Vail Resorts In Talks To Buy Another Swiss Resort

In a recent report from Swiss newspaper Les Temps, it has been revealed that Vail Resorts, a global leader in the ski industry, is currently engaged in negotiations to purchase the iconic Swiss ski resort of Crans-Montana. Nestled in the picturesque canton of Valais in western Switzerland, Crans-Montana boasts a rich history but has faced challenges in recent years, making this potential acquisition a significant development.Crans-Montana, a resort that witnessed its zenith in the 1960s and 70s, is renowned for hosting prestigious events such as the 1987 World Championships and is slated to host the 2027 World Championships. It is also a regular stop on the FIS World Cup circuit, featuring 140 km (87 miles) of groomed runs across 50 pistes.The resort's popularity led to a surge in construction during its heyday, with a staggering 12,000 holiday homes being built. However, changes in Swiss regulations regarding holiday homes in mountain resorts limited foreign and second-home ownership by Swiss nationals, affecting the local real estate market.In 2013, Czech billionaire Radovan Vitek, an avid skier at Crans-Montana, purchased the lift infrastructure, which raised hopes for the resort's future. Vitek, the main shareholder of Czech Property Investments (‘CPI’), acquired the Crans Montana Aminona Mountain Railways (‘CMA’) along with parking lots, stores, and restaurants, forming the CMA Group.

An aerial shot above Crans Montana resort. Credit: Crans Montana Ski Resort Expectations for substantial investment in Crans-Montana's infrastructure were high, but this optimism gave way to a series of conflicts and disputes involving Vitek. Some of these conflicts were related to his dissatisfaction with Switzerland's system of public referendums. For instance, he temporarily halted lift operations in the middle of winter in 2018, citing an alleged unpaid amount by the local municipality. Additionally, CMA Group withdrew from the Crans Montana Tourism Association, creating friction with local authorities.In spring 2022, Radovan Vitek announced his intention to withdraw from the resort, and an unofficial sales prospectus began circulating, indicating an asking price of CHF 225 million (approximately USD 202 million). Speculation about potential buyers had been ongoing, with parties from the Gulf region and Belgium mentioned.Recently, Vail Resorts has emerged as a potential suitor, and discussions seem to be in an advanced stage. An official announcement of the deal may be expected by the end of the month. The primary question now is whether Vail Resorts will meet the asking price, which includes Vitek's request for CHF 80 million (approximately USD 72 million) for the lift infrastructure alone, a figure that internal valuations consider to be significantly high.Notably, Vail Resorts' previous acquisition of Andermatt indicates a familiarity with Swiss politics and regulations, making it a suitable candidate for the acquisition. The local municipality is also seeking a partner open to input from the local community, possibly making Vail Resorts a promising match with its extensive expertise in lift operations and financial resources.As the ski world eagerly awaits an official announcement from Vail Resorts, the potential acquisition of Crans-Montana could mark a turning point in the resort's fortunes and breathe new life into this iconic Swiss destination.