Snowfall equals money for Vail Resorts
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- Created on Tuesday, 22 February 2011 15:26
- Written by Nathan
Photo by Cody Downard, Beaver Creek Resort
By LAUREN GLENDENNING, VAIL DAILY
Plenty of snowfall at Vail Resorts' mountains this season is doing more than just giving skiers and snowboarders a lot of powder days — it's helping the company's overall health, analysts say.
Combine significant snow accumulations with the fact that Vail Resorts has completed its two major real estate projects — One Ski Hill Place in Breckenridge and the Ritz-Carlton Residences in Vail — and the company's acquisition of Northstar-at-Tahoe, and Vail Resorts stock is looking good, said Will Marks, a Vail Resorts analyst with JMP Securities.
The completion of the real estate projects is significant because the company no longer has significant capital expenditures to make on the projects, Marks said, meaning the cash flow from those projects coming in now will be profits.
“Even if it takes three years to sell the real estate, there are no meaningful costs (remaining),” Marks said.
Even property taxes on the units aren't a significant concern because Marks said the company will offset a lot of those costs by renting out the units short term while waiting for them to sell.
Marks thinks the company should make a couple million on those units this year alone just from the short-term rentals.
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