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February 18, 2007

It's a Fire Sale

It's a FIRE SALE. ALL RESORTS MUST GO GO GO. SLASHING PRICES IS OUR BUSINESS.

American is selling another one:

SALT LAKE CITY — American Skiing Co. said Friday it agreed to sell Vermont's Mount Snow and New Hampshire's Attitash ski areas to Peak Resorts Inc. of Missouri.

American Skiing will sell the two resorts along with Grand Summit Hotels at both locations for $73.5 million, said Dave Hirasawa, the company's investor-relations manager.

Peak Resorts also will assume $2 million in debt and other liabilities at Mount Snow and Attitash, the company said.

Add this to Steamboat's sale last year. It is a fire sale baby. I am thinking about buying a resort. I am scraping together my nickles and dimes and might have enough to pick up my own resort. Anybody got an extra $50M laying around, let me know.

Posted by Justin at February 18, 2007 09:16 AM

Comments

hmm what do you think is causing all these sales? nervous investors with visions of a warming globe and little snow? or just a general downtrend in the industry?

Posted by: ianmackenzie at February 19, 2007 02:33 PM

No, it is the debt load of American. They went out and borrowed way too much money and can't pay it all back. Their books look like disasters.

It is not a downtrend in the industry, but that American bought these resorts with the intent to develop them and profit off of them. Their books listed the total value of all of their properties at less than the combined sales prices of just a fraction of their holdings. This will get them out of the $80M per year of interest payments that they have been making.

Posted by: Justin at February 19, 2007 03:25 PM