VAIL, Colo., July 24, 2001 - Vail Resorts Inc. (NYSE: MTN) today announced
plans to invest $55.8 million in resort improvements during calendar year
2001 for Vail, Breckenridge, Keystone and Beaver Creek in Colorado, as
well as the Grand Teton Lodge Company in Jackson, Wyoming.
"Over the past five years, the Company's focused capital investment
plan has ensured that Vail, Breckenridge, Keystone, Beaver Creek and Grand
Teton retain their position amongst the finest resorts in the world," commented
chairman and chief executive officer Adam Aron. "Today, we are announcing
our intent to continue to improve our resorts while achieving an additional
goal of reducing capital expenditures as a percentage of revenues.
This year, our efforts will focus primarily on creating new children's
facilities at Breckenridge, as well as the initial steps to create new
ski terrain on Breckenridge's Peak 7. We will also work to significantly
increase grooming of ski terrain across all our ski resorts, and to enhance
the technical behind-the-scenes systems that allow us to manage and market
our resorts more effectively and efficiently."
The following is a breakdown of selected projects:
INDIVIDUAL RESORT IMPROVEMENTS
Breckenridge - $13.4 Million In Planned Improvements
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Planning and development of the Peak 7 skiway improvements previously announced
as part of the Company's Master Development Plan in Breckenridge.
This phase of the Peak 7 development includes 165 acres of slopes and trails,
power and telecommunications, building the patrol hut and purchasing necessary
snowmaking equipment.
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Creation of a comprehensive 13,000-square-foot children's ski school and
nursery facility at the base of Peak 9.
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Improvements to parking facilities to increase capacity.
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Purchase of 4 new snow cats, fleet upgrades and improvements to snowmaking
equipment.
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Renovation and information system upgrades at the Great Divide Lodge and
Village at Breckenridge.
Keystone - $7.3 Million in Planned Improvements
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Purchase of 4 new snow cats to significantly increase groomed ski terrain,
as well as meaningful upgrades to snowmaking equipment.
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Renovation and information system upgrades at the Keystone Lodge.
Vail - $5.9 Million in Planned Improvements
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Addition of a new 250-seat outdoor deck to Two Elk restaurant on Vail Mountain.
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New Gore Creek booster pump station and 5 new snow and terrain cats to
significantly increase grooming, as well as meaningful upgrades to snowmaking
capacity for the 2001-2002 ski season by roughly 15%.
Beaver Creek - $5.1 Million in Planned Improvements
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Purchase of 4 new snow cats to further and dramatically enhance the consistently
high grooming standards for which Beaver Creek is known.
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Significant improvements to Beaver Creek's on and off-mountain fine dining
restaurants.
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Renovations and improvements to the Beaver Creek Golf Course clubhouse
and course.
Grand Teton Lodge Company - $2.1 Million in Planned Improvements
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Expansion of retail operations to increase retail revenues.
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Renovation and improvement of employee housing facilities.
COMPANY WIDE IMPROVEMENTS
Information Systems Improvements
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$10.0 Million in Planned Improvements -- Design and development of customer
relationship management database to improve collection of demographic information,
improve customer service and facilitate direct marketing efforts.
-
Second-phase implementation of a PeopleSoft enterprise resource planning
(ERP) system.
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Improvements and upgrades to information systems infrastructure, allowing
better guest service through point of sale systems. Technology and
Communications - $5.5 Million in Planned Improvements -- Beta test stage
of the new eVill@ge project designed to enhance the guest experience by
providing in-room high-speed Internet access, combined with a proprietary
concierge system.
-
Improvements to telecommunications infrastructure to reduce company-wide
communications expenses.
Specialty Sports Venture (Retail / Rental) - $5.0 Million in Planned
Improvements
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Improvements will be made to the rental ski fleet, store fronts, furniture
and fixtures, and information systems across the 70-plus retail and rental
stores controlled by Specialty Sports, Vail Resorts' retail joint venture.
Separately, Vail Resorts Development Company plans to invest approximately
$70 million in real estate development during calendar 2001:
Real Estate
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$70.0 Million in Planned Improvements and Development -- Continued development
of Red Sky Ranch, a golf community that will include 87 home sites and
two championship golf courses, one designed by Tom Fazio and the other
by Greg Norman. The first phase of the development recently went
on sale, with golf memberships and 10 lots being offered before July 31,
2001 at prices ranging from $595,000 to $795,000.
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Initial planning and development of the Breckenridge Master Plan announced
in September, 2000 including construction of Mountain Thunder which is
approximately 65% pre-sold as of today.
-
Infrastructure development for the Mountain Road project in Arrowhead,
where 15 of 15 single-family home sites were recently sold at an average
price of $1.4 million each.
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Additional planning and development of projects in Vail, Bachelor Gulch,
Arrowhead, Avon, Breckenridge, Keystone, and Jackson Hole, Wyoming.
Vail Resorts, Inc. is the premier mountain resort operator in North America.
The Company's subsidiaries operate the Colorado resorts of Vail, Breckenridge,
Keystone, and Beaver Creek and the Grand Teton Lodge Company in Jackson,
Wyoming. For further information, please visit the company's website
at www.vailresorts.com. Vail Resorts is a publicly held company traded
on the New York Stock Exchange (NYSE: MTN).
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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