VAIL, Colo., Oct. 7, 1997 - Vail Resorts Inc. (NYSE: MTN) announced and completed today the purchase of 100 percent of the outstanding stock of Lodge Properties, Inc., which in turn owns the Lodge at Vail, one of Vail's finest hotels.

Lodge Properties, Inc. was formerly owned by Orient Express Hotels. The Lodge at Vail currently includes 59 hotel rooms and two suites, as well as 40 condominiums owned by third parties and managed by the Lodge at Vail. It is included among the prestigious collection of Preferred Hotels Resorts Worldwide.

"Our acquisition of The Lodge reaffirms our commitment to both Vail Village and our guests to keeping the Vail name synonymous with quality and unmatched guest service," said Adam Aron, Chairman and CEO of Vail Resorts. "As the original developers of The Lodge 35 years ago, we fully understand the symbolic significance of making The Lodge part of Vail Resorts, and will honor our obligation to a true local landmark."

The Lodge at Vail is located in Vail Village, immediately adjacent to the base of the ski area. In addition to the rooms and suites, hotel amenities also include the newly renovated Cucina Rustica restaurant, the Wildflower restaurant and Mickey's piano bar, as well as outdoor terraces, an outdoor pool and jacuzzi, one meeting room, and an exercise facility.

In addition, a new wing of the hotel currently is under construction and is scheduled for completion in December 1997. The wing directly fronts Vail Mountain and will contain 6,000 square-feet of first-class conference facilities, 12 luxury king bedrooms, two junior suites, four one-bedroom suites, one penthouse apartment and expanded kitchen and delivery facilities.

The purchase price of $23.0 million includes the acquisition of two acres of prime land directly at the base of Vail Mountain. An estimated $14.8 million will also be paid by Vail Resorts to complete the construction of the new wing of the hotel.

"The Lodge at Vail was the first lodge available to skiers when the ski area opened in 1962," said Aron. "While The Lodge at Vail has been owned and operated by various interests since then, we've always had a shared history. The Lodge at Vail is currently operating at an extraordinarily high standard of quality, a standard we intend to maintain and build upon." "This is our most significant investment in the Vail Village area since the installation of the Vista Bahn high-speed quad chairlift in 1985," Aron added. "This acquisition reaffirms our commitment to this community and our guests."

The announcement comes on the heels of the company's acquisition of the Breckenridge Hilton in Breckenridge, Colorado, announced late last month. That transaction was completed on October 1. With the acquisition of The Lodge at Vail, Vail Resorts now will own hotel property at each of its four mountain resorts.

Vail Resorts is the premier mountain resort operator in North America. The company operates the Colorado mountain resorts of Vail, Breckenridge, Keystone and Beaver Creek.

SOURCE: Vail Resorts Inc.

CONTACT:

Eric Resnick, Treasurer of Vail Resorts, 970-845-2490; or Robert P. Jones, Stacy Lipschitz, or Miriam Adler, financial media, all of Morgen-Walke Associates, 212-850-5600