Monarch owners eye Steamboat bid

September 27th, 2006

By: Julie Dunn

Denver Post 

As the first mountain snowfall ushers in the new ski season, a second potential bidder has emerged for Steamboat Ski Resort, which has been for sale since July.

A group of local investors who own Monarch Mountain ski resort west of Salida say they are preparing a bid. They are led by Bob Nicolls, who organized the $5.1 million Monarch purchase in 2002.

“We’re going to try to put our hat in the ring,” he said. “But I can’t imagine paying over $200 million for it.”

Tim and Diane Mueller, owners of Crested Butte Mountain Resort, are also exploring a bid for Steamboat. “We haven’t come to any final decisions yet,” said Tim Mueller.

Steamboat’s current owner, Park City, Utah-based American Skiing Co., put the resort up for sale two months ago.

Sales documents sent to potential investors and obtained by The Denver Post suggest that the ski area could be valued at as much as $275 million.

Steamboat drew 1.047 million skiers last winter and generated $74.2 million in revenue in fiscal 2006, up 12.3 percent from 2005.

“I think there will be quite a bit of interest in Steamboat from private-equity firms,” said Will Marks, a ski-industry analyst at JMP Securities in San Francisco. “The main reason is that you can still buy ski resorts for pretty cheap, compared to other types of real estate.”

Nicolls said he and a group of local investors are working to pair with a large equity partner to make the bid. Their offer is likely to fall in the $150 million to $170 million range, he said.

“In commercial real estate, there is so much money chasing so few deals that prices are getting bid up an unbelievable amount. But this isn’t an office building. There is more risk to it,” Nicolls said. His company owns 22 apartment complexes in the region.

Private-equity groups have made two large ski-industry purchases recently.

Last fall, Connecticut-based Starwood Capital Group bought Mammoth Mountain in central California for $365 million.

Last month, New York-based Fortress Investment Group agreed to spend $2.8 billion for Intrawest Corp., the owner of Copper Mountain and operator of Winter Park.

Denver-based venture-capital firm KSL Capital Partners is another local firm that could bid on Steamboat. Co-founded by former Vail Associates Inc. chief executive Mike Shannon, the firm announced earlier this month that it has raised $1 billion to invest in hotels, clubs, recreation and real estate.

KSL declined to comment Friday.

The Muellers, meanwhile, came close to buying Steamboat from American Skiing four years ago for $91 million, but American Skiing backed out at the last minute. It instead sold Heavenly ski resort in Lake Tahoe, Calif., to Vail Resorts Inc. for roughly $100 million.

Several industry insiders have said Steamboat could sell for eight to 10 times its earnings before interest, taxes, depreciation and amortization, or EBITDA. According to the document prepared by Bear Stearns & Co., Steamboat’s EBITDA was $27.5 million for fiscal 2006.

“Steamboat is one of the most popular ski resorts in the nation,” said Rob Perlman, president of industry trade group Colorado Ski Country USA. “I think a lot of people are taking a look at it.”

Broomfield-based Vail Resorts declined to comment on Steamboat.

Sunlight Mountain Resort, the other ski area in the state that’s for sale, may be close to a deal.

The Glenwood Springs ski area was put up for sale last fall for $50 million. Owners have received multiple letters of intent and are negotiating with at least one serious potential buyer, according to Jerry Jones, the Avon-based resort broker who is listing Sunlight.

The first major snowstorm of the winter blanketed many of the state’s ski slopes last week. Loveland Ski Area and Arapahoe Basin both hope to open by mid-October.

Staff writer Julie Dunn can be reached at 303-954-1592 or jdunn@denverpost.com.

Steamboat value tops $220 m

September 21st, 2006

By: Julie Dunn

Denver Post Staff Writer 

Steamboat Ski Resort could sell for more than $200 million, sale documents obtained by The Denver Post suggest.

The documents, which were distributed to potential buyers, led one industry analyst to value Steamboat at $220 million to $275 million, although the asking price has not been disclosed.

Park City, Utah-based American Skiing Co. put the north-central Colorado resort on the block in July.

Steamboat drew 1.047 million skiers last winter and generated $74.2 million in revenue in fiscal 2006, up 12.3 percent from 2005.

Analyst Will Marks of JMP Securities in San Francisco based his value estimate on a multiplier of 8 to 10 times Steamboat’s earnings before interest, taxes, depreciation and amortization, or EBITDA, a measure of cash flow. According to the document prepared by Bear Stearns & Co., Steamboat’s EBITDA was $27.5 million for fiscal 2006.

“Based on today’s market conditions and valuations for various real estate and related assets, I think that’s a fair multiple,” Marks said. “It’s impressive that (Steamboat’s EBITDA) is that high.”

American Skiing did not return calls for comment Wednesday. It bought Steamboat and Heavenly ski resort at Lake Tahoe, Calif., for $288.3 million in 1997 from Kamori International Corp.

Four years ago, the financially troubled company almost sold Steamboat for about $91 million to an investor group led by Tim and Diane Mueller. American Skiing backed out at the last minute, instead selling Heavenly to Vail Resorts Inc. for about $100 million, or roughly six times its EBITDA.

The last major U.S. ski resort to sell was Mammoth Mountain Ski Area in California, which was purchased last fall by Starwood Capital Group for $365 million, or approximately 11 times its EBITDA.

Included in the sale are 245 acres of property that Steamboat owns, licenses or leases, along with an additional 3,498 acres of mountain terrain that falls under a long-term special use permit from the U.S. Forest Service.

Steamboat has identified six parcels of its base area land that are available for the development of up to 640 residential units and 100,000 square feet of commercial

space.”It’s not just about the skiing anymore,” said Jerry Jones, an Avon-based developer and ski resort broker. “The most important thing (at ski resorts) in the past decade has been the real estate development. Things are selling at premium prices.”

The package includes 13 dining venues and a ski and snowboard school, and management of the Steamboat Grand Resort Hotel and Condominiums and the Steamboat Central Reservations system.

After the deal to buy Steamboat fell through, the Muellers purchased Crested Butte Mountain Resort. Tim Mueller said Wednesday they are still considering making another bid for Steamboat.

Vail Resorts declined to comment on whether it is interested in acquiring the resort. Aspen Skiing Co. said it had no plans for Steamboat.

Other highlights from the sale document:

Forty-nine percent of Steamboat’s revenue comes from lift- ticket and season-pass sales.

Eighty percent of Steamboat’s revenue comes during a 100-day period in the ski season.

Twenty-two percent of Steamboat visitors come from Colorado.

A single-day adult lift ticket at Steamboat will cost $79 this winter, compared with $82 at Aspen and Snowmass.

Nearly $1 billion in third-party real estate development and infrastructure upgrades are expected over the next decade.

Staff writer Julie Dunn can be reached at 303-954-1592 or jdunn@denverpost.com.

 

by Roselind Hejl

Home Styles

Old world styles are popular. French, English, Tuscan and Spanish homes with stone or stucco walls, tile roofs, iron fixtures, heavy beams and rustic floors are in demand. A sense of historic connection resonates with buyers today.

The Craftsman style, built in the early 1900’s, is back. Features of this style, such as cobblestones, deep eaves, tapered columns and wide trim, favor the handmade look over mass produced.

Farmhouses and country homes are perfect remodel candidates and prototypes for new homes. Native materials, wood windows, simple floor plans, and warm colors connect with nature and earlier times.

The retro look is fashionable. Ranch styles and split levels built in the 1950’s are perfect for sleek remodels, and fit with fashionable furniture styles.

Urban modern is everywhere. Modern open plans make use of color, tile, glass, and experimental materials such as plastic and metal.

Floor Plan

The preferred ceiling height is about 9′-11′. Two story ceilings are out. In small rooms these feel like towers.

Lots of floor level changes are not desirable.

Most buyers today want four bedrooms, and at least two living areas. Formal dining rooms are still in demand.

Formal living rooms are often converted to studies, libraries, or guest rooms.

Media rooms are a sought after feature when price range allows.

The visual and spatial connection between kitchen and family room is firmly established.

Cabinet space is required for large televisions and wall space for the newer flat screens.

Three car garages are needed, especially in areas without basements.

Structured wiring is important today for internet, phone, cable and sound. Desk space for computers is required.

Good access to the outdoors is something buyers look for. French doors combine access with light. Sliding glass doors are not as favored.

Lots of storage is needed for today’s lifestyle. People have lots of stuff. Huge master closets, pantries, laundry rooms, and extra storage closets are expected.

On the other hand, very spare lofts are perfect for some lifestyles. Simplified spaces are an antidote to today’s complex lifestyle.

Kitchens/Baths

Most buyers are savvy about kitchen design and appreciate good work spaces with easy access to range, refrigerator and sink. Lots of counter space, deep drawers, two sinks, nearby extra refrigerator, and butler’s pantries are all desirable features.

Stainless appliances are going strong. In urban modern styles, white or colored appliances are back. High end homes conceal some appliances as cabinetry.

Eat-in kitchens are a basic requirement for most buyers.

Antique tables or cabinets are being refurbished and used as bath cabinets. Kitchen cabinets that look like furniture are a great look.

Granite, marble or stone counters are popular. However, granite tops added to 1980’s cabinets do not go over well. Consider your architectural style before adding features.

Concrete countertops are perfect for ultra modern, but most buyers shy away from them.

Wide, cabinet depth refrigerators have a built-in look, and are not as expensive as the true built-in type.

Large rustic tiles, stone, concrete or wood floors have a warm, functional appeal.

Subway tile (3″ x 6″) is popular in bathrooms and on kitchen backsplashes.

Patterned cultured marble and laminate are out. Slippery, white floor tile is out.

Trim

Wide, baseboards (6″+) and door and window trim (4″+) are key features in old European and American styles.

Craftsman style doors - simple square frames with flat panels - work well with both old and modern looks.

Iron or heavy wood entry doors make strong statements that buyers love.

Rustic finishes on hardware, such as brushed nickel, oil rubbed bronze, weathered brass, and other non-shiny finishes are the popular choices.

Rustic wood beams or wood covered ceilings create a hand crafted, primitive look that buyers like.

Wrought iron gates, stair rails and light fixtures compliment the rustic style.

Stair rails in ultra modern homes may be wire, pipe or painted metal.

Front porches and covered patios are always a strong selling point. Outdoor fireplaces are popping up everywhere.

Floors & Walls

Distressed wood floors that look old are valued. Simple wood boards are sometimes laid down with cracks exposed. Re-claimed wood is very desirable.

Bamboo floors are popular, especially in modern style homes where light colored floors are desired.

Concrete floors - often stained and scored are popular. These go well with the modern look, and are used in Craftsman and rustic European styles too.

Colorful laminate floors are a good fit with mid-century modern. Laminate floors that looks like wood are out. Parquet floors are out, unless hand crafted.

Framed or hung mirrors are preferred, although plate glass works in ultra modern styles. Mirrors used on walls or ceilings are a turn off.

Colors are in, but soft is the word. Soft greens, yellows, earth tones and creams create a serene background that fits many styles. Complex colors, with more colors in the mix, are sought after. Deeply saturated colors, such as plums and reds, are used in moderation.

Flat paint on walls hides flaws and creates a designer look. Shiny is out. Soft whites are safe for trim.

Faux finishes are out. Often these do not turn out as well as expected, and are difficult to maintain.

The same (or similar) wall color through adjoining spaces creates a more spacious feeling.

Historic paint colors such as sage greens, beiges, muted yellows, and grays work well on the exterior. Bold or harsh colors are a turn-off to most buyers.

Wallpaper is problematic and harder to change than paint. Very often it does not fit the buyer’s taste.

Heavily textured walls and popcorn ceilings are totally out.

Lighting & Plumbing Fixtures

Buyers want more windows, natural light, and a greater connection with the outdoors.

People today are more discriminating about the quality of light. Windows on two sides of the room balance the lighting and reduce glare.

One light in the middle of the room will not do. Under cabinet task lighting is appreciated. Security lighting is important. Wall sconces offer soft ambient lighting. Recessed cans provide area light. Dimmers help to control the lighting.

Light fixtures are a decorative element in all styles. Clean, modern fixtures, such as pendant lights, recessed cans, and wire string lights compliment the urban look.

Retro fixtures are interesting decorative features in 1930’s craftsman and 1950’s ranch styles.

Industrial metal fixtures are in. The un-decorated, industrial look of metal or stainless steel is in.

Heavy drapes are out. They are too pretentious, and, well, heavy. Light cotton, linen or silk drapes are in. Or, wood blinds. Or nothing.

Retro woven wood blinds have made a comeback. Mini blinds are very yesterday.

Bath fixtures are finished in rustic bronze, nickel, or chrome. Old style two-handled faucets and farmhouse sinks are in style. Bath sinks may be glass bowls, granite, stone, stainless or traditional china. Cultured marble is out.

All free standing tubs are in. Pedestal and wall hung lavatories are in.

Energy Efficiency

With fuel costs going up, energy efficiency is definitely in. Buyers want high efficiency AC, good insulation, low-e glass, programmable thermostats, double pane windows, and ceiling fans.

Effective passive solar orientation is a great advantage. It shows a smart planning and use of natural solar energy.

Instant hot water is a perk that buyers like, as are drinking water filters.

No one wants foil on windows or stick-on window film.

Light is in demand. Don’t close blinds. Do remove solar screens when they are not needed, such as under patio roofs, porches or shade trees.

Screened porches are back. They create a multi purpose space that is both indoors and outdoors, and keep mosquitoes away.

Winter Flight Schedule

September 7th, 2006
STEAMBOAT Winter Air Schedule 2006/07
Note:  Schedule is subject to change
Updated  August 30, 2006
Carrier
City
Freq.
Dates
Flight #
Segment
Departs
Arrives
Equip.
Cap.
Notes
American Dallas/Ft.Worth Daily 12/14 - 4/9 # 2229 DFW-HDN 11:45a 1:05p 757 188  
  DAILY Daily   # 2228 HDN-DFW 2:00p 5:08p      
American Dallas/Ft.Worth Tue, Wed 12/26, 12/27, not yet DFW-HDN 2:00p 3:19p 757 188 Extra holiday sections not yet
  Holiday Tue, Wed 1/2, 1/3 confirmed HDN-DFW 4:15p 7:26p     confirmed or loaded
American Dallas/Ft.Worth Sat 12/16 - 4/8 # 2089 DFW-HDN 6:10p 7:31p 757 188  
  WEEKEND Sun   # 2290 HDN-DFW 8:00a 11:08a      
American Chicago Daily 12/14 - 4/9 # 2363 ORD-HDN 12:25p 2:12p 757 188  
    Daily   #2318 HDN-ORD 3:10p 6:50p      
Continental Houston Su,Mo,Th,Fr 12/15 - 4/2 # 1530 IAH-HDN 11:40a 1:31p 737-800 155 Note - Houston daily flight
  Daily Flight Su,Mo,Th,Fr   # 1575 HDN-IAH 2:20p 5:57p     comes in at different times
Continental Houston Sat 12/16 - 3/31 # 1530 IAH-HDN 10:55a 12:46p 737-800 155 on different days.
  Daily Flight Sat   # 1575 HDN-IAH 1:40p 5:17p      
Continental Houston Tue, Wed 12/15 - 4/2 # 1530 IAH-HDN 10:05a 11:56a 737-800 155  
  Daily Flight Tue, Wed   # 1575 HDN-IAH 2:20p 5:57p      
Continental Houston Sat in 2/17 - 4/1 # 1740 IAH-HDN 2:35p 4:24p 737-800 155  
  WEEKEND Sun out   # 1735 HDN-IAH 8:35a 12:11p      
Continental Newark Sat 12/16 - 3/31 # 1853 EWR-HDN 9:00a 11:56a 737-700 124  
    Sat   # 1857 HDN-EWR 12:25p 6:22p      
Delta Connection Salt Lake City Daily 11/23 - 12/15 # 3806 SLC-HDN 11:15a 12:20p CRJ 5 50  
    Daily   # 3807 HDN-SLC 1:15p 2:20p      
Delta Connection Salt Lake City Daily 12/16 - 4/9 # 4420 SLC-HDN 11:15a 12:20p CRJ 7 70  
    Daily   # 4419 HDN-SLC 1:15p 2:20p      
Delta Connection Salt Lake City Daily 12/16 - 4/9 # 4858 SLC-HDN 1:05p 2:06p CRJ 7 70  
    Daily   # 4859 HDN-SLC 3:05p 4:17p      
Delta Atlanta Daily 12/23 - 3/31 # 1735 ATL-HDN 9:45a 11:34a 737-800 150  
    Daily   # 1734 HDN-ATL 12:20p 5:28p      
Northwest Minneapolis/ Daily 12/19 - 4/7 #1608 MSP-HDN 11:20a 12:36p A 319 124  
  St. Paul Daily   #1609 HDN-MSP 2:10p 5:18p      
United Express Denver Daily 11/23 - 4/15 # 7057 DEN-HDN 8:30a 9:30a Dash 8 37 Flight operates at slightly
    Daily   # 7057 HDN-DEN 10:04a 11:07a     later times from 4/9 - 4/15
United Express Denver Daily 11/23 - 12/13 & # 7049 DEN-HDN 12:36p 1:41p Dash 8 37 Flight operates at slightly
    Daily 4/9 - 4/15 # 7049 HDN-DEN 2:00p 3:01p     later times from 4/9 - 4/15
United Express Denver Daily 12/14 - 4/8 # 6757 DEN-HDN 12:36p 1:41p CRJ-7 66  
    Daily   # 6757 HDN-DEN 2:03p 2:53p      
United Express Denver Daily 11/23 - 12/13 & # 7047 DEN-HDN 3:05p 4:09p Dash 8 37  
    Daily 4/9 - 4/15 # 7047 HDN-DEN 4:35p 5:38p      
United Express Denver Daily 12/14 - 4/8 # 6759 DEN-HDN 3:25p 4:18p CRJ-7 66  
    Daily   # 6759 HDN-DEN 4:52p 5:42p      
United Express Denver Daily 11/23 - 12/13 & # 7053 DEN-HDN 8:35p 9:39p Dash 8 37  
    Daily 4/9 - 4/15 # 7058 HDN-DEN 6:30a 7:33a      
United Express Denver Daily 12/14 - 4/8 # 7053 DEN-HDN 6:35p 7:39p Dash 8 37  
    Daily   # 7058 HDN-DEN 6:30a 7:33a      
United Denver Daily 12/14 - 4/8 # 821 DEN-HDN 8:25p 9:14p 737-300 120  
    Daily   # 848 HDN-DEN 8:00a 8:58a      
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