The contractual purchase price for the resort was $62 million. Based on a forecast prepared by the hotel manager, the resort is expected to produce approximately $5.8 million of EBITDA for the fiscal year ending July 2005.
Vail Resorts has invested more than $30 million during the past few years to reposition and raise the resort to achieve a Four Diamond rating. As part of the purchase price, Vail has committed to invest several million dollars to complete further upgrades to the resort over the next year. In addition, DiamondRock plans to capitalize on the prior repositioning and invest an additional $1.5 million in the resort to further enable it to capture higher rated business.
"We are delighted to have completed this acquisition of a trophy asset at one of the best skiing destinations in North America. The resort is well positioned to take advantage of the extensive recent renovation as well as the continuing lodging recovery," commented Bill McCarten, chairman and chief executive officer of DiamondRock. "This was an off-market transaction, and we are appreciative that Vail Resorts agreed to work exclusively with us on the sale of the resort. The transaction achieved the complementary objectives of both parties."
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