part two

Katz continued, "The impact of the economic environment continued into the fourth quarter for our Lodging segment, where our properties continued to experience a much closer-in booking window and offered an increased level of promotions and packaging discounts that reduced revenue per available room ("RevPAR"). RevPAR at our owned hotels, on a same store basis, declined by 10.9% for Fiscal 2009, which was a smaller decline than that experienced by the luxury and the upper upscale segments of the lodging industry as a whole, which had estimated RevPAR declines of approximately 21% and 15%, respectively. Our group lodging business was also negatively impacted and as a result the Company saw a mix shift from group to transient business. While the Company was able to reduce Resort operating expenses, including from our previously announced cost savings initiatives, our Resort Reported EBITDA as a percentage of revenue for Fiscal 2009 declined by 5.4 percentage points as cost reductions could not offset revenue declines. We were very pleased with our Fiscal 2009 Real Estate segment results, which included the closing on eight Lodge at Vail Chalet units, 42 residences at Crystal Peak Lodge and two condominium units at the Arrabelle, which together represented the vast majority of our $186 million in Fiscal 2009 Real Estate segment revenue. In addition, we received final initiation fee deposits on 400 memberships to the Vail Mountain Club and Arrabelle Club representing total membership proceeds in excess of $71 million. Our Fiscal 2009 Resort operating results, real estate sales proceeds and private club initiation fee deposits, combined with stringent discipline in managing our balance sheet and capitalization positioned us well in this challenging environment with Net Debt leverage less than two times trailing twelve months Total Reported EBITDA, no borrowings under our revolver and virtually no principal maturities due on any of our debt until 2014."