Vail Resorts, Inc. reported a strong fiscal year ending posted on July 31, 2007 for its mountain resorts at Breckenridge, Keystone, Vail, and Beaver Creek.
Breckenridge and Keystone real estate investment property owners reaped the benefits, along with Vail, of owning real estate in the most-visited ski resorts in the nation. Additionally, Ski Magazine ranked Breckenridge, Keystone, Vail, and Beaver Creek in their Top 20, boosting the popularity of the resorts and Vail and Summit County real estate.
During the next fiscal year, the company is moving several multi-use projects from the construction phase to closings. Breckenridge Resort will present the first building of One Ski Hill Place at Breckenridge Peak 8, Breckenridge real estate released in a phased five- to six-building multi-use development, with the first building including 90 ski-in/ski-out residences. Total real estate revenue for Vail Resorts, Inc. increased $50.1 million, or 80 percent, to $112.7 million. Real estate expense increased 103.2 percent to $115.2 million.
Although the Front Range at times in the 2006-2007 season dealt with challenging travel weather, net income improved by 34.2 percent over the last fiscal year. Some skiers may have stayed home but others considered the snowstorms to be an invitation to head for the hills. Colorado was up 7 percent in destination skiers even with the visitation rate going down 1.1 percent. Ticket revenue and season pass sales were up 10.3 percent and 17.3 percent, respectively.
Pre-season 2007 pass sales were up 4 percent—pushing a total 16-percent increase in sales dollars. Skiers must have heartily ignored the 11-percent increase in pass price and continue to enjoy the many improvements at the resorts.
Lodging reservations at all five mountains for this season are up 3 percent, with a 13 percent overall increase due to an increase in lodging prices. Overall, lodging revenue increased $6.6 million—4.3 percent for the fiscal year—to $162 million, from $155.8 million for the 2006 fiscal year. However, lodging expense increased $1.6 million to $144.3 million also.
Resort revenue, or the combination of mountain and lodging revenue, increased $51.6 million, or 6.6 percent, to $827.8 million. However, resort expense also increased to $21.2 million, or 3.6 percent, to $607 million.
Vail Resorts Development Company is the real estate planning, development and construction subsidiary of Vail Resorts, Inc. This fiscal year, total revenue increased $101.7 million, or 12.1 percent, to $950.5 million. Income from operations increased $22.9 million, or 21.7 percent.
