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« Previous Story | The Industry Report Home Page | Next Story » Changing Hands: "Gem of Poconos," Mountain High Among Areas With New OwnersBy Mountain News Staff  Considered the gem of the resorts in Pennsylvania's Pocono Mountains, Camelback is the largest area in the region, with a solidly profitable summer season to complement its winter operations. Those factors alone make Camelback appealing as an acquisition. But it was locally grown and faithful Camelback skier Berry -- he first skied at Camelback when he was six -- who plunked down $48 million and walked away with the prize. Berry, a 40-year-old entrepreneur who has founded and turned over a number of enterprises in the Poconos, formed a new company, CBH2O, LP, to acquire Camelback. The seller, Sam Newman, had been in charge of the recreation center for the past 19 years and will stay on for three years as a consultant. Camelback began operations in 1963. Camelback's new owner at Camelback plans to keep the existing operations teams intact and do little to the mountain in the short term. That, however, isn't the case at other ski areas that changed hands this summer. New owners at three resorts have plans for varying degrees of change, and two venerable ski areas remain on the sale block as summer wanes to fall. Mountain High Resort, Wrightwood, Calif., was acquired by Valor Equity Partners and Mountain High operations personnel for about $24 million, according to sources close to the deal. Valor is a Chicago-based investment company, while Oaktree Capital Management, a Los Angeles investment company, had operated Mountain High for eight years. The new owners will open Mountain High North, a 100-acre developed ski area that never operated as part of Mountain High. The tract, which was known as the Ski Sunrise ski area, was acquired by Oaktree in November 2004 but never opened. Mountain High North will feature a 20-acre snow play area with terrain park features and teaching areas. Elsewhere in California, Bear Valley Mountain Resort was purchased by Dundee Realty USA, LLC, the parent company of A-Basin in Colorado. The new owners have said they plan to reorganize existing staff, refit the facilities, develop residential and commercial properties in the Bear Valley Village and build a lift from the village to the mountain. Bear Valley executives declined to reveal the purchase price. Tyringham Ridge, the new owner of Haystack Ski area, Wilmington, Vt., plan to turn the moribund ski area into a membership resort. American Skiing Company, parent of neighboring Mount Snow, unloaded Haystack for $5 million mainly because membership slopes would not be a worrisome rival to Mount Snow. Tyringham is a group of local developers that want to create a luxury resort catering to well-heeled home owners who would become members and have nearly exclusive use of Haystack's slopes. Tyringham agreed to issue 250 day passes to local residents. Development, to the tune of $200 million, calls for 190 townhomes, a "Ritz-Carlton-type" hotel, a four-star restaurant, a conference center and upgrades to the ski area infrastructure. According to Robert Rubin, one of the principles of Tyringham, Haystack will not operate this season. The permitting process is expected to last to the end of the year and construction will begin in the spring. Rubin indicated he expected Haystack to open in December of 2006. In the White Mountains of New Hampshire, Wildcat is also on the market. There is no land involved because the ski area, which began operations in 1933, sits in a national forest. And then there is Mammoth in California, which is still on the block. (IR 2/21/05). Back in the Poconos, Camelback's neighbors don't appear concerned about the ownership change. "I don't see any impact that the sale will have on the ski business at this resort," said Carl Kerstetter, marketing director of Jack Frost and Big Boulder mountains. "I haven't heard anything negative, or positive, since the sale. I'm sorry to see Sam (Newman) leave. He ran a perfect resort. It took 10 years, but we built a great relationship." For years there were indications that other companies were seeking to acquire Camelback. Last winter, rumors surfaced that Intrawest Corp. (Vancouver, B.C.), Booth Creek Ski Holdings (Vail) and Boyne USA Resorts (Boyne Falls, Mich.) were eyeing Camelback. Dave Johnson, director of marketing communications for Camelback, said those rumors were "understandable because Camelback has such a high profile." It is about a two-hour drive from both the New York and Philadelphia metro areas. An equally important factor in the buy for Berry was the health of Camelback as a business. "The company has a lot of synergy," said Berry. "The staff transitions well from ski area to waterpark, especially in the technical areas. Our food service carries from one season to the next. That makes the company solid throughout the year. A poor winter can be made up with a good summer." Berry senses that "the Poconos are experiencing a rebirth. We are seeing first class hotels coming in. A number of (older) properties are putting significant dollars back into their facilities." The region, he said, offers a "wholesome, family-oriented, outdoor experience. It is a situation that makes you comfortable investing because the rest of the area is coming along with you." A Skidmore College graduate, Berry started an automobile tire business and then an auto dealership. He put together the Rod and Gun Club at the Pocono Manor resort, where he maintains a residence. He founded the Stock Car Racing Experience Schools at Pocono Raceway and a transmission repair facility. He has also been involved in a number of commercial real estate ventures. Camelback's employees played a key role in the sale. "This is really an absolutely, wonderful group of people," said Berry of the roughly 800 employees. "We have many employees who have been here 30 years, and more who have been here for 20." Berry emphasized that he is an on-site, hands-on guy who will not be an absentee owner. The staff is behind Berry, said Brian Bossuyt, director of marketing operations: "Everybody sees where he is going and they are excited. We're starting to see what is new and what his ideas are." The sale of Camelback Ski Corporation included both the ski facility and the region's grandest waterpark, Camelbeach. Camelback recorded 350,000 visits last year while Camelbeach logged 300,000. Cut out of the deal was the Northridge townhome and condo development. Northridge was part of the Camelback Ski Corporation and was retained by the sellers. For now, the emphasis at Camelback isn't real estate, said Berry. "We want to increase capacity both on the ski slope and in the waterpark. But it is more important to improve and increase the experience." - by Bill Clapper « Previous Story | The Industry Report Home Page | Next Story » Comments
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Posted by: | August 6, 2006 07:13 AM
