Vail Resorts, Inc. announced it had agreed to purchase Seven Springs Mountain Resort in Pennsylvania from Seven Springs Mountain Resort, Inc. As a part of the acquisition, Vail Resorts will also acquire Hidden Valley Resort and the operations of Laurel Mountain Ski Area.
The purchase price for the ski areas, plus a hotel, conference center and related operations, is approximately $125 million, subject to certain adjustments.
“We are incredibly excited to have the opportunity to add Seven Springs to our family of resorts along with Hidden Valley and Laurel Mountain,” said Kirsten Lynch, CEO, Vail Resorts. “As a company, we have been focused on acquiring resorts near major metropolitan areas as we know many skiers and riders build their passion for the sport close to home. These great ski areas in Pennsylvania are a perfect complement to our existing resorts, creating a much stronger connection and compelling offering to our current and future guests in Pittsburgh as well as those in other critical markets such as Washington, D.C., Baltimore and Cleveland.”
Seven Springs is a four-season family resort located one hour southeast of Pittsburgh and one of the largest ski resorts in Pennsylvania with 285 skiable acres and 750 vertical feet. In addition to skiing and snowboarding, the facility offers resort amenities with a 418-room hotel, conference center, full-service spa, and tubing. Hidden Valley offers 110 skiable acres and 470 vertical feet, with 26 slopes and trails and two terrain parks. Laurel Mountain offers 70 skiable acres and 761 vertical feet.
“The resorts truly are a part of the fabric of this region and a critical community asset. I am extremely proud of our stewardship of Seven Springs and its sister resorts, and even more so of all the people whom we have worked with side-by-side to transform them into what they are today,” said Robert Nutting, president and CEO, Seven Springs Mountain Resort, Inc. “It has been an honor to be a part of their incredible growth for more than a decade and leave each resort a much stronger community asset than we found it.”
“Vail Resorts is a perfect successor with a proven track record of honoring the unique character of each of its resorts,” added Nutting. “They are the industry leader in investing in the guest experience, employee development and environmental stewardship. We are thrilled that the resorts will now become part of Vail Resorts’ network and are confident that Vail Resorts will continue to invest in what makes these resorts so special.”
Vail Resorts is acquiring all of the assets related to the mountain operations of the resorts and related base area lodging, conference center and amenities. Seven Springs Mountain Resort, Inc. is retaining select neighboring functions, including Highlands Market, Sporting Clays at Seven Springs, Seven Springs Golf Course, Hidden Valley Golf Club, Highlands Resort Realty, and specific real estate owned and held for potential future development.
The transaction is expected to close this winter; however, operations at the three resorts for the 2021/22 winter season will continue in the ordinary course of business. Vail Resorts plans to add access to the three resorts to select Epic Pass products for the 2022/23 North American ski and ride season.
The acquisition is expected to generate incremental annual EBITDA over $15 million in Vail Resorts fiscal year ending July 31, 2023. This expected revenue includes an estimated yearly incremental EBITDA of approximately $5 million associated with the 418-room Slopeside Hotel and associated conference facilities and lodging operations at Seven Springs Mountain Resort. After closing the transaction, ongoing annual capital expenditures are expected to increase by approximately $3 million to support the addition of these resorts.
Subject to receipt of consent from the Commonwealth of Pennsylvania, Vail Resorts will assume the state land lease for Laurel Mountain. Upon closing, Vail Resorts plans to retain the vast majority of each resort’s employees and, in the coming months, to determine a long-term management structure.
Vail Resorts’ subsidiaries operate 37 destination 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 the Lake Tahoe area of California and Nevada; Whistler Blackcomb in British Columbia, Canada; Perisher, Falls Creek and Hotham in Australia; Stowe, Mount Snow, Okemo in VT; Hunter Mountain, NY; Mount Sunapee, Attitash, Wildcat and Crotched in NH; Stevens Pass, WA ; Liberty, Roundtop, Whitetail, Jack Frost and Big Boulder in PA; Alpine Valley, Boston Mills, Brandywine and Mad River in OH; Hidden Valley and Snow Creek in MO; Wilmot in WI; Afton Alps in MN; Mt. Brighto, MiI; and Paoli Peaks, IN.
