The Hidden Valley Resort community is a 1,500-acre, master planned, four season resort located in the Laurel Highlands of western Pennsylvania. The master plan includes 3,000 homes, with amenities such as a ski area, golf course, pools, lakes, and trails. 1,200 homes are currently located at the resort, and a golf course has been completed. Hidden Valley plans one additional major ski area expansion in the next few years, which will add six additional slopes.

Over the past year, there have been various media reports and rumors swirling about Hidden Valley Resort changing ownership. DCSki recently contacted Jim Kettler, owner of Hidden Valley Resort, and Mr. Kettler agreed to be interviewed by DCSki.


DCSki: What are the challenges of running a ski area in the Mid-Atlantic today?

Jim Kettler: Operating a ski area in the Mid-Atlantic area is as challenging today as it was 10, 20 and 30 years ago. A major factor in operating a ski area in the Mid-Atlantic is the weather. The ski business is a lot like farming, very dependent on proper weather conditions for a successful year. The challenge is to be able to adapt to ever-changing weather conditions while providing a pleasant environment on and off the slopes. And the ability to make snow, which is one thing management cannot control. We have invested heavily in a snow making system that can produce mountains of snow every night, given the proper conditions. We have not figured out how to make snow above 32 degrees.

DCSki: What trends have you noticed?

Kettler: Hidden Valley is a family-oriented resort, dedicated to teaching the thrill of skiing and snowboarding in a friendly relaxed environment. Although we are the fourth largest ski area in Pennsylvania, we are primarily a “day” ski area versus a “destination” area. A major trend we have noticed over the past 10 years is the “competition” we have with other organized sports. High school and middle school sports programs, along with many private sports groups, are requiring students to participate in winter training and clinics, and therefore pulling a large percentage of our demographic group off the slopes. Another trend over the past 10 years is the growth of “alternative” ways to slide down the hill. Snowboarding was thought to be “just a fad,” but has developed into a major sport on its own. Tubing has allowed those to visit the Resort, without the cost and skills needed to ski or snowboard. Resorts like Hidden Valley will continue to offer alternative activities for winter fun on the slopes or off.

DCSki: There have been various rumors and reports about Hidden Valley Resort changing ownership, but a year after these rumors started, that hasn’t happened. What is the current status of this - are you currently exploring selling all or part of the resort? If you are unable to find an appropriate buyer, will you continue to operate and invest in the resort and its ski operations?

Kettler: Last year I decided to explore the possibility of selling the Resort. Aside from Hidden Valley Resort, I also own and manage a development and homebuilding business in the Washington metropolitan area, to include Maryland, Virginia, West Virginia, and southern Pennsylvania. Consolidation of my business activities seems to make some sense at this time in my career. Our neighbor, Seven Springs had been on the market for the past 6 years and was going after a slots parlor license. Laurel Mountain ski area had opened and closed again, and is currently on the market. With all this attention to the area, it seemed an opportune time to market the Resort to larger players who are looking for opportunities in the area. Over the past year, we have had many conversations with a variety of businesses from around the country, but to date have not found a buyer for the entire Resort. I cannot comment on any specifics of any discussions with any groups, due to confidentiality agreements. However, the sale of the Resort was not expected to happen quickly, and it is our intention to continue to run and operate Hidden Valley with a view toward improving the quality of the experience for the homeowner and guest. It is a complex transaction requiring the right company with the right vision to move Hidden Valley forward. If I wanted to get out for a quick buck, and did not care about the future of the Resort, I could have been out of here long ago. If we do not find a buyer that meets our criteria, then we will continue with our plans for the growth of Hidden Valley.

DCSki: If I recall correctly, the last major trail expansion at Hidden Valley was made during the summer of 2001, when three additional slopes were cut. Are there tentative plans to cut a few new runs to the left of the North Summit Slopes?

Kettler: The master plan does show one more major slope expansion in an area known as the “Outback.” We have started in this area by locating our tubing center at the base of the future slope expansion. We have also begun the development of a secondary base area, with a restaurant, bar, cross country ski center and lounges. The Outback slope expansion is planned to occur within the next five years, conditions permitting.

DCSki: Why did the Conference Center shut down this past summer? Do you expect it to re-open in the future?

Kettler: This past spring, it was decided to close the Conference Center. The primary reason for this was the lack of conferences at the Resort. The Conference Center at Hidden Valley was originally designed in 1980 as an executive conference center, catering to the large number of corporate headquarters in Pittsburgh. Pittsburgh used to have the largest concentration of corporate headquarters in the U.S. Unfortunately, in the 1990’s, with the rise of mergers and acquisition in the corporate world, most of those corporate headquarters moved out of the area. Anyone who lives and works in Pittsburgh understands this tidal change. Then after 9-11, corporations shied away from traveling to conferences, and started exploiting technologies to meet without leaving the office. At the same time, a lot of local and state governments used tax dollars to build conference centers for local economic development - think Rocky Gap, Bedford Conference Center, etc. At this time we are exploring options for this facility, but have decided to keep it closed for the time being.

DCSki: What activities have been scaled back at Hidden Valley Resort, and why?

Kettler: No activities have been scaled back at Hidden Valley. The perception of a few individuals stems from the fact that we now limit some operations of the Resort during low periods of business. Similar to beach towns off season, the lack of traffic dictates limiting some operations, and reopening in the summer. Instead of one restaurant open year round at Hidden Valley, we now offer various venues based on the season. Mulligans is open at the golf course in the summer, while the base lodge and the Outback are open in the winter. The Somerset area has added a lot of restaurants in the past 10 year, that we think it compliments the dining options for those who live in or visit Hidden Valley.

DCSki: Several DCSki readers have described Hidden Valley Resort as a “diamond in the rough” with a lot of untapped potential. Do you agree?

Kettler: “Diamond in the Rough” is a term we use for Hidden Valley as it relates to the geographic area we are in. The Laurel Mountains is part of Appalachia, and has a background as a coal producing area with very low wages. The median income for the Somerset area is $25,000 for a family of four versus a median of $125,000 for the DC metro area. If you visit the area you will see that Hidden Valley is truly a “diamond in the rough,” a real jewel. We are in a “rough” area, however Hidden Valley is by far the most creative, attractive, and superior quality community in all of Somerset County, if not the entire Laurel Highlands!

DCSki: Laurel Mountain Ski Resort, which is not far from Hidden Valley and Seven Springs, has had a rough go these past few years, and it sounds like it will remain closed for the 2006-2007 winter season. After re-opening in 1999, Laurel suffered from some warm winters and other misfortunes. Do you believe the Laurel Highlands area of Pennsylvania can attract enough skier visits to support three ski areas?

Kettler: We are concerned that Laurel Mountain has not reopened. We think it is a major asset to the area and offers a variety of skiing that no other areas can offer. We absolutely think the Laurel Highlands can support three ski areas, however, Laurel Mountain has some unique challenges that make it hard for any operator. Unfortunately, we had the same poor winters that they had when they opened, and the winters since they closed have been no better. Global warming, El Nino, the alignment of the moon… call it what you want, but the past seven years of Mid-Atlantic winters have been some of the “worst” on record. This will continue to be one of our biggest challenges, one we cannot control. The good news is that our location allows Hidden Valley to get more natural snow than most (due to lake effect snows) and at 3,000 feet, we have 50% more snow making opportunities than other ski areas to the east.

DCSki: Do you see any potential in the future for some kind of shared lift pass between Hidden Valley Resort and Seven Springs, similar to the “Ski the Valley” partnership that Canaan Valley and Timberline Resorts once had?

Kettler: One of the most frequently asked questions of me is why does Hidden Valley not offer a “dual” ticket that includes Seven Springs. We tried for years to make this a possibility, however the reality is that Seven Springs is much larger and had the mindset that there was no benefit to them to offer a “dual” ticket. So to solve this dilemma, Hidden Valley was able to make this happen by being the first ski area in the region to offer a $200 season pass. If you noticed, the year after we introduced a $200 season pass, Seven Springs responded by offering their season pass for under $300. At that point, a homeowner who wanted to ski both resorts could buy both season passes for less than one resort season pass in previous years. One major deterrent to skiing is the cost, especially for the family. A family of four used to need over $2,000 for season passes, and now they can get the season for under $1,000. We think this is a great opportunity for families and part of our strategy to attract the family to ski at Hidden Valley.

Another major strategy for the less expensive season pass was to reduce the “peak” periods at the ski area. All ski operators deal with the problem of “peaks and valleys” and I’m not talking terrain. The weeks are slow and the weekends are busy. We used to have a crush of people between noon and 2 p.m. on Saturday. The less expensive season pass allows many to ski off peak to avoid the crush. It also offers a better experience for our visitors and allows for better customer service. This has worked out very well for the Resort and its customers.

DCSki: Do you view Seven Springs as a competitor?

Kettler: Obviously Seven Springs is a major competitor, but it is also a major asset in the area. Just as a shopping mall has “anchor” stores to drive traffic, Seven Springs and Hidden Valley feed off of each other to bring more skiers to the region. As the ski industry matures, the competition we see is not from a specific resort, but from ski “regions” that are trying to attract our customers. This is also the case for golf and general resort attractions. The Laurel Highland Bureau was created a few years ago to promote the area for year-round enjoyment… ski in the winter… rivers, rails to trails, etc in the summer. We are very excited about the new ownership at Seven Springs and know that with this new ownership will introduce major improvements to attract more people to the area.

DCSki: This past summer, Seven Springs Resort was sold to the Nutting family. What impact do you believe that will have on Seven Springs, and the Laurel Highlands region?

Kettler: The sale of Seven Springs is great news for the Laurel Highlands region. The previous owners of Seven Springs had developed a real nice master plan for their growth, and the new owners have the ability to make this plan a reality. Obviously, at Hidden Valley, we are watching to see what they do, and then work our plans accordingly. Now that slots have been removed from Seven Springs, we understand that the Nuttings will focus on attracting families to their resort. This is good news for Hidden Valley and the homeowners, who can live and play at Hidden Valley, and can also enjoy the amenities just 15 minutes away.

DCSki: Homeowners at Hidden Valley are, not surprisingly, some of the most vocal critics and the most vocal supporters of the resort. Some have reported feeling increasingly disconnected from the operations of the resort, and growing unease over the uncertainty of Hidden Valley’s ownership. What message would you give them, and what opportunities are available for homeowners to “stay in the loop” if they’re feeling disconnected?

Kettler: Hidden Valley is maturing into a full time resort community. Our goal over the past five years has been to move away from secondary home to providing homes that attract full time residences, those working in the area, or retirees. We think this is working well. We now have over 100 full time residents, and many more “seasonal” residents. I am not aware of any other resort in the region that has this amount of full time residents, or is designed to attract full time residents. Most resorts are designed for “transient” guests. We see Hidden Valley as a full time community, with all the pros and cons that brings. People are very emotional about where they live, and many are concerned about anything that happens in “their” community. As we grow and adapt to market conditions at Hidden Valley, homeowners will become more vocal and interested in the community’s growth and direction. This is good news! With a geographically diverse community, communication with homeowners is a challenge. We have our web site to keep everyone up to date on activities at the Resort, and the Homeowners Association has a web site to help keep homeowners informed.

DCSki: If you could fast forward ten years into the future, what would you expect Hidden Valley Resort to look like?

Kettler: We expect to grow Hidden Valley per the master plan. By then we will have a new golf village being developed around the existing club house. We expect to have the final ski expansions complete, and will be embarking on a new ski community around the “Outback” area. As the community grows, we will introduce new community amenities, like additional pools, tennis courts and other “active” and “passive” recreational facilities.

DCSki: Do you have any other comments you would like to share with DCSki readers?

Kettler: Hidden Valley is one of the finest resorts in the region! I have a very dedicated management and group of employees who work tirelessly to make Hidden Valley better every day. We are always looking for new ways improve one’s “experience” at the Resort, and will continue on this path. We hope that some of your readers will check us out this winter, and experience the Resort for themselves.

One more thing… remember… THINK SNOW.

DCSki: Thanks for taking the time to chat with DCSki.