Intrawest to Sell Off Assets to Raise Capital for Resort Expansion
Resorts and recreation giant, Intrawest Corp. has recently hired an investment banker, and announced plans to sell off some of its assets.
Intrawest generates revenue by building hotels, then selling suites to investors, who can use the resort themselves, or put their room into a “rental pool” and share hotel revenue with the company.
Right now, Intrawest is trying to adjust its business model to allow for more growth and expansion into beachfront properties and golf courses, especially in Florida, Hawaii, and Arizona.
To build new resorts in these markets, the company is trying to get together a greater pool of capital, which it will do by selling off many less profitable holdings, including much of the retail and commercial space that is attached a many of the resorts.
Analysts say that Intrawest’s announcement puts a lot of the company’s assets into play, and will likely attract a lot of interest from real estate holding firms around the world. It isn’t yet clear, however, exactly which businesses will be interested in which assets.