Vail Resorts, Inc. announced that it has entered into an agreement to purchase a majority stake in Andermatt-Sedrun Sport AG from Andermatt Swiss Alps AG (ASA), marking the company’s first investment in, and opportunity to operate, a ski resort in Europe.
Andermatt-Sedrun is a destination ski resort in Central Switzerland, located about 90 minutes from three of Switzerland’s metropolitan areas—Zurich, Lucerne and Lugano—and approximately two hours from Milan.
Vail Resorts is acquiring a 55-percent ownership stake in Andermatt-Sedrun Sport AG, which controls and operates all of the resort’s mountain and ski-related assets, including lifts, most of the restaurants and a ski school operation. ASA will retain a 40 percent ownership stake in Andermatt-Sedrun Sport AG with a group of shareholders comprising the remaining 5 percent ownership.
Since investing in the resort in 2007, ASA’s majority shareholder, Samih Sawiris, has invested over CHF 1.3 billion into the surrounding base area and over CHF 150 million into the ski resort. ASA’s investments in high-end lodging in the base area include The Chedi Andermatt, Radisson Blu Reussen, luxury condos, studios, apartments, the development of a concert hall, an 18-hole championship golf course, and three Michelin star restaurants.
Vail Resorts’ CHF 149 million ($157M) investment is comprised of a CHF 110 million investment into Andermatt-Sedrun Sport AG for use in capital investments and CHF 39 million to be paid to ASA and fully reinvested into the real estate development in the base area. Vail Resorts will assume operating and marketing responsibility for Andermatt-Sedrun Sport AG, with ASA and local stakeholders continuing as members of its board of directors.
“Entering the European ski market has been a long-term strategic priority for Vail Resorts. We are excited to be partnering with ASA and investing our capital and resources to support the ongoing development of Andermatt-Sedrun into one of the premier alpine destination resorts in Europe, with integrated operations in lifts, food and ski school,” said Kirsten Lynch, CEO, Vail Resorts. “The extensive investments that ASA and the Sawiris family have made in both the base area and the mountain have created a high-end experience with significant capacity for growth from guests from Switzerland, the United Kingdom, other parts of Europe, and around the world. We plan to rely heavily on, and learn from, our partners, community members and the Andermatt-Sedrun team as we gain experience and understanding of the resort, its guests and operations.”
“Vail Resorts is the ideal partner for our goal of developing Andermatt into The Prime Alpine Destination,” said Samih Sawiris, majority owner of ASA. “With Vail Resorts’ additional capital investment in the resort, deep expertise in successful operations of integrated mountain destinations, and the company’s impressive marketing capabilities and destination guest reach, Vail Resorts will provide a significant boost to the development of Andermatt-Sedrun.”
The transaction is expected to close prior to the 2022/23 ski and ride season subject to certain third-party consent.
Broomfield, CO-based Vail Resorts’ subsidiaries operate 40 mountain resorts and regional ski areas,
including Vail, Beaver Creek, Breckenridge, Keystone, and Crested Butte in Colorado; Park City in Utah; Heavenly, Northstar and Kirkwood in Lake Tahoe; Whistler Blackcomb in British Columbia, Canada; Perisher, Falls Creek and Hotham in Australia; Stowe, Mount Snow, Okemo in Vermont; Hunter Mountain in New York; Mount Sunapee, Attitash, Wildcat, and Crotched in New Hampshire; Stevens Pass in Washington; Seven Springs, Hidden Valley, Laurel Mountain, Liberty, Roundtop, Whitetail, Jack Frost, and Big Boulder in Pennsylvania; Alpine Valley, Boston Mills, Brandywine, and Mad River in Ohio; Hidden Valley and Snow Creek in Missouri; Wilmot in Wisconsin; Afton Alps in Minnesota; Mt. Brighton in Michigan; and Paoli Peaks in Indiana.
Photo courtesy Andermatt-Sedrun Sport
