Vail Resorts takes stake in first European ski destination
Vail Resorts has moved into Europe with confirmation the company will take a stake in Andermatt-Sedrun Sport.
The largest ski resort operator in the world will invest CHF149 million (£120 million) in the Swiss location.
The cash will be reinvested and used for the further expansion of the destination.
Andermatt Swiss Alps (ASA) will continue to hold approximately 40 per cent of the shares in the company.
Vail Resorts owns and operates 40 ski resorts in the United States, Canada and Australia.
“Entering the European ski market has been a long-term strategic priority for Vail Resorts.
“We are excited to be partnering with ASA and investing our capital and resources to support Andermatt-Sedrun’s transformation into a premier destination resort,” said Kirsten Lynch, chief executive of Vail Resorts.
“We plan to rely heavily on and learn from our partners, community members and the Andermatt-Sedrun team as we gain experience and understanding of the resort, its guests and operations.”
Vail Resorts’ investment is comprised of two components: a CHF110 million investment into Andermatt-Sedrun Sport for use in capital investments to enhance the guest experience on the mountain and CHF 39 million, which will be paid to ASA and fully reinvested into the real estate developments in the base area.
ASA is reinvesting into the continued development of its core business in Andermatt and Sedrun of real estate, hotels, infrastructure and expansion of Andermatt Reuss.
The CHF110 million will be reinvested through Andermatt-Sedrun Sport AG on the mountain, including lifts, snowmaking, gastronomy, leisure offerings and infrastructure in the ski area.
Andermatt Swiss Alps AG has historically invested approximately CHF1.3 billion into the development of the destination Andermatt, and over CHF 150 million through Andermatt-Sedrun Sport AG to expand and modernise the SkiArena in Andermatt-Sedrun.
Vail Resorts’ investment into Andermatt-Sedrun Sport AG will significantly accelerate the expansion of the SkiArena Andermatt-Sedrun and the destination as a whole.
The equity partnership between Vail Resorts and ASA is based on the shared vision of continuing to build and develop a world-class village and a world-class ski area.
“Vail Resorts is the ideal partner for our goal of developing Andermatt into the prime Alpine destination,” said Samih Sawiris, majority owner of ASA.
“With Vail Resorts’ deep expertise in successful operations of integrated mountain destinations, the company’s impressive marketing capabilities and destination guest reach, and the additional capital investment in the resort, Vail Resorts will provide a significant boost to the development of Andermatt-Sedrun.”