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This happened quickly: just 14 months after Andermatt-Sedrun entered the UR/GR, Vail Resorts also acquired the mountain railways in Crans-Montana VS, as the world’s largest ski resort operator stated in a statement. Vail Resorts acquired an 84 percent stake in the mountain railroad as well as four sales and rental businesses. The US giant is taking over 80 percent of Sportlife AG, which owns eleven restaurants on the mountain and in the village, as well as one of the ski schools in Crans-Montana.
Rumors that Vail Resorts would purchase the cable cars have been around for a while. The previous cable car owner, Czech investor Radovan Vitek (52), and Crans-Montana were not a happy couple at all. The destination has been subject to the whims of the billionaire, who unceremoniously shut down the mountain railway in 2018 following a dispute with the municipality. Vitek was not very happy with the return on their investment. The separation is unlikely to cause upset on either side.
The majority of people at Andermatt speak positively about the US giant, as Blick’s recent visit to the site shows. However, there are some concerns in the industry. After all, the US giant competes with other businesses in the city with its own restaurants, ski school and sports shops.
The ski area is expected to grow significantly
With the acquisition, Vail Resorts expects a significant increase in revenue and an increased number of international guests. A year ago, Vail Resorts took over the Andermatt-Sedrun destination from Orascom Development Holding (ODH).
Vail Resorts estimates the property’s value at approximately 118.5 million francs. The US company wants to include Crans-Montana within the scope of “Epic Pass products” and invest approximately 30 million francs in the region over the next five years. The “Epic Pass” can currently be used to visit the ski areas Andermatt-Sedrun-Disentis and Verbier4Vallées in Switzerland, Les 3 Vallées in France, Skirama Dolomiti in Italy and Ski Arlberg in Austria.
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In the first year of operation, when the acquisition is expected to be completed in 2024, i.e. at the end of July 2025, the US company expects operating profit (EBIT) of approximately 5 million francs. In the medium term, the facility is expected to generate annual EBITDA of over 15 million francs.
Vail Resorts operates a total of 41 ski resorts in the United States, Canada and Australia. The portfolio includes famous ski resorts such as Vail and Bever Creek in Colorado, Park City in Utah, and a majority stake in Whistler Mountain in Canada.
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
