Vail Resorts has agreed to purchase a majority stake in Andermatt-Sedrun Sport AG from Andermatt Swiss Alps AG (ASA), marking the company’s first strategic investment in, and opportunity 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.
Vail Resorts is acquiring a 55 percent ownership stake in Andermatt-Sedrun Sport AG, which controls and operates all of the resort’s mountain and ski-related assets, including lifts, most of the restaurants and a ski school operation. ASA will retain a 40 percent ownership stake in Andermatt-Sedrun Sport AG, with a group of existing shareholders comprising the remaining 5 percent ownership.
Andermatt-Sedrun is an ambitious resort development opportunity in Europe. ASA’s investments in high-end lodging in the base area include The Chedi Andermatt, a world-class five-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.
Vail Resorts’ 149 million Swiss francs (around $160 million) investment comprises a 110 million Swiss francs investment into Andermatt-Sedrun Sport AG for use in capital investments to enhance the guest experience on the mountain and 39 million Swiss francs, which will be paid to ASA and reinvested into the real estate developments in the base area.
Vail Resorts will assume operating and marketing responsibility for Andermatt-Sedrun Sport AG, with ASA and local stakeholders continuing as key members of the board of directors.
“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, CEO of Vail Resorts.
“The extensive investments that ASA and the [Samih] 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,” she added.
Andermatt-Sedrun Sport AG trail map.
