December 22, 2005
Vail, CO - (Press Release) - Vail Resorts, Inc. announced today that one of its subsidiary companies has entered into acontract to sell the Snake River Lodge & Spa, located in Jackson Hole, Wyo., for $32.5 million to an investment group led by Lodging Capital Partners, a private, Chicago-based hospitality investment firm ("LCP"). The transaction price equates to a valuation ofapproximately $369,300 per hotel key. The sale price is subject to adjustment based on certain provisions of the agreement and thetransaction is scheduled to close in January 2006, subject to certain closing conditions. After the transaction is completed, the hotel will retain its current name and continue to be branded as a RockResort, through 2021, under a 15-year management contract with LCP.
The Company purchased a 51 percent interest in the 88-room hotel in December 2000 and purchased the remaining 49 percent interest in May 2005. The Snake River Lodge & Spa is located at the base of the Jackson Hole Mountain Resort in Teton Village, Wyo. The hotel manages 46 luxurycondominiums and also features ski-in access, a full-service Avanyu Spa and the award-winning GameFish restaurant.
Adam Aron, Vail Resorts chairman and chief executive officer, commented, "Vail Resorts is pleased to announce the sale of the SnakeRiver Lodge & Spa. This sale is beneficial for Vail Resorts as we will retain management of the hotel, through our RockResorts subsidiary, for 15 years while at the same time continuing our strategy of capitalizingon current robust hotel market valuations. The price we will receive for the foregone Resort Reported EBITDA resulting from the hotel's sale represents a significant premium of about 50 percent above the multiples of Resort Reported EBITDA historically used in the valuation of Vail Resorts, before even considering the ongoing revenue stream from the new 15-year management agreement. We also believe that the competitive bidding process coordinated by Jones Lang LaSalle Hotels identified an exceptional buyer for the hotel and we look forward to working closelywith the principals of Lodging Capital Partners for many years to come."
Steve Kisielica, principal of Lodging Capital Partners, added, "We are excited about adding the Snake River Lodge & Spa to our growingportfolio of luxury hotels and resorts. The significant growth opportunities at this property include a condo-hotel expansion as well as the potential to add additional guestrooms. We believe RockResorts,coupled with the expertise of Vail Resorts' development team, is the perfect partnership for us to help maximize this value potential."