Pursuit to Open New High-Margin Attraction in Reykjavik, Iceland
PHOENIX--(BUSINESS WIRE)--Viad
Corp (NYSE: VVI)
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announced today that it will expand its high-margin virtual flight ride
theater concept into Iceland’s capital city of Reykjavik. Modeled after
Pursuit’s highly successful FlyOver Canada attraction, FlyOver Iceland
will provide guests an exhilarating virtual flight experience over some
of Iceland’s most spectacular scenery and natural wonders. The new
attraction is expected to open in 2019.
Steve Moster, Viad's president and chief executive officer, said "Our
acquisition of FlyOver Canada in December 2016 has proven to be a great
success with strong margins and financial returns. We are very excited
to expand that concept into a new iconic market. Reykjavik, Iceland is a
perfect location for a FlyOver attraction as the region is enjoying
robust tourism growth with visitation expected to reach 2.7 million by
2019.”
In connection with this planned expansion, Viad acquired a 54.5 percent
majority stake in an Icelandic entity, Esja Attractions ehf. (“Esja”),
which has already secured an ideal location in Reykjavik to construct
FlyOver Iceland. Viad’s majority investment completes Esja’s equity
fundraising for the attraction.
David Barry, president of Pursuit, said, “With this acquisition, we
achieve another strategic milestone for Pursuit by growing the FlyOver
concept into a new iconic destination. We are excited to partner with
Esja’s team of seasoned professionals who bring deep experience in the
Icelandic market, which is quickly rising in popularity as a global
tourism destination. Through our collective expertise, we are
well-positioned to drive strong growth and profitability from this
investment while enhancing Pursuit’s high-margin attractions portfolio.”
This investment is expected to generate strong returns for Viad, with a
projected IRR in excess of the company’s stated 15% hurdle rate.
About Viad
Viad (NYSE: VVI) generates revenue and shareholder value through its two
business units: GES and Pursuit. GES is a global, full-service live
events company offering a comprehensive range of services to the world's
leading brands and event organizers. Pursuit is a collection of iconic
travel experiences in Alaska, Montana and Western Canada that showcase
the best of Banff, Jasper, Waterton Lakes, Glacier, Denali and Kenai
Fjords national parks. Viad is an S&P SmallCap 600 company. For more
information about Viad, visit the company's Web site at www.viad.com.
For more information about Pursuit’s collection of experiences, visit www.pursuitcollection.com.
Forward-Looking Statements
As provided by the safe harbor provision under the Private Securities
Litigation Reform Act of 1995, Viad cautions readers that, in addition
to historical information contained herein, this press release includes
certain information, assumptions and discussions that may constitute
forward-looking statements. These forward-looking statements are not
historical facts, but reflect current estimates, projections,
expectations, or trends concerning future growth, operating cash flows,
availability of short-term borrowings, consumer demand, new or renewal
business, investment policies, productivity improvements, ongoing cost
reduction efforts, efficiency, competitiveness, legal expenses, tax
rates and other tax matters, foreign exchange rates, and the realization
of restructuring cost savings. Actual results could differ materially
from those discussed in the forward-looking statements. Viad’s
businesses can be affected by a host of risks and uncertainties. Among
other things, natural disasters, gains and losses of customers, consumer
demand patterns, labor relations, purchasing decisions related to
customer demand for exhibition and event services, existing and new
competition, industry alliances, consolidation and growth patterns
within the industries in which Viad competes, acquisitions, capital
allocations, adverse developments in liabilities associated with
discontinued operations and any deterioration in the economy, may
individually or in combination impact future results. In addition to
factors mentioned elsewhere, economic, competitive, governmental,
technological, capital marketplace and other factors, including
terrorist activities or war, a pandemic health crisis and international
conditions, could affect the forward-looking statements in this press
release. Additional information concerning business and other risk
factors that could cause actual results to materially differ from those
in the forward-looking statements can be found in Viad’s annual and
quarterly reports filed with the Securities and Exchange Commission.
Information about Viad Corp obtained from sources other than the
company may be out-of-date or incorrect. Please rely only on company
press releases, SEC filings and other information provided by the
company, keeping in mind that forward-looking statements speak only as
of the date made. Viad undertakes no obligation to update any
forward-looking statements, including prior forward-looking statements,
to reflect events or circumstances arising after the date as of which
the forward-looking statements were made.
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