Alterra to acquire Solitude

[ski diva]

Yet ANOTHER acquisition:

ALTERRA MOUNTAIN COMPANY TO ACQUIRE SOLITUDE MOUNTAIN RESORT IN UTAH
Expanding the Company’s Family of Destinations and Experiences in Utah

DENVER, CO, June 20, 2018 – Alterra Mountain Company announced today that it has entered into an agreement to purchase Solitude Mountain Resort in Utah, which would bring the company’s total to 13 year-round mountain destinations throughout North America, including the world’s largest heli-skiing operation.

“With its close relationship with Deer Valley Resort, Solitude Mountain Resort is a natural fit for Alterra Mountain Company, and a tremendous addition to our family of destinations. We are especially excited to expand our reach within Utah and offer another ski and snowboard experience in a state known for its exceptional snow and mountain culture,” said Rusty Gregory, Chief Executive Officer, Alterra Mountain Company.

Solitude Mountain Resort is located just 34 miles from the Salt Lake City International Airport (SLC) and less than an hour from Deer Valley Resort, in the renowned Big Cottonwood Canyon. The mountain offers skiers and riders 77 runs, three bowls, and a vertical drop of 2,030 feet (619 meters) across 1,200 acres, plus some of the most impressive off-piste terrain in the country. The quaint base village offers ski-in/ski-out accommodations along with year-round activities for guests.

“Joining the impressive group of Alterra Mountain Company destinations places Solitude Mountain Resort in a strong position to continue to grow and enhance the brand and culture that is Solitude,” said Kim Mayhew, General Manager. “We are excited about the opportunities this transaction will create for our guests, our staff, and for our community in Big Cottonwood Canyon."

The transaction is expected to close by the end of the third quarter of 2018, and is subject to certain closing conditions, including regulatory approvals. Terms of the transaction were not disclosed. More details will be released once the transaction has closed, including Ikon Pass inclusion details and more.

Alterra Mountain Company’s destinations offer premium ski, snowboard and all-season activities for those who seek adventure, freedom, and fun in the great outdoors. Current destinations that make up Alterra Mountain Company are spread throughout five states and three Canadian provinces: Steamboat and Winter Park in Colorado; Squaw Valley Alpine Meadows, Mammoth Mountain, June Mountain and Big Bear Mountain Resort in California; Stratton in Vermont; Snowshoe in West Virginia; Tremblant in Quebec, Blue Mountain in Ontario; Deer Valley in Utah; and CMH Heli-Skiing & Summer Adventures in British Columbia. Alterra Mountain Company was created when affiliates of KSL Capital Partners, owners of Squaw Valley Alpine Meadows, and affiliates of Henry Crown and Company purchased Intrawest, Mammoth Resorts, and Deer Valley Resort in 2017.

At each destination, Alterra Mountain Company leaders are empowered to be decisive, creative, and bold in order to retain each mountain’s authentic character. Recognizing the innate value of the unique culture found at each of the mountain communities, Alterra Mountain Company’s goal is to preserve, sustain and support its two most important resources: the mountains and the people who live and play in them.

In January 2018, Alterra Mountain Company introduced the Ikon Pass for winter 2018-2019, the new standard in season passes. The Ikon Pass offers skiers and riders access to 26 mountain destinations throughout North America, including 12 Alterra Mountain Company destinations, plus 14 partner destinations.

 

[nopoleskier]

Now I really need to just move west for the winter... Lots of New Mts to ski...

 

[marzNC]

That certainly will change the decision process for SLC residents. Especially if Ikon Base provides unlimited access to Solitude. Will put some pressure on Brighton, especially if Alterra starts putting in lights for night skiing.

As for those who start by flying to SLC, for 2018-19 looks like the choices for a multi-resort pass are:

MCP: Alta, Snowbird, Snowbasin - 2 days plus 50% other days

Ikon Base: DV, Alta and Snowbird combined, Solitude - 5 days (Solitude # days TBD)

Epic: Park City - number of days depends on which version

 

[mustski]

At this rate, I wonder if the MCP will survive beyond this season. Vail and Alterra are pretty much cornering the market.

 

[marzNC]

At this rate, I wonder if the MCP will survive beyond this season. Vail and Alterra are pretty much cornering the market.

My guess is that it all depends on what Aspen Ski Co. wants to do with the MCP. ASC was the first resort to suggest the MCP. The Crown family still own Aspen/Snowmass as an independent resort and are also major partners in Alterra. The COO of Alterra, David Perry, came from Aspen so he knows the Crown family well.

I wonder how much a "partner" resort will get when someone uses an Ikon pass for a day. More or less than the 50% price for an additional day beyond the two included with an MCP?

I think the MCP serves a different market than the Ikon pass, at least for people who have to fly to reach the Rockies and/or don't live anywhere near at Alterra mountain. The entry price is $400-500 and it pays for itself either with a 1-week trip to one destination or shorter trips to two destinations. It can be a really good deal if flying to SLC is of interest with three resorts included. Or for a family of four with two kids who could commit early to the MCP while the $1 kid price was available.

That said, seems clear that the MCP is adjusting to the existence of Ikon. Will be interesting to see how much the price goes up during the fall.

 

[marzNC]

Here's what David Perry, COO of Alterra, had to say about the money split with partners (Aspen/Snowmass, Alta, Snowbird, JH, etc.) at a Steamboat Q&A session in Feb 2018.

Q: How does revenue sharing work with Ikon Pass and Alterra’s partner resorts?

Perry: “It’s a really interesting and complex business puzzle … I would say that each of the partnerships that we did were different negotiations … Each one of them we’re very happy with, and I think our partners are very happy with. The revenue sharing is fair and very balanced, and it reflects the stature of each of the resorts.”

 

[mustski]

I just think that with the base IKON costing only $599, the $400 MCP is not as attractive a option. There are too many great destinations on the IKON for anyone traveling for more than one week a year.

 

[Jilly]

Solitude is hosting some of the world championships next season....interesting!

 

[marzNC]

Solitude is hosting some of the world championships next season....interesting!

Maybe that was one reason Deer Valley bought Solitude in 2015. DV has been hosting FIS freestyle competitions for quite a while. Looks like the original FIS decision about 2019 was made back in 2014. In 2016, Solitude was added for snowboardcross and ski cross for the 2019 FIS Freestyle and Snowboard World Championships. There was a test event in Jan 2017. Park City is hosting some events as well. That means both Alterra and Vail Resorts will be promoting the event.

 

[marzNC]

The completion of the sale of Solitude to Alterra was announced on 8/1/2018. Still no details about how Solitude will be incorporated into Ikon passes.

https://www.alterramtnco.com/news/2018/08/01/solitude-closing.html

 

[marzNC]

Didn't remember there was a Diva Week West at Solitude. Looks like a lot of fun in March 2009.

https://www.theskidiva.com/forums/index.php?threads/the-official-diva-week-in-solitude-thread.3338/

 

[ski diva]

Didn't remember there was a Diva Week West at Solitude. Looks like a lot of fun in March 2009.

https://www.theskidiva.com/forums/index.php?threads/the-official-diva-week-in-solitude-thread.3338/

Yep, it was our very first Diva West.

Good memories.

 

[marzNC]

Apparently Solitude has a new Youth Pass for $359. Interesting that it includes Wasatch Benefits.



The info on the Solitude website for the full Ikon states that 12/13/18 is the final deadline to purchase for 2018-19. Those who bought full Solitude pass before the sale to Alterra will be upgraded automatically.