Vail Resorts Closes on Vail Marriott

Vail Resorts
announced today that it closed its transaction to sell the Vail Marriott
Mountain Resort & Spa for $62 million to DiamondRock Hospitality Limited
Partnership
.  The hotel will retain its current name and will
remain branded as a full-service Marriott resort. Vail Resorts, through its
Vail Resorts Lodging Company subsidiary, will continue to manage the resort
for 15 years, through 2020, under a management contract with DiamondRock that
is co-terminus with the Marriott franchise agreement for the hotel.Adam Aron, Vail Resorts chairman and chief executive officer, commented,
“We are excited by the sale of the Vail Marriott, as Vail Resorts has
benefited significantly from our acquisition of this hotel just 3 and 1/2
years ago.  First, our substantial renovation of the property has given Vail
guests a much more attractive lodging option.  Second, we believe we received
an attractive price in the now consummated sale.  Third, our retention of a
long-term management agreement for the hotel is financially beneficial for us,
as it gives us a stream of management fees for 15 years.  Additionally, our
managing the hotel will allow us to have greater participation in the Vail
lodging community going forward.  And fourth, we have retained two key real
estate development parcels, much of which land came to us with the purchase of
the hotel in 2001.  We currently anticipate that Gore Creek Place and the
Ritz-Carlton Residences, Vail will be built on these two parcels, both of
which could be quite lucrative if developed as planned.”
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