Hotel Online  Special Report

 Intrawest sells the Majority of its Real Estate at the Town of Mammoth Lakes,
California to Barry Sternlicht's Starwood Capital for a $60 million Pre-tax Profit
    • Intrawest will have a 15 per cent interest in joint venture and an ongoing role as development and sales manager in the build-out of the master-planned resort
    • Intrawest retains real estate at June Mountain representing the future development of approximately 500 residential units
VANCOUVER, March 13, 2006 - Intrawest Corporation, a world leader in destination resorts and adventure travel, announced today the completion of a previously announced joint venture with an entity controlled by Starwood Capital Group Global, L.L.C. (Starwood Capital) in which the joint venture has agreed to acquire the majority of Intrawest's real estate in the Town of Mammoth Lakes, California. The real estate comprises the future development of over 1,100 residential units and 40,000 square feet of commercial space. The transaction will result in a pre-tax profit to Intrawest of approximately $60 million. Pre-tax net proceeds to Intrawest amount to approximately $108 million, which will initially be used to pay down debt. The closing of the transaction will take place in two phases: the first is expected to close prior to March 31, 2006, and the second by April 30, 2006.

Intrawest will have a 15 per cent interest in the joint venture partnership and will act as development manager and provide marketing and sales management expertise thereby earning management fees from the future development of real estate in the Town of Mammoth Lakes.

"The joint venture with Starwood meets our strategic objective of maximizing our return on invested capital and continuing our move to an expertise-driven business model," said Joe Houssian, chairman, president and chief executive officer of Intrawest Corporation. "Today we have realized significant value from our real estate at Mammoth Mountain and in future, as we continue the build-out of the master-planned resort, we will act as development manager and sales manager earning management fees in the process. Starwood understands the importance of having both the resort and real estate operations controlled by the same entity and we are delighted to maintain an interest in the real estate at Mammoth Mountain."

"We are very excited to add this partnership with Intrawest in the real estate development at Mammoth Lakes to our previously announced partnership in the mountain operations," said Barry Sternlicht, Starwood Capital's chairman and chief executive officer. "We look forward to working with Intrawest, Mammoth Mountain Ski Area, town officials, the local business community and the citizens of Mammoth to broaden the resort's appeal to all segments of the consumer market and create the 'Mammoth' experience, a distinctly Californian year-round ski and summer mountain resort."

The joint venture does not include Intrawest's real estate at June Mountain representing the future development of approximately 500 residential units.

Intrawest Corporation (IDR:NYSE; ITW:TSX) is a world leader in destination resorts and adventure travel. The company has interests in 10 resorts at North America's most popular mountain destinations, including Whistler Blackcomb, a host venue for the 2010 Winter Olympic and Paralympic Games. Intrawest owns Canadian Mountain Holidays, the largest heli-skiing operation in the world, and an interest in Abercrombie & Kent, the world leader in luxury adventure travel. The Intrawest network also includes Sandestin Golf and Beach Resort in Florida and Club Intrawest - a private resort club with nine locations throughout North America. Intrawest develops real estate at its resorts and at other locations across North America and in Europe. Intrawest is headquartered in Vancouver, British Columbia. For more information, visit

Starwood Capital Group Global, L.L.C., which is headquartered in Greenwich, Connecticut with offices (or affiliate offices) in San Francisco, Washington, D.C., Atlanta, London, Luxembourg and Tokyo, has been an innovative leader in real estate investments since its inception in 1991. Its investors include some of the largest state and corporate pension funds, endowments and high-net worth families from around the world. Currently, Starwood Capital manages a real estate portfolio valued at over $10 billion. In the past fifteen years, Starwood Capital has closed or advised on real estate transactions totaling in excess of $30 billion and has acquired equity interests in hotels, golf and leisure-related properties, residential land, multifamily and condominium units, senior housing, office, retail and industrial space. Starwood Capital and its affiliates have successfully executed an investment strategy that includes building business enterprises around core real estate portfolios, including; the recapitalization, reorganization and expansion in 1995 of a real estate investment trust to become the company that is today known as Starwood Hotels; the acquisition in 2003, in partnership with affiliates of Goldman Sachs & Co., of National Golf Properties/American Golf Corporation, the largest owner/operators of golf courses and related facilities in the U.S.; and contributing assets to create the company which is today known as iStar Financial (NYSE: SFI - News), one of the leading publicly traded finance companies specializing in commercial real estate mortgage, mezzanine and net lease financing with a current market capitalization in excess of $4.5 billion. For more information regarding Starwood Capital, see

Statements contained in this release that are not historical facts are forward-looking statements that involve risks and uncertainties. Intrawest's actual results could differ materially from those expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, Intrawest's ability to implement its business strategies, seasonality, weather conditions, competition, general economic conditions, currency fluctuations and other risks detailed in the company's filings with the Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission.


Tim McNulty
director, investor relations
(604) 623-6620

Also See: At Mammoth Lakes, Intrawest's $1 billion 10-year-long Project Sierra Taking Shape / October 2003
CNL Income Properties, Inc. to Purchase for $160 million an 80% Interest in Nine Resort Villages Owned by Intrawest Corporation / August 2004


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