Q&A With Byron Carlock, President and CEO of CNL Lifestyle Properties

mike lewis

• December 09 2008
• 320 views
• 4 comments

According to a statement released Friday, Dec. 5, CNL Lifestyle Properties announced its acquisition of the privately held assets of three ski and mountain lifestyle properties: Vermont’s Okemo, Colorado’s Crested Butte and New Hampshire’s Mount Sunapee. The real estate investment trust purchased the resorts from family-owned Triple Peaks, LLC and will lease the properties back to Triple Peaks to manage the ski, golf, hospitality and conference operations under a long-term lease, according to the press release.

Transworld Business caught up with President and CEO of CNL Lifestyle Properties Byron Carlock to find out more details on the deal and its timing.

TWB: What does CNL bring to the table that will help improve these mountains from a business standpoint and the guests’ perspective?

BC: CNL Lifestyle Properties is a strong capital partner with a long-term outlook, and we find operators appreciate that. This transaction provides Triple Peaks the opportunity for immediate enhancement to these popular mountain destinations that will improve the overall skier experience and extend the resorts’ offerings .

TWB: Why did you decide to buy these properties now with the current economic conditions and the reduction in skier reservations this year? Where the properties offered at a deep discount?

BC: CNL is seeing many positive indicators that suggest people are not cutting back on leisure spending as much as might be expected in the current economic conditions. The characteristics of the properties in the REIT’s portfolio are positioned to perform reasonably well, even during the weak economy. Overall the ski resorts in the CNL portfolio are doing well. For example at Okemo Mountain, season pass sales are 17% higher than a year ago and hotel reservations are up 7%. People will continue to pursue their passions as a way of balancing their life, we have been seeing this in the trends CNL Lifestyle Properties continues to follow in the ski, golf and attractions sectors and the increase in attendance at many of the investments we own.

TWB: What are your strategic plans for these properties moving forward?

BC: The acquisition gives Triple Peaks management additional capital to build the Red Lady Lodge at Crested Butte Mountain Resort and to move forward with construction of the Okemo Mountain Resort conference center, enhancements that will extend the four-season offerings of the two resorts. It is also expected to fund improvements at Mount Sunapee Resort in New Hampshire.

TWB: Why did you want to buy these three specific mountains?

BC: First, it’s consistent with CNL’s investment thesis. As you know, CNL Lifestyle Properties is a real estate investment trust that invests in lifestyle oriented properties. This will further strengthen our ski and mountain lifestyle portfolio.Second, the Muellers and the team they’ve built at Triple Peaks are significant industry leading operators. A key part of our investment thesis is to partner with leading operators, the Muellers certainly fit that.Finally, the three resorts in this transaction – Crested Butte, Okemo and Mount Sunapee are the kinds of places that are good at delivering a memorable experience for the families who visit them. Right now, at these resorts we’re seeing season pass sales ahead of last year’s levels, which for us reinforces what we thought several months ago when we started talking with Triple Peaks..

TWB: What are your predictions for the future of the ski resort industry over the next several years?

BC: Given what we’re hearing from our operating partners, such as Triple Peaks, Boyne Resorts and Booth Creek, people who ski and snowboard are not willing to give up those passions. They may choose to be a little less extravagant because of the uncertainty in the economy, but we think that benefits a lot of the drive-to destinations, including those in our portfolio. Every indication we have now is that the ski resort industry will continue to thrive.