BROOMFIELD, Colo., Nov. 30,
2023 /CNW/ -- Vail Resorts, Inc. (NYSE: MTN)
announced today that it has entered into an agreement to acquire
Crans-Montana Mountain Resort in Switzerland from CPI Property Group ("CPIPG").
Crans-Montana Mountain Resort spans over 1,400 meters
(approximately 4,593 ft) of skiable vertical terrain, and 140
kilometers (approximately 87 mi) of trails. Accessible from five
airports and by train, Crans-Montana Mountain Resort is located in
the Valais canton of Switzerland,
approximately two and a half hours from Geneva and less than four hours from
Milan and Zurich. The resort is two and a half hours
away from the company's other owned and operated European resort in
Andermatt-Sedrun.
Crans-Montana Mountain Resort is a top ski destination in the
heart of the Swiss Alps, offering breathtaking views of the
Matterhorn and the Mont Blanc, and has been recognized as one of
the best ski resorts in Europe.
Crans-Montana has a legacy of
being a renowned outdoor sports destination, with signature events
such as the Ski World Cup, Mountain Bike World Cup, Omega European
Masters, and other championships, the Caprices Festival and more.
The commune of Crans-Montana has gourmet restaurants and luxury
retail stores, as well as stylish five-star hotels, including the
recently developed Six Senses lodge and spa, a luxury 45-room
ski-in, ski-out chalet-style property situated above the main
gondola.
"Crans-Montana is an iconic ski destination in the heart of the
Swiss Alps, with a unique heritage, incredible terrain, passionate
team, and a community dedicated to the success of the region," said
Kirsten Lynch, Chief Executive
Officer of Vail Resorts. "Our acquisition of the resort aligns to
our growth strategy of expanding our resort network in Europe, creating even more value for our Pass
Holders and guests around the world. Much like Andermatt-Sedrun, we
believe Crans-Montana has a unique opportunity for future
growth."
Vail Resorts is acquiring an 84-percent ownership stake in
Remontées Mécaniques Crans Montana Aminona (CMA) SA, which controls and operates all the
resort's lifts and supporting mountain operations, including 4
retail and rental locations. The company is acquiring an 80-percent
ownership stake in SportLife AG, which operates one of the ski
schools located at the resort. Vail Resorts is also acquiring 100
percent ownership of 11 restaurants located on and around the
mountain.
The company's industry-leading line of Epic Pass products
allows skiers and riders to access the company's resorts at an
incredible value, whether they plan to ski one day or every
day. Vail Resorts plans to include access to Crans-Montana
Mountain Resort on select Epic Pass products for the 2024-25 ski
and ride season. Crans-Montana Mountain Resort will not be included
on the Epic Pass for any remaining part of the 2023-24 ski and ride
season after the deal closes. The Epic Pass currently provides
access to Andermatt-Sedrun-Disentis, as well as European partner
resorts, including five days at Verbier4Vallées in Switzerland, seven days at Les 3 Vallées in
France, seven days at Skirama
Dolomiti in Italy and three days
at Ski Arlberg in Austria, with
specific details available at www.epicpass.com.
"CPIPG is proud to have contributed significantly to the
positive development of Crans-Montana over the past 10 years," said
David Greenbaum, CEO of CPIPG. "Vail
Resorts is a talented ski resort operator, and we are certain that
Crans-Montana will thrive under their ownership."
In a statement from its Board of Directors, the Association of
the Municipality of Crans-Montana added: "Crans-Montana looks
forward to working closely with Vail Resorts, which will
undoubtedly have a clear, long-term strategy for development,
marketing, and providing top-quality guest experience. Vail Resorts
will bring new energy to the ski area, positively impacting the
entire economic structure of the region of Crans-Montana. Vail
Resorts as new owner of the ski area will also have a positive
impact on the organization of the FIS Alpine World Ski
Championships in 2027 at Crans-Montana."
"We look forward to investing to support the growth,
sustainability and vitality of the resort and region," continued
Lynch. "We care deeply about the guest experience and are committed
to working with the community, listening and learning from local
partners and the resort's dedicated teams. We share many values
with the Crans-Montana community, including a commitment to
environmental responsibility and reducing our net-operating
footprint."
Vail Resorts expects to drive significant growth for
Crans-Montana Mountain Resort through ongoing investments in the
resort and inclusion of the resort on Epic Pass products,
attracting a broader population of international guests to the
resort who are seeking a high-end destination resort experience in
the Swiss Alps.
"Vail Resorts commitment to Crans-Montana rewards the Valais
destination's dynamism, innovation, positioning and strategy for
high value-added, four-season sustainable tourism," said
Bruno Huggler, CEO of the
Crans-Montana Tourism and Congress. "Vail Resorts' in-depth
analyses confirmed Crans-Montana's potential as a leading
destination in the Swiss Alps. Every possible effort will be made
to foster synergies with all players from Crans-Montana in
developing tourism offers, marketing, and sales. Vail Resorts'
network will be a definite asset, especially in North America."
Subject to closing adjustments, the valuation for the resort
operations is expected to be CHF 118.5
million, including approximately CHF
7 million of debt that will remain in place. Vail Resorts
anticipates that the resort will generate approximately
CHF 5 million of EBITDA in its fiscal
year ending July 31, 2025, the first
full year of operations following the expected closing later in
fiscal 2024. Vail Resorts anticipates EBITDA growth over time from
the inclusion of the resort on the Epic Pass products, network
synergy, and investments in the guest experience. Subject to the
timing of capital project approvals and completion, Vail Resorts is
planning to invest approximately CHF 30
million over the next five years in one-time capital
spending to elevate the guest experience, and the resort is
expected to generate over CHF 15
million of annual EBITDA following these investments and
including the impact from incremental Epic Pass sales. This initial
phase of growth of the resort is expected to be primarily driven by
operating and marketing initiatives along with capital investments
focused on maximizing gastronomy efficiencies and improving and
expanding snowmaking capabilities. After closing the transaction,
normal annual maintenance capital expenditures for Crans-Montana
Mountain Resort are expected to be approximately CHF 3 million.
The transaction is expected to close during the 2023-24 ski and
ride season, subject to certain third-party consents. Operations at
Crans-Montana Mountain Resort for the 2023-24 winter season will
continue in the ordinary course of business. Vail Resorts is
committed to retaining the vast majority of employees, the existing
operational infrastructure, and local expertise. Vail Resorts will
incorporate areas of expertise from its business strategy,
including enhancements to data and analytics capabilities,
accessibility with the Epic Pass product lineup, and best practice
sharing from its mountain operations.
About Vail Resorts, Inc. (NYSE: MTN)
Vail Resorts is a network of the best destination and close-to-home
ski resorts in the world including Vail Mountain, Breckenridge, Park City Mountain, Whistler
Blackcomb, Stowe, and 32 additional resorts across North America; Andermatt-Sedrun in
Switzerland; and Perisher, Hotham,
and Falls Creek in Australia – all
available on the company's industry-changing Epic Pass. We are
passionate about providing an Experience of a Lifetime to our team
members and guests, and our EpicPromise is to reach a zero net
operating footprint by 2030, support our employees and communities,
and broaden engagement in our sport. Our company owns and/or
manages a collection of elegant hotels under the RockResorts brand,
a portfolio of vacation rentals, condominiums and branded hotels
located in close proximity to our mountain destinations, as well as
the Grand Teton Lodge Company in Jackson
Hole, Wyo. Vail Resorts Retail operates more than 250 retail
and rental locations across North
America. Learn more about our company at
www.VailResorts.com, or discover our resorts and pass options
at www.epicpass.com.
Forward-Looking Statements
Certain statements
discussed in this press release, other than statements of
historical information, are forward-looking statements within the
meaning of the federal securities laws, including the statements
regarding growth opportunities related to the acquisition of
Crans-Montana Mountain Resort, expected investments in the
Crans-Montana Mountain Resort, the expected valuation and timing of
the closing of the acquisition, and the expected performance of the
Crans-Montana Mountain Resort following the acquisition. Readers
are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof. All
forward-looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially
from those projected. Such risks and uncertainties include but are
not limited to the economy generally, and our business and results
of operations, including the ultimate amount of refunds that we
would be required to refund to our pass product holders for
qualifying circumstances under our Epic Coverage program; prolonged
weakness in general economic conditions, including adverse effects
on the overall travel and leisure related industries; risks
associated with the effects of high or prolonged inflation, rising
interest rates and financial institution disruptions; unfavorable
weather conditions or the impact of natural disasters or other
unexpected events; the willingness or ability of our guests to
travel due to terrorism, the uncertainty of military conflicts or
public health emergencies, and the cost and availability of travel
options and changing consumer preferences, discretionary spending
habits or willingness to travel; risks related to travel and
airline disruptions, and other adverse impacts on the ability of
our guests to travel; risks related to interruptions or disruptions
of our information technology systems, data security or
cyberattacks; risks related to our reliance on information
technology, including our failure to maintain the integrity of our
customer or employee data and our ability to adapt to technological
developments or industry trends; our ability to acquire, develop
and implement relevant technology offerings for customers and
partners; the seasonality of our business combined with adverse
events that may occur during our peak operating periods;
competition in our mountain and lodging businesses or with other
recreational and leisure activities; risks related to the high
fixed cost structure of our business; our ability to fund resort
capital expenditures; risks related to a disruption in our water
supply that would impact our snowmaking capabilities and
operations; our reliance on government permits or approvals for our
use of public land or to make operational and capital improvements;
risks related to federal, state, local and foreign government laws,
rules and regulations, including environmental and health and
safety laws and regulations; risks related to changes in security
and privacy laws and regulations which could increase our operating
costs and adversely affect our ability to market our products,
properties and services effectively; potential failure to adapt to
technological developments or industry trends regarding information
technology; our ability to successfully launch and promote adoption
of new products, technology, services and programs; risks related
to our workforce, including increased labor costs, loss of key
personnel and our ability to maintain adequate staffing, including
hiring and retaining a sufficient seasonal workforce; a
deterioration in the quality or reputation of our brands, including
our ability to protect our intellectual property and the risk of
accidents at our mountain resorts; risks related to scrutiny and
changing expectations regarding our environmental, social and
governance practices and reporting; our ability to successfully
integrate acquired businesses, including their integration into our
internal controls and infrastructure; our ability to successfully
navigate new markets, including Europe; or that acquired businesses may fail
to perform in accordance with expectations; risks associated with
international operations; fluctuations in foreign currency exchange
rates where the Company has foreign currency exposure, primarily
the Canadian and Australian dollars and the Swiss franc, as
compared to the U.S. dollar; changes in tax laws, regulations or
interpretations, or adverse determinations by taxing authorities;
risks related to our indebtedness and our ability to satisfy our
debt service requirements under our outstanding debt including our
unsecured senior notes, which could reduce our ability to use our
cash flow to fund our operations, capital expenditures, future
business opportunities and other purposes; a materially adverse
change in our financial condition; adverse consequences of current
or future litigation and legal claims; changes in accounting
judgments and estimates, accounting principles, policies or
guidelines; and other risks detailed in the Company's filings with
the Securities and Exchange Commission, including the "Risk
Factors" section of the Company's Annual Report on Form 10-K for
the fiscal year ended July 31, 2023,
which was filed on September 28,
2023.
All forward-looking statements attributable to us or any persons
acting on our behalf are expressly qualified in their entirety by
these cautionary statements. All guidance and forward-looking
statements in this press release are made as of the date hereof and
we do not undertake any obligation to update any forecast or
forward-looking statements whether as a result of new information,
future events or otherwise, except as may be required by law.
Statement Concerning Non-GAAP Financial Measures
When
reporting or forecasting financial results, we use the term EBITDA,
which is not a financial measure under accounting principles
generally accepted in the United States
of America ("GAAP"). EBITDA should not be considered in
isolation or as an alternative to, or substitute for, measures of
financial performance prepared in accordance with GAAP. The
Company believes that EBITDA is an indicative measurement of the
Company's operating performance and is similar to performance
metrics generally used by investors to evaluate other companies in
the resort and lodging industries. We do not provide
forward-looking guidance for certain financial measures, such as
EBITDA, on a GAAP basis because we are unable to predict certain
items contained in the GAAP measures without unreasonable
efforts.
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SOURCE Vail Resorts, Inc.