1st Oct, 2012

Vail Resorts Business Model Effects Breckenridge Property Sales

Breckenridge property values continue to offer real estate investors and homebuyers a solid investment. After Vail Resorts purchased Breckenridge and Keystone ski resorts in 1996, the company expanded terrain and added ski lifts, and promoted the world-class resorts. Out of necessity, the company turned its ski resorts into year-round recreational havens.

Vail Resorts also invested in Breckenridge real estate developing luxurious ski-in/ski-out Breckenridge condominiums in One Ski Hill Place and the Ritz-Carlton in Vail. During 2012, the company sold seven units in One Ski Hill Place and 13 units in Ritz-Carlton Residence. In fiscal 2012, the company produced $47.92 million of real estate net revenue.

The ski business is dependent on snowfall and other economic factors. Last ski season set historical records for low snowfall. Colorado ski industries struggled during the 2011-12 ski season with a 12.1 percent drop in skier visitation. However, mountain revenues for Vail Resorts rose by 1.9 percent. The good news is due to the success of the creative business model.

The company has sold approximately 178,000 Epic Ski Passes after the third week of September 2012. This reflects an increase of 21 percent in sales dollars. The Epic Pass allows purchasers to ski in a variety of resorts including a half a dozen in Colorado, three in the Lake Tahoe area and three days of skiing in Switzerland. The company usually sells approximately 60 percent of the season passes by this time of the year.

On September 26, 2012, the Vail Daily News released exciting news about Vail Resorts earnings. “CEO Rob Katz says he was ‘pleased’ with the company’s overall performance both in the fourth quarter and in the fiscal year as a whole.” In fact, after the fourth quarter earnings release, stocks soared. The Vail Resorts stock posted a 52-week high of $59.46 last Tuesday. It closed up 8.23 percent at $57.07.

Before interest, taxes, depreciation, and amortization, the company reported $205.3 million of earnings for fiscal 2012. Although it is down from the record-breaking year before, the earnings are encouraging considering the challenging weather.

For information about buying real estate, including fractional options, in our mountain villages, call Barrie Stimson, Breckenridge Realtor® at (970) 390-2560.

One Ski Hill Place condos for sale

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