PowMow new ownership

[Jilly]

https://www.saminfo.com/news/sam-he...eo-acquires-majority-share-of-powder-mountain

 

[Amie H]

I saw that on Unofficial Networks yesterday. Interesting, hopefully he is a good steward of it.

 

[marzNC]

Here's the latest from the owner of PowMow. Available on the PowMow website blog. Was also sent out via email.

March 31, 2024

Advanced Terrain Expansion – Powder Mountain

Located in Eden, Utah and boasts the most skiable acreage in North America and limits daily tickets.

powdermountain.com

ADVANCED TERRAIN EXPANSION​

Dear Powder Community, Last December, I shared an update on Powder’s new model of blending public and private skiing on our very large mountain. Since then, we’ve made lots of progress. To refresh everyone, the previous business model was failing. While we’ve historically been uncrowded and inexpensive, we’ve been losing money, not upgrading lifts or lodges, and building up debt. The rise of Epic and Ikon have made the independent ski resort business very challenging, and we likely would have been acquired by one of the mega pass owners had we stayed on the old model. Our commitment to Powder is to stay uncrowded. Given this, some were surprised we opened season tickets to everyone. Isn’t this the opposite of staying uncrowded? First, we will avoid crowding by limiting day ticket sales, expanding terrain and parking, and staying out of the Epic and Ikon passes. Second, season pass revenue is very helpful to us because it comes early and is weather-independent. Third, community members knowing they can buy a season pass if they wish avoids much anxiety about waitlists or getting excluded. Our huge news today is we’re adding more public terrain to Powder Mountain. We plan to construct a lift in Wolf Canyon, going up to Lightning Ridge. You’ll be able to ski DMI and some of the best expert and advanced terrain in Northern Utah. Wide open bowls, prime glades, and expert chutes galore. The new lift will add 900 acres of lift-served and 147 acres of hike-to access, for a total of 1,047 acres of public advanced terrain. Guided adventure experiences are slated for the coming winter, with Summer 2025 as the target for lift installation. Surveying and planning will begin this summer, with the announcement of construction timelines and exact routing of lift infrastructure to follow. This Wolf Canyon expansion comes in addition to three new public lifts we are planning to install this summer: upgrading Paradise, upgrading Timberline, and adding the new Lightning Ridge. And, for our homeowner community, we have contracted to buy the adjacent Davenport area on the back side of Raintree to expand the private terrain. Our Wolf Canyon expansion, alongside limiting day ticket sales and not accepting mega passes, continues to fulfill our promise of keeping Powder Mountain uncrowded, independent, and truly a special experience for generations to come. We understand a lot is changing, and very fast. We thank all of the season pass holders who renewed, and the new ones who have joined us for this ride. Reed Hastings CEO Powder Mountain

 

[contesstant]

The terrain expansion is a way to be more competitive to woo the skiers who bemoan the fairly tame terrain at PM. My husband is one of them. It will position them to be more competitive with Snowbasin. It’s getting interesting here at the Ogden Valley resorts!

 

[BReeves215]

Extensive article on all this in March 29 NYTimes. Interesting to read the many comments pro and con.

 

[marzNC]

Extensive article on all this in March 29 NYTimes. Interesting to read the many comments pro and con.

Interesting info . . . below are some excerpts.

A difference between Reed Hastings and Louis Bacon, who bought Taos Ski Valley about ten years ago is that Bacon was a long time regular at TSV. Bacon had been working the the Blake family on a few projects and owned land near TSV before the ownership change. Hastings has experienced PowMow slopes, but I don't get the sense that he'll hop a private jet for powder turns as often as Bacon does.

A significant difference is that PowMow is on private land, not U.S. Forest Service land.

March 29, 2024 - NY Times
" . . .
Last September, Mr. Hastings, bought a controlling interest in Powder Mountain for an undisclosed sum, inheriting more than $100 million in debt.
. . .

Mr. Hastings, embraces the notion that he can disrupt the ski industry the way he disrupted entertainment, though he admits he’s learning the ski business on the fly.

Will it work?

“We’ll have to wait and see,” said Rick Kahl, 71, the longtime editor of Ski Area Management, a trade publication. “But I wouldn’t bet against the guy who started Netflix.”
. . .

Mr. Hastings, fed up with crowds at heavily developed Park City, had built a home at Powder in 2021. When Summit decided it wanted out, he swooped in.

“I felt I had to do it to preserve the experience here,” he said.

Mr. Hastings, whose net worth is $5.98 billion, according to the Bloomberg Billionaires Index, immediately invested $100 million of his own money in the ski area, paying off a portion of the debt and purchasing four new chairlifts, which are set to be installed this summer.

He is also planning to build two day lodges with restaurants, private rentals and retail stores for the mountain’s private side, and a 40,000-square-foot lodge will serve as an afternoon and evening hub for members and feature a state-of-the-art spa.
. . .

“I’m investing a lot of money in Powder Mountain but my plan was never to subsidize it,” he said. “My passion is the charities that I work with, but I never saw this as a charitable endeavor.”
. . .

Though Timberline Lodge, the building that houses the Powder Keg, will get an upgrade, Mr. Hastings said he is intent on keeping many of Powder Mountain’s sacred spots and traditions unchanged. When finishing runs in the area known as Powder Country, for example, you’ll still get on a bus back to the lifts.

“You can’t just tear down a building, put up a new one, call it the same thing, and expect people to feel the same way about it,” Mr. Hastings said.
. . .

Mr. Hastings said it’s that old-school vibe that makes Powder Mountain special. “We’re building a luxury experience on the private side of the mountain,” he said. “But many of the homeowners will still ski the public side and want to experience the parts of Powder Mountain that you won’t be able to get in the village.”
. . ."