Viad Corp to Expand Its Pursuit Business

Viad Corp (NYSE: VVI) announced today that it has entered into agreements to acquire a 60 percent equity stake in Mountain Park Lodges’ group of seven hotels and an undeveloped land parcel ideally situated in Jasper National Park. Subject to approvals by Parks Canada, we expect this transaction to close in mid-June.

Steve Moster, Viad's president and chief executive officer, said, "This acquisition is a perfect fit with our existing travel experiences in Jasper and Banff National Parks, and reflects continued execution against our Refresh, Build, Buy growth strategy for Pursuit. The Mountain Park Lodges properties represent 31 percent of the bed base in the Jasper market, which enjoys strong perennial demand with high barriers to entry. We are excited to welcome these properties into our collection of outstanding guest experiences.”

“At Pursuit we are focused on connecting guests to iconic places through unforgettable and inspiring experiences,” said David Barry, president of Pursuit. “Jasper is one of those remarkable places and has been experiencing strong growth in visitation in recent years. The addition of Mountain Park Lodges’ 735 guest rooms in the Jasper market will enable a compelling cross sell opportunity with our nearby attractions, in addition to other synergistic benefits. We look forward to welcoming guests to our expanded portfolio of world-class experiences.”

Located in and around the authentic mountain town of Jasper, Alberta and surrounded by the pristine Canadian Rockies, the seven Mountain Park Lodges properties include: Sawridge Inn and Conference Centre (152 guest rooms); Pyramid Lake Resort (62 guest rooms); The Crimson Hotel (99 guest rooms); Chateau Jasper (119 guest rooms); Pocahontas Cabins (57 guest rooms); Marmot Lodge (107 guest rooms); and Lobstick Lodge (139 guest rooms).

This collection of unique properties will complement Pursuit’s current experiences in Jasper National Park, which include the Columbia Icefield Adventure, Columbia Icefield Skywalk and Glacier View Lodge, dining and boat tour adventures at Maligne Lake, and the recently launched Maligne Canyon Wilderness Kitchen.

We have agreed to pay $99 million Canadian Dollars (approximately $75 million U.S. Dollars) for our 60 percent equity stake in the Mountain Park Lodges properties, which will be financed through our revolving credit facility. As majority owner of these properties, we will consolidate 100 percent of their results into Viad’s financial statements and record noncontrolling interest expense related to the 40 percent owners’ share of the income. Assuming closing occurs in mid-June, we expect to record revenue of $16 million to $18 million and adjusted segment EBITDA* of $9 million to $10 million, expressed in U.S. Dollars, during 2019 related to the Mountain Park Lodges properties.