The St. Regis Deer Crest Resort has Postitve Impact on the Economy

PARK CITY, Utah (AP) -- Thousands of people have applied for jobs at the aspiring five-star St. Regis Deer Crest Resort on Deer Valley's ski slopes. The owners say they're hiring as many as 300 people for service, transportation and managerial jobs.
The resort says it has received 2,000 online applications and another 400 during a job fair last month in Park City. The St. Regis will open Nov. 5. It's signature feature is a funicular railway that lifts guests from the base of the Park City ski area. The owner, Starwood Hotels & Resorts Worldwide Inc., says it spent $325 million on the resort complex, which includes 181 guest rooms, 67 condo-suites and 26 residences.

Deer Valley gets skiers' nod -- again

Reader survey » Seven Utah resorts among top 30; Alta's powder deemed best.
By Mike Gorrell
The Salt Lake Tribune
Updated: 09/18/2009 03:30:16 PM MDT

Even with recessionary forces taking a big bite out of available resources last winter, Deer Valley Resort did not skimp when it came to servicing its well-heeled clientele.
Now the Park City ski area has been rewarded for sticking to founder Edgar Stern's service-oriented principles through tough economic times: Ski magazine readers have ranked it as North America's best resort for the third consecutive year.
"Deer Valley delivers what the Ski magazine reader wants, which is consistently good snow, few crowds and exceptional service, dining and lodging," magazine Executive Editor Greg Ditrinco said Thursday. "That all adds up to a pretty solid ski vacation."
Seven Utah resorts reached the Top 30 in the magazine's annual reader survey, with Park City Mountain Resort joining Deer Valley in the Top 10 (finishing fourth). Colorado had a dozen resorts among the 30, led by Vail at No. 3.
Naturally, Utah resorts fared best in the "quality of snow" category, one of a dozen used in the evaluation. Alta finished first for its powder, followed by Solitude (fourth) and Snowbird (fifth).
But as Ditrinco noted, Ski magazine readers "are really looking for the whole resort experience. They enjoy skiing, but they also are interested in apres ski activities, fine dining, first-class lodging.
"It's not just enough to put down good snow and run the lifts," he added. "Our readers are looking to travel to a winter resort, not a ski area in the traditional sense. That's a trend the whole ski industry is skewing to. Successful resort operators realize that and are working to keep customers happy on the snow and off."
The magazine, which has a circulation of 400,000, appeals to largely male readers, with a median age of 49 and an average household income of $127,300; 29 percent are reported to have household assets of $1 million or more. Nine of 10 survey respondents said they used the magazine to choose a resort destination.
Ditrinco spoke highly of Deer Valley Resort's decision to assume responsibility for booking and maintaining accommodations from Deer Valley Lodging, which ran into major financial problems at the end of last season.
"That's classic vertical integration of the business, a good strategic long-term move," he said. "Deer Valley was built on service. Stern understood that more than anybody. But service is built on staffing and training, and I don't see any slippage on either of those fronts at Deer Valley. It may come out of the recession stronger than it went in."
Deer Valley General Manager Bob Wheaton said resort officials made a conscious decision last year to maintain its investment in its staff, calling it "the heart and soul of our organization during this tough economic time."
Calling Ski readers "well traveled, avid skiers and lifestyle enthusiasts," Wheaton said that being ranked No. 1 three years running -- and no lower than third in the last nine years -- "is an honor we can't underestimate."

HOUSING'S HIDDEN STRENGTH

Industry lobbyists are urging more tax credits, but home sales seem to have momentum of their own
By Prashant Gopal
BW Magazine
September 14, 2009

Homebuilders and Realtors are lobbying Congress to keep alive the tax credit for home purchases and to make it available to more buyers. They say the $8,000 credit—which is for people who have not owned a home for three years or more and expires after Nov. 30—has boosted demand for low-priced homes, many of them foreclosed and in need of repair. But, they maintain, it has done nothing for the "move-up" market, let alone the luxury segment. Many say the housing market will falter unless the credit is extended, doubled in value, and given to any buyer. "The giddiness we see out there [about a recovery] is without merit," says Richard A. Smith, chief executive officer of Parsipanny (N.J.)-based Realogy, the parent of Century 21, ERA, Coldwell Banker, and Sotheby's International Realty.
But some little-noticed data indicate there's more strength in housing than the industry recognizes. Prices have stabilized, and even appreciated, in the middle- and high-priced segments of the market in many cities, not just in the low-priced segment that is most directly helped by the home-buyer tax credit. That's according to the Standard & Poor's/Case-Shiller tiered price indexes for 17 metro areas, which were released on Aug. 25 but received relatively little publicity.
Seasonally adjusted prices rose in each segment of the market (low-, medium-, and high-priced) from May to June in cities including Boston, Washington, and Chicago. High-end prices went up even in hard-hit Phoenix. Las Vegas, where foreclosures are running extremely high, is the only one of the 17 metro areas that saw a price drop in all three price categories in June.
"The tiers are really revealing," says economist Karl E. Case of Wellesley College, who developed the index with Yale University economist Robert J. Shiller. "[The rising prices] can't be just first-time buyers." While prices could fall after the expiration of the tax credit, says Case, "It's not a knockout blow if the expansion is broad-based."
Those arguing that housing needs government life support say most of the sales action is in foreclosed homes, which tend to be super-cheap and are being bought as starter homes or investment properties. But a National Association of Realtors member survey seems to contradict that theory. Even as home sales rose, the share of first-time buyers dropped from 53% in March to 30% in July.
As for the argument that luxury is dead, Toll Brothers (TOL), the nation's largest luxury homebuilder, announced last month that in its May-July quarter it posted its first year-over-year increase in signed home contracts since 2005. Toll Brothers even started cutting incentives in some markets, mostly in the Northeast and mid-Atlantic states.
True enough, the housing market remains weak. Increasing the tax credit to $15,000 for all homeowners through the end of next year would result in 675,000 additional home sales, according to an analysis by Mark M. Zandi, chief economist at Moody's Economy.com (MCO).
There is evidence that sales fall when credits expire: In California, homebuilding slowed in July after a $10,000 credit for newly built homes expired. And with the rush of summer buying over, the market remains vulnerable to rising unemployment as well as a new wave of foreclosures, which could flood the market and drive down home prices. The Mortgage Bankers Assn. said last month that 9.24% of residential mortgage loans were delinquent as of the end of June, the most since recordkeeping began in 1972.
On the other hand, the housing market might be able to absorb more foreclosed properties as long as banks dribble them out slowly, says Rick Sharga, vice-president of Irvine (Calif.)-based RealtyTrac. "We may be in an unusual period of time where the market is recovering in spite of the record number of foreclosures," he says. "It's hard to explain, but that's what the numbers suggest at the moment."
With prices down and mortgage rates low, housing affordability is the best in years for those who can qualify for a mortgage (admittedly no easy feat). Michelle Meyer, an economist with Barclays Capital (BCS) in New York, says that while the tax credit did contribute to the lift in sales and prices, "A lot of it has to do with greater affordability and a brighter economic outlook. Even if you say some of the gain is artificial, it's still true that we're seeing an increase in housing demand, and that shows fundamental strength."

LUXURY HOTELIER INTERVIEW: Mr. Michael Hatzfeld, General Manager, St Regis Deer Crest Resort

Published: September 10, 2009
A conversation with Mr. Michael Hatzfeld, General Manager of the St Regis Deer Crest Resort, opening in Park City, Utah this winter.

What is unique about your hotel's location?

The St. Regis Deer Crest Resort is nestled into a natural saddle along the slopes of the magnificent Deer Valley Resort, rated the number one ski resort in North America in 2008 and 2007 by the readers of SKI Magazine. The St. Regis Deer Crest Resort spans across 12-acres and enjoys beautiful, perpetually unobstructed views of the Wasatch and Uinta Mountains. It features extraordinary ease of access, just 39 miles from Salt Lake International Airport and one mile from Park City's bustling Main Street. This stunning location boasts direct slope-side access via the Deer Hollow ski run, and a broad variety of year-round recreational and cultural offerings.

What authentic local experiences will guests have access to?Guests at the St. Regis Deer Crest Resort will have access to North America's top-rated ski experience at Deer Valley in winter, in addition to skiing and snowboarding at Park City Mountain Resort (ranked number five) and the Canyons Resort (ranked number 14 in North America). During the summer season Park City offers golf and fly-fishing as well as some of the country's best mountain biking and hiking on nearly 400 miles of maintained trails in the area. Throughout the year an abundance of dining options are available at 105 Park City restaurants, including 22 Zagat-rated establishments (more than Aspen and Vail combined!) Park City is home to 30 art galleries and host to countless cultural offerings - music and concert performances, festivals and art shows - including the vaunted Sundance Film Festival, the Kimball Art Festival, and the Park City International Jazz Festival.

What are some amazing things that your Concierge can arrange?

World-class fly fishing trips and helicopter skiing, plus tickets to the Sundance Film Festival.

Does your hotel have a philosophy?
Combining classic sophistication and modern luxury, the St. Regis brand remains faithful to its commitment to excellence. Founded by John Jacob Astor IV, with the opening of the first St. Regis Hotel in New York City over a century ago, The St. Regis brand of hotels is known for its unique luxury dimension, customized service and refined elegance, in the best destinations worldwide.

What makes your hotel memorable and unforgettable?

The Ski Beach at The St. Regis Deer Crest Resort combines the vibrancy of European après ski life with the elegance that St. Regis brings to all of its properties. Nestled slope-side at the Deer Valley Resort amidst the pristine Wasatch Mountains and directly accessible from the Deer Hollow ski run, the Ski Beach at The St. Regis Deer Crest Resort is the ultimate après ski destination. Guests and visitors coming from town or the mountain’s Snow Park Lodge may access the Hotel and Ski Beach via The St. Regis Deer Crest Resort's funicular, a luxurious Swiss made tram car that seats 15 and is the very first in a North American ski resort. The Ski Beach is perfect for meeting family for lunch or friends for libations, soaking up the sun while enjoying an epicurean creation from Jean-Georges Vongerichten's kitchen, or simply relaxing and people watching. The Ski Beach at The St. Regis Deer Crest Resort is completely unparalleled in Utah and will be a natural gathering place for casual mingling, relaxed dining, and easy socializing.

Stunning panoramic mountain views surround the Ski Beach and can be enjoyed year round while relaxing in chaise lounges on outdoor decks, while sipping and snacking on the 3,000 square foot stone terrace that boasts a 40-foot long firewall and bird's-eye view of the multi-tiered, year-round swimming pool that features waterfall columns and is bookended by two hot tubs. The après ski scene can be enjoyed well into the evening knowing that when it's time for dinner, guests can either stay on site to dine in St. Regis' signature Jean-Georges restaurant, or take the convenient funicular to the base of Deer Valley® to access the variety of dining options in Park City. As Utah's first five-star branded resort, The St. Regis Deer Crest Resort provides a convivial and memorable five-star après ski experience.

What will guests rave about to their friends and family?

The iconic St. Regis butlers are a distinguishing feature of the St. Regis Deer Crest Resort. Trained in the European tradition, the butlers and all staff throughout the Resort imbue an extraordinary standard of service in every aspect of the St. Regis visit. Attentive yet discreet, the St. Regis butlers and staff anticipate and satisfy needs seamlessly, creating an exquisitely relaxing and fulfilling guest experience.

What is the atmosphere of your hotel? What types of guests does it attract?

Distinguished by its grand scale, The St. Regis Deer Crest Resort offers sophisticated and luxurious mountain accommodations, establishing a new standard for mountain elegance. One of the finest luxury branded hotels, The St. Regis Deer Crest Resort is set apart by the outstanding features of the suites and units, as well as the impeccably designed exteriors, inviting common areas, gourmet food and outstanding wine collection, and exclusive spa and fitness center. The luxurious décor for the hotel guestrooms and suites extends into all aspects of the design. The stunning, yet soothing color palette features creams, rich browns and earth-tone hues. The kitchen and living areas are equipped with state-of-the-art appliances and custom designed furniture, flooring and finishes.

What makes your hotel a destination within itself?

With over half of the Hotel space dedicated to common areas featuring world-class services and punctuated by exceptional commissioned works of art throughout, the St. Regis Deer Crest Resort provides guests plenty of room to explore and enjoy the full offerings of the Resort. The unique features of the St. Regis Deer Crest Resort coalesce into an extraordinary experience - from arrival via the funicular with personalized check-in and orientation; to the riveting culinary creations of Chef Jean-Georges Vongerichten's 120-seat J&G Grill with its open kitchen, private wine room dining, 22-seat communal dining room, and intimate Chef's Table; to the Wine Vault with a collection of over 10,000 bottles. Guests enjoy the personalized ministrations of professionals at St. Regis' exclusive 14,000 square foot Remède Spa and indulge in whole-body wellness with certified trainers in the Athletic Club. In the St. Regis Library, complimentary hot beverages are served in the morning hours, followed by afternoon tea at 4pm, and the famous Champagne Sabring ceremony to welcome the transition to evening at 5pm. The St. Regis Deer Crest Resort envelops its guests with an unparalleled standard of service, ensconced in elegant mountain contemporary décor within a setting of stunning natural beauty.

What is the best way for guests to "arrive in style" to your hotel?

What is bound to be the most well-appointed mode of transportation at any mountain resort, the funicular is a unique feature of The St. Regis Deer Crest Resort. A pair of 15-passenger cable-hoisted tram cars on steel rails, the funicular is based at The St. Regis Deer Crest Resort's Snow Park Building and ascends over 230 vertical feet in just 90 seconds to the primary hotel building which houses the majority of The St. Regis Deer Crest Resort's amenities, guest rooms and private residences with convenient slope-side access directly on to the Deer Hollow ski run. Travel on the funicular, which is free of charge, serves as a chic and convenient way for hotel guests and visitors to explore The St. Regis Deer Crest Resort's phenomenal amenities, including Chef Jean-Georges Vongerichten's new J&G Grill, a wine bar featuring a 10,000-bottle collection, a 14,000 square-foot Remède Spa, a Val d'Isere style ski beach adjacent to the Deer Hollow ski run, and an outdoor terrace with a 40-foot long firewall. The 90-second journey feels something like a luxurious elevator ride with fabulous vistas of Deer Valley. The St. Regis Deer Crest Resort funicular cars are heated and air-conditioned and function independently so that demand can be met both at the base and top terminals which are enclosed so guests are never exposed to the elements.

Can you recommend other destinations/hotels nearby (within 300 miles) that your guests should consider combining into a trip?

For a very different outlook on the natural beauty of Utah, guests might consider a visit to the visually striking, other-worldly terrain of southern Utah. The breathtaking red rock and sandstone formations of Canyonlands National Park, Arches National Park, and Dead Horse Point State Park all can be easily visited from the friendly city of Moab.

Deer Valley holds onto title

SKI Magazine readers give DV top spot, again
by Nan Chalat Noaker, Record editor
Posted: 09/15/2009 05:26:42 PM MDT

If Deer Valley employees have been tight lipped this week, but now they can brag all they want. Deer Valley has been named the best ski area in North America by the readers of SKI Magazine for the third year in a row. Staffers celebrated quietly earlier this week but were asked to keep the news under wraps until the formal announcement was released. According to Deer Valley President Bob Wheaton, the resort topped five categories including Guest Services, Slope Grooming, On-mountain Food and Dining. As always, Wheaton deferred all of the credit for the honor to his staff. "I am very pleased and proud of the staff that earned this award," he said. Each year, SKI Magazine sends 20,000 ballots to its readers and also collects votes online. According to Wheaton, Whistler Blackcomb in British Columbia, Canada earned the No. 2 spot and Colorado's Vail took third. In the 20-plus years that SKI has been conducting the poll, only Vail has matched Deer Valley's hat trick.

Park City bankers explain credit crunch

Jumbo loans were popular with speculators, now investors won't buy them
by Andrew Kirk, OF THE RECORD STAFF
Posted: 07/31/2009 04:21:38 PM MDT

Ask any Realtor or home builder how they're doing and they often say the same thing: clients can't get "jumbo loans." Those are home loans that exceed a $729,750 limit set by Congress as the maximum amount for loans guaranteed or purchased by the federally-chartered Fannie Mae and Freddie Mac.
That's a relatively small sum when shopping for a stand-alone house in Park City. Before last September, home-financing companies used to brag about their ability to find loans for nearly any amount.
That is because mortgages are usually sold to investors. Before the credit crisis, there were many types of investors. Now, there are few to speak of unless the loans are guaranteed by Fannie Mae and Freddie Mac which still buy the majority of mortgages in America.
But unfortunately for Park City home shoppers, the Federal Housing Finance Agency (FHFA) sets limits on the size of loans they can buy, hence the distinction "jumbo," explained Brad German, spokesperson for Freddie Mac.
The irony is it's a great time to get a smaller loan.
"Wells Fargo has made more loans in the first six months of this year than they have in years. Money is available, plentiful and inexpensive. And it's absolutely true," said Rick Klein, sales manager for Mountain Summit Mortgage, an affiliate of Wells Fargo.
"Frontier remains a very active lender," said Marc Estabrook, president of Frontier Community Bank. "Year to date, we've funded nearly $32 million in loans."
Riley Risto, vice president and branch manager at Mountain West Bank, explained the problem this way: Commercial mortgages; jumbo mortgages; construction loans; and home equity loans or lines are much harder and more expensive to obtain; loans for residential developments; and loans for timeshares, fractional ownerships and condominiums to be used for nightly rentals, are all but impossible to get.
"Unfortunately, these segments make up a significant portion of Park City's real estate market," he said.
Klein said borrowers for the types of loans listed above are "under much more of a magnifying glass today."
It wasn't hard to qualify for a loan in the past, Estabrook said, and those days are gone.
Because the FHFA is backing smaller loans, investor banks are still buying them and local banks are still supplying them. But because there is no security in buying loans not approved by the FHFA, global investors aren't interested, Klein said.
Risto said he believes a correction in the market is necessary and warranted. He said there was a false boom created by a policy of artificially-low interest rates set by the Federal Reserve. The market was alright with "toxic assets" because they moved quickly through the system to companies like Countrywide, then on to the general investing public. Now banks and secondary-market investors "are being highly scrutinized by auditors and analysts for their concentration levels and risk management."
It may seem odd that large loans going for large houses would be trusted less than average homes going to regular Americans in the midst of a recession. Common sense might suggest that someone who can afford a $1 million house is more trustworthy than a blue-collar working trying to buy a $200,000 condominium. After all, job losses are still predicted.
But Risto explained that jumbo loans were popular among real estate investors.
In the old system, a plumber could just declare his income at $1 million a year and qualify for a $1-million loan so he could flip a house. Inexperienced contractors and novice investors suddenly became residential developers during the boom and got loans to create subdivisions. After the credit crisis last September, lenders were left holding loans for over-priced homes and half-completed neighborhoods.
Klein said the result of this national trend is that if banks lend jumbo loans, they've got to keep them. Even if a bank can afford to do that, they're going to price those loans at a higher rate.
Estabrook said his bank has been making those loans and has been keeping them. But a bank that size can only make so many of them.

Huntsman's Deer Valley compound: yours for $55 million

Now on the market, it is 'truly the crown jewel of Deer Valley,' agent says
by Jay Hamburger OF THE RECORD STAFF
Posted: 07/31/2009 04:21:59 PM MDT

Deedee Corradini, the real estate agent listing the Huntsman family compound in Deer Valley, says...

Jon Huntsman Sr., the industrialist and father of Gov. Jon Huntsman Jr., has put his Deer Valley compound on the market, asking $55 million for what is among the prime pieces of real estate in Deer Valley.
The listing agent, Deedee Corradini, said it has been on the market for approximately two months, but there had been little publicity when it was offered for sale. The compound covers nearly 64 acres of land at 5000 Royal St. There is a mansion on the property and there is development potential on other parts of the land.
"It's one of a kind. Everybody says my property is one of a kind, but this truly is," Corradini said, calling the compound "truly the crown jewel of Deer Valley."
The compound covers three parcels, with there being development potential on each of them. They are:
a 40-acre piece of land with one house. The 20,000-square-foot house has 12 bedrooms, 16 bathrooms, a swimming pool, a fitness room, a game room, an artificial pond and an artificial waterfall. It was built in 1989. There is the potential to build another 14 houses on the 40 acres.
a 20-acre parcel where six or seven houses could be built.
a 3.61-acre parcel where one house could be located.
Huntsman wants to sell the three parcels to one buyer, Corradini said. She describes options for a buyer that include continuing to use the house and land as a family compound, keeping the house and selling the other land to developers or building on the other land themselves.
"There are people who want this kind of property. We just have to find them," Corradini said, adding that there are "many potential buyers."
She did not predict what the bids will be, though. She said Deer Valley and Park City have become sought-after places for businesspeople and celebrities.
Corradini said the Huntsman family has not used the compound regularly in recent years, prompting Huntsman to put it on the market. She said Huntsman has been spending more time in Driggs, Idaho, a small city close to Jackson, Wyo., that is becoming popular with people buying vacation properties. Huntsman is a key figure in the Huntsman Springs real estate development there.
Lincoln Calder, the president of the Park City Board of Realtors, said there has been at least one top-dollar sale in the area this summer, with a place in The Colony that had been listed at $23.8 million selling. He is unaware of the sale price, though.
Calder did not discuss the prospects of the Huntsman compound selling, but he said the property it is a rarity in Park City.
"It's a very unique piece of property and will take a very unique buyer with the ability to purchase it," Calder said.