Viad Corp to Expand Pursuit’s Collection of Attractions With Acquisition of Jasper SkyTram
Viad Corp (NYSE: VVI) announced the acquisition of Jasper SkyTram, a prominent attraction in Jasper National Park. The transaction, pending approval by Parks Canada, is expected to close in July, amounting to $25 million CAD (~$18 million USD). Jasper SkyTram, operating for 60 years, serves over 130,000 visitors annually and offers panoramic views from Whistlers Mountain at 2,263 meters (8,081 feet). Viad expects the acquisition to add $4 million in revenue in 2024 with an adjusted EBITDA margin that enhances Pursuit's overall margin. This deal includes a renewable long-term lease with nearly 30 years remaining, contributing to economies of scale and strong demand.
- Expected revenue addition of $4 million in 2024.
- Adjusted EBITDA margin is accretive to Pursuit’s overall margin.
- Acquisition cost of $25 million CAD represents a 7x adjusted EBITDA buy-in multiple.
- Renewable long-term lease with nearly 30 years remaining.
- Jasper SkyTram serves over 130,000 guests annually.
- None.
Insights
Viad Corp's acquisition of the Jasper SkyTram for
The expectation of $4 million in additional revenue in 2024 with an accretive EBITDA margin to Pursuit’s overall margin is positive. An accretive margin means that this acquisition will likely enhance the overall profitability of Viad’s Pursuit segment. This strategic move not only diversifies their portfolio but also leverages economies of scale and scope, potentially reducing costs and increasing efficiency across their operations.
However, potential investors should be mindful of Parks Canada's regulatory approvals as they could influence the transaction's timeline. Additionally, understanding the impact of any planned future investments for the site's refresh and renewal on cash flows would be prudent. Overall, this acquisition appears to be a promising addition to Viad Corp's portfolio, likely enhancing shareholder value if managed well over the long term.
From a market perspective, the Jasper SkyTram acquisition fits seamlessly into Viad Corp’s strategic vision of expanding its portfolio of unique attractions. The Jasper SkyTram, celebrating its 60th anniversary, is an established brand within Jasper National Park, one of Canada's most visited national parks. This means the attraction already has a loyal customer base, reducing the risk associated with the acquisition.
Integrating the SkyTram into the Banff Jasper Collection capitalizes on the strong perennial demand for tourism in the Canadian Rockies. Highlighting its status as the only sightseeing aerial ropeway in the park underscores a significant competitive advantage. Given the existing infrastructure of hiking trails and culinary offerings, there is substantial potential for cross-selling and upselling, enhancing visitor spend per capita.
In the short term, this acquisition will likely boost visitor numbers and revenue. However, in the long term, success will depend on Viad Corp’s ability to maintain and improve visitor experiences while aligning with Parks Canada’s conservation guidelines. They’ll need to balance tourism growth with sustainability efforts, which could impact operational costs and strategic decisions.
In the hospitality sector, Viad Corp's acquisition of the Jasper SkyTram exemplifies a strategic move to enhance their guest experience portfolio. Integrating this iconic aerial tramway with their existing attractions in the Banff Jasper Collection will likely result in increased synergy. This acquisition provides Viad with a competitive edge in offering comprehensive, high-quality experiences in the Canadian Rockies.
Additionally, the presence of an experienced management team led by GM Todd Noble is advantageous. Continuity in management helps ensure that existing operational expertise and local knowledge are retained, which is essential for a seamless transition and maintaining service quality. Viad’s planned future refresh and renewal of the SkyTram, aligned with Parks Canada and the Jasper community, indicates a commitment to sustainability and community collaboration, important for long-term success in hospitality.
Overall, this acquisition aligns well with trends towards experiential travel, where tourists seek unique, memorable experiences. It has the potential to attract a broader demographic, including those interested in eco-tourism. However, maintaining high service standards and managing visitor flow to avoid over-tourism will be pivotal.
Jasper SkyTram in
Celebrating 60 years of operation, the Jasper SkyTram is one of the most recognizable attractions within
Steve Moster, President and Chief Executive Officer of Viad, said, “We are excited to continue the growth of Pursuit with the addition of the Jasper SkyTram. This attraction is a perfect strategic fit in Pursuit’s Banff Jasper Collection and the only sightseeing aerial ropeway in
David Barry, President of Pursuit, added, “Pursuit has a long-standing history delivering exceptional guest experiences throughout the Canadian Rockies, and the Jasper SkyTram will be a great addition to our attractions and hospitality properties in
We will pay
For more information about the Jasper SkyTram, visit jasperskytram.com.
About Viad
Viad (NYSE: VVI), is a leading global provider of extraordinary experiences, including attractions, hospitality, exhibition services, and experiential marketing through two businesses: Pursuit and GES. Our business strategy focuses on delivering extraordinary experiences for our teams, clients and guests, and significant and sustainable growth and above-market returns for our shareholders. Viad is an S&P SmallCap 600 company.
Pursuit is a global attractions and hospitality company that owns and operates a collection of inspiring and unforgettable experiences in iconic destinations. Pursuit’s elevated hospitality experiences enable visitors to discover and connect with world-class attractions, distinctive lodges, and engaging tours in stunning national parks and renowned global travel locations, in addition to experiencing our collection of Flyover Attractions in the vibrant cities of
GES is a global exhibition services and experiential marketing company offering a comprehensive range of services to the world’s leading event organizers and brands through two reportable segments, GES Exhibitions and Spiro. GES Exhibitions is a global exhibition and trade show management business that partners with leading exhibition and conference organizers as a full-service provider of strategic and logistics solutions to manage the complexity of their shows with teams throughout
For more information, visit www.viad.com.
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Important factors that could cause actual results to differ materially from those described in our forward-looking statements include, but are not limited to, the following:
- general economic uncertainty in key global markets and a worsening of global economic conditions;
- travel industry disruptions;
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- seasonality of our businesses;
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- our dependence on large exhibition event clients;
- adverse effects of show rotation on our periodic results and operating margins;
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For a more complete discussion of the risks and uncertainties that may affect our business or financial results, please see Item 1A, “Risk Factors,” of our most recent annual report on Form 10-K filed with the SEC. We disclaim and do not undertake any obligation to update or revise any forward-looking statement in this press release except as required by applicable law or regulation.
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Carrie Long or Michelle Porhola
Investor Relations
(602) 207-2681
ir@viad.com
Source: Viad Corp
