Tremblant

Schnei Akademie 2011
September 13, 2011
1. Executive Summary
Tremblant, Intrawest and Fortress
 Headquartered in Vancouver,
Vancouver British Columbia,
Columbia Intrawest is a privately
privately-held
held company that is
majority-owned by Private Equity Funds managed by affiliates of Fortress Investment Group LLC
 Intrawest has interests in a network of resorts at North America’s most popular mountain
destinations
– Includes 6 mountain resorts, Canadian Mountain Holidays, the largest heli-skiing operation in the world, Club
Intrawest, a private resort club with exclusive locations
 The Mont Tremblant entities ((“Tremblant”)) are currentlyy wholly-owned
y
by
y Intrawest
Mountain Resorts
Other
3
Tremblant - Iconic Asset
Tremblant is a world-class
world class destination resort in North America; located 130 km from
Montreal, the resort is a major year-round tourism destination
Description:

Fo nded in 1939 b
Founded
by Joe R
Ryan
an

Acquired by Intrawest in 1991 after years of unsuccessful
ownership and development.

More than 1 billion dollars invested since 1991 to transform this
regional ski resort into a world-class 4-season resort

Stellar growth since then. The resort now attracts 700,000 skier
visits and 2 million visitors annually

Year round tourism destination with 2 championship golf
Year-round
courses, extensive biking trails, hiking terrain and an active
conference business
Quebec
An unrivalled European-style pedestrian village with
restaurants, cafes, shops,
p g
galleries, hotels, spas
p and residential
/ commercial real estate and Casino
Ottawa


French Canadian culture is omnipresent and gives a distinct
touch/feeling to the resort

Attracts world-class events such as Ironman
Ironman, International
Blues Festival, World Cup freestyle
Montreal
Toronto
Buffalo
Detroit
New York
Philadelphia
8 hour drive radius –
40 million residents
4
Boston
Tremblant Resort Overview
Resort Statistics
Average Open:
Mid-November
Average Close:
Mid April
Mid-April
Skiable Acres:
654 acres
Snowmaking Acres:
465 acres
Average Snowfall (in.):
150 inches
(375cm)
Vertical Drop (ft):
2,116 feet (634
meters)
Number of Lifts:
14
Lift Capacity (pph):
27,230
F&B Locations:
34
Shops / Boutiques:
48
Hotels:
11
Lodging Units:
2,400
Massive investment supported by the public sector
Investments:
 For nearly 20 years, Intrawest and the Province of Quebec have partnered in the development of
Tremblant which has transformed the resort and the village
− Over $1 billion has been invested in the development of the world-class pedestrian village, significant mountain
improvements and development of 4 season activities
− Federal and Provincial governments have contributed 130M$ in support for the development
− Development of infrastructures (road, sewer, water treatment plant)
− Support resort development (conference centers
centers, public places
places, etc
etc.))
− Support ski terrain improvements
 In 2008, Tremblant, the Province of Quebec and the Federal government signed partnership to
further develop the resort – two new villages over the next 20 years
6
2. Overview of the Resort
Overview of Tremblant
 Mont Tremblant Resort is located in the
Laurentian mountains of Québec, just 130 km
from Montreal
,
skier visits,, 230,000
,
 More than 700,000
summer lift rides, totaling more than 2 M
visitors annually from Quebec, Canada, the
U.S., the UK, Mexico, Japan and other
countries
 Tremblant is a year-round tourism destination
with two championship golf courses,
g trails,, hiking
g terrain,,
extensive biking
animation, events and an active conference
business
 An unrivalled pedestrian village with a distinct
European flair filled with restaurants, cafes,
shops, galleries, hotels, spas and residential /
commercial real estate
Tremblant is a world-class destination resort with
an ambience that is unequalled in North America
8
Recent History
Intrawest Acquired Tremblant in 1991
Tremblant Today
 In 1991, the Tremblant teetered on the edge of
bankruptcy
 Since 1991, more than $1 B has been invested
in the development of the magnificent
pedestrian village of Mont Tremblant resort
 Mont Tremblant Lodge was the only lodging
option on the mountain
 2,400 lodging units have been built,
g the resort in a world-class
transforming
destination.
 At that point,
point Tremblant attracted 350,000
350 000 skier
visits annually
 Significant mountain improvements (double
skiable acreage) and four-season attractions
have been developed.
9
Keys to the successful development of Tremblant
 Very focused developer and operator
with the right expertise and financial
resources – Intrawest
 Win-win
Win win financial partnership with public
sector – all levels of government
contributed 130M$ to fund the
development
 Innovative condo-hotel model to
develop the lodging units in the village –
units were sold to individual
homeowners, which reduced the
fi
financial
i l exposure off Tremblant
T
bl t and
d
allowed fast development
 Great commercial offering, operated by
thi d party
third
t operators,
t
contributing
t ib ti tto a
unique shopping and dining experience
 Fair and innovative mechanism to share
costs
t between
b t
the
th mountain
t i operator
t
(Tremblant) and the other third parties
(owners of lodging units and commercial
operators) – The Resort Association
The Resort Association





Non-profit
Non
profit organisation
organisation, created at the beginning of the
development of Tremblant
Its membership is composed of:
– The Mountain operator;
– Owners of Lodging units
– Owners of Residential units
– Commercial operators (shops, restaurants)
Principal roles and responsibilities:
– Marketing of the resort
– Events and entertainment in the village
– Maintenance of public areas of the village
– Operation of « resort assets » (conference
centers and indoor water park)
– Shuttle services between all main components of
the village and the residential sectors
Sources of revenues to assume its responsibilities:
– Base assessment to owners of lodging
g g units ((avg
g
2,000$ per unit)
– Base assessment to owners of residential units
(avg 300$ per unit)
– Base assessment to commercial operators (avg
4,500$ per operator)
– Royalty tax on all revenues generated on the
resort, including lift tickets– 3% of revenues.
Resort association’s revenues are guaranteed by a
hypothec on the property
Resort Map
12
MOUNTAIN DATA
Summit elevation
875 m
Base elevation
230 m
# of trails:
95
Total trail km:
77 9 km
77.9
Skiable acres
654
Average Snowfall (in.):
140 (350 cm)
LIFTS
Number of lifts
14
Gondolas / Cabriolet
3
Detachable chairs
5
Fixed grips
3
C
Conveyors
3
Lift capacity / hour (pph)
27,230
13
SNOWMAKING
Snowmaking coverage
71%
Snowmaking acres
465
Snowmaking employees
34
Pump house employees
6
Water piping
56 km
Air piping
43 km
Immediate flow l/sec
505 l/s
Total CFM
35,000
Number lances
1,029
Number of fan guns
GROOMING
12
Grooming machines total
11
Winches
2
Utilit
Utility
2
14
South Side
North side
15
Tremblant is a Real Four-Season Resort
Competitively Superior Ski Mountain
 Ranked as the #1 resort in eastern North America by SKI Magazine for 15 consecutive years
 One of the highest vertical drop in eastern Canada
 Extensive snowmaking system
system, pumping 8
8,000
000 gallons (35
(35,000
000 liters) of water per minute to produce
snow
Unrivalled Pedestrian Village with Numerous Lodging and Retail Options
 Tremblant’s pedestrian village is a modern version of a traditional French ski village combined with its
unique Québécois ambiance and “joie de vivre”
 Mont Tremblant chosen the 13th top
p destination resort in Canada by
y Conde Nast Traveller
 Ranked #1 lodging facilities in North America by SKI Magazine for 3 consecutive years
 2,400 lodging, 34 food & beverage locations and 48 retail outlets and extensive night life options
Active Summer and Off-season Business
 Two championship golf courses and a Golf Academy that rivals the finest golf facilities in North America
 38,000
38 000 sq
sq. ft of conference facilities addressing the shoulder season
 Extensive cross country biking trails and hiking, scenic gondola rides with scenic views of the fall foliage,
mountain toboggan and events throughout the summer
 Water activities and a Beach & Tennis club fronting lake Tremblant
16
Summer Activities Reducing Seasonality
Visits
Revenues
30.0%
30.0%
25.0%
25.0%
20.0%
20.0%
15.0%
15.0%
10.0%
10.0%
5.0%
5.0%
0.0%
0.0%
Jan
Feb
Mar
Apr
May
Skier Visits
Jun
Jul
Golf Rounds
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Summer Lift Rides
Mar
Apr
May
Mountain Operations
Occupancy Level
Jun
Jul
Aug
Sep
Net Lodging
Oct
Nov
Dec
Golf and Others
Average Daily Rate
80.0%
$250.0
$225 0
$225.0
60.0%
$200.0
40.0%
$175.0
$150.0
20.0%
$125.0
0.0%
$100.0
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Occupancy Level
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Average Daily Rate
17
Sep
Oct
Nov
Dec
Integrated and Interdependent Segments
Revenue Segmentation (FY2011)
Golf/Others
15%
Lodging
40%
16%
Mountain
Operations
5%
Ski School
Food &
Beverages
6%
4%
14%
Rental
Mountain and Ancillary
Retail
Lodging
 654 acres of skiable terrain and
over 700,000 skier visitations
 925 lodging units managed by
Tremblant
 Winter, summer and fall lift
tickets
 50% ownership in Fairmont
Tremblant
 Tremblant manages 15 retail
outlets, 7 food & beverage
locations, 4 rental stores and a
ski school
 An active conference business
with 38,000 sq. ft. of
conference facilities
18
Golf & Others
 Two championship golf courses
 A Beach & Tennis club and
other activities generating over
230 000 summer lift rides
230,000
 Operates the resort’s
reservation center
Compelling Customer Mix
 Proximity of major markets for both excursion and destination customers
 40 M population within an 8 hour drive
 The volume is up on the local market in the last few years due to different pre-sold products
 Easy
E
access tto d
destination
ti ti with
ith new air
i connections
ti
ffrom T
Tremblant
bl t IInternational
t
ti
l Ai
Airportt
 13 weekly flights from Toronto Porter
 Connecting flights from New York and Boston
Customer Mix
Regional: 53%
35%
Destination: 47%
29%
30%
25%
20%
17%
16%
13%
15%
10%
10%
7%
8%
5%
0%
Homeowner
Local
Regional
(Day)
Regional
(Overnight)
19
Other
Canada
U.S.
Int'l
Stable Ski Industry Fundamentals
 The ski industry is a mature business with modest growth
 Weather conditions and the general health of the economy can create moderate fluctuations in demand from
one season to the next
 Quebec resorts attracts a higher
g
share of Canadian skier visits because of their accessibility,
y, their
proximity to major markets and the Province’s longstanding skiing tradition
 Market leaders have gradually increased their market share due to consolidation, the decrease in
the number of resorts, the expansion/upgrading of their existing facilities and the incorporation of
village-based strategies
Annual Skier Visits in North America
82
Number of Ski Resorts in the U.S.
81
500
77
77
76
76
75
74
73
486
485
485
76
76
492
490
490
Skier Resorts
Sk
kier Visits (MM)
78
490
78
78
494
493
495
80
73
481
478
480
473
475
471
470
72
465
70
460
455
68
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2001
2011
Sources: NSAA and Canadian Ski Council
Sources: NSAA
20
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Pre-Sold Products Providing Revenue Stability
 Represent approximately 61% of lift ticket
revenue
 Most purchased before season begins
 16,741
16 741 season passes sold in FY11
 16,200 frequency cards sold in FY11
 78,500 bulk tickets sold in FY11
 Encourages
E
more revenue per visit
i it
 Drives all other business lines (dining,
retail, rental, ski school and lodging)
 Creates direct marketing opportunities
 CRM campaigns (lodging packages)
 Tremblant season pass holders ski on
average 25 times per season and
frequency card holders on average 3 times
per season
21
Complemented by Well Developed Ancillary Businesses
 The village concept provides an opportunity for Tremblant to generate revenue
from numerous other sources
 Tremblant’s business model is centered on the village concept, where the village
provides a convenient mix of lodging, shopping, animation, events and nightlife
 Ancillary businesses managed by Tremblant include 15 retail outlets, 7 food &
beverage locations, 4 equipment rental stores and a ski/snowboard school
 Provides an attractive source of incremental revenue relative to standalone ski stations
 Tremblant can increase ancillary (non-skier) revenue from retail, food & beverage,, etc.
at a pace in excess of skier visitation growth
 Tremblant is a host to several extraordinary activities and events that increases
non-skier visitations
 24 Hours ski & bike of Tremblant, Spring festival, Tremblant International Blues
F ti l Symphony
Festival,
S
h
off Colours,
C l
etc.
t
 Tremblant will host an Ironman event in August of 2011 and a ½ Ironman in June.
 2,500 participants and 10,000 family members from 51 countries for 3-5 days
 15M$ in economic spin
spin-off
off on the resort
Ancillary mountain revenue can provide a slightly higher
growth
th rate
t vs. skier
ki visits
i it iimproving
i
ttop-line
li growth
th
22
Keys to Tremblant’s Business Model
 Integrated guest experience (village,
(village lodging,
lodging ski,
ski activities and “joie
joie de vivre”)
vivre ) and “one-stop-shop”
one-stop-shop
kiosks and call centers.
 Guest satisfaction oriented employees
 Weather
Weather-proof
proof revenues with lodging (destination market) and pre
pre-sold
sold ski and golf products (local
market)
 State-of-the-art equipment and terrain
 The organic growth engine: steady visitation growth
growth, premium pricing
pricing, high margins and cost control
 Strong programming and world class events to drive visitations during non-peak periods.
 Fair cost sharing mechanism between the mountain operations and the village through the Resort
A
Association
i ti
23
Challenges
 European and US economies are still fragile,
fragile affecting consumer spending
 US, Euro and UK currency have fallen drastically against the Canadian $. This affects significantly
our competitive edge in terms of pricing
 Weather in Québec is unpredictable. Tremblant has had 3 consecutive years of below-average
snowfall
f
 3rd party operators in the commercial core may affect the guest experience
 The large number of stakeholders (2,400 owners of lodging units, 60 commercial operators, Resort
Association,, etc…)) requires
q
a lot of « p
political » work
 Renewal of ski infrastructure requires heavy capital investments
3. Future development
25
The Development of Versant Soleil Next Catalyst to Drive Visitors
 Arrival of a casino and opening of the new village
to village gondola on Versant Soleil create
positive momentum
 Other planned development on Versant Soleil
i l d
include
 A multifunctional conference center
 Combination of 4 and 5 stars hotel
 A Mix of residential and hotel units
 Commercial spaces
26
Master Plan
27
Vielen Dank
28