Originally Posted by quant2325
For the two public companies is the space? Maximizing shareholder value (duh).
For the private companies or families? Either the "love of the skiing" or ego. There are better ways to make money than depending upon the weather.
For the techies that bought PowMow? They really want a base camp.
There is at least one more reason that private investors buy ski areas.
Monarch was purchased a little more than a decade ago by a group of investors, most of which are business owners in the Salida area, including owners of several Salida hotels.
Success was far from guaranteed. The mountain barely survived the 1980's after a ton of drama and legal problems related to its owners. In the 1990's it was passed around to several absentee owners that did little to invest in the area. Meanwhile, season passes for the I-70 areas became dirt cheap, and Monarch's season pass was absolutely uncompetitive.
Meanwhile, Salida was a rafting town that closed up in the Winter, and the town saw little income in the offseason.
So, a group of several local investors (and non-locals too, but it is the local group that does the day-to-day management of the area) stepped in and bought it The primary goal was to make the ski area successful enough to get winter traffic in Salida, and to keep the ski area operating period- if the ski area were to close, Salida would become even a deader place in the Winter Months.
It is different now. The ski area is making a ton of money. The season pass allows free skiing at a ridiculous number of resorts, some much larger and much better known than Monarch. Monarch sells season passes all across the country now. It sells season passes to people who never even come ski the mountain. And in entices people to make trips that never would have considered the place before. Those people need places to stay.
"For a long time, Salida wasn't a ski town and it struggled in winter," said Moorhead, Monarch's longtime manager who first started working at the area in 1976 and owns a stake in the hill. "They've seen us come in and make a huge difference, and they appreciate that. Now, winter has a substantial impact."
Don Jackson said his Salida Super 8 hotel saw its best winters ever in 2008-09 and 2009-10, years that the tourism industry was weathering declines. Jackson, another owner of Monarch, credits the hill's growing attraction with budget-minded skiers as fuel for the wintertime fire in Salida.
"We jumped at the chance for ownership," he said. "It's not that often you get a chance to really impact your off-season."
Savvy owners of family-friendly Monarch ski area enjoy profitable reign - The Denver Post http://www.denverpost.com/ci_17429575#ixzz2pBQJR37i