Yesterday, federal receiver Michael Golberg held an auction for Jay Peak Resort in Vermont, with three parties bidding. It was just announced by Pacific Group Resorts that they won the auction, submitting the highest and best bid of $76 million.
There’s been no word yet on who the other competing parties were. After the District Court approves the sale on September 16th, Pacific Group Resorts will add a sixth mountain to its growing network, and its second in New England. This follows a six-year federal receivership due to the EB-5 scandal that rocked the Northeast Kingdom.
Pacific Group Resorts’ other properties include Wisp, MD, Mount Washington, BC, Wintergreen Resort, VA, Ragged Mountain, NH, and Powderhorn Mountain Resort, CO.
The official statement from Pacific Group Resorts is below.
Receiver Concludes Successful Auction of Jay Peak Resort
Pacific Group Resorts, Inc. set to add sixth resort to portfolio
JAY, VERMONT – Michael Goldberg, the court-appointed receiver for Jay Peak Resort, announced today that Pacific Group Resorts, Inc. (PGRI) has made the highest and best final bid to buy Jay Peak following an auction with multiple bidders. The prevailing bid remains subject to approval by the United States District Court in Southern Florida during a final hearing tentatively scheduled for September 16, 2022. If approved by the court, and subject to closing which is anticipated to be this fall, Jay Peak will become the sixth ski resort in PGRI’s portfolio including properties in British Columbia, Colorado, Virginia, Maryland, and New Hampshire.
Goldberg reported, “With the success of this auction, we are one step closer to concluding the receivership of Jay Peak Resort. It has been six long years during which the resort has made tremendous progress under the leadership of general manager Steve Wright and his team and the guidance of Leisure Hotels. The time had come to put the resort back into private hands, and our investment bank, Houlihan Lokey, ran a strong sale process for us culminating in a very competitive auction. We are pleased an experienced operating company like Pacific Group Resorts ended up with this great asset.”
PGRI’s president and CEO, Vern Greco, noted, “We began pursuing this acquisition over three years ago and couldn’t be more pleased with the auction’s outcome which paves the way to add Jay Peak to our growing family of resorts. Jay has a high-quality team of dedicated employees who have weathered the uncertainty of the receivership for a long time. We look forward to bringing renewed stability to the property and its staff, we’re enthusiastic about the prospects for the resort, and we are delighted to be in Vermont which is an important market for any mountain resort operator.”
The transaction is expected to close prior to the 2022-23 ski and snowboard season. Each PRGI property is managed independently, and Greco said no major changes are contemplated to the winter operating plan at Jay Peak. All existing season passes, pass reciprocity, and multi-resort pass arrangements at Jay, including the Indy Pass, will be honored for the 2022-23 winter season.
Mark Fischer, PGRI’s executive vice-president and CFO who led the acquisition effort explained, “The opportunity to own a resort-like Jay Peak, with its considerable upside and a solid reputation, does not come along very often. The acquisition of Jay is an important step forward for our whole company and for our employees. We could not be more excited to welcome Jay Peak and its staff to our family.”
About Jay Peak
Jay Peak is a four-season resort in Northern Vermont, close to the Canadian border and about 60 miles north of Burlington. Jay features 385 acres of skiing and snowboarding terrain serviced by nine lifts including Vermont’s only aerial Tram plus a year-round indoor waterpark, an indoor ice arena, an extensive recreation center, multi-purpose athletic fields, and an 18-hole championship golf course. The resort is best known for its 356 inches of average annual snowfall, which is the most east of the Rocky Mountains, and a wide range of accommodations, dining options, and unique events catering to all types of visitors.
About Pacific Group Resorts Inc. (PGRI)
Pacific Group Resorts, Inc. is a geographically diversified international resort operating company based in Park City, Utah whose portfolio includes Wintergreen Resort in the Blue Ridge Mountains of Virginia, Wisp Resort in the Appalachian Mountains of western Maryland, Ragged Mountain in the White Mountains of New Hampshire, Mt. Washington Alpine Resort in the Beaufort Mountain Range on Vancouver Island, British Columbia, and Powderhorn Mountain Resort on the Grand Mesa of western Colorado. Among the resorts, there are over 3,500 acres of ski terrain, 81 holes of golf, lift-served mountain biking, ZipTours, canopy tours, aerial challenge courses, five pools, water sports on two lakes, lodging accommodations for more than 3,000 people, more than 30 food outlets, and a full-service spa. For more information on PGRI, please visit www.pgri.us.
Image Credits: Jay Peak Resort