Despite a 44 percent decline in earnings, Vail Resorts plans to invest in new lifts across five mountains in 2021. The seven projects at Beaver Creek, Breckenridge, Crested Butte, Keystone and Okemo were initially planned for 2020 but postponed due to the coronavirus pandemic. “We remain committed to reinvesting in our resorts and creating an experience of a lifetime for our guests,” noted CEO Rob Katz. “We plan to maintain a disciplined approach to capital investments, keeping our core capital at reduced levels given the continued uncertainty due to COVID-19.” The company will announce its complete capital plan for calendar year 2021 in March.
At Beaver Creek, a new Doppelmayr 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 Park and Upper Beaver Creek Mountain Express lifts.
At Keystone, Leitner-Poma will replace the Peru Express with a six pack. The new machine will increase out-of-base capacity and improve 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.
Crested Butte plans to replace the two-person Peachtree chairlift with a Skytrac triple servicing beginner terrain at the base of the resort. Grading around the new lift will create a more consistent experience for beginner and ski school guests.
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.
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.
As the impacts from COVID-19 continue, it's becoming less clear when our business may reopen. Because of this and to ensure we navigate the financial challenges ahead, we have made some difficult decisions that affect our employees. More from our CEO: https://t.co/7EmbUl3v0cpic.twitter.com/CDcwtUYqQ7
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.
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.
Did you catch a glimpse of gondolas flying during the Super Bowl? The lift is called the Bud Light Seltzer SkyView and is expected to be open around 50 event days per year at Hard Rock Stadium.
The Bridger-Teton National Forest releases a Draft Environmental Impact Statement for Snow King with a preferred alternative including a new gondola, backside fixed grip quad and access platter or T-Bar.
Arctaris officially owns Saddleback and plans to order at least a detachable quad.
With its longest chairlift out of service for weeks, Arizona Snowbowl opens its summit to hiking access.
An Austrian newspaper interviews Anton Seeber, head of the Leitner Group, about the company’s growing presence in that country and worldwide.
Sasquatch Mountain’s access road washes out, trapping guests at the resort for days and closing the mountain for a week.
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.
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.
Breckenridge proposes building an infill chairlift on Peak 7 to improve skier circulation.
Local electeds vote in support of an urban gondola to Simon Fraser University’s Burnaby Mountain campus.
Retired Riblet double chairs bring in $146,000 for nonprofit organizations surrounding Schweitzer Mountain Resort.
Towers supporting the world’s first eight passenger monocable gondola are history.
This video shows how the Disney Skyliner’s innovative loading works. Every 9th gondola goes to a second turnaround, stopping about 50 seconds for unloading and another 1:10 for loading before rejoining the moving line. Pretty slick!
The Hermitage Club files for Chapter 11 bankruptcy protection, listing more than 200 creditors. A company called Restructured Opportunity Investors could lend the club up to $1.75 million for restructuring if approved by a bankruptcy court.
Berkshire Bank wants the Hermitage receiver to stay on the job while a different bankruptcy court considers whether to initiate a Chapter 7 liquidation, which at least 187 club members now support.