Busch to Sell Kingsmill Resort to Xanterra

By Amber Lester Monday, July 12, 2010

Busch Properties, Inc. will sell Kingsmill Resort & Spa to Denver-based Xanterra Parks & Resorts, Inc.

The sale is expected to be complete by next month, with Xanterra assuming ownership and management of the resort immediately after closing. The sale price and other terms have not been disclosed by either company.

Neither company indicated whether the current employees will be retained in the sale. Xanterra spokesperson Mona Mesereau said it was too early in the acquisition process to say what changes – if any – will take place. Busch Properties, Inc. President Michael Taylor said, “I can tell you Xanterra places great value in the employees and recognizes they play a crucial role in making this a world-class resort property.”

Xanterra is the largest concessioner within the United States’ national parks, managing resorts, lodges, gift shops and more in Oregon, California, Arizona, Utah, Colorado, Wyoming, South Dakota and Ohio. One of its most well-known properties is the El Tovar Hotel, a historic landmark at the Grand Canyon. The company has also received awards for its environmental focus from the Department of the Interior, National Park Service and American Hotel & Motel Association. Kingsmill will be one of its only properties not located in a national park.

“Kingsmill is one of the country’s premier resorts, and we are very excited to acquire such a high-caliber resort that complements our existing portfolio of properties and is consistent with the expansion of our company,” said Andrew Todd, Xanterra president and CEO, in a press release. “We greatly respect Busch Properties’ longstanding commitment to excellence in connection with the resort and surrounding community, and we will build on that tradition. We place great value in the employees, condominium owners, members and the resort’s other tremendous assets and look forward to being part of this prestigious property.”

Outgoing James City County Administrator Sandy Wanner was impressed by the properties owned by Xanterra. “I’m upbeat and I’m pleased,” he said. “Just look at their properties – Mt. Rushmore, the Grand Canyon. The ownership is big into sports, also, so that might bode well for the return of the LPGA golf tournament. It’s good news for the county and it’s good news for the region.”

Busch first announced its intention to sell the resort in September. The resort and spa includes 422 rooms, six restaurants, a conference center, a full-service spa and fitness center, marina and tennis center. It also features three golf courses; the River Course has hosted 29 PGA and LPGA tour events. In the fall, Busch hired CB Richard Ellis, the largest commercial real estate broker in the U.S., to manage the sale.

“Since first announcing our intent to sell Kingsmill, our goal has been to find a buyer that will enhance the long-term value of the resort and maintain the Kingsmill assets as a premier resort property,” Taylor said. “After a lengthy and thorough search process, I am pleased to announce we have far exceeded those expectations in a buyer that is the perfect fit for this exceptional property.”

Greater Williamsburg Area Chamber and Tourism Alliance President Dick Schreiber is familiar with Xanterra and was pleased to see the resort pass into able ownership. “Kingsmill Resort has been one of the cornerstones of the Greater Williamsburg hospitality community for decades and we look forward to continuing to work with the new ownership for many years to come,” he said. “We are especially gratified for all of our friends and neighbors who work out of Kingsmill that any uncertainty concerning ownership has been resolved.”

While Xanterra will assume management of the resort, spa and golf courses, Busch will still manage the development and realty operations of the residential area. At a Board of Directors meeting last month, Kingsmill Community Services Association President Robin Carson announced Busch planned to end its management as of Dec. 31. The sale of the Kingsmill Resort was anticipated following InBev’s purchase of Anheuser Busch in Dec. 2008; AB InBev sold Busch Gardens to the Blackstone Group in October.