Vail Resorts is officially acquiring the two Victorian Resorts for AU$174 million making it three Australian resorts on the Epic Pass including Vail owned Perisher in New South Wales.
Vail Resorts announced today that it has entered into an agreement to purchase the ski fields at Falls Creek Alpine Resort (“Falls Creek”) and Hotham Alpine Resort (“Hotham”) in Victoria, Australia. Falls Creek, Victoria’s largest ski resort, features a variety of terrain including fantastic beginner and intermediate trails that are well suited to families and first-timers.
Hotham is the only resort in the Southern Hemisphere where the village is located on top of the mountain, ensuring ski-in, ski-out opportunities from anywhere in the village.The acquisition, which is subject to certain regulatory approvals, is expected to close prior to the commencement of the Australian snow season in June 2019.
The Company will purchase Australian Alpine Enterprises Holdings Pty. Ltd and all related corporate entities that operate Falls Creek and Hotham resorts from Living and Leisure Australia Group (LLA), a subsidiary of Merlin Entertainments, for a purchase price of approximately AU$174 million, subject to certain adjustments at closing, including an increase (or reduction) in the price for operating losses (or gains) incurred for the period from Dec. 29, 2018 through closing.The acquisition includes ski school, retail/rental, reservation and property management operations at both resort areas.
“We are thrilled to welcome the guests and employees of both Falls Creek and Hotham into the Vail Resorts family and further strengthen our position in Australia, which is one of our most important international markets. The acquisition of the leading mountain resorts in Victoria is part of our continued strategy to drive season pass sales and build loyalty with guests from around the world,” said Rob Katz, chairman and chief executive officer of Vail Resorts.
“After our success connecting with skiers in Sydney and across New South Wales since acquiring Perisher in 2015, we have a huge opportunity to create a deeper connection with Melbourne and broader Victorian skiers and riders.”
When the transaction closes, the 2019 Epic Australia Pass and 2018-19 Epic Pass will include unlimited, unrestricted access to Falls Creek and is expected to include unlimited, unrestricted access to Hotham, subject to certain approvals.