The trio of Colorado players investing in Lake Tahoe covers the spectrum of resort development and management.
East West Partners is a land developer. Vail Resorts is largely a lodger and resort operator. KSL Capital Partners is working in both operations and real estate.
Vail Resorts is looking at its play in Tahoe from a visitor perspective. The company’s recent $18 million acquisition of the Kirkwood ski area is more about diversifying its ski offerings and perhaps bolstering its season-pass revenues.
Though the deal won’t be finalized for a couple of months, Vail last week immediately offered Kirkwood passholders access to its Northstar and Heavenly ski areas and vice versa. Kirkwood’s high-alpine steeps complement Heavenly’s vast, open runs and Northstar’s little-bit-of-everything offerings.
“I think our strategy has always been and will continue to be very competitive on season passes. A great price with more resorts is a winning formula for us,” Vail Resorts chief executive Rob Katz said.
Katz expects his three diverse Tahoe resorts will draw more regional vacationers — especially the wealthy from Silicon Valley and the Bay Area — as well as more far-flung visitors.
“I think over time we will see an international market develop in Tahoe, coming from Asia and Europe via San Francisco,” he said.
Like Katz, KSL’s Andy Wirth appreciates the regional market that has supported Squaw Valley and Alpine Meadows for decades, but “the real opportunity for growth is really the destination and international customer,” he said.
KSL is eyeing both on-mountain and base-area upgrades in its broad-stroke plans to animate the now 6,000-acre Squaw-Alpine resort complex.
“Real estate development can play a key role in enhancing the overall experience,” Wirth said. “What we’ve learned in this modern era of ski-resort development is how to integrate operational plans on the mountain and real estate plans at the base to create a more whole experience.”
One advantage to Lake Tahoe’s growth potential is its vibrant summer allure.
“Where Colorado resorts might be more about winter than summer, Tahoe is the opposite of that,” East West managing partner Harry Frampton said. “It’s just a wonderful summer experience.”
