Thredbo resort value slashed by $149 million amid climate change concerns

The value of Thredbo Alpine Resort, one of Australia's premier ski destinations, has plummeted by almost $150 million. Hotel and entertainment company EVT disclosed in its annual results that the resort's independent valuation fell from $292 million to $143 million. This significant write-down is partly blamed on an "unseasonably warm" start to the June snow season and the substantial capital investment required for new chairlifts and enhanced snowmaking infrastructure.

“

Everything is genuinely on the table

Despite these challenges, Thredbo saw a 10% increase in revenue, with $50 million generated from lift tickets alone. However, the resort is explicitly described in EVT's report as being "structurally exposed to a warming climate." This assessment aligns with broader concerns about the future of snow sports in Australia.

“

structurally exposed to a warming climate

A 2024 report by the Australian National University and Protect our Winters highlighted that ski seasons across most Australian resorts have already contracted by up to 28%. Andrew Watkins, an adjunct professor in Climate Science at Monash University, noted that warmer temperatures, exacerbated by climate change and El Niño, have led to rain instead of snow. He warned that by 2050, ski seasons could shrink by another 30%.

“

Late August is generally the best time to be skiing in Australia.

This climate-related vulnerability comes as EVT also plans to divest approximately $800 million of "non-core properties" to focus on future growth in the hotel sector. The strategic review to determine which assets will be sold is ongoing, with CEO Jane Hastings stating that "everything is genuinely on the table."

“

Unfortunately, I reckon I've hit more rocks this August than I've probably hit in my entire skiing career.