Thursday, October 19, 2017

How will KSL & Co handle Deer Valley?

Yesterday, I was talking to a skier buddy of mine about how Deer Valley Resort might change out under new ownership. He thought Deer Valley brand was so strong that it couldn't be affected. I didn't see it quite the same way.

As a private-equity group, and in spite of what it announces to re-assure patrons of newly acquired resort, the affiliates of KSL Capital Partners and Henry Crown and Company (KSL & Co) isn't putting its collection of resorts together without expecting to achieve large economies of scale, consolidate best practices throughout them and compete head-to-head with Vail Resorts.
While Deer Valley may bask in the glow of Ski Magazine somehow flawed and narrowly based rankings, it suffered from a few issues that could be seen as opportunities for growth and progress by its new owners, like appealing more to younger crowds, broadening its product offering and even more simply, innovating, a policy that has dissipated soon after the resort's inception.

If KSL & Co is to be a success down the road, expect to see some drastic changes affecting its entire grouping of new resorts, including of course, Deer Valley.

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