The Residences will be developed adjacent to the Vail Marriott Mountain Resort on a 2.5-acre lot in LionsHead that has previously served primarily as hotel guest parking and employee parking. The company, as part of its 2001 acquisition of the Vail Marriott Mountain Resort, acquired a significant portion of the land for the Residences. The Residences will range in size from approximately 1,600 sf for a two-bedroom unit to approximately 2,200 sf for a three-bedroom unit.

"The residential project looks as if it should be a lucrative real estate development effort," says Adam Aron, chairman and CEO of Vail Resorts. "The creation of the Residences marks yet another step in the transformation that is taking place within Vail, especially in the area known today as LionsHead." Aron says visitors in just a few years will enjoy an enhanced village experience in Vail, featuring new architecture, luxury lodging, an array of high-end boutiques and restaurants, an outdoor ice rink and improved skier services.

Each unit will include a balcony, fireplace, high-end finishes, underground parking and views toward Vail Mountain. The top floor of the building will feature three- and four-bedroom penthouse residences with vaulted ceilings. In total, there will be in the neighborhood of 195,000 sf feet of units. The company likely will start selling the units in late 2005 or early 2006.

Ritz-Carlton will operate and manage the residences and amenities. The Ritz-Carlton also operates the Ritz-Carlton, Bachelor Gulch and the Ritz-Carlton Club, Bachelor Gulch, both on Beaver Creek Mountain at the company's Beaver Creek ski resort about 10 miles west of Vail.

The Ritz-Carlton Residences, Vail, would not be owned, developed or sold by the Ritz-Carlton Hotel Co. LLC. Rather, Vail Resorts Development Co. would use the Ritz-Carlton mark under license from the Ritz-Carlton Hotel Co. LLC.