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.
