Vail Resorts is investing CHF 149 million in Andermatt-Sedrun Sport AG
Vail Resorts Inc. (Vail Resorts), the world's leading ski resort operator based in Colorado, USA, announced that it will invest approximately CHF 149 million for a 55% stake in Andermatt-Sedrun Sport AG. This strategic partnership marks Vail Resorts' first investment in a European ski resort. The entire transaction amount flows into the further development of the destination. Andermatt Swiss Alps AG (ASA) continues to hold around 40% of Andermatt-Sedrun Sport AG. Vail Resorts owns and operates 40 ski resorts in the United States, Canada and Australia.
Vail Resorts’ investment of CHF 149 million consists of two parts. On the one hand from an investment of CHF 110 million in Andermatt-Sedrun Sport AG to improve the guest experience on the mountain. On the other hand, from an amount of CHF 39 million, which is paid to ASA and fully reinvested in real estate development. ASA invests in the further development of the core business in Andermatt and Sedrun, ie in real estate, hotels and infrastructure as well as the expansion of Andermatt Reuss. The CHF 110 million will be invested via Andermatt-Sedrun Sport AG in lift systems, snowmaking systems, gastronomy, leisure activities and infrastructure in the SkiArena Andermatt-Sedrun.
Andermatt Swiss Alps AG has already invested around CHF 1.3 billion in the development of Andermatt in recent years. This includes around CHF 150 million that was invested via Andermatt-Sedrun Sport AG to expand and modernize the SkiArena Andermatt-Sedrun. Vail Resorts’ investments in Andermatt-Sedrun Sport AG will significantly accelerate the expansion of the SkiArena Andermatt-Sedrun and the destination as a whole. The partnership between Vail Resorts and ASA is based on a shared vision to build and expand a premier alpine destination and ski area.
“As a partner, Vail Resorts is an ideal match for our goal of developing Andermatt into a prime alpine destination,” says Samih Sawiris, majority owner and Chairman of the Board of Directors of Andermatt Swiss Alps AG. “With its high level of expertise in the successful operation of integrated destinations, its impressive marketing capacities and the fresh capital, Vail Resorts will provide a strong boost for the further development of Andermatt-Sedrun.”
Omar El Hamamsy, CEO of Orascom Development Holding AG (ODH), ASA’s second major shareholder, adds: “It’s great to have Vail Resorts as a partner in our group of 14 destinations.” ODH has a long and successful history of developing luxury destinations in Europe and the Middle East, which in combination with Vail Resorts’ partnership and investments will further strengthen the Andermatt-Sedrun destination.
“Entering the European market is a long-term strategic priority for Vail Resorts. We are extremely excited to partner with ASA and invest our capital and resources to support the transformation of Andermatt-Sedrun into a premier destination,” said Kirsten Lynch, CEO of Vail Resorts. “We want to rely heavily on and learn from our partners, the community and the Andermatt-Sedrun team while gaining experience and getting to know the area, its guests and operations. We are proud to add this unique Swiss destination to our network of world-class resorts and to incorporate it into the Epic Pass, expanding access for our existing pass holders and seeking to create an even more diverse offering for skiers in Europe.”
The companies’ partnership goes beyond a shared commitment to enhancing the guest experience. Both Vail Resorts and ASA place safety, sustainability and contributing to the success of local communities first. In particular, both companies have individual obligations to protect and preserve nature. Vail Resorts is doing this with the Commitment to Zero initiative (net zero carbon footprint and zero waste at all 40 resorts by 2030). Through the Andermatt Responsible campaign, the ASA is committed to sustainable and climate-friendly tourism in the Andermatt region, with the aim of being CO2-neutral in operation by 2030.
A representative from Vail Resorts will take over the presidency of the board of directors of Andermatt-Sedrun Sport AG, the ASA will provide the vice-president. Topics such as future organization and others will be decided over the next few months. The winter operation that has already started will continue as planned. There are no changes for employees.
The negotiating team was led by Naguib S. Sawiris, member of the ASA Board of Directors and designated Chairman of the Board of Directors of Orascom Development Holding AG. The transaction is expected to close before the 2022/23 ski season. Vail Resorts plans to include Andermatt-Sedrun in the 2022/23 Epic Pass and Epic Day Pass with access to all resorts, subject to the timing of transaction completion.