Vail owns Beaver Creek, as well as Vail, which is 12 miles tothe east. Vail's partner in the development is an affiliate ofContinental Glencom, which also is an owner of the Ritz-Carlton inPhiladelphia and Key Biscayne, FL.

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The Athens Group of Phoenix is developing the Beaver Creekproject, which has been heralded as the first five-starRitz-Carlton Hotel at any ski resort in the world. Ritz-Carltonalso is building a 73-unit luxury timeshare development atColorado's Aspen Highlands.

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The Beaver Creek project, scheduled to open around Christmas2002, will have a 20,000-sf spa and fitness center, ski rentallessons and retail space, restaurants and 12,000 sf of meetingspace.

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Twenty-three penthouse units above the hotel already have beenplaced under contract, a Vail spokeswoman told GlobeSt.com. VailResorts receives $700,000 from the joint venture partnership foreach penthouse sale.

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Adam Aron, president of Vail Resorts, says the hotel not onlywill bring a world-class amenity to the area, but also is a "verysound investment opportunity for Vail Resorts."

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In exchange for its 49% ownership, Vail Resorts is contributingthe land, which carries a $3.4-million book value, $3.3 million incash equity and up to a $4.5-million loan. The joint venture alsois obtaining a $97-million construction loan from a consortium ofbanks. The remainder of the project is being funded by acombination of equity and debt from partners, mezzanine financingand condo sales.

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Vail Resorts will provide golf, spa and club privileges and inexchange, will receive a one-time fee of $3.7 million. Vail Resortsalso receives $3 million up front. In an independent transaction,Vail Resorts will buy the 20,000-sf spa from the joint venture andthe 8,500-sf of skier service area, for the developer's cost of $13million.

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