Sunday, March 11, 2012

Tale of two ski resorts

We are a ski town with three resorts; Deer Valley, Park City and Canyons. Canyons is both the competitor and the landlord of Park City and that makes for a rather tense and explosive relationship. In the past, Park City Mountain Resort could have purchased the land, but choose not too, since its land lease was so cheap at some $150,000 a year.

Today, the lease is up for renewal and Park City may not like its terms and tries to get the town's population on its side, but based on early responses, is not getting the expected support. For years, Park City Mountain Resort has been arrogant, has milked its purchase made back in 1994 to the last cent, having spent very little on new lifts, and keeping most of its older, slower ones in service.
 Further, what used to be Utah's largest resort has gotten seriously sidetracked by its terrain park and is falling significantly behind its two next door competitors that have led in terms of service and infrastructure. In spite of taking its plight to the court of public opinion, Park City Mountain Resort might be in a tough legal bind, and short of abandoning its initial investment, may have to abide to its landlord's new conditions.

That's what happens when some business folks believe they're so good that they're above doing any huge strategic mistake!

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