HOTELS4U.COM LAUNCHES ITS FIRST DEDICATED SKI PROGRAMME
Leading bedbank website hotels4u.com is launching its first dedicated Ski programme on Friday 10 July. The new programme allows agents to benefit from the growing interest in dynamic packaging within the ski market by offering a fully flexible accommodation and transfer product.
hotels4u.com’s new ski programme will feature as a separate section on the website, with over one hundred two, three, four and five star hotels, apartments and chalets on offer in the popular ski destinations of Andorra, Austria, Bulgaria, France, Italy and Switzerland. Available for stays departing from December 2009, board basis will include half board, bed & breakfast and self-catering to ensure flexibility and choice across the product range.
A selection of competitively priced transfer options ranging from coach, shuttle bus and taxi to private limousine will also be available for all resorts.
Teresa Walsh, hotels4u.com’s sales director, said; “With no-frills carriers such as Jet2, Easyjet, BMI Baby and FlyB.com offering frequent services from a wide-range of UK airports to all the key ski destinations, our new Ski product offers agents the perfect opportunity to benefit from holidaymakers looking for great value, flexible skiing options in winter 2009/10.
“With Eurostar operating its Ski-Train from December 2009, the dynamic packaging opportunities for the ski market are endless, allowing travel agents to tap into the growing self-drive sector and increase profitability.”
hotels4u.com’s ski product portfolio
Over 25 properties will be featured in 10 top Austrian resorts such as Kitzbuhel, St. Anton, Zell am See, Galtur and Mayrhofen. Andorra will offer a 35 strong property portfolio covering four resorts including the 3 star Palarine hotel in Arinsal from £21 per person per night based on bed and breakfast.
As an emerging ski destination, Bulgaria’s Bankso and Borovets resorts offer good value accommodation, with prices starting at just £16 per person per night bed and breakfast at the 4 star Bansko Park hotel.
With prices in France starting from £7 per person per night, a wide range of self-catering properties in top resorts such as Alpe d’Huez, Courcheval and la Plagne together with hotels in resorts such as Chamonix, Les Arcs and Tignes cater for those looking for flexible dining options as well as flexible packages. The inclusion of properties in Switzerland and Italy meanwhile, ensures that the main Alpine resorts are catered for.
Monday, 13 July 2009
Saturday, 13 June 2009
Killington weathers the storm
KILLINGTON - Vermont's ski season weathered the winter, in spite of a sour economy and a temperamental climate.
The Vermont Ski Areas Association announced Thursday the state's ski resorts recorded 4,068,696 skier visits for the 2008-09 season. The announcement came at the industry trade group's 40th anniversary annual meeting today at Killington Resort.
The total reflected a 7.5 percent decrease from the banner year of 2007-08, but was on par with the five-year average. The record number of skier and snowboarder visits came in 2000-01, when 4,579,719 people hit Vermont's slopes.
The past season saw an above-average start with a strong Thanksgiving opening, but a Christmas thaw, little fresh snow in March and the poor economy conspired against skiers and the resorts.
"Vermont's ski industry held up very well in spite of the enormous challenges of the current economic climate," said Parker Riehle, president of the Vermont Ski Areas Association, in a news release. "Skiing and snowboarding are lifestyle sports that have historically proven to be recession-resilient, and this season was no different."
The annual meeting also heralded Vermont ski areas' strong showing at this year's National Ski Areas Association's annual awards presentation, where Green Mountain State resorts garnered eight national awards for safety programs, environmental excellence, marketing and industry achievement:
• Stowe, Stratton and Okemo won environmental excellence awards.
• Jay Peak, Mad River Glen and Sugarbush won marketing awards.
• Okemo won a helmet safety award.
• Former Stowe and Killington executive Hank Lunde of Stowe won the NSAA Lifetime Achievement Award.
• Stratton Mountain Resort's Sky Foulkes was elected chairman of the VSAA board of directors, taking over for longtime chairman Bill Stenger of Jay Peak Resort. Kelly Pawlak, general manager of the Mount Snow Resort, was elected vice chairwoman of the board.
The Vermont Ski Areas Association announced Thursday the state's ski resorts recorded 4,068,696 skier visits for the 2008-09 season. The announcement came at the industry trade group's 40th anniversary annual meeting today at Killington Resort.
The total reflected a 7.5 percent decrease from the banner year of 2007-08, but was on par with the five-year average. The record number of skier and snowboarder visits came in 2000-01, when 4,579,719 people hit Vermont's slopes.
The past season saw an above-average start with a strong Thanksgiving opening, but a Christmas thaw, little fresh snow in March and the poor economy conspired against skiers and the resorts.
"Vermont's ski industry held up very well in spite of the enormous challenges of the current economic climate," said Parker Riehle, president of the Vermont Ski Areas Association, in a news release. "Skiing and snowboarding are lifestyle sports that have historically proven to be recession-resilient, and this season was no different."
The annual meeting also heralded Vermont ski areas' strong showing at this year's National Ski Areas Association's annual awards presentation, where Green Mountain State resorts garnered eight national awards for safety programs, environmental excellence, marketing and industry achievement:
• Stowe, Stratton and Okemo won environmental excellence awards.
• Jay Peak, Mad River Glen and Sugarbush won marketing awards.
• Okemo won a helmet safety award.
• Former Stowe and Killington executive Hank Lunde of Stowe won the NSAA Lifetime Achievement Award.
• Stratton Mountain Resort's Sky Foulkes was elected chairman of the VSAA board of directors, taking over for longtime chairman Bill Stenger of Jay Peak Resort. Kelly Pawlak, general manager of the Mount Snow Resort, was elected vice chairwoman of the board.
Tuesday, 2 June 2009
Skiing in Italy
THERE IS something very special about skiing in Italy. The scenery is stunning, the people hospitable, the food delicious and the pistes surprisingly well-maintained. Italian skiing is split into regions and the atmosphere varies considerably, depending whether the resort is near France, Switzerland or Austria.
The Dolomites used to be part of Austria and is the most beautiful stretch of the Alps - 5,000 square kilometres of widely varying rock formations. They look strikingly different from the rest of the Alps - jagged teeth- like mountains which glow a magical pinky grey colour in the evenings. The Dolomites are named after the Frenchman Deodat de Dolomieu who discovered the limestone-type rock which gives these mountains their slightly pinky- orange tinge. Gentle in parts, jagged in others, this southern range has a tremendous feel of drama and unpredictability. The mountains rise up to 3,899m, while the craggy stacks of rock, sharp cliff faces and narrow valleys are breathtaking and intimidating by turns. The highest skiable peak is the Marmolada (3,344m) while there are another 35 peaks measuring over 3,000m.
Style
At one time, about 10-15 years ago, Italy was notorious for its rather chaotic skiing and archaic lift systems. This is no longer the case and the Italians have put a tremendous amount of money, time and thought into their resorts so you'll now find their pistes well-groomed, their snowmaking facilities extensive and their lift systems up to date.
Although there are some internationally renowned Italian resorts such as Cortina and Courmayeur, expert skiers would still be hard pushed to find anything as challenging or as extensive as in some of the premier league resorts in France or Austria. The Super Dolomiti ski pass gives access to over 1,000km of pistes and nearly 500 lifts, but much of this is still not properly connected. The 175km Sella Ronda circuit at the core of the Dolomites offers blissful skiing for intermediates covering four valleys and a well-linked lift system and snowmaking.
The Italians are piste-bashing poseurs who don't like tough skiing. They prefer wide gentle open pistes where they can bomb down for an hour or so before stopping off for a mega-lunch.
The Italians are known for their hospitality towards families but they do not always have good childcare facilities, probably because the Italians are so loathe to let their bambinos out of sight and usually bring grandmama along to look after them.
Accommodation
Italian hotels are usually of a high standard and those who run them friendly and hospitable. An increasing number of British tour-operators means that the British skier now has a good choice of accommodation in hotels, apartments and chalets.
- Hotel Edelweiss (0039 165 84 15 90) Courmayeur. A small family run hotel, centrally located in the heart of the resort behind the pedestrianised area with easy access to lifts. Warm and cosy hotel with comfortable rooms.
- Hotel Pralong (0039 471 97 53 70) Selva. A good quality hotel well situated for the slopes. The family owners live and breathe skiing and are exceptionally hospitable towards families. Flexible meal arrangements with excellent choice of food.
- Miramonte Majestic Hotel (0039 436 42 01) Cortina. One of Italy's most famous luxury mountain hotels. 2km out of town, with swimming pool, fitness centre, wonderful grounds and fantastic food. Despite luxury status, hotel provides a first class but unpretentious service.
EATING
It is worth skiing in Italy just for the food and wine. Pasta even in the cheaper restaurants is usually home-made, filling and delicious. It is not uncommon for the Italians to eat a leisurely five-course lunch on a ski holiday. Some of the less commercial resorts even shut the lifts between noon and 1pm. Sunday lunch is a big Italian tradition - the whole family from great granny to the tiniest bambino, eats together.
n Calchiera Livigno. Mountain lodge restaurant tucked in the pretty Val Federia. Specialises in typical local dishes including cold cuts and pastas with local cheese sauces. The game is particularly good. Excellent local wines - famous for its local grappa. Good value for money.
- Matterhorn Cervinia. Located in the centre of town, this excellent local pizzeria serves an extensive choice of tasty pizzas and an assortment of local Italian cuisine. Spoiled for menu choice, this friendly popular restaurant provides a warm and lively atmosphere. Reasonably priced.
- Gallia Gran Baita Courmayeur. A restaurant for the discerning. Traditional Italian serving good quality food in beautiful Alpine surroundings. First class service with a wide variety of choice wines and local grappa. Not for the budget conscious.
APRES SKI
Italian skiers are decidedly stylish both on and off the slopes. After skiing, they will go on parade, or passiagiata, round the resort. Usually they will go back to their hotel to change and then strut around the streets, to see and be seen. Apres-ski starts early and continues until the early hours. Many of the resorts, however, can be quieter in the week as a lot of Italians just go there to party at weekends.
- Cortina. Upmarket resort with lots for non-skiers to do. Lots of smart Italians in their furs at passiagiata time. Classy shops. The Enoteca is a popular wine bar to go to after dinner. The Clipper bar has a bob- sleigh in the door and lots of designer beers. After 11pm there are lots of throbbing discos such as Hyppo, VIP and Area.
- Madonna di Campiglio. Lively little town, popular with chic Italians. Fur-clad Italians take part in the daily passiagiata and there are plenty of restaurants, bars, nightclubs and even a theatre for occasional cabaret.
- Sauze d'Oulx. Used to have an 18-30 style holiday atmosphere, frequented by rowdy lager louts, it now attracts a bigger mix of skiers of all ages but is particularly suited to those seeking a lively nightlife. Early evening many skiers stop off at Andy Capp's pub and New Scotch Bar. After dinner the Cotton Club and Rock Cafe are popular.
Beginners
- Cortina. Big nursery slope area in Socrepes and easy runs to progress to. If it's your first ski holiday and you don't take to it, there's plenty to see and do in the chic town.
- Campitello. Small quiet village, ideal for complete beginners as it has some excellent nursery slopes and provides a gentle introduction to skiing in the Dolomites.
- Madesimo. Doorstep skiing with big sheltered beginners ski area. Plenty of English speaking instructors.
Intermediates
- Courmayeur. Intermediate paradise with a good lift circuit and stunning scenery. Also a good base to tackle the 22km off-piste Vallee Blanche - a real buzz for any fit intermediate.
- Cervinia. Very high resort with lots of long flattering runs that make you feel like an expert. Chance to ski into Zermatt in Switzerland. Good sun and snow record.
- Bormio. Lots of long red runs. Lift pass covers neighbouring resorts such as Santa Caterina and Livigno.
Experts
Italy is not really a true hot dog destination but the resorts below offer reasonably challenging skiing that should keep most advanced skiers happy for a week.
- Selva. Giant ski area giving direct access to 175km of piste in the Sella Ronda circuit and 1,180km covered in the Super Dolomiti lift pass.
- Arabba. Also in the Sella Ronda circuit, this offers some of the most testing and exciting skiing in Italy both on and off piste.
- Sauze d'Oulx. Good for advanced intermediates who want to keep practising on piste. True experts will want to head off-piste where there are lots of exciting long descents.
Snowboarders
Italy is not such a popular destination with snowboarders as the other main European ski destinations. Below are some of the more accommodating resorts.
- La Thuile. A good place to learn to board. Lots of chair-lifts (rather than humiliating drags!), and easy pistes. There's also a fun-park and half-pipe.
- Livigno. Quite popular with boarders who have unrestricted access to all the pistes. Good beginner slopes although there are a lot of drag lifts. They also have a half-pipe.
- Selva. Good for beginners and intermediates who can tackle the Sella Ronda clockwise using only one drag lift - you'll have to use more in the other direction. There's also a half-pipe and fun park.
Value for Money
As a destination for British skiers, Italy has boomed in recent years as the exchange rate has been so much more favourable than the French, Austrian or Swiss exchange rates. This year, it is not at such a price advantage but it is still excellent value for money. Above all, it is all the extras such as food, wine and lift passes that are cheaper in Italy and so bring the overall cost of your holiday down.
Getting There
One of the problems of skiing in Italy is that it can involve long transfers from airports. Verona is a handy airport for the Dolomites; Milan is a good link for Courmayeur and the Aosta Valley; Turin offers short transfers from the Piemonte range of French border resorts. You can also fly to Innsbruck and go over the Brenner pass.
A good motorway network through France and Switzerland gives easy self- drive access to the Dolomites and the western side of Italy but this is still a long haul and you'll need to consider whether you'll actually use the car once you get there.
The Dolomites used to be part of Austria and is the most beautiful stretch of the Alps - 5,000 square kilometres of widely varying rock formations. They look strikingly different from the rest of the Alps - jagged teeth- like mountains which glow a magical pinky grey colour in the evenings. The Dolomites are named after the Frenchman Deodat de Dolomieu who discovered the limestone-type rock which gives these mountains their slightly pinky- orange tinge. Gentle in parts, jagged in others, this southern range has a tremendous feel of drama and unpredictability. The mountains rise up to 3,899m, while the craggy stacks of rock, sharp cliff faces and narrow valleys are breathtaking and intimidating by turns. The highest skiable peak is the Marmolada (3,344m) while there are another 35 peaks measuring over 3,000m.
Style
At one time, about 10-15 years ago, Italy was notorious for its rather chaotic skiing and archaic lift systems. This is no longer the case and the Italians have put a tremendous amount of money, time and thought into their resorts so you'll now find their pistes well-groomed, their snowmaking facilities extensive and their lift systems up to date.
Although there are some internationally renowned Italian resorts such as Cortina and Courmayeur, expert skiers would still be hard pushed to find anything as challenging or as extensive as in some of the premier league resorts in France or Austria. The Super Dolomiti ski pass gives access to over 1,000km of pistes and nearly 500 lifts, but much of this is still not properly connected. The 175km Sella Ronda circuit at the core of the Dolomites offers blissful skiing for intermediates covering four valleys and a well-linked lift system and snowmaking.
The Italians are piste-bashing poseurs who don't like tough skiing. They prefer wide gentle open pistes where they can bomb down for an hour or so before stopping off for a mega-lunch.
The Italians are known for their hospitality towards families but they do not always have good childcare facilities, probably because the Italians are so loathe to let their bambinos out of sight and usually bring grandmama along to look after them.
Accommodation
Italian hotels are usually of a high standard and those who run them friendly and hospitable. An increasing number of British tour-operators means that the British skier now has a good choice of accommodation in hotels, apartments and chalets.
- Hotel Edelweiss (0039 165 84 15 90) Courmayeur. A small family run hotel, centrally located in the heart of the resort behind the pedestrianised area with easy access to lifts. Warm and cosy hotel with comfortable rooms.
- Hotel Pralong (0039 471 97 53 70) Selva. A good quality hotel well situated for the slopes. The family owners live and breathe skiing and are exceptionally hospitable towards families. Flexible meal arrangements with excellent choice of food.
- Miramonte Majestic Hotel (0039 436 42 01) Cortina. One of Italy's most famous luxury mountain hotels. 2km out of town, with swimming pool, fitness centre, wonderful grounds and fantastic food. Despite luxury status, hotel provides a first class but unpretentious service.
EATING
It is worth skiing in Italy just for the food and wine. Pasta even in the cheaper restaurants is usually home-made, filling and delicious. It is not uncommon for the Italians to eat a leisurely five-course lunch on a ski holiday. Some of the less commercial resorts even shut the lifts between noon and 1pm. Sunday lunch is a big Italian tradition - the whole family from great granny to the tiniest bambino, eats together.
n Calchiera Livigno. Mountain lodge restaurant tucked in the pretty Val Federia. Specialises in typical local dishes including cold cuts and pastas with local cheese sauces. The game is particularly good. Excellent local wines - famous for its local grappa. Good value for money.
- Matterhorn Cervinia. Located in the centre of town, this excellent local pizzeria serves an extensive choice of tasty pizzas and an assortment of local Italian cuisine. Spoiled for menu choice, this friendly popular restaurant provides a warm and lively atmosphere. Reasonably priced.
- Gallia Gran Baita Courmayeur. A restaurant for the discerning. Traditional Italian serving good quality food in beautiful Alpine surroundings. First class service with a wide variety of choice wines and local grappa. Not for the budget conscious.
APRES SKI
Italian skiers are decidedly stylish both on and off the slopes. After skiing, they will go on parade, or passiagiata, round the resort. Usually they will go back to their hotel to change and then strut around the streets, to see and be seen. Apres-ski starts early and continues until the early hours. Many of the resorts, however, can be quieter in the week as a lot of Italians just go there to party at weekends.
- Cortina. Upmarket resort with lots for non-skiers to do. Lots of smart Italians in their furs at passiagiata time. Classy shops. The Enoteca is a popular wine bar to go to after dinner. The Clipper bar has a bob- sleigh in the door and lots of designer beers. After 11pm there are lots of throbbing discos such as Hyppo, VIP and Area.
- Madonna di Campiglio. Lively little town, popular with chic Italians. Fur-clad Italians take part in the daily passiagiata and there are plenty of restaurants, bars, nightclubs and even a theatre for occasional cabaret.
- Sauze d'Oulx. Used to have an 18-30 style holiday atmosphere, frequented by rowdy lager louts, it now attracts a bigger mix of skiers of all ages but is particularly suited to those seeking a lively nightlife. Early evening many skiers stop off at Andy Capp's pub and New Scotch Bar. After dinner the Cotton Club and Rock Cafe are popular.
Beginners
- Cortina. Big nursery slope area in Socrepes and easy runs to progress to. If it's your first ski holiday and you don't take to it, there's plenty to see and do in the chic town.
- Campitello. Small quiet village, ideal for complete beginners as it has some excellent nursery slopes and provides a gentle introduction to skiing in the Dolomites.
- Madesimo. Doorstep skiing with big sheltered beginners ski area. Plenty of English speaking instructors.
Intermediates
- Courmayeur. Intermediate paradise with a good lift circuit and stunning scenery. Also a good base to tackle the 22km off-piste Vallee Blanche - a real buzz for any fit intermediate.
- Cervinia. Very high resort with lots of long flattering runs that make you feel like an expert. Chance to ski into Zermatt in Switzerland. Good sun and snow record.
- Bormio. Lots of long red runs. Lift pass covers neighbouring resorts such as Santa Caterina and Livigno.
Experts
Italy is not really a true hot dog destination but the resorts below offer reasonably challenging skiing that should keep most advanced skiers happy for a week.
- Selva. Giant ski area giving direct access to 175km of piste in the Sella Ronda circuit and 1,180km covered in the Super Dolomiti lift pass.
- Arabba. Also in the Sella Ronda circuit, this offers some of the most testing and exciting skiing in Italy both on and off piste.
- Sauze d'Oulx. Good for advanced intermediates who want to keep practising on piste. True experts will want to head off-piste where there are lots of exciting long descents.
Snowboarders
Italy is not such a popular destination with snowboarders as the other main European ski destinations. Below are some of the more accommodating resorts.
- La Thuile. A good place to learn to board. Lots of chair-lifts (rather than humiliating drags!), and easy pistes. There's also a fun-park and half-pipe.
- Livigno. Quite popular with boarders who have unrestricted access to all the pistes. Good beginner slopes although there are a lot of drag lifts. They also have a half-pipe.
- Selva. Good for beginners and intermediates who can tackle the Sella Ronda clockwise using only one drag lift - you'll have to use more in the other direction. There's also a half-pipe and fun park.
Value for Money
As a destination for British skiers, Italy has boomed in recent years as the exchange rate has been so much more favourable than the French, Austrian or Swiss exchange rates. This year, it is not at such a price advantage but it is still excellent value for money. Above all, it is all the extras such as food, wine and lift passes that are cheaper in Italy and so bring the overall cost of your holiday down.
Getting There
One of the problems of skiing in Italy is that it can involve long transfers from airports. Verona is a handy airport for the Dolomites; Milan is a good link for Courmayeur and the Aosta Valley; Turin offers short transfers from the Piemonte range of French border resorts. You can also fly to Innsbruck and go over the Brenner pass.
A good motorway network through France and Switzerland gives easy self- drive access to the Dolomites and the western side of Italy but this is still a long haul and you'll need to consider whether you'll actually use the car once you get there.
Friday, 22 May 2009
Banker risk leaves them in a mountain of debt
Not too many years ago, $1 million might have bought you a midrange house on the side of a slope of a midrange Western ski hill.
Today, you could buy an entire ski resort for that price, as long as you have a few bucks left over for operating costs and some good lawyers to duke it out with investment bank Credit Suisse.
Of all the bad loans made in 2002-06, Credit Suisse's Western resort loans have to be among the worst. Packaged up as "collateralized loan obligations" and sold off to institutional investors, Credit Suisse made the deals, took the fees, and laid off the risk on someone else. Except, as it turned out, the legal risk.
Tamarack Resort, in Idaho, took $250 million from Credit Suisse in 2006 for a brand new ski hill and golf course and base village and all the rest. It's now defunct, awaiting foreclosure, and with luck someone will pick it up for nothing (literally) and bring it back to life. The payback on the $250 million loan? In all likelihood, zero.
At Promontory Club, outside Park City, Utah, Credit Suisse lent $350 million in 2005, most of which was immediately taken (by agreement) by the developer, Pivotal Group of Arizona. When lot sales stalled in 2007, bankruptcy followed, and an auction of the property drew virtually no interest. End result? Pivotal Group got the property back for about $30 million. The payoff on the $310 million or so remaining on the loan balance? Zero.
At the Yellowstone Club in Montana, the most elite of the bunch, a $375 million loan in 2005 also led to bankruptcy just three years later. This time, Credit Suisse was sure the property had to be worth real money and fought tooth and nail in bankruptcy court to gain control of the club so that it might mothball the property and sell it down the road—or else force the wealthy members to pay up.
But the bankruptcy court judge didn't like that plan and eventually ruled that the original loan was so reckless that Credit Suisse would lose its secured position. A special new appraisal method had valued that club at more than $1 billion back in 2005, though any normal appraisal would have put the value at less than half that. Since the parties couldn't agree on a 2 percent or 3 percent loan fee, it was decided by a coin flip. Seriously.
The Yellowstone Club actually had an eager buyer in the person of Sam Byrne, a member of the club and a distressed real estate specialist, so Credit Suisse managed some recovery. Under the terms of a settlement reached earlier this week, Its lender group will get a new $80 million note to replace the $310 million reaming on the original loan and might get more by going after former club owner Tim Blixseth. The payback? Maybe 25 cents on the dollar.
Lake Las Vegas in Nevada is the biggest of the bunch, and its prospects are grim. Credit Suisse and its lenders group are on the hook not only for the original $560 million loan but also for $127 million in debtor-in-possession financing that it had to provide post-bankruptcy to keep the property from drying up and blowing away. (It's built around an artificial lake, and one concern was that unmaintained pipes would crack and permanently drain the lake, putting, shall we say, downward pressure on the value of the lakeside property. Really, I'm not making this up.)
Likely recovery at Lake Las Vegas? Hard to say, but something close to zero would certainly be a reasonable guess.
Credit Suisse's biggest concern is avoiding lawsuits from the clients who bought its crappy paper—an especially large concern following the judge's harsh ruling last week in the Yellowstone Club case. That ruling will probably be vacated as part of the settlement agreement giving the club to Byrne and his Boston-based private equity firm CrossHarbor Capital Partners, but U.S. Bankruptcy Court Judge Ralph B. Kirscher's words nonetheless ring loud:
The only plausible explanation for Credit Suisse's actions is that it was simply driven by the fees it was extracting from the loans it was selling, and letting the chips fall where they may. Unfortunately for Credit Suisse, those chips fell in this Court with respect to the Yellowstone Club loan. The naked greed in this case combined with Credit Suisse's complete disregard for the Debtors or any other person or entity who was subordinated to Credit Suisse's first lien position, shocks the conscience of this Court.
Shocking, yes, but in the era of bubble banking, all too typical.
Today, you could buy an entire ski resort for that price, as long as you have a few bucks left over for operating costs and some good lawyers to duke it out with investment bank Credit Suisse.
Of all the bad loans made in 2002-06, Credit Suisse's Western resort loans have to be among the worst. Packaged up as "collateralized loan obligations" and sold off to institutional investors, Credit Suisse made the deals, took the fees, and laid off the risk on someone else. Except, as it turned out, the legal risk.
Tamarack Resort, in Idaho, took $250 million from Credit Suisse in 2006 for a brand new ski hill and golf course and base village and all the rest. It's now defunct, awaiting foreclosure, and with luck someone will pick it up for nothing (literally) and bring it back to life. The payback on the $250 million loan? In all likelihood, zero.
At Promontory Club, outside Park City, Utah, Credit Suisse lent $350 million in 2005, most of which was immediately taken (by agreement) by the developer, Pivotal Group of Arizona. When lot sales stalled in 2007, bankruptcy followed, and an auction of the property drew virtually no interest. End result? Pivotal Group got the property back for about $30 million. The payoff on the $310 million or so remaining on the loan balance? Zero.
At the Yellowstone Club in Montana, the most elite of the bunch, a $375 million loan in 2005 also led to bankruptcy just three years later. This time, Credit Suisse was sure the property had to be worth real money and fought tooth and nail in bankruptcy court to gain control of the club so that it might mothball the property and sell it down the road—or else force the wealthy members to pay up.
But the bankruptcy court judge didn't like that plan and eventually ruled that the original loan was so reckless that Credit Suisse would lose its secured position. A special new appraisal method had valued that club at more than $1 billion back in 2005, though any normal appraisal would have put the value at less than half that. Since the parties couldn't agree on a 2 percent or 3 percent loan fee, it was decided by a coin flip. Seriously.
The Yellowstone Club actually had an eager buyer in the person of Sam Byrne, a member of the club and a distressed real estate specialist, so Credit Suisse managed some recovery. Under the terms of a settlement reached earlier this week, Its lender group will get a new $80 million note to replace the $310 million reaming on the original loan and might get more by going after former club owner Tim Blixseth. The payback? Maybe 25 cents on the dollar.
Lake Las Vegas in Nevada is the biggest of the bunch, and its prospects are grim. Credit Suisse and its lenders group are on the hook not only for the original $560 million loan but also for $127 million in debtor-in-possession financing that it had to provide post-bankruptcy to keep the property from drying up and blowing away. (It's built around an artificial lake, and one concern was that unmaintained pipes would crack and permanently drain the lake, putting, shall we say, downward pressure on the value of the lakeside property. Really, I'm not making this up.)
Likely recovery at Lake Las Vegas? Hard to say, but something close to zero would certainly be a reasonable guess.
Credit Suisse's biggest concern is avoiding lawsuits from the clients who bought its crappy paper—an especially large concern following the judge's harsh ruling last week in the Yellowstone Club case. That ruling will probably be vacated as part of the settlement agreement giving the club to Byrne and his Boston-based private equity firm CrossHarbor Capital Partners, but U.S. Bankruptcy Court Judge Ralph B. Kirscher's words nonetheless ring loud:
The only plausible explanation for Credit Suisse's actions is that it was simply driven by the fees it was extracting from the loans it was selling, and letting the chips fall where they may. Unfortunately for Credit Suisse, those chips fell in this Court with respect to the Yellowstone Club loan. The naked greed in this case combined with Credit Suisse's complete disregard for the Debtors or any other person or entity who was subordinated to Credit Suisse's first lien position, shocks the conscience of this Court.
Shocking, yes, but in the era of bubble banking, all too typical.
Friday, 8 May 2009
Seasonal rental in Meribel
Are you looking to get away for a full season? We have a 3 Bedroom Apartment in Meribel available for the Winter 09/10 season. If you are interested email your contact details to meribel@skiguru.net
New Ski Brand Launch
Look out for the launch of a new Ski Accommodation Brand at the end of June. With a powerful technology behind it the next big brand to attack the ski accommodation-only section will literally blow the opposition into touch. Brand X will offer accommodation and transfers in top European and North American ski resorts via the trade,allowing them to package up with low-cost flying at unbeatable rates.
"Nobody has really done this properly yet, it is far more complex than standard beach destinations, and you need both the experience and the commitment to ensure the success of a new venture of this type."
We await the launch with a sense of mounting excitement.....
"Nobody has really done this properly yet, it is far more complex than standard beach destinations, and you need both the experience and the commitment to ensure the success of a new venture of this type."
We await the launch with a sense of mounting excitement.....
Friday, 1 May 2009
Come on down
Here's your chance to play "Who wants to name a baby girl!"
A chance for all you singletons to get it out of your system, all you married couples to practice for your next one... Have a quick look at the top ten and make your choice... Not often we get to "ask the audience" such an easy question, so make the most of it and click on the name that does it for you...
If you are not sure where to go click here http://skiersguide.blogspot.com/
A chance for all you singletons to get it out of your system, all you married couples to practice for your next one... Have a quick look at the top ten and make your choice... Not often we get to "ask the audience" such an easy question, so make the most of it and click on the name that does it for you...
If you are not sure where to go click here http://skiersguide.blogspot.com/
Thursday, 30 April 2009
Eurozone holiday costs 'less than expected'
Eurozone holiday costs 'less than expected', poll shows
The cost of holiday items in Bulgaria has been rated as more than two times cheaper than Antigua.
Meanwhile, the other non-eurozone countries of Turkey and Croatia have joined Bulgaria as Europe’s cheapest options for a bargain break.
At around £42 for 10 holiday items, including drinks and meals, Bulgaria’s Sunny Beach resort was two and a half times cheaper than Antigua - the most expensive destination surveyed.
The figures come from the annual Holiday Costs Barometer from Post Office Travel Services.
Bulgaria has overtaken last year’s top trio of Thailand, South Africa and Egypt, where prices have risen steeply, according to the study.
Thailand still remains as the best value long haul, but prices have rocketed, the research shows.
The biggest price hikes were in long haul destinations with the 10 commodities surveyed rising by 53.7% in Thailand and by 46.9% in Egypt.
Like the US, which has dropped to 17th place in the barometer table after sterling slumped against the dollar, the Thai baht and Egyptian pound have strengthened considerably against the UK pound.
Although this helps to account for the increases, the Post Office warned that resort prices have risen more than in other holiday spots.
Price cutting in some popular eurozone destinations means that thay may cost less than expected.
Prices have plummeted in the Algarve in Portugal, putting the destination back into the top ten for the first time in two years – at only 39p more for the holiday shopping basket than in Spain, the cheapest eurozone destination surveyed.
Local prices have dropped in Greece and Italy as well, which means that the annual price increase for the tourist items surveyed is just seven and five per cent respectively – and wholly due to an 11% sterling exchange rate drop.
France is the most expensive eurozone destination in this year’s barometer – costing £11.22 (+16.7%) more than in Spain. Cyprus joins France as the highest priced European holiday destination.
By contrast Malta has held prices steady and emerges as third cheapest after Spain and Portugal.
Post Office head of travel services Sarah Munro said: “The eurozone has taken a bashing this year but our survey suggests that tourist outlets in many resorts are taking dramatic steps to encourage tourists.
“Despite the weak pound, this means that UK tourists who shop carefully could find that they get more than expected for their money.”
She added: “Prices for eating out have shown some of the biggest rises in this year’s survey.
“In Thailand we have tracked a 68.5% jump, in the USA meals increased by almost 49% and even in Turkey, one of our best buys, they have gone up by over one third.
“By contrast the increase in Greece was just above one per cent. However, many of the same destinations where prices have gone up, notably Thailand and Turkey, remain great value for money.”
From the Post Office Travel Report
The cost of holiday items in Bulgaria has been rated as more than two times cheaper than Antigua.
Meanwhile, the other non-eurozone countries of Turkey and Croatia have joined Bulgaria as Europe’s cheapest options for a bargain break.
At around £42 for 10 holiday items, including drinks and meals, Bulgaria’s Sunny Beach resort was two and a half times cheaper than Antigua - the most expensive destination surveyed.
The figures come from the annual Holiday Costs Barometer from Post Office Travel Services.
Bulgaria has overtaken last year’s top trio of Thailand, South Africa and Egypt, where prices have risen steeply, according to the study.
Thailand still remains as the best value long haul, but prices have rocketed, the research shows.
The biggest price hikes were in long haul destinations with the 10 commodities surveyed rising by 53.7% in Thailand and by 46.9% in Egypt.
Like the US, which has dropped to 17th place in the barometer table after sterling slumped against the dollar, the Thai baht and Egyptian pound have strengthened considerably against the UK pound.
Although this helps to account for the increases, the Post Office warned that resort prices have risen more than in other holiday spots.
Price cutting in some popular eurozone destinations means that thay may cost less than expected.
Prices have plummeted in the Algarve in Portugal, putting the destination back into the top ten for the first time in two years – at only 39p more for the holiday shopping basket than in Spain, the cheapest eurozone destination surveyed.
Local prices have dropped in Greece and Italy as well, which means that the annual price increase for the tourist items surveyed is just seven and five per cent respectively – and wholly due to an 11% sterling exchange rate drop.
France is the most expensive eurozone destination in this year’s barometer – costing £11.22 (+16.7%) more than in Spain. Cyprus joins France as the highest priced European holiday destination.
By contrast Malta has held prices steady and emerges as third cheapest after Spain and Portugal.
Post Office head of travel services Sarah Munro said: “The eurozone has taken a bashing this year but our survey suggests that tourist outlets in many resorts are taking dramatic steps to encourage tourists.
“Despite the weak pound, this means that UK tourists who shop carefully could find that they get more than expected for their money.”
She added: “Prices for eating out have shown some of the biggest rises in this year’s survey.
“In Thailand we have tracked a 68.5% jump, in the USA meals increased by almost 49% and even in Turkey, one of our best buys, they have gone up by over one third.
“By contrast the increase in Greece was just above one per cent. However, many of the same destinations where prices have gone up, notably Thailand and Turkey, remain great value for money.”
From the Post Office Travel Report
Wednesday, 29 April 2009
Season ends
And so the season ends on a hugely optimistic note, metres of fresh snow across most of the alpine destinations, showing clearly that nature has no patience with this man-made recession, I am sure is starting to get a little fed up with man altogether.
Nevertheless, there are still a few resorts open if you feel like one last ride before the summer, Tignes, Val Thorens, Chamonix/Agentiere.
Nevertheless, there are still a few resorts open if you feel like one last ride before the summer, Tignes, Val Thorens, Chamonix/Agentiere.
Tuesday, 24 February 2009
Half-Term holidays quieter
Traffic can tell you a lot... And this year the traffic told me that there were definitely fewer skiers in the Tarentaise Valley than in previous years. They use a traffic flow control system on the main RN90, with traffic lights working generally from around 12.00 hrs to restrict access into Moutiers and the rest of the Tarentaise/3 Valley area. In the past this has resulted in extensive traffic queues on the dual carriageway, backing up all the way to Albertville, but last weekend which was potentially the busiest of the season, with all 3 zones on holiday as well as UK half-term returners and Dutch half-term arrivals, saw a pretty smooth flow of traffic with none of the usual snarl-ups. Yes, weather was perfect, there is snow in majority of resorts around France and Europe, but the main reason is that resorts were not full... The credit crunches yet again. Lets hope the penny drops and resorts, hotels and services start reducing their rates for next year.
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