Effective April 15, 2016, Vail Resorts, Inc. (NYSE: MTN) subsidiary RockResorts will no longer manage Half Moon in Montego Bay, Jamaica. The owners of the property (Half Moon Bay, Ltd.) and RockResorts have mutually agreed that based on ownership's goals for the property and RockResorts' focus on its mountain lodging properties, this is the right direction for both parties.
In connection with this agreement, Half Moon will repay Vail Resorts the amortized 'key money' investment of approximately $4.5 million and will pay Vail Resorts a termination fee of approximately $3.5 million. The termination fee will be recorded in Resort Reported EBITDA in fiscal 2016, which was not incorporated into the Company's most recent commentary on its Resort Reported EBITDA guidance. In fiscal 2015, Half Moon contributed approximately $600,000 of Resort Reported EBITDA to Vail Resorts.
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