A new Aspen Skiing Company - KSL Capital Partners alliance started an eventfull week with a $1.5 Billion purchase of Intrawest Resort Holdings ski areas, including Winter Park and Steamboat in Colorado, Blue Mountain in Ontario, Mont Tremblant in Quebec, Stratton Mountain in Vermont and Snowshoe in West Virginia. That was followed a few days later with the purchase of Mammoth Resorts including Snow Summit, Bear Mountain, and June Mountain. These 4 resorts have 6,000 acres and about 2 million visits a year. No price was announced. KSL Capital Partners also owns Squaw Valley and Alpine Meadows in California. Aspen Skiing Company manages Aspen Mountain, Aspen Highlands, Snowmass and Buttermilk which will all remain privately owned by the Lester Crown family of Chicago.

So who are these masked men who choose to challenge Vail Resorts dominance in seasons pass sales? KSL Capital Partners is generally funded by a combination of public, state and corporate pension funds, private and university endowments high net worth individuals, fund of funds and other financial institutions.

What does the new partnership seem to believe? Eric Resnick, the Chief Executive of KSL Capital Partners has said that the new partnership is NOT about real estate development. They are focused on operations with seasons pass revenue the financial engine. They believe today's skiers are looking for a variety of experiences and want to see more places and try different slopes. With 12 ski resorts and about 7 million skier visits a year, they plan to compete with the industry changing Epic Pass program that Vail Resorts has built to 650,000 pass sales in the past year. It is also interesting to note that KSL Capital's portfolio also includes the Outrigger Hotels and Resorts with 6,500 rooms in Hawaii and the South Pacific and an association with East West Partners - a familiar name in Park City development.

There is no doubt that the previously undisputed dominance of Vail Resorts now has strong competition. Since Vail Resorts arrived in Park City, it has often been described as the 800 pound gorilla and undoubtedly had its eye on Mammoth, but will certainly respond to the new competition. Vail Resorts is coming off a very successful ski season in Park City and has done well in establishing good community relations here. The most recent example was last weeks announcement that Rob Katz, the CEO of Vail Resorts, and his wife made personal contributions totaling $1.6 million to eight local non-profit organizations in the communities where the Company operates. That donation includes a $250,000 contribution to the Park City Community Foundation to assist in launching the "Communities That Care" program as part of a larger initiative focusing on mental health for 4200 teens in 3 Summit County school districts, grades 6-12. Effective community engagement and a headstart in the technology that makes the Epic Pass system tick should keep Vail Resorts in the lead.

I'm reminded of the old Japanese versions of the early King Kong movies where King Kong battles Mothra ( and other opponents) with many miniture buildings trampled in the process. As spectators in the coming contest, its not so much who wins as hoping we don't get stepped on as the battle moves forward. I believe this shift in the ski industry will have major implications for the future direction of real estate development in Park City and the future value of resales of our existing resale inventory. Stay tuned.