Vail Resorts now owns three out of the five major Australian ski fields following its acquisition of Mount Hotham and Falls Creek for $174 million from Merlin Entertainments last week.
Both resorts are located in Victoria about a five hour drive from Melbourne. Vail has owned Perisher, Australia’s largest and most popular resort, since 2015.
Perisher is very popular with the Sydney market and Vail says it saw a similar opportunity with Melbourne and its latest acqusitions.
“After our success connecting with skiers in Sydney and across New South Wales since acquiring Perisher, we have a huge opportunity to create a deeper connection with Melbourne and broader Victorian skiers and riders,” said Rob Katz, chairman and chief executive officer of Vail Resorts.
He expects Falls Creek and Hotham to “generate incremental EBITDA of approximately AU$18 million during its first twelve months of operation following the acquisition,” which is due to close in June.
The other two main Australian ski resorts are Mount Buller, Victoria, and Thredbo, NSW.
Vail Resorts currently owns 18 ski areas and is listed on the New York Stock Exchange.