Packer sells Perisher to the US

Packer sells Perisher to the US
By Hannah Edensor


Australian skiers could have free access to some of the best ski slopes in the US after James Packer finally offloaded his family’s stake in the Perisher resort.

The $177 million deal will give those with a Perisher season pass free access to ski resorts in Colorado, California, Nevada, Utah, Minnesota, Michigan and Wyoming.

Vail Resorts, America’s largest mountain resort operator, has lodged a bid to buy Perisher from two private companies, James Packer’s Murray Publishers and Transfield Corporate.

It is the first international purchase for Vail, which operates ski resorts throughout the US.

Perisher is already offering 2015 season passes for $750 that grant access to its 1,214 hectares of skiable terrain, as well as Vail’s US resorts for the 2015/16 ski season.

“Australia is one of the most important international markets for ski resorts across the northern hemisphere, generating an estimated over one million skier visits annually to resorts in North America, Japan and Europe,” Vail chairman and chief executive Rob Katz said.

Vail, which is also a hotel operator and property developer, said it expected Perisher to generate earnings of about $20 million in the first 12 months after the acquisition.

Nestled in the Snowy Mountains and Kosciuszko National Park, Perisher is the southern hemisphere’s largest ski resort.

It includes the resort towns of Perisher Valley, Smiggin Holes, Guthega and Blue Cow.

Mr Katz said having a network of US resorts was effectively an insurance policy for Perisher, a relatively low altitude ski resort which is susceptible to fickle snow falls and hefty snow making costs.

“Even if the season is a little shorter in Australia one year, skiers will still have a whole season in the United States,” he said.

It is also the first time a ski resort operator has offered international season passes between the northern and southern hemispheres, an offer Mr Katz said would be ongoing.

Australian skiers have long complained about high domestic prices, but Mr Katz said his company would maintain its current pricing for day passes.

The deal, which was reportedly done directly with the sellers, needs approval from the NSW government, which would receive $4 million in stamp duty from Vail.

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