Resort hotel

Vail Resorts to Acquire Seven Springs Mountain Resort, Hidden Valley Resort and Laurel Mountain Ski Area in Pittsburgh Area


[ad_1]

BROOMFIELD, Col., December 8, 2021 / PRNewswire / – Vail Resorts, Inc. (NYSE: MTN) today announced that it has entered into an agreement to purchase Seven Springs Mountain Resort in Pennsylvania of Seven Springs Mountain Resort, Inc. As part of the acquisition, Vail Resorts will also acquire Hidden Valley Resort and the Laurel Mountain Ski Area operations. The purchase price for ski areas, plus a hotel, conference center and other related operations, is approximately $ 125 million, subject to certain adjustments.

“We are extremely pleased to have the opportunity to add Seven Springs to our family of resorts with Hidden valley and Laurier Mountain,” noted Kirsten lynch, CEO of Vail Resorts. “As a company, we have focused on acquiring resorts near major metropolitan areas, because we know that many skiers and snowboarders develop their passion for the sport close to home. These large ski areas of Pennsylvania are a perfect complement to our existing resorts, creating a much stronger connection and an attractive offering for our current and future customers in Pittsburgh as well as those from other critical markets such as Washington DC, Baltimore and Cleveland. “

Seven springs is Pennsylvania premier four-season family resort. It is located one hour southeast of Pittsburgh and is one of the largest ski resorts in Pennsylvania with 285 skiable acres and 750 vertical feet. In addition to skiing and snowboarding, Seven Springs offers important resort amenities including a 418-room hotel, conference center, full-service spa, and tubing. Hidden valley offers 110 skiable acres and 470 vertical feet, with 26 trails and trails and two snow parks. Laurier Mountain offers 70 skiable acres and 761 vertical feet.

“The resorts are truly part of the fabric of this region and a vital community asset. I am extremely proud of our management of Seven Springs and its sister resorts, and even more so of all the people we have worked with side by side. -side to transform them into what they are today, ”said Robert nutting, President and CEO of Seven Springs Mountain Resort, Inc. “It has been an honor to be a part of their incredible growth for over a decade and to leave each resort a much stronger community asset than we do. have found. “

“Vail Resorts is a perfect successor with a proven track record in respecting the uniqueness of each of its resorts,” added Nutting. “They are the industry leader in investing in customer experience, employee development and environmental stewardship. We are delighted that the resorts are now part of the Vail Resorts network and are confident that Vail Resorts will continue to invest in what makes these resorts so special. “

Vail Resorts acquires all assets related to the resort’s mountain operations and base area accommodations, conference center and related equipment. Seven Springs Mountain Resort, Inc. retains certain neighboring operations including Highlands Market, Sporting Clays at Seven Springs, Seven Springs Golf Course and Hidden Valley Golf Club, Highlands Resort Realty and certain properties owned and held for potential future development.

The transaction is expected to close this winter, however, operations at all three resorts for the 2021-22 winter season will continue in the normal course of business. Vail Resorts plans to add access to all three resorts to select Epic Pass products for the 2022-2023 North American ski and hiking season.

Additional transaction details

The acquisition is expected to generate additional annual EBITDA of more than $ 15 million during Vail Resorts’ fiscal year ending July 31, 2023. This expected impact includes an estimated additional annual EBITDA of approximately $ 5 million associated with the 418-room Slopeside Hotel and the conference facilities and accommodation operations associated with Seven Springs Mountain Resort. After the transaction closes, current annual capital expenditures are expected to increase by approximately $ 3 million to support the addition of these stations.

Vail Resorts, subject to receipt of Commonwealth of Pennsylvania, assume the state land lease for Laurier Mountain. Upon closing, Vail Resorts plans to retain the vast majority of employees at each resort and will work with local management teams over the next several months to determine the right long-term management structure for the resorts.

About Vail Resorts, Inc. (NYSE: MTN)
Vail Resorts, Inc., through its subsidiaries, is the world’s leading operator of hill stations. Vail Resorts subsidiaries operate 37 destination mountain resorts and regional ski areas, including Vail, Castor Creek, Breckenridge, keystone and Crested mound in Colorado; City Park in Utah; Heavenly, Northstar and Kirkwood in the Lake Tahoe domain of California and Nevada; Whistler Blackcomb in British Columbia, Canada; perishable, Falls Creek and Hotham in Australia; Stowe, Snow Mountain, Okemo in Vermont; Hunter Mountain in new York; Mount Sunapee, Attitash, Wildcat and Crotched in New Hampshire; Stevens passes in Washington; Liberty, Roundtop, Whitetail, Jack frost and Big Boulder in Pennsylvania; Alpine Valley, Boston Mills, Brandywine and Crazy river in Ohio; Hidden valley and Snow Creek at Missouri; Wilmot in Wisconsin; Afton Alps in Minnesota; Mount. Brighton in Michigan; and Paoli Peaks in Indiana. Vail Resorts owns and / or operates a collection of casually elegant hotels under the Rock Resorts brand, as well as the Grand Teton Lodge Company in Jackson Hole, Wyoming. Vail Resorts Development Company is the real estate planning and development subsidiary of Vail Resorts, Inc. Vail Resorts is a publicly traded company listed on the New York Stock Exchange (NYSE: MTN). The Vail Resorts corporate website is www.vailresorts.com and the consumer website is www.neige.com.

Looking to the future Statements
Certain statements discussed in this press release, other than statements of historical information, are forward-looking statements within the meaning of federal securities laws, including our expectations regarding the additional fiscal year 2023 EBITDA that this acquisition is expected. generate, the expected increase in capital expenditure and the expected timeframe for the closing of the transaction. 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 which could cause actual results to differ materially from those projected. These risks and uncertainties include, but are not limited to, the ultimate duration of COVID-19 and its short and long term impacts on consumer behaviors, the economy in general and our business and operating results, including the final amount of refunds we would be required to reimburse our pass holders for qualifying circumstances under our epic coverage program; prolonged weakness in general economic conditions, including negative effects on all travel and leisure-related industries; our clients’ willingness or ability to travel due to terrorism, the uncertainty of military conflicts or contagious disease outbreaks (such as the ongoing COVID-19 pandemic), and the cost and availability of travel options and changing consumer preferences; adverse weather conditions or the impact of natural disasters; risks related to interruptions or disruptions to our IT systems, data security or cyber attacks; risks related to our reliance on information technology, including our inability to maintain the integrity of the data of our customers or employees and our ability to adapt to technological developments or industry trends; the seasonality of our business combined with adverse events that occur during our peak operating periods; competition in our mountain and accommodation companies or with other leisure and leisure activities; high fixed cost structure of our business; our ability to fund resort capital expenditures; the risks associated with an interruption in our water supply which would have an impact on our snowmaking capacities and operations; our reliance on government permits or approvals for our use of public lands or to make operational and capital improvements; risks associated with obtaining government or third party approvals; risks associated with federal, state, local and foreign laws, rules and regulations; risks associated with changes in security and privacy laws and regulations that could increase our operating costs and affect our ability to effectively market our products and services; risks to our workforce, including increased labor costs; the loss of key personnel and our ability to hire and retain 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; our ability to successfully integrate acquired businesses, or that acquired businesses may not perform as expected; risks associated with international operations; fluctuations in foreign exchange rates when the Company is exposed to foreign exchange risk, primarily Canadian and Australian dollars; changes in tax laws, regulations, interpretations or adverse rulings by tax authorities; risks relating to our indebtedness and our ability to meet our debt service requirements on our outstanding debt, including our senior unsecured notes, which could reduce our ability to use our cash flows to fund our operations, capital expenditures, future business opportunities and other purposes; a material adverse change in our financial condition; the negative consequences of current or future legal claims; changes in accounting judgments and estimates, accounting principles, policies or guidelines; and other risks detailed in documents filed by the Company with the Securities and Exchange Commission, including the “Risk Factors” section of the Company’s annual report on Form 10-K for the year ended July 31, 2021, which was filed on September 23, 2021.

SOURCE Vail Resorts, Inc.

[ad_2]