According to the National Ski Areas Association (NSAA), the American ski industry contributes over $20 billion annually to the U.S. economy and supports over 600,000 jobs.
Colorado ski towns in particular have played a pivotal role in shaping America’s ski industry. Vail, Colorado, is a luxury ski mecca, and Keystone is the fourth-most-visited ski resort in the country.
The Kindred Resort at Keystone (Kindred) is currently under construction and raising EB-5 capital. Kindred is located in a rural targeted employment area (TEA), offering an $800,000 investment and priority processing for EB-5 investors.
In this article, we will explore the current economics of the American ski industry, with a specific focus on Colorado, and why Kindred Resort at Keystone presents a best-in-class rural EB-5 project investment opportunity.
History of the American Ski Industry
The roots of the American ski industry can be traced back to the late 19th century when Norwegian immigrants introduced skiing to the northern states. Winter sports later gained popularity after World War II, spurred by soldiers who learned them in Europe.
Destination resorts then emerged in the 1960s and 1970s, and some of these resorts, like Aspen, Vail, and Keystone in Colorado, have become much more than just winter skiing destinations. These resorts cater to tourists year-round with activities such as hiking, mountain biking, and festivals in the summer.
The largest operator of these resorts, Vail Resorts is a publicly traded company (NYSE: MTN) and the largest ski resort operator in the world, with 41 resorts across the U.S., Canada, Switzerland, and Australia.
In the 21st century, advancements in snowmaking technology have helped ski resorts maintain ski seasons, even in the face of unfavorable weather conditions. In some locations, snow-grooming machines maintain ski slopes into the summer.
U.S. Ski Industry Economics
A record 65.4 million people visited U.S. ski areas during the 2022–23 season. The previous record had been set just a year before during the 2021–22 season. In fact, the top ten busiest U.S. ski seasons of all time have each occurred in the last 15 years.
Colorado is in the NSAA’s six-state Rocky Mountain Region, making it a prime destination for skiing. The 93 ski resorts in this region reported a record high of 27.9 million visits in the 2022–2023 season. The previous season also set a visitation record, with 25.2 million visits in 2021–2022.
Similarly, capital investment in ski areas reached record highs, amounting to $812.4 million in the 2022–23 season alone.
Due to these rising trends, ski resorts attract millions of repeat customers to rural areas every year. Furthermore, since 2019, season pass holders have outnumbered single-day visitors. In 2023, season pass holders accounted for 50 percent of ski visits nationwide, while single pass holders comprised only 33 percent, with the remaining 17 percent being off-duty employees and marketing promotions.
All of this data signals a strong and steadily growing winter economy, despite a warming climate. This is especially true in Colorado, America’s ski capital.
Colorado: The Capital of American Skiing
Colorado is often regarded as the epicenter of American skiing. Colorado’s abundant natural snow, breathtaking mountains, and mild climate have made it a premier destination for skiers from around the world.
As a result, Colorado’s ski industry generates $4.8 billion annually and supports more than 46,000 year-round equivalent jobs.
The state’s ski season typically lasts from November to April, an extended window for winter sports. Colorado’s largest ski towns even boast their own regional airports, as in Eagle, Aspen, and Telluride.
There are 12 world-class ski resorts within 100 miles of Denver, the largest city in Colorado. These include Keystone, Breckenridge, Loveland, Echo Mountain, and more.
Once such resort is Vail, which boasts one of the largest ski resorts in North America, covering over 5,200 acres of skiable terrain. Established in 1962, Vail has evolved into a symbol of luxury and excellence in the ski world.
Kindred Resort at Keystone, Colorado
The Kindred Resort at Keystone, Colorado—only 40 miles from Vail and 80 miles from Denver International Airport—is a new luxury development in the heart of the Colorado Rockies.
Kindred is located just 55 feet from the main gondola at Keystone Ski Resort, the fourth-most-visited ski resort in America last year. Keystone is also the number-one family ski destination in the state.
Anticipated for completion in 2025, this resort will feature a 107-room four-star hotel and 95 luxury residences, with a host of amenities like a private club, pools, retail shops, a ski school, a spa, and a trio of new restaurants.
For EB-5 investors, Kindred presents a unique combination of immigration and financial security. By participating in this project, investors can confidently expect to obtain a U.S. Green Card and a timely return of their full investment.
Exceptional Features for EB-5 Investors
One of the distinctive aspects of this project is its secure loan structure, a rarity in rural EB-5 ventures.
The EB-5 loan is secured through a full equity pledge in the project company that can convert into a senior loan secured by a recorded mortgage on the property once the existing senior construction loan is paid off and the hotel is fully operational.
To further enhance investor confidence, the loan is segmented into individual tranches of $800,000 per EB-5 investor, each maturing five years after release into the project.
Additionally, Kindred is located in a rural targeted employment area (TEA), which is what qualifies its EB-5 investors for the reduced minimum investment requirement of $800,000.
Investors in rural TEA projects also benefit from priority processing of Form I-526E and access to available EB-5 visas set aside for rural investments, constituting 20 percent of the total EB-5 visa supply. Such an opportunity can significantly expedite the Green Card process for Chinese and Indian investors.
Moreover, the resort has demonstrated a remarkable track record in job creation, a crucial factor for EB-5 eligibility. By September 1, 2023, Kindred has already generated over 740 of the 1,000 required jobs, enough to satisfy the EB-5 immigration requirements for its first 74 investors. The project expects to have created over 1,000 EB-5 jobs by the end of 2023.
Construction is progressing rapidly with vertical construction well underway. On October 18, 2023, the 62-condominium West Tower held its “topping out” ceremony as the final beam was installed.
Additional safeguards are in place, including an I-526E approval refund guaranty for investors in case their Form I-526E petition is denied, making investment in this project even more attractive.
A High-Demand Market
Kindred Resort at Keystone has already sold 67 percent of its condominium units, representing more than $110 million in sales value.
Buyers have already made nonrefundable deposits of 20 percent of their unit’s sales cost, highlighting the confidence investors have in this project. Buyers will be required to make an additional 10 percent deposit once construction progresses further.
Kindred is managed by RockResorts, an independent subsidiary of Vail Resorts (NYSE: MTN). Vail Resorts is the largest ski-resort conglomerate in history, and its 41 ski resorts captured one fifth of all American ski visits last year.
The developer group is complemented by Interland, a global developer with over 45 years of experience in the U.S. and Mexico. Together, they have overseen more than $4 billion in real estate development.
A Trusted Regional Center
EB5AN serves as the regional center sponsor for Kindred, operating independently of the developer. This ensures we prioritize the interests of our EB-5 investors without any conflicts of interest.
EB5AN has facilitated over $1 billion in EB-5 investments, demonstrating our extensive experience with the EB-5 program.
In summary, Kindred Resort at Keystone stands out as a premier rural EB-5 project in the epicenter of America’s $20-billion-dollar ski economy. EB-5 investors at Keystone will receive priority processing and a host of unique safety features, including advanced job creation and a secured senior mortgage loan structure.
The American ski industry sees demand increasing year after year. With an experienced developer team, a prime location, high demand for condo units backed by presales, and strong job creation, this project promises an exceptionally secure opportunity for EB-5 investors.
For more information on the Kindred project or other rural area projects, please schedule a one-on-one call with EB5AN or send an email to info@EB5AN.com.
