Wildwood, MO., June 21, 2017 (Globe Newswire) – Peak Resorts Inc. (NASDAQ:SKIS), a leading owner and operator of high-quality individually branded ski resorts in the U.S. today announced that it intends to apply for permits for organic revenue growth opportunities, and has reported preliminary financial results for the 2017 fiscal year.
Hunter Mountain Expansion
Peak intends to apply for construction permits at the company’s Hunter Mountain resort in Hunter, New York, to increase the resort’s skiable acreage by approximately 25-30%.
The new area will feature a parking area and a detachable high-speed chair lift.
The additional acreage will be built on the north facing slope of Hunter Mountain, between the Main Face and the West Side, and will be predominantly intermediate terrain. The company’s goal is to complete the project in time for the 2018-2019 ski season. The expansion is expected to cost approximately $9 million and has the potential to generate $1.5 million to $2 million in incremental EBITDA per year.
Timothy D. Boyd, president and chief executive officer, commented, “While expanding our portfolio through new resorts remains a key priority for us, we also intend to build value by investing in our current properties through expansions, new products, and amenities that will elevate our customers’ skiing and off-season experiences and keep them visiting more often. These investments alone could boost our company-wide EBITDA by $2 – 3 million on an investment of approximately $11.5 million, generating solid returns on our capital. Our previously announced 8.6% increase in pre-season Peak Pass sales also highlights our ability to drive organic growth at our resorts.”
About Peak Resorts
Headquartered in Missouri, Peak Resorts is a leading owner and operator of high-quality, individually branded ski resorts in the U.S. The company now operates 14 ski resorts primarily located in the Northeast and Midwest, 13 of which are company owned, including Hunter Mountain, the Catskills’ premier winter resort destination.