Taking advantage of a good snow year, the owners of Brian Head Resort have stepped up their efforts to sell the ski resort above Parowan in southwestern Utah.
Although the uncertainty of "For Sale" situations always concerns Brian Head Mayor Dutch Deutschlander, he said Wednesday that he isn't convinced this latest attempt -- in this economic environment -- will be any more successful than past efforts.
"I don't know of anybody with a billfold in one hand and a bunch of dollars in the other willing to pay for it," he said.
Particularly at the owners' asking price -- $34.75 million.
But Jeff Woolfson, a senior vice president with CB Richard Ellis Inc., the brokerage firm retained by the owners, is optimistic Brian Head will appeal to potential buyers.
"A lot of what you see on the market these days is very distressed properties with no cash flow. But this is a breath of fresh air, where we get to market a property that has both cash flow and an upside -- land capable of development," he said. "I think it's going to be very well received."
Woolfson was referring to several key numbers in Brian Head's listing with CB Richard Ellis. Those include:
» Average revenue from ski operations the past three years -- $6.8 million
» Average earnings before interest, taxes, depreciation and amortization (EBITDA) in that period -- $1.7 million
» Projected EBITDA this year -- $2.2 million
» Average annual skier days -- 141,000
» Snowfall this season of 280 inches, and an 80-inch base heading into April.
On top of that, the listing noted, Brian Head Resort's 1,744 acres include 156 acres zoned for residential and commercial development, plans for 1,350 residential units, another dozen ski-in/ski-out residential lots and 500 acres set aside for golf and skiing.
"It's a very interesting property," Woolfson said, "with significant development opportunities. When the market improves, you can roll out plans for the overall resort."
This combination distinguishes Brian Head from other properties in the ski industry, which has been hit hard by the recession, he said.
Industry giant Intrawest Corp., facing massive debts, unloaded three resorts in January and February. CB Richard Ellis is trying to sell bankrupt Tamarack Resort in Idaho and last year brokered the sale of Montana's ultra-exclusive but financially troubled Yellowstone Club.
Brian Head's situation is different, Woolfson said. The resort is for sale because the two daughters of Jim Trees, who had owned and run Brian Head since buying it in 1992, have no interest in carrying out the plans of their father, who died suddenly in 2008.
"It's an estate sale. The family is financially fine. They don't need to sell. It's just that none of the heirs has an interest in continuing to operate the property," Woolfson said, noting the brokerage will be marketing Brian Head at an upcoming National Ski Areas Association meeting and in trade publications.
Mayor Deutschlander, who runs lodging facilities in Brian Head, would welcome an owner with an active interest in moving the resort forward.
"I want to see it remain as a viable business, a viable contributor to the Town of Brian Head," he said.
But noting that the resort "was on the market even before Jim Trees passed away," Deutschlander said "this economic time is probably a poor time to try to get somebody to buy a resort."
He is concerned that "whether it's a ski resort or an auto dealership or a grocery story, once the public knows it's for sale, they keep wondering what's going on, if it's going to be there next year. That doesn't help business."
Three hours from its prime market in Las Vegas, six to eight by car from Southern California and Phoenix, Brian Head has two mountains linked by one of its nine lifts, 640 skiable acres on 63 runs, a base elevation of 9,600 feet and vertical drop of 1,320 feet. It is slightly larger than Sundance but about half as big as Solitude.
