As with all other ski areas, we struggle with the problem of snowboard theft. It’s one of those problems that exists at all areas, yet no one really wants to talk about it. But snowboard theft has become too big to ignore any longer. It’s almost to the point at our Skier Services desk where, when someone comes in and they say their skis were stolen, we say, “No they weren’t, they were misplaced.” Seriously, I think 35 to 40 boards are stolen to every one pair of skis.

That said, the situation of snowboard theft quickly becomes our problem. Riders want to know what we are going to do for them after their boards are stolen. Of course, we sympathize with the customers; they have just been intensely violated at our ski area. And, the last thing they want to hear is: “Was it locked?” So, an event that has nothing to do with our personnel, our efforts, etc., is now suddenly very much our problem. In fact, we possibly could lose a customer because of the perceived reputation that stuff gets stolen at our place. But the reality is, there’s not much we can do at that moment.

Taking a longer view, we have tried several things to stem the tide of theft, to no avail. We have worked with local police authorities and have conducted sting operations. No luck. We have offered a complimentary ski and snowboard check. I am stunned how little it gets used. We have placed signage everywhere warning guests to lock their equipment. People do not read, or at least do not heed, the signs.

Our latest attempt to educate the public—and by public, we really mean snowboarders—is through our “Love it? Lock it” sticker campaign. We wanted a theme that would resonate with the local snowboard population, be cool enough to put on a snowboard, helmet, whatever, so the message is repeatedly beaten into their skulls.

While we wanted to be proactive and draw attention to the problem of snowboard theft, we also didn’t want to place a billboard in our main entry area declaring, “Your board will get stolen if you leave it unlocked!” That seemed to send the wrong message about our friendly little resort. But we think we have walked that proverbial fine line with our new slogan and sticker. The sticker measures 2.5” x 3.5” and our Courtesy Patrol hands one to any snowboarder coming into our facility. Additionally we recently launched our new terrain park website, and the sticker displays the web address as well. We invite other areas to follow our lead—and to relay any other successful strategies that may be out there.


What's Next for Troubled Resorts?

With the weak economy, resorts have been surprisingly resilient. There has been no meltdown as in the financial markets. Has anyone else noted the irony, that the ski industry—once labeled by Wall Street as a place suited only for sports fanatics who could tolerate the unpredictable cash flow—has been relatively stable while Wall Street has crumbled?

It’s no wonder, then, that REITs, and CNL Lifestyle Properties in particular, have been buying into winter resorts. Winter resorts are the best-performing group within CNL’s portfolio, which also includes summer attractions, marinas, and golf resorts. Winter resorts comprise 28 percent of CNL’s portfolio, but 36 percent of its revenues, according to its most recent prospectus.

Not that all winter resorts are completely healthy. Tamarack, Idaho, and the Yellowstone Club in Montana are two cases in point. Tamarack could be shuttered before spring skiing ends, its golf course left to literally go to seed. And Yellowstone Club may be sold, at pennies on the dollar that Credit Suisse is owed, in what may well be one of the greatest bargains ever (valuation: $400 million, proposed purchase price, $175 million).

Other resorts may be caught in the credit squeeze. Fortress Investment Group, the hedge-fund owner of Intrawest, barely managed to refinance its purchase of the multi-resort group last fall. Will Fortress, whose stock price has slid about 95 percent (from over $30 a share to as little as $1.80), be forced to sell areas to meet redemptions? Fortress has taken steps to limit the run on its assets, though, and that might be enough to stave off the sale of any Intrawest resorts. But Intrawest accounts for a much larger share of Fortress’ assets than it did two years ago; if Fortress must raise cash, Intrawest would be one place to find it.

Another candidate is Stowe, Vt., though we haven’t heard any rumors about a sale. Still, AIG owns Stowe, and that corporation is now a welfare recipient—it has received nearly $150 billion in aid—and may need to raise cash to pay us back.

And remember, cash is king these days. As the Jimmy Peak sale in January shows, there could be other financially-sound owners willing to trade ownership for cash and the ability to still run the place.

Where do buyers get their cash? Increasingly, it’s from REITs. When ASC sought out buyers for its empire a few years ago, it found Boyne/CNL (Sugarloaf, Sunday River), Fortress/Intrawest (Steamboat), Talisker (The Canyons), Powdr Corp. (Killington/Pico) and Peak Resorts/Entertainment Properties Trust (Mount Snow, Attitash). In short, more than half of its resorts are now owned by REITs.

REITs make sense on a lot of levels. Investors large and small can put their chips into a REIT and earn a decent return. REITs buy a property, lease it back to the former owners for, say, payments of eight to 11 percent. The REIT deducts its costs and profits from that, and pays the rest—typically five to nine percent—to its investors. Lately, this has been a much better investment than putting money in CDs, stocks, real estate, or Treasuries. And resorts gain a relatively inexpensive source of capital, as well as a willing and supportive capital partner. So far, this seems like a good match all around.