After nine years of owning Mountain High Ski Resort in Wrightwood, private equity investor Oaktree Capital Management LLC has put the property on the block.
The 300-acre resort, a 90-minute drive from Los Angeles, has been listed with investment bank Houlihan Lokey Howard & Zukin, which plans a select distribution of marketing books early this month.
Pricing guidelines and revenues weren’t provided, but Houlihan investment banker David Voyticky said that in terms of annual visits, the resort is the top draw in Southern California, the fifth largest statewide and within the top 25 nationally.
In 2003 the resort attracted more than 550,000 skiers and snowboarders. With early snows this season, the number this year is expected to be significantly higher, Voyticky said.
“Given the enormous (population) growth expected for Southern California, Mountain High should experience strong increasing demand in future years as well,” he said. The resort draws visitors from a geographic region with 20 million people, which includes the Los Angeles and San Diego areas.
Oaktree Capital Management bought Mountain High Ski Resort from Orange County businessman Terry Tognazzini, the owner since 1978. In 1996, Oaktree converted much of the resort for snowboarders, a strategy that’s led to a quadrupling of visitors in the last four years. “When Oaktree took it over it was predominantly a ski destination and today 80 percent are snowboarders,” said Voyticky.
Industry consolidation
The ski industry has seen some consolidation, as resorts and companies seek to expand into new markets or scoop up existing properties.
Earlier this year, Vail Resorts Inc., owner of Colorado and California ski resorts, was put on the block for $1.23 billion, attracting several interested buyers. However, Vail canceled the sale after receiving low bids.
Meanwhile, Vancouver-based Intrawest Corp., owner of ski resorts from Canada to Colorado as well as more than 30 golf courses, has begun developing slopes in China for the country’s Olympics.
The Southern California ski landscape is made up mostly of family-owned operations that have traditionally run independently, according to Rick Kahl, editor of Ski Area Management, an industry trade magazine. In the past few years, though, some local ski resorts have gotten gobbled up.
Kahl said much of the nationwide consolidation has occurred over the past 10 to 15 years. “It’s happened in part because founders retire, and also because some people found that in order to remain competitive, they had to make large investments like snowmaking equipment and some of the families are just not able to make that kind of financial commitment,” he said.
