Vail Resorts, the Broomfield, Colorado-based owner, has agreed to acquire Swiss ski resort Crans-Montana Mountain Resort in a deal, subject to closing, worth 118.5 million Swiss francs ($136 million).
It is one of the largest deals for a European ski resort, and closing is expected in the first or second quarter of 2024.
The resort has no hotels of its own but has several adjacent to it, including the Six Senses Crans-Montana that has 78 rooms and opened on June 1.
Located in the Swiss canyon of Valais and with views of Mont Blanc, the resort is approximately two and a half hours’ travel time from Vail’s other owned-and-operated European resort, the Andermatt Swiss Alps AG, in Andermatt-Sedrun.
The Crans-Montana deal transfers to Vail 84% of Remontées Mécaniques Crans-Montana Aminona SA, which controls and operates the resort’s lifts and supporting mountain operations, including four retail and rental locations, as well as 80% of a ski school, SportLife AG, and 100% of several restaurants at or adjacent to the site.
The resort is due to host Union Cycliste Internationale’s Mountain Bike World Championships in 2025 and the International Ski Federation’s Alpine World Championships in 2027.
The resort has 87 miles of ski trails, and every year since 1939 has hosted the Omega European Masters’ golf tournament that is part of the Professional Golf Association’s European Tour.
In a statement on the deal, Vail Resorts said: “Subject to closing adjustments, the valuation for the resort operations is expected to be 118.5 million [Swiss francs], including approximately 7 million [Swiss francs] of debt that will remain in place. Vail Resorts anticipates that the resort will generate approximately 5 million [Swiss francs] of earnings before interest, taxes depreciation and amortization in its fiscal year ending July 31, 2025, the first full year of operations following the expected closing later in fiscal 2024.”
Vail owns 55% of Andermatt Swiss Alps AG, as well as 37 ski resorts across North America and three properties in Australia.
It closed on that other Swiss deal in August 2022. In a news release at the time, the company stated the “final purchase price of 149 million [Swiss francs] will be fully reinvested into the resort, with 110 million [Swiss francs] allocated for use in capital investments to enhance the guest experience on the mountain and 39 million [Swiss francs] paid to ASA (which retained 40% ownership) and reinvested into the real estate developments in the base area.”