 |
|
|
|
To submit a news item send an email to press@mountainnews.com. The Industry Report is published by Mountain News Corp., which also publishes OnTheSnow.com Editor-In-Chief: - Craig Altschul Executive Editor: - Roger Leo President & Publisher: - Rob Brown Managing Director: - Chad Dyer Advertising Information: - sales@mountainnews.com Subscriptions:
Archives: - September 2009 - August 2009 - July 2009 - June 2009 - May 2009 - April 2009 - March 2009 - February 2009 - January 2009 - December 2008 - November 2008 - October 2008 Recent Posts: |
|
|
« Previous Story | The Industry Report Home Page | Next Story » The Last Of The Big Spenders? CNL Goal To 'Extend The Useful Life'By Craig Altschul 
This summer's version isn't very sexy. In fact, CNL Lifestyle Properties and their tenant resorts "are not immune to economic conditions and are investing capital dollars conservatively this summer," CNL Vice President and Managing Director Steve Rice told The Industry Report. Rice said the most significant project among the CNL brood this year is at Northstar-at-Tahoe in the California High Sierra. That project includes a new fixed quad; Magic Carpets; a new mid-mountain teaching area; and new ski shop under a long-term lease at the almost-ready-to-open Ritz Carlton. The other CNL resorts investments are mostly in improved snowmaking and capital planning. Contrast this summer's efforts to the summer of 2008 when the demise of the economy was just a twinkling in our eye. We reported (IR Sept. 8, 2008) a CNL FY2008 capital maintenance and expansion infusion of just under $48 million into its then 10 mountain resorts (currently 14 resorts), plus an additional $15 million in capital maintenance to be invested by the individual resorts. Rice said its resorts' leases prescribe that approximately five percent of resort gross revenues must be spent on capital maintenance. "We define it as extending the useful life of existing assets," he said, adding that requirement is separate from annual repairs and maintenance included in normal budgets. "We all know that some resorts over the years skimped on or virtually eliminated capital spending after tough years," Rice said. "We think our example of reinvesting in existing assets is an important message in these economic times." Rice said the CNL resorts spending will total approximately $16 million this summer and fall on its definition of capital maintenance. "We invest these dollars to maintain high quality standards within our resorts and the high standards for the quality of our guest experience," he said. What It Means: It's not a surprise, but what a difference a year has made in all sectors of mountain resort industry life. Still, it's refreshing to learn we probably won't see a return to the lack of investment in capital maintenance when the going got tough that was the norm in the final years of the American Skiing Company. That lesson, at least, seems to have been learned. But, all that big spending of days of yore sure made for some good pre-season copy. « Previous Story | The Industry Report Home Page | Next Story » |
|
