Squaw Valley bought by Denver equity firm

Squaw Valley USA will have a new owner after a Denver-based equity firm bought virtually all of its shares.

KSL Capital Partners LLC of Denver, which owns stakes in resort-related businesses, announced Tuesday that it hopes to complete the sale by the end of the year and that it will put $50 million into the exclusive Lake Tahoe area resort, home of the 1960 Olympic Winter Games.

Squaw was opened in 1949 by the late Alexander Cushing. It has about 4,000 acres and 2,850 vertical feet that spans over six peaks.

“Squaw Valley and the Cushing family have been synonymous for more than 60 years,” said Nancy W. Cushing, Squaw Valley USA chairman of the board. “Alex’s dream was to create a world-class, four-season destination resort in one of the most beautiful places in the world. This transaction will result in the culmination of that dream by providing the necessary resources to ensure Squaw Valley’s continued improvement and success for generations to come.”

It is the second major Tahoe area ski resort sale in a month. On Oct. 25, Vail Resorts announced the purchase of Northstar-at-Tahoe in a $63 million deal. Vail Resorts also owns Heavenly Mountain Resort at Lake Tahoe's south shore.

KSL Capital Partners said in a press statement that it has bought "substantially all of the shares" of Squaw Valley Development Company, which includes all facets of Squaw Valley USA ski operations, the Village at Squaw Valley and related real estate holdings.

The transaction is expected to close prior to year end.

KSL’s current and prior investments include some of the premier properties in travel and leisure, including Grand Wailea Resort Hotel & Spa, Arizona Biltmore Resort & Spa, La Costa Resort and Spa, Doral Golf Resort & Spa, Hotel del Coronado, the Claremont Hotel Club & Spa, the San Francisco Bay Club and its sister clubs, as well as ClubCorp, the world’s largest owner of private golf and business clubs.

KSL’s founders, Eric Resnick and Michael Shannon, also have extensive hands-on experience in the snowsports industry. From 1985 to 1992, Shannon was President of Vail Associates, a predecessor company to Vail Resorts. Resnick held a variety of positions at Vail, including Vice President of Strategic Planning and Treasurer from 1996 through 2000. Both Shannon and Resnick also serve as board members for the United States Ski & Snowboard Team Foundation and the Vail Valley Foundation, and Resnick is on the Organizing Committee of the 2015 World Alpine Ski Championships.

“Squaw Valley is the birthplace of the modern mountain resort in the United States with a heritage, history, amenities and perhaps most of all, extraordinary terrain that can never be recreated,” said Resnick, KSL’s managing director. “With Squaw Valley USA, Alex Cushing made a profound impact on the snowsports industry and we’re honored to build upon the resort’s legacy.”

Recently appointed Squaw Valley President and CEO Andy Wirth will continue in his role. Wirth came to Squaw Valley in August 2010 after maintaining executive level positions with Intrawest, based out of Vancouver, British Columbia and Steamboat, Colorado, and has 24 years of experience in the mountain resort and hospitality industry.

“In the short period of time he’s been at Squaw Valley, all of us at KSL recognize that Andy’s extensive experience and leadership has already had a profound and positive impact on the operations. We look forward to working with him to create an even brighter future for Squaw Valley,” said Resnick.

“KSL’s pending acquisition of Squaw Valley is great news for our guests and our dedicated, hardworking team,” said Wirth. “KSL’s expertise in hospitality, recreation, and guest service will provide the support and resources for Squaw Valley’s talented management team to advance the resort’s enterprise-wide focus on the guest experience. The KSL team has already committed more than $50 million in capital improvements over the next three to five years here at Squaw, clearly supporting their commitment to the mountain and guest experience.”

For the 2010-11 season Squaw Valley has undertaken more than $5 million in capital improvements, including renovation of the famous Olympic House and Gold Coast facilities. These renovations are a part of the company’s comprehensive focus on all facets of the guest’s dining experience. Additionally, in support of the resort’s augmented focus on the quality of the snow surface and trail grooming, the company has also purchased three additional state-of-the-art snow cats, complementing its current fleet of 22 grooming machines. This is part of an intense focus on grooming and snow surface quality that will result in a 25 percent increase of grooming operations.

“Squaw Valley is renowned for the challenging, if not legendary, lines off KT-22 and the entire mountain. The resort also offers some of the best and most extensive terrain for beginner and intermediate skiers and riders in North America. The company’s commitment to providing even more grooming will help ensure the finest, most enjoyable snow surface possible for our customers who are seeking world class groomed skiing and riding,” stated Wirth.

Squaw Valley USA opened for winter operations on Saturday.