Vail Resorts, Inc. has entered into an agreement to purchase a majority 55% stake in Andermatt-Sedrun Sport AG from Andermatt Swiss Alps AG, marking the company's first strategic investment in, and opportunity to operate, a ski resort in Europe. Andermatt-Sedrun is a 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. ASA will retain a 40-prcent ownership stake in Andermatt-Sedrun Sport AG, with a group of existing shareholders comprising the remaining 5% ownership.
Andermatt-Sedrun is one of the most ambitious resort development opportunities in Europe. Since originally investing in the resort in 2007, ASA's majority shareholder, Samih Sawiris, has invested over €1.26bn (CHF 1.3bn) into the surrounding base area and over €145.5m (CHF 150m) into the ski resort, creating one of the leading luxury resorts in Switzerland. ASA's extensive investments in high-end lodging in the base area include The Chedi Andermatt, a world class 5-star luxury hotel, the Radisson Blu Reussen, luxury condos, studios and apartments, as well as the development of a concert hall, an 18-hole championship golf course, and three Michelin star restaurants.
"Entering the European ski market has been a long-term strategic priority for Vail Resorts. We are excited to be partnering with ASA and investing our capital and resources to support the ongoing development of Andermatt-Sedrun into one of the premier alpine destination resorts in Europe, with integrated operations in lifts, food and ski school," said Kirsten Lynch, Chief Executive Officer of Vail Resorts. "The extensive investments that ASA and the Sawiris family have made in both the base area and the mountain have created a high-end experience with significant capacity for growth from guests from Switzerland, the United Kingdom, other parts of Europe and around the world. We plan to rely heavily on, and learn from, our partners, community members and the Andermatt-Sedrun team as we gain experience and understanding of the resort, its guests and operations. We are proud to add this incredible Swiss destination to our network of world-class resorts and to welcome Vail Resorts' Epic Pass, Epic Day Pass and Epic Local pass holders to experience the resort's charming villages, alpine terrain and extensive amenities as we look to create an even stronger offering for skiers and riders in Europe".