Vail Resorts Employees,
I am pleased to announce today that Vail Resorts has entered into an agreement to acquire a majority stake in Andermatt-Sedrun Sport AG, in Switzerland, which marks our company’s first strategic investment to operate a ski resort in Europe.
Andermatt-Sedrun is a renowned destination ski resort in Central Switzerland, located less than 90 minutes from three of Switzerland’s major metropolitan areas (Zurich, Lucerne and Lugano) and approximately two hours from Milan, Italy. The resort is located in the heart of the Swiss Alps. The Alps are one of the largest and highest mountain ranges in the world and stretch across eight European countries. They are characterized by stunning scenery, glaciated valleys, and mountainside villages and chalets connected by a network of breathtaking alpine train rides. The area has a deep and profound history connected to alpine skiing.
Andermatt-Sedrun offers over 120km (~75 miles) of terrain and a top elevation of nearly 3000m (~9500 ft) across the mountains of Andermatt, Sedrun and Gemsstock, with connected access to skiing on Disentis which is owned independently. The Andermatt-Sedrun ski experience provides guests with a high alpine experience and the chance to travel between the two village areas that span over 10 miles, and is connected by the year-round alpine adventure train, the Matterhorn Gotthard Bahn.
Andermatt, located in the Ursern Valley, is a charming traditional Swiss village. Our partner in the transaction, Andermatt Swiss Alps AG has invested over CHF 1.3 billion in base area development, creating a high-end destination frequented by visitors for both winter and summer recreation. Sedrun is distinctive for its beautiful alpine landscape, traditional villages and mountain taverns.
The addition of Andermatt-Sedrun marks Vail Resorts’ first expansion into an ownership stake and operating in the European market and creates a unique and compelling new offering for our pass holders.
You can learn more about Andermatt-Sedrun through this docu-video series Mystic Mountains.
Europe is home to the largest market of skiers in the world, with approximately 195 million skier visits a year, and entering the European ski market has been a long-term strategic priority for our company. Vail Resorts is entering into this partnership with a shared vision for the development of the resort which includes reinvesting our full consideration of CHF 149 million in capital investments in the guest experience on the mountain, and in real estate developments in the base area, in order to further develop Andermatt-Sedrun to a premier destination resort.
Notably, both Vail Resorts and Andermatt-Sedrun Sport AG are deeply committed to our employees, communities and the environment. Similar to our Commitment to Zero goals, our partners have created Andermatt Responsible, a campaign for sustainable, climate-friendly tourism in the Andermatt region with a target of zero CO2-emissions from operations by 2030.
We expect to close the transaction ahead of next winter. Operations for the remainder of the 2021/2022 winter season will continue as usual and there are no current plans to integrate the resort onto Vail Resorts systems and processes. We plan to include Andermatt-Sedrun on select Epic Pass products for the 2022/2023 ski and ride season, including the employee/dependent pass, subject to the final closing date.
We are honored to be partnered with Andermatt-Swiss Alps AG to pursue the vision of making Andermatt-Sedrun a premier destination resort.
Kirsten
Kirsten Lynch
Chief Executive Officer