![]() 31, 2021, Vail Resorts closed on its acquisition of Seven Springs Mountain Resort, Hidden Valley Resort, and Laurel Mountain Ski Area near Pittsburgh Pennsylvania for approximately $118 million. VR reported the deal amounts to a roughly $160 million investment on their part, with $42 million of that sum being paid to ASA and $118 million flagged for capital investments to improve the guest experience at Andermatt-Sedrun. (Photo: Courtesy of Andermatt Swiss Alps AG)Īll that doesn't come cheap. Nevertheless, the newly acquired VR terrain is sizeable and includes over 10 miles of high alpine skiing on Switzerland’s famed Oberalp Pass between Andermatt and Sedrun. Skiers will be able to use their Epic Pass products to ski the area's interconnected mountains of Andermatt, Sedrun, and Gemstock, though Disentis, a fourth connected mountain, remains independently owned and will not be included on the Epic Pass. Epic Local Pass holders will gain five unrestricted days, while Epic Day Pass holders with All Resorts Access will be able to use any of their days at the resort. The deal is expected to close prior to the 2022-'23 ski season and VR plans to include unrestricted, unlimited access to Andermatt-Sedrun on next season's full Epic Pass. "We are excited to be partnering with ASA and investing our capital and resources to support the ongoing development of Andermatt-Sedrun into one of the premier alpine destination resorts in Europe." "Entering the European ski market has been a long-term strategic priority for Vail Resorts," says Vail Resorts CEO Kirsten Lynch. Lynch said the company has blanketed their guests with notices of limited ticket sales during the season’s three holiday peak periods.One of the highlights of skiing in the Swiss Alps? Riding the iconic Matterhorn Bahn from the Oberalp Pass to Andermatt. One investment broker asked how the resort will handle limited ticket sales during peak periods. For example, Vail is not selling lift tickets for Dec. Vail Resorts this week ended sales of its 2021-22 Epic Passes and has begun limiting day lift tickets during peak holiday times. That puts the value of the Pennsylvania ski areas around 8.3-times earnings, which is in line with historic valuations of ski areas. Vail Resorts told investors it expected the new resorts and the hotel to generate about $15 million in earnings a year. “This is very consistent for with our strategy for acquisitions,” Lynch said. is part of the appeal for Vail Resorts, which in 2019 spent $264 million for 17 Peak Resorts ski areas in the East and Midwest. Lynch said the resorts’ proximity to major metropolitan areas like Pittsburgh, Cleveland, Baltimore and Washington D.C. ![]() The company’s long term goal is to have 75% of its ticket ticket revenue come from skiers buying passes and tickets long before they arrive at the ski areas. The number of destination skiers - visitors from afar who travel to Vail Resorts ski areas for vacations - buying Epic Passes has nearly doubled in the past two years. “We significantly outperformed our original expectations for pass sales,” Lynch said in her first earning calls with investors as CEO. Vail Resorts’ new chief executive Kirsten Lynch told investors Thursday that while there was strong growth in number of skiers renewing their passes for the season, there was “significantly stronger” growth in the number of new pass buyers, including skiers who previously purchased lift tickets and guests who had never purchased anything from Vail Resorts. Pass sales for 2021-22 are up 76% compared to the 2019-2020 season. The number of season passes the company sold climbed 47% for the 2021-22 season compared to the previous season and revenue from those pass sales climbed 21%. Vail Resorts sells 2.1 million Epic Passes for 2021-22 ski season Closeīut the first quarter report gives investors a glimpse into the coming season. ![]()
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