Half Moon to pay out US$8m for contract termination
Published:Monday | April 25, 2016 | 12:00 AMSteven Jackson
Half Moon Resort will transfer some US$8 million as "key money" and fees to American company Vail Resorts for the termination of its five-year management partnership.
The termination was previously disclosed, but not the monetary terms.
"In connection with this agreement, Half Moon will repay Vail Resorts the amortised key money investment of approximately US$4.5 million and will pay Vail Resorts a termination fee of approximately US$3.5 million," stated a notice to Vail Resorts shareholders.
The termination fee will be recorded in its financials in fiscal 2016. In fiscal 2015, Half Moon contributed approximately US$600,000 to Vail's earnings.
Half Moon was being operated under the management of RockResorts, a subsidiary of Vail Resorts.
In a statement last week, Half Moon said there had been a change in management, following a mutual decision between both parties.
RockResorts will instead shift its focus towards managing mountain lodge properties.
Half Moon Resort will once again be independently managed and operated.
"The owners have a dynamic vision for the future of the resort, and those plans will be announced in the coming months," said a Half Moon representative.
The Montego Bay-based resort is described as one of the most prestigious in the world, with more than 60 years of history hosting royalty and dignitaries.
400-ACRE PROPERTY
Spread across 400 acres of lush grounds, the resort includes 13 tennis courts, an 18-hole golf course, and equestrian zones. The five-star Half Moon resort offers guests access to two miles of private beach, wrapped around a half-moon-shaped bay.
Vail Resorts Inc, through its subsidiaries, operates nine world-class mountain resorts, and three urban ski areas, including Perisher in New South Wales, Australia; Vail, Beaver Creek, Breckenridge and Keystone in Colorado; Park City in Utah; Heavenly, Northstar and Kirkwood in the Lake Tahoe area of California and Nevada; AftonAlps in Minnesota; Mt Brighton in Michigan and Wilmot Mountain in Wisconsin.
Vail owns and/or manages a collection of casually elegant hotels under the RockResort brand, as well as the Grand Teton Lodge Company in Jackson Hole, Wyoming, United States.