the elimination of Vail Resorts projects for 2020, announced US and Canada complete new lifts stand at 24, fewer than Doppelmayr built by itself last year.

News Roundup: Big Game

Vail to Build New Lifts at Four Resorts in 2020

Beaver Creek, Breckenridge, Keystone and Okemo will all add new lifts next year in a mix of expansions and replacements.  Parent company Vail Resorts made the project announcements alongside a quarterly earnings report this afternoon.  “We remain committed to reinvesting in our resorts, creating an experience of a lifetime for our guests and generating strong returns for our shareholders,” said Vail Chairman and CEO Rob Katz.

At Beaver Creek, a new detachable quad will service the high alpine McCoy Park learning zone.  “This new lift accessed beginner and intermediate bowl experience is a rare opportunity to expand with highly accessible terrain in one of the most idyllic settings in Colorado and will further differentiate the high-end, family focused experience at Beaver Creek,” said the company.  A second quad chair will provide egress to the top of the Strawberry and Upper Beaver Creek Mountain Express lifts.

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The Peru Express opened in 1990 and will be supplanted by a higher capacity lift.

At Keystone, the Peru Express will be replaced by a six pack subject to government approval.  The new machine will increase out-of-base capacity and improve overall circulation.  Also in Summit County, a new detachable quad on Breckenridge’s Peak 7 will enhance uphill capacity near the Independence SuperChair.  “This additional lift will further enhance the guest experience at the most visited resort in the U.S. and will significantly increase guest access and circulation for the intermediate terrain on Peaks 6 and 7,” said Vail.

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News Roundup: Seven Meters

  • Val Saint-Côme, Quebec looks to build its first six place detachable lift.
  • The opening of the first lift at Skeetawk is pushed back to midwinter due to delays with SkyTrans’ other project in Illinois.
  • Maine’s Eaton Mountain will not operate this season.
  • Leitner and Kitzbühel partner to build Austria’s fastest monocable ropeway which will travel 7 m/s at a cost of $30 million.
  • Mt. St. Louis Moonstone’s new six pack will be named Josl Huter Express in memory of the mountain’s founder.
  • Aspen Highlands’ Goldenhorn surface lift is on track to be built next summer.
  • Just 75 days after the Sea to Sky Gondola haul rope was severed, a new one arrives in Squamish.
  • Another great podcast episode features the owners of Plattekill Mountain discussing competition from the State of New York, Vail’s purchase of a competitor and the decision not to join the Indy Pass.
  • The Forest Service says yes to Breckenridge’s Peak 7 Infill high speed quad project.

News Roundup: Big Picture

 

News Roundup: Italian American

    • The Edmonton Ski Club and its Mueller T-Bar will reopen this winter following a one year hiatus.
    • The developer of Big Snow America is so confident in the American Dream project that it offered the Mall of America and West Edmonton Mall as collateral to secure a $2.8 billion construction loan.
    • Investors and Berkshire Bank battle over whose claim to the Hermitage six pack should take precedent.
    • The White River National Forest extends public commenting for the Breck Peak 7 Infill chairlift project to September 1st.
    • The Forest Service approved Aspen Mountain’s Pandora expansion awhile ago but the county still needs to approve necessary zoning.
    • SilverStar adds 24 hour security, surveillance cameras and enhanced line checks in the wake of the Sea to Sky Gondola downing.
    • TransLink’s CEO says the proposed Burnaby Mountain tricable gondola would be less susceptible to such an attack.
    • Grouse Mountain gives all Sea to Sky Gondola passholders free lift access through November 30th.
    • S2S cleanup will take awhile and trails remain closed for public safety.
    • Swiss manufacturer Bartholet shows it’s possible to build a new fixed quad in just three weeks.
    • Jaegerndorfer now exports Omega V cabins in miniature form to the United States.
    • Aspen Snowmass will add chairs to lifts at Highlands and Snowmass to address Ikon Pass crowding concerns.
    • Skytrac will manufacture towers for and install the new Leitner T-Bar at Ski Cooper.
    • This profile demonstrates why the Kaiser S2 excavator is so popular for ski lift construction.
    • MND Group, owner of LST Ropeways, says it has resolved “financial difficulties” by reorganizing its debt.
    • Doppelmayr names Jürgen Pichler its new global marketing chief.
    • It looks like Sunday River’s Locke Mountain triple will gain a tower or two thanks to the new T-Bar that crosses under it.
    • Arctaris Impact Fund hosts a community meeting and announces its intention to close on the purchase of Saddleback come early November.
    • Big Sky and Loon Mountain will launch the world’s first dual frequency RFID lift access system in partnership with Axess.
    • With a new detachable quad under construction, Bogus Basin caps a five year turnaround.
    • Alpine Media display screens will go live on more chairs this winter.
    • Big Burn at Snowmass may be replaced with a bubble lift.

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News Roundup: Docs

News Roundup: Win-Win

News Roundup: Heating Up

News Roundup: Tough Week