There is an increased interest and subsequent investment in resort market development. That was discussed in earnest during the RCLCO Resort Town Summit held in Park City. The real estate consulting company brought together more than 100 developers, architects, engineers and consultants to discuss the state of the industry and what’s coming in the future.
“Our focus was on the trends, hot topics and challenges we’re facing in our communities,” said Dana Schoewe, a principal with RCLCO, who feels there is an emphasis on mountain resorts in Utah, particularly with the 2034 Olympic Winter Games coming, as well as in other states. “I do think the long-term trajectory and institutional capital interest in mountain resorts has gained a lot of momentum since COVID because there was such an influx of second-home buyers and people realizing how valuable recreational access is from real estate.”
She said there’s a trend of individuals moving to the mountains, which is a secondary wave of institutional interest “renewed from a couple of angles that private equity is going in the direction of resorts.” That interest is showing itself not just in large mega-resorts, but in the one-off 20- to 40-unit condo projects, both from local investors to corporations.
One of the panels at the summit centered on the 2034 Games. Schoewe said Utah has a huge advantage in preparation for those Olympic events because so much of the infrastructure from 2002 can be used.
“That said, there still needs to be a lot of planning in terms of transportation,” she said, “but the existing venues mean a lot less impact in terms of real estate. Look at the Alterra Co.’s investment in Deer Valley East, and honestly, just the Jordanelle Valley becoming a really desirable place for people to recreate for longer periods of time.”
Along with new developments, another focus is the increased investment by developers in workforce housing. She said some employers have targets of being able to house 20 percent of their workforce across an entire resort portfolio.
“Super-luxury housing is not for everyone and there’s a finite demand for that type of customer,” she said. “The average home price in Summit County today is over $2 million, which is crazy. So there’s a lot of interest in wanting to provide a more diverse phase of new housing.”
One concern all developers are facing is water — the increased use of it with a dwindling supply.
“I would say resorts are investing more in being able to recycle snow and making sure they have the advanced technology for snowmaking,” she said. “Those on the Olympic panel are confident that they could host the 2034 Olympics even if it were in conditions like this year. Some of the resorts can recycle 80 percent of their water that they use for snowmaking. I think a much broader concern is about summers and climate change.”
Schoewe added that resort developers are getting more experiential and authentic about placemaking on their properties.
“Instead of just putting the most valuable real estate right at the base of the gondolas, there’s a shift towards more open spaces, public realms and really efficient transportation,” she said. “They are looking towards the long-term vibrancy of these communities and why they are important to everyone. There’s a higher level of design and quality that’s being put into them — less than just a pure real estate plan and more thinking about the legacy and how we can create a desirable, memorable place for people.”