Investment represents significant capital allocation in top luxury destination.
LOS ANGELES – Ethika Investments, LLC, a U.S.-based real estate private equity firm, has announced its investment in the 292-room Vail Cascade Resort and Spa, one of Vail’s only true ski-in/ski-out hotels. Ethika will also allocate additional capital as part of a $35 million complete property repositioning that will begin in the second quarter of 2016. This marks the 17th investment from Ethika’s Diversified Opportunity Real Estate Fund and the first investment for the fund in Colorado.
Slated for completion during the 2016/17 ski season, the expansive renovation at Vail Cascade will include a complete redesign of the resort and its guest experience, which is a hallmark of Ethika’s value-add repositioning strategy. The multi-million renovation will touch on all components of the hotel to position the facility as Vail’s only Five-Diamond resort, including significant upgrades to the ski valet, enhanced outfitting services, refreshed culinary alternatives, and substantial updates to the resort’s 45,000 square feet of meeting space and 78,000 square foot athletic club.
Additional amenity upgrades will include luxury bedding, new four and five fixture bathrooms and a new onsite spa.
“Ethika’s allocation for the purchase of Vail Cascade Resort & Spa is an excellent example of the firm’s ability to navigate changing market fundamentals in order to continue identify outstanding value-add opportunities. Vail Cascade will follow the very successful approach that Ethika has employed throughout this cycle, acquiring assets in high-barrier to entry markets at substantial discounts to replacement cost, implementing a modernization plan to deliver the best quality offerings in the market and executing key operational improvements to extract value,” said Austin Khan, Chief Investment Officer of Ethika Investments. “We pride ourselves on effectively targeting attractive investment opportunities with a significant potential upside for our investors, and are extremely pleased to bring this crown-jewel resort into our portfolio of holdings.”
Ethika’s capital allocation for the acquisition and repositioning of Vail Cascade is ideally timed, underscored by several strong growth indicators within the regional hospitality sector. Industry reports continue to affirm Vail’s position as a globally recognized destination, attracting affluent visitors from domestic and international markets. Fresh off the heels of a significant $2 billion citywide redevelopment, Vail attracts more than 3 million visitors a year and has been named the #1 ski resort destination by Ski Magazine 14 times.
Ethika’s affiliate real estate investment and development firm – Laurus Corporation – managed the acquisition and will spearhead the property refresh.
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.
She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
