- Lift construction resumes in New Zealand, where resorts are optimistic they can open next month with social distancing.
- The Forest Service commences scoping for Lutsen Mountains’ big expansion, which would include seven new chairlifts.
- You can also submit comments on Keystone’s Bergman Bowl project starting today.
- The State of New York partners with Skytrac and Leitner-Poma for three fixed grip quads – two for Gore and one at Whiteface.
- Vail Resorts provides last season’s Epic Pass holders with 20-80 percent credits and introduces free refund coverage for next winter.
- Silver Mountain joins the Powder Alliance, Schweitzer exits.
- Vail Resorts says goodbye to many Peak Resorts employees as planned before COVID-19.
- The Burnaby Mountain Gondola project could benefit from an infrastructure push in Canada.
- Wolf Creek planned to reopen this weekend but an executive order late last night extended the closure of Colorado ski areas through May 23rd.
- Valemount, BC considers building a community ski hill.
- I’m not an accountant but I think this filing reveals Vail Resorts has agreed with creditors not to make capital improvements of more than $200 million per year or undertake any mergers/acquisitions through January 2022.
- Vail is also borrowing $600 million through the sale of bonds.
Vail Resorts
News Roundup: Adventure Assurance
- Highland readies for mountain bike season with new chairs acquired from Nashoba Valley.
- Alterra makes modest changes to Ikon in light of recent events: delaying price increases by a month and increasing renewal discounts. Late today, the company added Adventure Assurance, permitting purchasers to defer their 2020-21 Ikon value to a 2021-22 pass if desired.
- The Forest Service expects to have a decision on Keystone’s Bergman Bowl expansion by December.
- Residents in opposition to Mexico City’s Cablebús Line 1 win an injunction stopping some construction.
- The Colorado Sun goes inside the decision to close Colorado’s ski industry five Saturdays ago.
- Saddleback decides to decommission Sandy alongside Rangeley and Cupsuptic. Old chairs are for sale at $2,000 apiece.
- A class action lawsuit is filed against Vail Resorts alleging fraud, misrepresentation and false advertising for this spring’s early closures.
- Sinclair Oil Company may be exploring a sale although the firm’s two ski resorts (Snowbasin and Sun Valley) would not be included.
- Doppelmayr may build a unique triangle shaped gondola in Australia.
News Roundup: Ripple Effect
- Saddleback demolishes the Rangeley double to make room for its upcoming high speed quad.
- Debt-laden Ski Granby Ranch lays off all its employees and won’t issue refunds to guests with canceled vacations.
- The $2.2 trillion phase three stimulus package passed by Congress doesn’t include assistance specifically for ski areas but there is hope phase four might.
- Vail Resorts borrows more than $500 million from existing lines of credit in order to increase its cash position and maintain financial flexibility during the outbreak.
- While many Leitner-Poma staffers work from home, a skeleton crew continues production.
- Even in hard-hit Italy, one major lift customer plans to commence construction as soon as the immediate health danger has passed.
- Many Doppelmayr employees are also working from home and production continues in Wolfurt.
- Aspen Snowmass intends to complete all capital projects as planned this summer including the $10.8 million Big Burn chairlift.
- Vail Resorts CEO Rob Katz personally donates $2.5 million to mountain community charities and an employee assistance fund.
- Yet another lift project cancelled by Vail Resorts: replacement of Peachtree at Crested Butte this summer.
- NSAA estimates costs from early closings and lost pass sales will exceed $2 billion in the United States and forecasts capital spending will plunge 50 percent this year.
- Magic Mountain’s Geoff Hatheway offers a small ski area perspective on COVID-19.
- Coronavirus may impact the review timeline for Snow King Mountain’s proposed expansion and other projects on Forest Service lands.
- Katharina Schmitz officially takes the reigns of Doppelmayr USA from Mark Bee, who retired on March 31st.
- Boyne Resorts estimates $22 million in lost revenue as a result of this winter’s abrupt end.
- The Vietnamese developer behind both the world’s longest and tallest 3S gondolas plans another island-hopping 3S in the country’s north.
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.
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.
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: In This Together
- Citing the pandemic, Hermitage Club founder Jim Barnes seeks to delay today’s auction of resort assets. A judge orders the auction to proceed at 10:00 am via telephone.
- A group intends to sue to stop the State of Alaska from awarding a new lease of public land to Arctic Valley Ski Area.
- For the first time since it opened, the Disney Skyliner gondola lines are completely devoid of cabins.
- Vail Resorts reveals Coronavirus will cost at least $180 million and the company is reviewing preciously announced capital expenditures including six planned lifts.
- The Indy Pass will include at least 47 resorts for 2020-21.
- Though the Alaska cruise ship season is delayed until at least July 1st, Icy Strait Point still plans to welcome passengers aboard its new gondola system.
- The website is live for Saddleback 2.0.
- Timberline Mountain now plans to unveil its reopening lift plans early next week.
- Construction continues on New Zealand’s first D-Line and a three station gondola at Thredbo, Australia.
- One of Colorado’s Senators asks the Forest Service to waive remaining 2020 rent payments for 122 ski areas located on National Forest lands.
- Skyline Investments, owner of two ski resorts and many other hospitality businesses, reports record revenue but warns Coronavirus will have significant impacts including the possible closure of resorts through summer.
- Skytrac is the low bidder for all three quads proposed for Gore and Whiteface Mountains.
Coronavirus Shutters Vail Resorts, All of Alterra and Many More
North America’s ski industry is following in the unfortunate footsteps of its counterparts in Asia and Europe, forced to end winter operations early to help prevent the spread of the novel coronavirus. Among the first to pull the plug the past two days were Berkshire East, Jay Peak, Taos and Nub’s Nob.
What started as a trickle became a deluge Saturday. In Colorado, Governor Jared Polis issued an executive order compelling all resorts to close following outbreaks in Eagle, Pitkin, and Summit counties. Even before the order, the continent’s two largest resort companies almost simultaneously announced complete shutdowns effective tomorrow. The 37 Vail facilities will remain closed until at least March 22nd and will continue to pay scheduled employees. Many independent mountains are staying open for now.
This is uncharted territory but I’m certain the ski business will be okay. Unlike other industries, we are used to doing this between seasons, albeit under very different circumstances. The United States government has promised help to small and mid-sized businesses along with hourly employees who are missing work and pay. Canada and governments around the world will likely do the same. Hopefully many full time, year rounders can keep working and get important maintenance done.
Normally March on this blog features announcement after announcement of exciting new projects from lift manufacturers and their customers. At this point, already formalized projects are pacing about the same as last year and none have been publicly canceled. Hopefully production can continue and this mess abates in time for construction to get going as snow melts. There are many unknowns, however.
Those of you on Instagram know I’m in one of the world’s most amazing places right now: Alaska. Operations at resorts were normal across the board the past few days and the weather was perfect in a state with only one confirmed case of COVID-19. Tomorrow I will attempt to fly home and reassess. As of this writing, Jackson Hole intends to stay open and I will be in on Monday if there is work to go to.
With so many resorts shut down and the global economy struggling, there may not be much lift news to report for awhile. When there is, I’ll write, and will get back to exploring as soon as I can.
News Roundup: Viral
- The Mountain Collective adds four awesome resorts for 2020-21: Chamonix, Grand Targhee, Panorama and Sugarloaf.
- Kicking Horse celebrates 20 years of operation on the site of the former Whitetooth Ski Area.
- Sun Valley’s Cold Springs double is about to end a 50 year run but will live on at a resort in California.
- Arizona Snowbowl’s Agassiz reopens for one last hurrah after being down since January 18th with a gear issue.
- Hundreds of ski resorts in Austria, Italy and Switzerland are forced to close for the season due to coronavirus.
- Berkshire East, Catamount, Middlebury Snow Bowl and Mt. Abram become the first US ski resorts to shut down due to the virus.
- Belleayre, Gore, Whiteface and the Lake Placid Olympic Complex close gondolas for the season for the same reason. Snowbird’s tram is shut down until further notice. Aspen Snowmass will no longer load unrelated parties in the same gondola cabins.
- Indiana Beach, one of only four venues with an aerial lift in the Hoosier State, closes permanently.
- The two year old LST Ropeways detachable in France shuts down indefinitely again. Instead of the LST design, MND America will offer Bartholet detachables in the United States.
- Vail Resorts reports financial results: skier visits are down 5.3 percent percent this season through March 1st but lift revenue is up 0.8 percent. On a conference call, CEO Rob Katz addresses coronavirus, lift lines at Vail and possible future acquisitions.
- Timberline Mountain promises to make multiple big announcements at a media event Tuesday. All three existing lifts are in poor condition and being dismantled.
- Arctaris Impact Fund doesn’t expect to realize a profit on its Saddleback investment until it sells the resort in 7-10 years.
- An enterprising family is building the first Australian-designed and manufactured chairlift in 30 years for private use only.
- Alterra Mountain Company CEO Rusty Gregory will deliver a keynote address on Monday in Park City covering the rise of Alterra, industry consolidation and multi-resort pass products.
- For the second time in three weeks, a sudden stop on the Mont-Sainte-Anne gondola elicits an emergency response and the lift is once again closed indefinitely.
News Roundup: Millions
- Crystal Mountain reopens after being closed nearly a week. Mudslides along its access road cost the resort more than $1 million in business.
- Dave McCoy, the visionary founder of Mammoth Mountain, dies at 104.
- Great job Elk Mountain staff for this rescue of a dangling young skier.
- You can also watch a heroic Mt. Hood Meadows employee remove seven inches of ice from Vista Express towers this week.
- The Sea to Sky Gondola finally reopens, six months after a crime which cost nearly $4 million dollars in damage and lost revenue.
- Chair 5 at Greek Peak breaks down and gets rope evacuated.
- Highland Mountain Bike Park will add 40 chairs to its chairlift, increasing uphill capacity by 50 percent.
- Vail Mountain COO Beth Howard explains the circumstances behind last weekend’s epic lift lines.
- The Balsams may be closed but Les Otten opens the doors for himself and four others to cast first in the nation presidential votes.
- Swiss manufacturer Bartholet launches a fresh website.
- The Little Mountain that Could is a short film by L.L.Bean exploring the rebirth of Whaleback as a nonprofit.
- Locals frustrated with Whistler Blackcomb operations and staffing petition Vail Resorts to do better.
- One of those involved in the Stoos chair accident succumbs to his injuries. Two others have been released from the hospital.
- Stevens Pass reopens Seventh Heaven 11 days after this incident.
- A man dies in a terrible accident involving the Skyline Express at Vail. A preliminary investigation suggests he slipped through a chair’s seat, was caught by his jacket and asphyxiated.
- Former Vail Resorts mountain division head Chris Jarnot becomes a consultant for the upcoming Mayflower Mountain Resort in Park City.
- Sunday River President Dana Bullen talks about the Merrill Hill expansion, future lift projects and which lifts are staying put.
- Al Henceroth confirms the Pallavicini double will be replaced by a Leitner-Poma double this summer.
- Utah Business magazine makes the case for One Wasatch.
News Roundup: Across Canada
- Skier visits at Vail Resorts are down 7.8 percent for the season through January 5th, attributed to slow starts at Whistler Blackcomb and Stevens Pass.
- Agassiz at Arizona Snowbowl was evacuated over MLK weekend and remains down.
- Visits and revenue continue to decline at the publicly-owned mountain in Newfoundland called Marble Mountain.
- It takes a ton of work to reopen lifts, particularly detachable ones, at Mt. Snow after an ice storm.
- By building a T-Bar instead of a chairlift, Ski Cooper was able to implement a major expansion this season for around $2 million.
- Mont St. Mathieu opens another $2 million T-Bar expansion, noting a chairlift would have cost more and moved skiers less quickly.
- The Snowpark expansion at Montana Snowbowl is a hit and LaValle is back open.
- Software problems lead to the closure of the new Morning Star Express at Bogus Basin (now back open.)
- BC’s Jumbo Glacier becomes an indigenous protected area, ending plans for a new ski resort there.
- Vail Resorts will pay out $200 bonuses to employees who refer new applicants to become lift operators at 14 resorts.
- The State of Illinois shuts down a ski resort, alleging required inspections weren’t completed prior to opening. In a statement, Snowstar apologizes to season passholders and says an inspector failed to show up. At least one lift will reopen today.
- Parks Canada axes plans for a Mt. Norquay gondola.
- Josh Elliott, the teen who jumped after becoming stranded on a Sugar Mountain chairlift in 2016, tells his harrowing story on the Outside podcast.
- Mt. Jefferson, Maine won’t open this season.
- New York State plans to spend $147 million to improve its ski areas.
- Bromont ropes down more than 200 people from the Express du Village, some after being stuck four and a half hours.
- Edmonton releases the preliminary economic and technical assessment for the Prairie Sky urban gondola.
- Siemens highlights a design software partnership with Doppelmayr.
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.
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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