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The trend of out-of-state corporations purchasing Vermont ski resorts is continuing with the sale of Sugarbush Resort in Warren to a Colorado firm.
Alterra Mountain Co. and Sugarbush officials announced the sale of the iconic Warren-based year-round resort Wednesday. The resort, founded in 1958, is a key feature in the Mad River Valley with trails on Mount Ellen and Lincoln Peak, joined by a two-mile long quad lift, billed as the longest and fastest in the world.
Sugarbush president Win Smith will stay on. He described the sale by Summit Ventures — Smith owns more than 90 percent — as bittersweet and similar to the emotions he felt at his daughter’s wedding: a tear in his eye and a lump in his throat, but confident the resort would be well treated.
“While things will not be the same, I am excited about this next stage,” Smith told employees. And I’m comforted knowing we’re not going to say goodbye.”
Smith said all 165 year-round employees will be kept on. The resort also employs as many as 1,000 people daily during the ski season. There is also a golf course.
Terms of the deal are confidential. Smith and investors bought Sugarbush in 2001 from the American Skiing Co.
Smith pointed to recent consolidation in the ski industry, higher costs and climate change as some of the reasons behind the sale. He noted Sugarbush, an independent resort, had turned down other offers.
“Recent events in the ski industry and the challenge of rising costs posed both by climate change and by doing business in Vermont have convinced me a new owner is need to ensure a sustainable future for Sugarbush,” Smith said.
Smith also said the multi-resort pass also had put pressure on independent ski operators like Sugarbush.
He said the recent acquisition of Peak Resorts by Vail Resorts was “the tipping point” in deciding to sell. That deal closed in September and allowed the company to offer a large number of resorts to season pass holders.
“They’re damned good for the consumer,” Smith said in an interview Wednesday, noting it was difficult to compete offering a season pass at one place, Sugarbush, for about the same price as passes that offer access to multiple resorts.
Vail Resorts owns 37 resorts worldwide, including Vermont ski areas Stowe Mountain Resorts, Okemo Mountain Resorts and Mount Snow.
Alterra owns 14 resorts in North America — including Stratton Mountain resort in southern Vermont — and partners with 27 other facilities worldwide. Smith said the company has no plans for any changes at Sugarbush. Alterra offers a multi-resort pass as well.
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“Sugarbush Resort is a premier East Coast mountain destination and we are excited to expand the Alterra Mountain Co. family in the Northeast, with Sugarbush joining Stratton in Vermont,” said Rusty Gregory, chief executive officer of Alterra Mountain Co.
Smith noted Alterra would be bringing additional resources to continue to make improvements. They will also continue to support local community efforts, he said, including the program that allows some students to ski free one afternoon.
Since 2001 Sugarbush has invested $74 million in mountain improvements including seven new lifts, significant upgrades to its snowmaking system, the revitalization of the Lincoln Peak area, as well as construction of a hotel and other units. About $20 million of the money was raised through EB-5 funds from foreign investors, according to Smith.
The ski area boasts 111 trails and 4,000 acres of skiable terrain.
“Having been a family-owned resort for nearly two decades, we were keen to find the right next owner of Sugarbush Resort. We are delighted that Sugarbush will join the Alterra Mountain Co. family, knowing that Alterra Mountain Co. will continue to maintain our culture, values and commitment to our community, while bringing additional capital and other resources to make Sugarbush even better in the years ahead,” said Smith.
Smith, 70, a Wall Street executive before buying the resort 18 years ago, said he planned to stay on, had “no plans to retire to a gated golf community in Florida” and hoped to maintain his record of skiing 100 days per year.
“It’s emotional,” he said, “but it’s the right thing to do.”
Smith said he was proud of having turned a money-losing ski area into a profitable venture.
Sugarbush’s history includes legendary skier John Egan, who was the subject of many Warren Miller ski films. The ski area also holds the distinction of having the first gondola in the United States
Read the story on VTDigger here: Sugarbush Resort sold to Colorado firm Alterra Mountain Co..