Vail Resorts CEO Rob Katz said Thursday during the company’s full fiscal 2014 results conference call that his company’s acquisition of Park City Mountain Resort in Utah is “truly a transformative acquisition for Vail Resorts.”
Park City Mountain Resort, Katz said, “is an iconic brand in the ski industry and we are thrilled to welcome the resort, its guests and employees to our company,” according to a Seeking Alpha transcript.
“We have added access to Park City Mountain Resort to the Epic Pass and Epic Local Pass, and the Epic Pass now provides skiers and riders unlimited and unrestricted access to the best resorts in Colorado, Utah, and Tahoe, as well as five days of skiing in each of Switzerland, France, and Japan,” Katz said. “Park City is one of the pre-eminent ski destinations in the world. We were thrilled to gain a foothold in Park City last year with our Canyons transactions, and believe that adding Park City Mountain Resort to our network will significantly bolster our presence in this important ski destination.”
Katz said Park City is widely heralded for its outstanding snow, varied terrain, and the great experiences it provides to skiers, riders, and families.
“Importantly, the resorts location in the heart of Park City Utah attracts guests with an authentic mining town experience with an incredible dining, shopping, and entertainment offerings, while proving great accessibility from Salt Lake City International Airport,” Katz said. “We anticipate that Park City Mountain Resort will contribute approximately 35 million in incremental EBITDA in fiscal 2015, excluding litigation, transaction, and integration expenses, which we estimate will be approximately $5 million in fiscal 2015. We expect to generate significant additional EBITDA growth as we implement our plans to combine the ski experience of Park City Mountain resort and Canyons in to the largest mountain resort in the United States, with over 7.000 acres of skiable terrain.”
Katz believes the combined resort, which offers an unparalleled location, will attract destination skiers from across the United States and around the world and will drive season pass sales, visitation, and ancillary business.
Total mountain net revenue increased 11.1% for fiscal 2014, primarily driven by a 10.2% increase in total skier visits and a 14.4% increase in lift revenue. This included a 20.1% increase in season pass revenue, which represented about 40% of total lift revenue in fiscal 2014.