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Resort from Host Marriott for $49.5 million |
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VAIL, Colo., July 24, 2001 - Vail Resorts, Inc. (NYSE: MTN) announced
today that the Company has entered into a contract to acquire the Vail
Marriott Mountain Resort from Host Marriott Corporation (NYSE: HMT).
The transaction is expected to close on or after December 17, 2001 for
total consideration of $49.5 million. After closing, the hotel will
retain its current name and branded status as a Marriott Resort, but will
be managed by Vail Resorts under a Marriott International franchise agreement.
In addition to the current enhancements being made to the hotel by Host Marriott prior to the transaction closing, Vail Resorts intends to renovate the entire property after assuming ownership upon closing through an additional $20 million renovation, most of which is planned for calendar 2002. This latter renovation will include a completely new and enhanced exterior facade, enhancements of all guestrooms, upgrades to the lobby, common areas, and conference facilities, an improved spa and fitness center, as well as the creation of several penthouse apartments. The hotel acquisition is noteworthy in its own right, but also because Vail Resorts owns land immediately adjacent to the hotel property, currently being used as an employee parking lot. Adam M. Aron, chairman and chief executive officer of Vail Resorts, commented, "Vail Resorts is excited to be the catalyst for a dramatic $20 million upgrade of the largest hotel in the Vail Valley, which should be good news to anyone interested in a successful and thriving Vail, and demonstrates the Company's commitment to the continued renaissance of Lionshead Village and the town of Vail." "As for Vail Resorts, this is the third hotel we will have acquired since December 2000 (along with the Snake River Lodge & Spa in Jackson Hole, Wyoming and The Inn at Beaver Creek in Beaver Creek in Colorado). Our growing hospitality business continues to be a bright area of opportunity for us." Aron added, "Vail Resorts has great respect for the success of Marriott branded hotel properties, and looks forward to managing the hotel as a Marriott franchisee. In that regard, we look forward to working with the talented current staff and employees of the hotel and intend to work closely with Marriott to effect a smooth ownership transition." Vail Resorts, Inc. is a premier mountain resort operator in North America, including the Colorado resorts of Vail, Breckenridge, Keystone, and Beaver Creek and the Grand Teton Lodge Company in Jackson, Wyoming. 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. |
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Vail Resorts, Inc. Justine Reed +1-970-845-2714 [email protected] http://www.vailresorts.com |
