Last summer, US investor LongRange Capital acquired almost a third of the Kitzbühel cable cars via a Luxembourg subsidiary. The deal caused quite a stir in the “Gamsstadt” (note: local nickname for Kitzbühel). Mayor Klaus Winkler (ÖVP) described the US investment via a Luxembourg subsidiary as ‘unsavoury’. In an interview with the Tiroler Tageszeitung newspaper, Bob Berlin, head of LongRange Capital, reveals that he wants to participate in further ski resorts. ‘We are also looking at ski resorts in Switzerland, Italy and France, but we still have a strong interest in Austria,’ explains Berlin. The US investor is also looking around Tyrolean ski resorts. ‘We have approached some ski resorts, others have contacted us,’ he says: ’We have a few offers on the table.’ Berlin intends to ‘announce something more concrete’ in this regard in the near future. The company has sufficient capital and a longer-term perspective.
US-investor has sights on Tyrolean ski resorts
Last summer, US investor LongRange Capital acquired a 31.85% stake in Kitzbüheler Bergbahnen AG via its Luxembourg subsidiary Alpin Unlimited. Bob Berlin, founder of LongRange Capital, is now looking at further stakes in ski resorts, also in Tyrol.
Mr. Berlin, your US-company has invested in the Kitzbüheler Bergbahnen AG in the summer. Why are you investing in a ski resort in times of climate change? Kitzbühel is not exactly at a very high altitude.
In the USA, global warming and the effects on outdoor activities such as ski resorts were already being debated in the 1970s. Today, the topic is still highly charged. The change has come more slowly than expected. As it relates to skiing, some lower-lying ski resorts are certainly being impacted by climate change now. For this reason, significant capital has been invested in the Kitzbühel ski resort over the past decade plus – among other things, lifts were modernized, and snowmaking was improved. That way, the experience for visitors has been enhanced. We met with many ski resort operators across the Alps - in Austria, Switzerland, France and Italy. Those who invest appropriately and continuously will be the ones who are successful in the future.
The investment of LongRange Capital in Bergbahnen Kitzbühel has been called “unsavoury” by mayor Klaus Winkler. Have there been any talks in the meantime?
There have been no bilateral discussions. We are concentrating on the operational business. We are not political and do not get involved in politics. What is important is what can be further improved for the guest and that all stakeholders benefit from this:Customers, employees, the community and the shareholders. We bring a lot of experience to the table. One of our board members is Hank Tauber. He was head of the US ski team, a Vice President at FIS for 14 years and sits on the board of several US ski resorts. Further, we also have considerable consumer experience in other areas, such as the hospitality industry.
You own 31.85 percent of the Bergbahnen. Do you want to increase your stake further?
No, at this time we are not in talks about buying additional shares.
What do you expect from your investment in the Kitzbühel cable cars? How long will you stay?
I cannot go into the details of our investment strategy. But we invest with a medium- term perspective, which means a period of eight to ten years. Kitzbühel has a unique offering for a broad group of skiers and outdoor adventurers. We want to contribute to improving that offering. As I said, we are happy to offer our experience in working with customer-oriented services and products. What made us eager to invest in ski resorts: During the Covid pandemic, people became much more appreciative of outdoor activities, and in a society that is strongly influenced by social media, they increasingly want to experience something individual and unique. In these “post-Covid times”, landscapes such as the Alps are now very attractive.
In Kitzbühel and the surrounding area in particular, however, the number of bookings has fallen. Are you not concerned about this?
There is a certain cyclicality in demand. But judging from our experience in dealing with different customer needs across consumer goods companies, services, hospitality and others, we are big advocates of approaching guests based on their individual needs. Kitzbühel attracts a wide array of people: For example, you have families with a possible wide range of skiing abilities as well as day skiers, who may be seeking something different. You may engaged with these group on via different channels. In this regard, there is always room for improvement.
Ski resorts are trying to get bigger and bigger in order to remain competitive. In Kitzbühel, there were also debates about merging with the St. Johann ski resort.
What is your position on this?
We see no need for further expansion. Kitzbühel is one of the largest resorts in the Alps.
There is a heated debate about ski ticket prices in Tyrol, while skiing is even more expensive in the USA. What is your view on lift pass prices in Tirol?
The ski passes on offer here are fantastic value for the money. If you think about alternatives: where can you get a whole day of experiences for only 80 euros? There are also the ski association tickets. In the end, everyone has to decide for themselves how often they want to enjoy the winter. It's no different in the USA: a day pass in the USA may cost 250 dollars, but you can also have a season pass for 1100 dollars.
When you joined Kitzbühel Bergbahnen, you announced that you also wanted to invest in other ski resorts. Which ones do you have in your sights?
I can only say that talks are already underway in this regard. We are also looking at ski resorts in Switzerland, Italy and France, but we have continued strong interest in Austria. Ski and outdoor tourism is an important economic sector that is supported here. For some ski resorts, it may be about a possible minority shareholding, but we also look at opportunities to take a majority stake in others. For example, if there is a high need for investment.
Also in other ski resorts in Tyrol?
We have approached some ski resorts, others have contacted us. Some recognize that they need considerable investment in order to survive in the long term. We have reviewed several offers.
How many ski resorts would you like to expand into in Austria and Europe?
We don't have a fixed number of ski resorts that we want to go into. However, we have sufficient capital and a longer-term perspective. This means we have numerous options available to us. We will announce more concrete updates in due course.
