| VAIL, Colo., July 6, 1998 - Vail
Resorts, Inc. (NYSE: MTN) today announced plans to invest approximately
$59 million for the upcoming winter season in resort improvements for its
Vail, Breckenridge, Keystone, and Beaver Creek mountain resorts. The capital
improvements are part of the Company's growth strategy to enhance its core
ski operations and related amenities. "A core strategy of Vail Resorts
is to ensure that we offer the highest standard of quality to our guests,"
commented Adam Aron, Chairman and Chief Executive Officer. "With $59 million
to be invested in our resorts this summer, we once again reaffirm our long-term
commitment to be the leading winter resort operator in the world."
Vail Resorts Company-Wide Improvements
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Approximately $8 million is planned to be spent on enhancing guest service
and direct-to-lift systems.
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The ability for guests to charge on-mountain expenditures with their ski
pass will be expanded to include more on-mountain restaurants, retail stores,
and rental outlets.
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The consolidated central reservations operations will be upgraded to further
improve guests' ability to have one-stop shopping in planning their vacation.
The following is a breakdown of selected projects by mountain:
Vail
| Approximately $10 million is planned to be invested at Vail. |
| "Chaos Canyon", a new mid-mountain attraction, will be developed, providing
additional innovation and excitement to the children's ski experience. |
| The grooming fleet will be further expanded to set yet another industry
standard in grooming. |
| The Lodge at Vail, purchased by the Company in October 1997, will undergo
a lobby-area remodel and other upgrades. |
| Adventure Ridge at Eagle's Nest, the day and night activities center
atop Vail Mountain, will be expanded with new attractions. |
| Additional on-mountain improvements include snowboarding enhancements
and attractions and upgrades to restaurant facilities. |
Breckenridge
| Approximately $14 million is planned to be invested at Breckenridge. |
| TenMile Station, the first new on-mountain restaurant at Breckenridge
in ten years will be constructed, with seating for approximately 300 people.
Additional on-mountain restaurant upgrades will be performed at Vista Haus
at the top of Peak 8. |
| The Great Divide Lodge, purchased by the Company in October 1997, will
undergo a $3.6 million renovation. |
| The grooming fleet is being expanded to support an approximate 20%
increase. In addition, a new Pipe Dragon will be purchased to further improve
the snowboard experience. |
Keystone
| Approximately $18 million is planned to be invested at Keystone. |
| The Santiago lift, a fixed grip triple chair, will be replaced with
the resort's fifth high-speed quad chairlift, providing faster and easier
access to Keystone's North Peak. |
| The "Jackwhacker" trail will be transformed into Colorado's newest,
most exciting snowboarding park, and a Pipe Dragon is being added to the
resort's half-pipe grooming arsenal. |
| Additional on-mountain improvements include the introduction of Adventure
Point at Keystone, playing off of the success of Adventure Ridge at Vail,
and featuring a tubing hill located on Keystone Mountain; as well as an
ice-climbing tower and additional children's skiing attractions. |
| The second phase of renovation to the Keystone Lodge, which already
carries AAA's prestigious Four-Diamond rating, will focus on further upgrades
to guestrooms, conference facilities, and public spaces. |
Beaver Creek
| Approximately $9 million is planned to be invested at the Beaver Creek
resort. |
| A doubling of capacity of the children's ski school center which experienced
tremendous growth this past year. |
| Continued upgrades and refinements are planned for Beaver Creek Village. |
| A new electronic guest information system will make it easier for skiers
and boarders to find their way around the base area, while improvements
to the snowmaking system and two additional snowcats will further enhance
an already truly premium guest experience. |
| In anticipation of the 1999 World Alpine Ski Championships, numerous
other restaurant and facility improvements will be made. |
Real Estate
| Separately, the Company plans to invest approximately $40 million in
real estate development. |
| Significant projects include ski infrastructure in Beaver Creek, preliminary
planning for golf course development near Beaver Creek currently awaiting
local government approval, continued village development in Bachelor Gulch
and Arrowhead at Beaver Creek, and architectural and engineering planning
for future developments at each of the Company's resorts. |
"This aggressive capital investment program reflects our commitment
to making our four resorts
the highest-quality destination experience in the world. We are committed
to quality and growth and are confident that these enhancements will enable
us to deliver excellence for our customers and growth in earnings for our
shareholders," concluded Aron.
Vail Resorts, Inc. is the premier mountain resort operator in North
America. The Company operates the Colorado mountain resorts of Vail, Breckenridge,
Keystone, and Beaver Creek.
Statements in this press release, other than statements
of historical information, are forward-looking statements that are made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements are subject to certain
risks and uncertainties that could cause actual results to differ materially
from those projected. Readers are cautioned not to place undue reliance
on these forward-looking statements which speak only as of the date hereof.
Such risks and uncertainties include, but are not limited to, general business
and economic conditions; competitive factors in the ski and resort industry;
and the weather. Investors are also directed to other risks discussed in
documents filed by the Company with the Securities and Exchange Commission.
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