----

| Delaware                                                            |   | 51-0291762                                |
|---------------------------------------------------------------------|--------|-------------------------------------------|
| (State      or Other Jurisdiction of Incorporation or Organization) |   | (I.R.S.      Employer Identification No.) |
|                                                                |   |                                      |
| 390      Interlocken Crescent Broomfield,      Colorado        |   |  80021                               |
| (Address      of Principal Executive Offices)                       |   | (Zip      Code)                           |

|                                                                                      | (303)      404-1800                                             |                                            |
|-------------------------------------------------------------------------------------------|-----------------------------------------------------------------|-------------------------------------------------|
|                                                                                      | (Registrant’s      Telephone Number, Including Area Code) |                                            |
|                                                                                      |                                                            |                                            |
| Securities      registered pursuant to Section 12(b) of the Act:                          |
| Title      of each class:                                                                 |                                                            | Name      of each exchange on which registered: |
| Common      Stock, $0.01 par value                                                        |                                                            | New      York Stock Exchange                    |
|                                                                                      |
| Securities      registered pursuant to Section 12(g) of the Act:                          |
|        None.        |
| (Title      of Class)                                                                     |

| Table      of Contents    |
|---------------------------|
|                      |
| PART      I               |
|                      |   |
| Item      1.              | Business. | 3 |
| Item      1A.             | Risk Factors. | 17 |
| Item      1B.             | Unresolved Staff      Comments. | 25 |
| Item      2.              | Properties. | 25 |
| Item      3.              | Legal Proceedings. | 27 |
| Item      4.              | Submission of Matters to a Vote of Security      Holders. | 27 |
|                      |   |
| PART      II              |   |
|                      |   |
| Item      5.              | Market for Registrant's Common Equity, Related      Stockholder Matters and |   |
|                      | Issuer Purchases of Equity    Securities. | 28 |
| Item      6.              | Selected Financial Data. | 29 |
| Item      7.              | Management's Discussion and Analysis of Financial      Condition and Results of Operations. | 32 |
| Item      7A.             | Quantitative and Qualitative Disclosures About      Market Risk. | 51 |
| Item      8.              | Financial Statements and Supplementary      Data. | F-1 |
| Item      9.              | Changes in and Disagreements With Accountants on Accounting      and Financial Disclosure. | 52 |
| Item      9A.             | Controls and Procedures. | 52 |
| Item      9B.             | Other Information. | 52 |
|                      |   |
| PART III                  |   |
|                      |   |
| Item      10.             | Directors, Executive Officers and Corporate      Governance. | 53 |
| Item      11.             | Executive Compensation. | 53 |
| Item      12.             | Security Ownership of Certain Beneficial Owners      and |   |
|                      | Management and Related Stockholder    Matters. | 53 |
| Item      13.             | Certain Relationships and Related Transactions, and      Director Independence. | 53 |
| Item      14.             | Principal Accountant Fees and Services. | 53 |
|                      |   |
| PART IV                   |   |
|                      |   |
| Item      15.   | Exhibits, Financial Statements    Schedules. | 53 |

| ·   | prolonged      downturn in general economic conditions, including continued adverse      affects on the overall travel and leisure related    industries; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | unfavorable      weather conditions or naturaldisasters; |
|--------------------|----------------------------------------------------------|

| ·   | competition      in our mountain and lodgingbusinesses; |
|--------------------|---------------------------------------------------------|

| ·   | our      ability to grow our resort and real estate  operations; |
|--------------------|------------------------------------------------------------------|

| ·   | our      ability to successfully complete real estate development projects and      achieve the anticipated financial benefits from such    projects; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | further      adverse changes in real estatemarkets; |
|--------------------|-----------------------------------------------------|

| ·   | continued      volatility in credit markets; |
|--------------------|----------------------------------------------|

| ·   | our      ability to obtain financing on terms acceptable to us to finance our real      estate development, capital expenditures and growth    strategy; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | our      reliance on government permits or approvals for our use of Federal land or      to make operational improvements; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------|

| ·   | adverse      consequences of current or future legalclaims; |
|--------------------|-------------------------------------------------------------|

| ·   | our      ability to hire and retain a sufficient seasonal  workforce; |
|--------------------|-----------------------------------------------------------------------|

| ·   | willingness      of our guests to travel due to terrorism, the uncertainty of military      conflicts or outbreaks of contagious diseases, and the cost and      availability of travel options; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | negative      publicity or unauthorized use of our trademarks which diminishes the value      of our brands; |
|--------------------|--------------------------------------------------------------------------------------------------------------|

| ·   | our      ability to integrate and successfully operate future acquisitions;      and |
|--------------------|--------------------------------------------------------------------------------------|

| ·   | implications      arising from new Financial Accounting Standards Board      (“FASB”)/governmental legislation, rulings or    interpretations. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

PART I 

ITEM1.                      BUSINESS.

| ·   | Vail      Mountain (“Vail Mountain”) – the single most visited ski resort in the      United States for the 2008/2009 ski season and the single largest ski      mountain in the United States.  Vail offers some of the most      expansive and varied terrain with approximately 5,300 skiable acres      including seven world renowned back bowls and the rustic Blue Sky Basin      area of the resort. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Breckenridge      Ski Resort (“Breckenridge”) – the second most visited ski resort in the      United States for the 2008/2009 ski season and host of the highest      chairlift in North America, the Imperial Express Super Chair, reaching      12,840 feet and offering above tree line expert      terrain.  Breckenridge is well known for its historic town,      vibrant night-life and progressive and award-winning pipes and      parks. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Keystone      Resort (“Keystone”) – the fourth most visited ski resort in the United      States for the 2008/2009 ski season and home to the highly renowned A51      Terrain Park as well as the largest area of night skiing in      Colorado.  Keystone also offers guests a unique skiing      opportunity through guided snow cat ski tours accessing five      bowls. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Beaver      Creek Resort (“Beaver Creek”) – the seventh most visited ski resort in the      United States for the 2008/2009 ski season.  Beaver Creek is a      European –style resort with multiple villages and also includes a world      renowned children’s ski school program focused on providing a first-class      experience with unique amenities such as a dedicated children’s      gondola. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Heavenly      Mountain Resort (“Heavenly”) – the ninth most visited ski resort in the      United States for the 2008/2009 ski season and the second largest ski      resort in the United States with over 4,800 skiable      acres.  Heavenly straddles the border of California and Nevada      and offers unique and spectacular views of Lake Tahoe.  Heavenly      boasts the largest snowmaking capacity in the Lake Tahoe region and offers      great night life including its proximity to several    casinos. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | World-Class      Mountain Resorts and Integrated Base Resort  Areas |
|--------------------|---------------------------------------------------------------------|

| ·   | Snow      Conditions |
|--------------------|----------------------|

| ·   | Lift      Service |
|--------------------|-------------------|

| ·   | Terrain      Parks |
|--------------------|--------------------|

| ·   | Commitment      to Guest Service |
|--------------------|----------------------------------|

| ·   | Season      Pass Products |
|--------------------|---------------------------|

| ·   | Premier      Ski Schools |
|--------------------|--------------------------|

| ·   | On-Mountain      Activities |
|--------------------|-----------------------------|

| ·   | Dining |
|--------------------|--------|

| ·   | Retail/rental |
|--------------------|---------------|

| ·   | Lodging      and Real Estate Development |
|--------------------|------------------------------------------|

| ·   | Environmental      Stewardship |
|--------------------|--------------------------------|

| ·   | Colorado      resorts |
|--------------------|-----------------------|

| ·   | Heavenly |
|--------------------|----------|

| ·   | RockResorts      -- a luxury hotel management company with a current portfolio of eight      properties, including four Company-owned and four managed third-party      owned resort hotels with locations in Colorado, Wyoming, New Mexico and      St. Lucia, West Indies as well as six properties currently under      development that the Company willmanage; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Six      additional independently flagged Company-owned hotels, management of the      Vail Marriott Mountain Resort & Spa (“Vail Marriott”), Mountain      Thunder Lodge, Crystal Peak Lodge and Austria Haus Hotel and condominium      management operations, all of which are in and around the Company's      Colorado ski resorts; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | GTLC      -- a summer destination resort with three resort properties in the Grand      Teton National Park and the Jackson Hole Golf & Tennis Club      (“JHG&TC”) near Jackson,Wyoming; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | CME      -- a resort ground transportation company;and |
|--------------------|--------------------------------------------------------|

| ·   | Five      Company-owned resort golf courses in Colorado and one in      Wyoming. |
|--------------------|----------------------------------------------------------------------------------|

|                                                                                                  |                           |                         |   |
|-------------------------------------------------------------------------------------------------------|--------------------------------|------------------------------|--------|
| Name                                                                                                  | Location                       | Own/Manage                   | Rooms  |
|                                                                                                  |                           |                         |   |
| RockResorts:                                                                                          |                           |                         |   |
| The      Lodge at Vail                                                                                | Vail,      CO                  | Own                          | 169*   |
| The      Arrabelle at Vail Square                                                                     | Vail,      CO                  | Own                          | 88*    |
| The      Pines Lodge                                                                                  | Beaver      Creek, CO          | Own                          | 68*    |
| The      Osprey at Beaver Creek                                                                       | Beaver      Creek, CO          | Own                          | 47*    |
| La      Posada de Santa Fe                                                                            | Santa      Fe, NM              | Manage                       | 157    |
| Snake      River Lodge & Spa                                                                      | Teton      Village, WY         | Manage                       | 153    |
| Hotel      Jerome                                                                                     | Aspen,      CO                 | Manage                       | 94     |
| The      Landings St. Lucia                                                                           | St.      Lucia, West Indies    | Manage                       | 71     |
|                                                                                                  |                           |                         |   |
| Other      Hotels and Resorts:                                                                        |                           |                         |   |
| The      Great Divide Lodge                                                                           | Breckenridge,      CO          | Own                          | 208    |
| The      Keystone Lodge                                                                               | Keystone,      CO              | Own                          | 152    |
| Inn      at Keystone                                                                                  | Keystone,      CO              | Own                          | 103    |
| Breckenridge      Mountain Lodge                                                                      | Breckenridge,      CO          | Own                          | 71     |
| Village      Hotel                                                                                    | Breckenridge,      CO          | Own                          | 60     |
| Ski      Tip Lodge                                                                                    | Keystone,      CO              | Own                          | 10     |
| Jackson      Lake Lodge                                                                               | Grand      Teton Nat'l Pk., WY | Concessionaire      Contract | 385    |
| Colter      Bay Village                                                                               | Grand      Teton Nat'l Pk., WY | Concessionaire      Contract | 166    |
| Jenny      Lake Lodge                                                                                 | Grand      Teton Nat'l Pk., WY | Concessionaire      Contract | 37     |
| Vail      Marriott Mountain Resort  & Spa                                               | Vail,      CO                  | Manage                       | 344    |
| Mountain      Thunder Lodge                                                                           | Breckenridge,      CO          | Manage                       | 100    |
| Crystal      Peak Lodge                                                                               | Breckenridge,      CO          | Manage                       | 26     |
| Austria      Haus Hotel                                                                               | Vail,      CO                  | Manage                       | 25     |
|  *Includes      individual owner units that are in a rental program managed by the      Company. |

| ·   | All      of the Company's hotels are located in unique highly desirable resort      destinations. |
|--------------------|---------------------------------------------------------------------------------------------------|

| ·   | The      Company's hotel portfolio has achieved some of the most prestigious hotel      designations in the world, including seven properties and five hotel      restaurants in its portfolio that are currently rated as AAA      4-Diamond. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      RockResorts brand is a historic brand name with a rich tradition      associated with high quality luxury resort  hotels. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Many      of the Company's hotels (both owned and managed) are designed to provide a      look that feels indigenous to their surroundings, enhancing the guest's      vacation experience. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Each      RockResorts hotel provides the same high level of quality and services,      while still providing unique characteristics which distinguish the resorts      from one another.  This appeals to travelers looking for      consistency in quality and service offerings together with an experience      more unique than typically offered by larger luxury hotel      chains. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Many      of the hotels in the Company's portfolio provide a wide array of amenities      available to the guest such as access to world-class ski and golf resorts,      spa and fitness facilities, water sports and a number of other outdoor      activities as well as highly acclaimed dining  options. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Conference      space with the latest technology is available at most of the Company's      hotels.  In addition, guests at Keystone can use the      Company-owned Keystone Conference Center, the largest conference facility      in the Colorado Rocky Mountain region with more than 100,000 square feet      of meeting, exhibit and functionspace. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Company has a central reservations system that leverages off of its ski      resort reservations system and has a brand new online planning and booking      platform, offering guests a much more seamless and useful way to make      reservations at the Company’sresorts. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Company actively upgrades the quality of the accommodations and amenities      available at its hotels through capital improvements.  Capital      funding for third-party owned properties is provided by the owners of      those properties to maintain standards required by our management      contracts.  Recently completed projects include a full      renovation of The Osprey at Beaver Creek (formerly known as the Inn at      Beaver Creek), extensive upgrades to The Lodge at Vail including a fully      renovated ballroom and meeting spaces, room upgrades and the addition of a      7,500 square foot spa and extensive room upgrades at GTLC’s historic      Jackson Lake Lodge. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | One Ski Hill Place at      Breckenridge -- This development consists of 88      ski-in/ski-out residences and certain amenities which include a slopeside      skiers' plaza, a skier restaurant, après-ski bar, owner's ski lounge,      parking garage, conference space and retail space, all of which are      located at the base of Peak 8 and will connect to the Town of Breckenridge      via the BreckConnect gondola.  This development will be branded      a RockResorts property uponcompletion. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Ritz-Carlton Residences,      Vail -- Located in the western part of Vail, this project consists      of 71 whole ownership luxury residences and 45 Ritz-Carlton Club      fractional ownership units.  This development will offer      exclusive amenities, including a great room with bar, fitness facility and      a heated parking garage with valetservice. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

ITEM 1A.  RISK FACTORS. 

| Risks      Related to Our Business |
|------------------------------------|

| ·   | proximity      to population centers; |
|--------------------|---------------------------------------|

| ·   | availability      and cost of transportation to skiareas; |
|--------------------|-----------------------------------------------------------|

| ·   | ease      of travel to ski areas (including direct flights by major      airlines); |
|--------------------|-------------------------------------------------------------------------------------|

| ·   | pricing      of lift tickets and/or season passes and the number, quality and price of      related ancillary services (ski school, dining and retail/rental),      amenities and lodging; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | snowmaking      facilities; |
|--------------------|-----------------------------|

| ·   | type      and quality of skiing and snowboardingoffered; |
|--------------------|----------------------------------------------------------|

| ·   | duration      of the ski season; |
|--------------------|----------------------------------|

| ·   | weather      conditions; and |
|--------------------|------------------------------|

| ·   | reputation. |
|--------------------|-------------|

| ·   | sustained      deterioration in real estatemarkets; |
|--------------------|-----------------------------------------------------|

| ·   | escalation      in construction costs due to price increases in commodities, unforeseen      conditions, inadequate design or drawings, or other  causes; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | difficulty      in selling units or the ability of buyers to obtain necessary funds to      close on units; |
|--------------------|-------------------------------------------------------------------------------------------------------------|

| ·   | work      stoppages; |
|--------------------|----------------------|

| ·   | weather      interferences; |
|--------------------|-----------------------------|

| ·   | shortages      in obtaining materials; |
|--------------------|----------------------------------------|

| ·   | difficulty      in financing real estate developmentprojects; |
|--------------------|---------------------------------------------------------------|

| ·   | difficulty      in receiving the necessary regulatoryapprovals; |
|--------------------|-----------------------------------------------------------------|

| ·   | difficulty      in obtaining qualified contractors or subcontractors;  and |
|--------------------|----------------------------------------------------------------------------|

| ·   | unanticipated      incremental remediation costs related to design and construction      issues. |
|--------------------|--------------------------------------------------------------------------------------------------|

| ·   | our      future operating performance; |
|--------------------|----------------------------------------|

| ·   | general      economic conditions and economic conditions affecting the resort industry,      the ski industry and the general capital  markets; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | our      ability to meet our pre-sell targets on our vertical real estate      development projects; |
|--------------------|------------------------------------------------------------------------------------------------------|

| ·   | competition;      and |
|--------------------|-----------------------|

| ·   | legislative      and regulatory matters affecting our operations and    business. |
|--------------------|-----------------------------------------------------------------------------------|

| ·   | cash      flow from operations; |
|--------------------|---------------------------------|

| ·   | construction      financing, including non-recourse or other  financing; |
|--------------------|--------------------------------------------------------------------------|

| ·   | bank      borrowings; |
|--------------------|-----------------------|

| ·   | public      offerings of debt or equity; and |
|--------------------|----------------------------------------------|

| ·   | private      placements of debt or equity. |
|--------------------|--------------------------------------------|

| ·   | inability      to integrate acquired businesses into our  operations; |
|--------------------|-----------------------------------------------------------------------|

| ·   | diversion      of our management’s attention; |
|--------------------|-----------------------------------------------------|

| ·   | potential      increased debt leverage; |
|--------------------|-----------------------------------------|

| ·   | litigation      arising from acquisition activity;and |
|--------------------|-------------------------------------------------------|

| ·   | unanticipated      problems or liabilities. |
|--------------------|---------------------------------------------|

| Risks      Relating to Our Capital Structure |
|----------------------------------------------|

| ·   | quarterly      variations in our operatingresults; |
|--------------------|----------------------------------------------------|

| ·   | operating      results that vary from the expectations of securities analysts and      investors; |
|--------------------|---------------------------------------------------------------------------------------------------|

| ·   | change      in valuations, including our future real estate    developments; |
|--------------------|------------------------------------------------------------------------------|

| ·   | changes      in the overall travel, gaming, hospitality and leisure      industries; |
|--------------------|--------------------------------------------------------------------------------------|

| ·   | changes      in expectations as to our future financial performance, including      financial estimates by securities analysts and investors or such guidance      provided by us; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | announcements      by us or companies in the travel, gaming, hospitality and leisure      industries of significant contracts, acquisitions, dispositions, strategic      partnerships, joint ventures, capital commitments, plans, prospects,      service offerings or operatingresults; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | additions      or departures of key personnel; |
|--------------------|------------------------------------------------|

| ·   | future      sales of our securities; |
|--------------------|--------------------------------------|

| ·   | trading      and volume fluctuations; |
|--------------------|---------------------------------------|

| ·   | other      risk factors as discussed above;and |
|--------------------|------------------------------------------------|

| ·   | other      unforeseen events. |
|--------------------|-------------------------------|

| ·   | delay,      defer or prevent a change in control of the  Company; |
|--------------------|-------------------------------------------------------------------|

| ·   | discourage      bids for our securities at a premium over the market  price; |
|--------------------|------------------------------------------------------------------------------|

| ·   | adversely      affect the market price of, and the voting and other rights of the holders      of our securities; or |
|--------------------|----------------------------------------------------------------------------------------------------------------------|

| ·   | impede      the ability of the holders of our securities to change our      management. |
|--------------------|-----------------------------------------------------------------------------------------|

| ·   | make      it more difficult for us to satisfy our  obligations; |
|--------------------|-----------------------------------------------------------------|

| ·   | increase      our vulnerability to general adverse economic and industry      conditions; |
|--------------------|-------------------------------------------------------------------------------------------|

| ·   | require      us to dedicate a substantial portion of our cash flow from operations to      payments on our indebtedness, thereby reducing the availability of our      cash flow to fund working capital, capital expenditures, real estate      developments, marketing efforts and other general corporate      purposes; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | limit      our flexibility in planning for, or reacting to, changes in our business      and the industry in which weoperate; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------|

| ·   | place      us at a competitive disadvantage compared to our competitors that have      less debt; and |
|--------------------|-------------------------------------------------------------------------------------------------------|

| ·   | limit      our ability to borrow additionalfunds. |
|--------------------|---------------------------------------------------|

| ·   | incur      additional debt; |
|--------------------|-----------------------------|

| ·   | pay      dividends, repurchase our stock and make other restricted      payments; |
|--------------------|-----------------------------------------------------------------------------------|

| ·   | create      liens; |
|--------------------|--------------------|

| ·   | make      investments; |
|--------------------|------------------------|

| ·   | engage      in sales of assets and subsidiarystock; |
|--------------------|-----------------------------------------------------|

| ·   | enter      into sale-leaseback transactions; |
|--------------------|----------------------------------------------|

| ·   | enter      into transactions with affiliates; |
|--------------------|-----------------------------------------------|

| ·   | transfer      all or substantially all of our assets or enter into merger or      consolidation transactions; and |
|--------------------|-------------------------------------------------------------------------------------------------------------------|

| ·   | make      capital expenditures. |
|--------------------|---------------------------------|

ITEM 2.  PROPERTIES. 

| Location                                                 |   | Ownership                     |   | Use                                                                                                                                                                            |
|----------------------------------------------------------|--------|-------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Arrowhead      Mountain, CO                         |   | Owned                         |   | Ski      resort operations, including ski lifts, ski trails, buildings and other      improvements, commercial space and real estate held for sale or      development         |
| BC      Housing Riveredge, CO                            |   | 26%      Owned                |   | Employee      housing facilities                                                                                                                                               |
| Bachelor      Gulch Village, CO                     |   | Owned                         |   | Ski      resort operations, including ski lifts, ski trails, buildings and other      improvements and commercial space                                                        |
| Beaver      Creek Resort, CO                        |   | Owned                         |   | Ski      resort operations, including ski lifts, ski trails, buildings and other      improvements, commercial space and real estate held for sale or      development         |
| Beaver      Creek Mountain, CO (3,849 acres)             |   | Special      Use Permit       |   | Ski      trails, ski lifts, buildings and other improvements                                                                                                                   |
| Beaver      Creek Mountain Resort, CO               |   | Owned                         |   | Golf      course, clubhouse, commercial space  and residential      spaces                                                                                           |
| Breckenridge      Ski Resort, CO                         |   | Owned                         |   | Ski      resort operations, including ski lifts, ski trails, buildings and other      improvements, commercial space and real estate held for sale or      development         |
| Breckenridge      Mountain, CO (5,702 acres)             |   | Special      Use Permit       |   | Ski      trails, ski lifts, buildings and other improvements                                                                                                                   |
| Breckenridge      Mountain Lodge                         |   | Owned                         |   | Lodging                                                                                                                                                                        |
| Breckenridge      Terrace, CO                            |   | 50%      Owned                |   | Employee      housing facilities                                                                                                                                               |
| Broomfield,      CO                                      |   | Leased                        |   | Corporate      offices                                                                                                                                                         |
| Colter      Bay Village, WY                              |   | Concessionaire      contract  |   | Lodging      and dining facilities                                                                                                                                             |
| Eagle-Vail,      CO                                      |   | Owned                         |   | Warehouse      facility                                                                                                                                                        |
| Edwards,      CO                                         |   | Leased                        |   | Administrative      offices                                                                                                                                                    |
| Great      Divide Lodge, CO                              |   | Owned                         |   | Lodging,      dining and conference facilities                                                                                                                                 |
| Heavenly      Mountain Resort, CA & NV               |   | Owned                         |   | Ski      resort operations, including ski lifts, ski trails, buildings and other      improvements and commercial space                                                        |
| Heavenly      Mountain Resort, CA & NV (7,050 acres) |   | Special      Use Permit       |   | Ski      trails, ski lifts, buildings and other improvements                                                                                                                   |
| Inn      at Keystone, CO                                 |   | Owned                         |   | Lodging,      dining and conference facilities                                                                                                                                 |
| Jackson      Hole Golf & Tennis Club, WY             |   | Owned                         |   | Golf      course, clubhouse, tennis facilities, dining and real estate held for sale      or development                                                                       |
| Jackson      Lake Lodge, WY                              |   | Concessionaire      contract  |   | Lodging,      dining and conference facilities                                                                                                                                 |
| Jenny      Lake Lodge, WY                                |   | Concessionaire      contract  |   | Lodging      and dining facilities                                                                                                                                             |
| Keystone      Conference Center, CO                      |   | Owned                         |   | Conference      facility                                                                                                                                                       |
| Keystone      Lodge, CO                                  |   | Owned                         |   | Lodging,      spa, dining and conference facilities                                                                                                                            |
| Keystone      Resort, CO                                 |   | Owned                         |   | Ski      resort operations, including ski lifts, ski trails, buildings and other      improvements, commercial space, dining and real estate held for sale or      development |
| Keystone      Mountain, CO (8,376 acres)                 |   | Special      Use Permit       |   | Ski      trails, ski lifts, buildings and other improvements                                                                                                                   |
| Keystone      Ranch, CO                                  |   | Owned                         |   | Golf      course, clubhouse and dining facilities                                                                                                                              |
| Red      Sky Ranch, CO                                   |   | Owned                         |   | Golf      courses, clubhouses, dining facilities and real estate held for sale or      development                                                                             |
| River      Course at Keystone, CO                        |   | Owned                         |   | Golf      course and clubhouse                                                                                                                                                 |
| Seasons      at Avon, CO                                 |   | Leased/50%      Owned         |   | Administrative      offices                                                                                                                                                    |
| Ski      Tip Lodge, CO                                   |   | Owned                         |   | Lodging      and dining facilities                                                                                                                                             |
| The      Arrabelle at Vail Square, CO                    |   | Owned                         |   | Lodging,      spa, dining and conference facilities                                                                                                                            |
| The      Lodge at Vail, CO                               |   | Owned                         |   | Lodging,      spa, dining and conference facilities                                                                                                                            |
| The      Osprey at Beaver Creek, CO                      |   | Owned                         |   | Lodging,      dining and conference facilities                                                                                                                                 |
| The      Tarnes at Beaver Creek, CO                      |   | 31%      Owned                |   | Employee      housing facilities                                                                                                                                               |
| Tenderfoot      Housing, CO                              |   | 50%      Owned                |   | Employee      housing facilities                                                                                                                                               |
| The      Pines Lodge at Beaver Creek, CO                 |   | Owned                         |   | Lodging,      dining and conference facilities                                                                                                                                 |
| Vail      Mountain, CO                              |   | Owned                         |   | Ski      resort operations, including ski lifts, ski trails, buildings and other      improvements, commercial space and real estate held for sale or      development         |
| Vail      Mountain, CO (12,226 acres)                    |   |  Special      Use Permit |   | Ski      trails, ski lifts, buildings and other improvements                                                                                                                   |
| Village      at Breckenridge, CO                         |   | Owned                         |   | Lodging,      dining, conference facilities and commercial space                                                                                                               |
| SSV      Properties                                      |   | 69.3%      Owned              |   | Over      150 retail stores (of which 71 stores are currently held under lease) for      recreational products includingrental                                                 |

ITEM 3.  LEGAL PROCEEDINGS. 

ITEM 5.  MARKET FOR REGISTRANT'S COMMON EQUITY, RELATEDSTOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. 

|                          |   | Vail      Resorts |
|-------------------------------|--------|-------------------|
|                          |   | Common      Stock |
|                          |   | High              |   | Low |
| Year      Ended July 31, 2009 |   |              |   |   |   |   |
| 1st      Quarter              |   | $                 | 52.00 |   | $ | 21.67 |
| 2nd      Quarter              |   |              | 33.43 |   |   | 14.79 |
| 3rd      Quarter              |   |              | 30.42 |   |   | 14.76 |
| 4th      Quarter              |   |              | 31.10 |   |   | 23.71 |
|                          |   |              |   |   |   |   |
| Year      Ended July 31, 2008 |   |              |   |   |   |   |
| 1st      Quarter              |   | $                 | 66.25 |   | $ | 48.41 |
| 2nd      Quarter              |   |              | 60.15 |   |   | 40.94 |
| 3rd      Quarter              |   |              | 51.65 |   |   | 39.32 |
| 4th      Quarter              |   |              | 51.38 |   |   | 30.03 |

|  Period                            |   |  Total      Number of Shares Purchased |   |    |  Average      Price Paid per Share |   |   |  Total      Number of Shares Purchased as Part of Publicly Announced Plans or Programs      (1) |   |   |  Maximum      Number of Shares that May Yet Be Purchased Under the Plans or Programs      (1) |   |
|-----------------------------------------|--------|---------------------------------------------|--------|---------|-----------------------------------------|--------|--------|------------------------------------------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------------------------------|--------|
| May      1, 2009 – May 31, 2009   |   | --                                          |   |  $ | --                                      |   |   | --                                                                                                   |   |   | 2,399,765                                                                                          |   |
| June      1, 2009 – June 30, 2009 |   | 278,300                                     |   |    | 26.93                                   |   |   | 278,300                                                                                              |   |   | 2,121,465                                                                                          |   |
| July      1, 2009 – July 31, 2009 |   | --                                          |   |    | --                                      |   |   | --                                                                                                   |   |   | 2,121,465                                                                                          |   |
| Total                                   |   | 278,300                                     |   |  $ | 26.93                                   |   |   | 278,300                                                                                              |   |   |                                                                                               |   |

| (1)   | On      March 9, 2006, the Company’s Board of Directors approved the repurchase of      up to 3,000,000 shares of common stock and on July 16, 2008 approved an      increase of the Company’s common stock repurchase authorization by an      additional 3,000,000 shares.  Acquisitions under the share      repurchase program may be made from time to time at prevailing prices as      permitted by applicable laws, and subject to market conditions and other      factors.  The stock repurchase program may be discontinued at      any time. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

ITEM 6.  SELECTED FINANCIAL DATA. 

|                                                               |   | Year      Ended July 31, |
|--------------------------------------------------------------------|--------|--------------------------|
|                                                               |   | 2009(1)                  |   | 2008(1) |   | 2007(1) | 2006(1) |   | 2005 (1) |
| Statement      of Operations Data:                                 |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenue:                                                           |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mountain                                                           |   | $                        | 614,597 |   |   | $ | 685,533 |   |   | $ | 665,377 |   | $ | 620,441 |   |   | $ | 540,855 |   |
| Lodging                                                            |   |                     | 176,241 |   |   |   | 170,057 |   |   |   | 162,451 |   |   | 155,807 |   |   |   | 196,351 |   |
| Real      estate                                                   |   |                     | 186,150 |   |   |   | 296,566 |   |   |   | 112,708 |   |   | 62,604 |   |   |   | 72,781 |   |
| Total      net revenue                                             |   |                     | 976,988 |   |   |   | 1,152,156 |   |   |   | 940,536 |   |   | 838,852 |   |   |   | 809,987 |   |
| Segment      operating expense:                                    |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mountain                                                           |   |                     | 451,025 |   |   |   | 470,362 |   |   |   | 462,708 |   |   | 443,116 |   |   |   | 391,889 |   |
| Lodging                                                            |   |                     | 169,482 |   |   |   | 159,832 |   |   |   | 144,252 |   |   | 142,693 |   |   |   | 177,469 |   |
| Real      estate                                                   |   |                     | 142,070 |   |   |   | 251,338 |   |   |   | 115,190 |   |   | 56,676 |   |   |   | 58,254 |   |
| Total      segment operating expense                               |   |                     | 762,577 |   |   |   | 881,532 |   |   |   | 722,150 |   |   | 642,485 |   |   |   | 627,612 |   |
| Depreciation      and amortization                                 |   |                     | (107,213 | ) |   |   | (93,794 | ) |   |   | (87,664 | ) |   | (86,098 | ) |   |   | (89,968 | ) |
| Gain      on sale of real property                                 |   |                     | -- |   |   |   | 709 |   |   |   | -- |   |   | -- |   |   |   | -- |   |
| Mountain      equity investment income, net                        |   |                     | 817 |   |   |   | 5,390 |   |   |   | 5,059 |   |   | 3,876 |   |   |   | 2,303 |   |
| Lodging      equity investment loss, net                           |   |                     | -- |   |   |   | -- |   |   |   | -- |   |   | -- |   |   |   | (2,679 | ) |
| Real      estate equity investment income, net                     |   |                     | -- |   |   |   | -- |   |   |   | -- |   |   | 791 |   |   |   | (102 | ) |
| Investment      income, net                                        |   |                     | 1,793 |   |   |   | 8,285 |   |   |   | 12,403 |   |   | 7,995 |   |   |   | 2,066 |   |
| Interest      expense, net                                         |   |                     | (27,548 | ) |   |   | (30,667 | ) |   |   | (32,625 | ) |   | (36,478 | ) |   |   | (40,298 | ) |
| Contract      dispute credit (charges), net                        |   |                     | -- |   |   |   | 11,920 |   |   |   | (4,642 | ) |   | (3,282 | ) |   |   | -- |   |
| Income      before provision for income taxes                      |   |                     | 79,594 |   |   |   | 166,013 |   |   |   | 100,651 |   |   | 75,010 |   |   |   | 37,623 |   |
| Net      income                                                    |   | $                        | 48,950 |   |   | $ | 102,927 |   |   | $ | 61,397 |   | $ | 45,756 |   |   | $ | 23,138 |   |
| Diluted      net income per share                                  |   | $                        | 1.33 |   |   | $ | 2.64 |   |   | $ | 1.56 |   | $ | 1.19 |   |   | $ | 0.64 |   |
|                                                               |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      Data:                                                   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mountain                                                           |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Skier      visits(2)                                               |   |                     | 5,864 |   |   |   | 6,195 |   |   |   | 6,219 |   |   | 6,288 |   |   |   | 5,940 |   |
| ETP      (3)                                                       |   | $                        | 47.16 |   |   | $ | 48.74 |   |   | $ | 46.15 |   | $ | 41.83 |   |   | $ | 39.30 |   |
| Lodging                                                            |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| ADR(4)                                                             |   | $                        | 225.12 |   |   | $ | 230.17 |   |   | $ | 216.83 |   | $ | 202.27 |   |   | $ | 196.26 |   |
| RevPAR(5)                                                          |   | $                        | 93.10 |   |   | $ | 106.43 |   |   | $ | 99.58 |   | $ | 92.41 |   |   | $ | 90.98 |   |
| Real      Estate                                                   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real      estate held for sale and investment(6)                   |   | $                        | 311,485 |   |   | $ | 249,305 |   |   | $ | 357,586 |   | $ | 259,384 |   |   | $ | 154,874 |   |
| Other      Balance Sheet Data                                      |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      and cash equivalents(7)                                  |   | $                        | 69,298 |   |   | $ | 162,345 |   |   | $ | 230,819 |   | $ | 191,794 |   |   | $ | 136,580 |   |
| Total      assets                                                  |   | $                        | 1,884,480 |   |   | $ | 1,925,954 |   |   | $ | 1,909,123 |   | $ | 1,687,643 |   |   | $ | 1,525,921 |   |
| Long-term      debt (including long-term debt due within one year) |   | $                        | 491,960 |   |   | $ | 556,705 |   |   | $ | 594,110 |   | $ | 531,228 |   |   | $ | 521,710 |   |
| Net      debt(8)                                                   |   | $                        | 422,662 |   |   | $ | 394,360 |   |   | $ | 363,291 |   | $ | 339,434 |   |   | $ | 385,130 |   |
| Stockholders'      equity                                          |   | $                        | 765,295 |   |   | $ | 728,756 |   |   | $ | 714,039 |   | $ | 642,777 |   |   | $ | 540,529 |   |

| (1) | The      Company has made several acquisitions and dispositions which impact      comparability between years during the past five years.  The      more significant of those include the acquisitions of: Colorado Mountain      Express (“CME”) (acquired in November 2008), 18 retail/rental locations      (acquired by SSV in June 2007), two licensed Starbucks stores (acquired in      June 2007) and six retail locations (acquired by SSV in August      2006).  Additionally, the Company sold its majority interest in      RTP, LLC (“RTP”) (sold in April 2007), Snake River Lodge & Spa      (“SRL&S”) (sold in January 2006), The Lodge at Rancho Mirage (“Rancho      Mirage”) (sold in July 2005), Vail Marriott (sold in June 2005) and its      minority interest in Ritz-Carlton, Bachelor Gulch (“BG Resort”) (sold in      December 2004). Effective August 1, 2005, the Company adopted Statement of      Financial Accounting Standards (“SFAS”) No. 123R, “Share-Based Payment”      (“SFAS 123R”).  See Note 2, Summary of Significant Accounting      Policies, of the Notes to Consolidated Financial Statements in Item 8 of      this Form 10-K for the impact to the Consolidated Statements of Operations      as a result of the adoption of SFAS123R. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | A      skier visit represents a person utilizing a ticket or pass to access a      mountain resort for any part of one day, and includes both paid and      complimentary access. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | ETP      is calculated by dividing lift ticket revenue by total skier visits during      the respective periods. |
|-----|------------------------------------------------------------------------------------------------------------------|

| (4) | ADR      is calculated by dividing total room revenue (includes both owned and      managed condominium room revenue) by the number of occupied rooms during      the respective periods. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | RevPAR      is calculated by dividing total room revenue (includes both owned and      managed condominium room revenue) by the number of rooms that are      available to guests during the respective  periods. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Real      estate held for sale and investment includes all land, development costs      and other improvements associated with real estate held for sale and      investment, as well as investments in real estate joint      ventures. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Cash      and cash equivalents excludes restrictedcash. |
|-----|---------------------------------------------------------|

| (8) | Net      debt is defined as long-term debt plus long-term debt due within one year      less cash and cash equivalents. |
|-----|-------------------------------------------------------------------------------------------------------------------------|

ITEM 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIALCONDITION AND RESULTS OF OPERATIONS. 

| ·   | The      economic recession that has affected the U.S. and global economies, the      tightened credit markets and eroded consumer confidence had a negative      impact on overall trends in the travel and leisure industries and on the      Company’s results of operations for Fiscal 2009.  In this      environment, the Company experienced a 5.3% decrease in overall skier      visitation for the 2008/2009 ski season and a 4.5 percentage point      decrease in occupancy at the Company’s owned hotels and managed      condominium properties (all proximate to the Company’s ski resorts) for      Fiscal 2009.  Additionally, the Company experienced, a decrease      in overall guest spending on ancillary services, including ski school,      dining and retail/rental.  Furthermore, the Company experienced      a change in booking trends such that guest reservations were made much      closer to the actual date of stay.  The Company cannot predict      the extent to which these negative trends will continue, worsen or improve      or the timing and nature of any changes to the macroeconomic environment,      including the impact it may have on the Company’s future results of      operations, in particular on the 2009/2010 ski  season. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      timing and amount of snowfall can have an impact on Mountain and Lodging      revenue particularly in regards to skier visits and the duration and      frequency of guest visitation.  To mitigate this impact, the      Company focuses efforts on the sale of season passes prior to the      beginning of the season to In-State guests and Destination      guests.  Additionally, the Company has invested in snowmaking      upgrades in an effort to address the inconsistency of early season      snowfall where possible.  During the past two ski seasons, early      season snowfall has been significantly lower than average, which the      Company believes had a negative impact on early season      visitation. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Company’s season pass products provide a value option to its guests which      in turn provides a guest commitment predominately prior to the start of      the ski season resulting in a more stabilized stream of lift revenue for      the Company.  The Company introduced the Epic Season Pass for      the 2008/2009 ski season, which largely contributed to season pass revenue      as a percentage of total lift revenue increasing from 26% for the      2007/2008 ski season to 34% for the 2008/2009 ski season.  In      March 2009, the Company began its pass sales campaign for the 2009/2010      ski season, including the Epic Season Pass, and as of July 31, 2009 season      pass sales have increased $10.0 million, or 32.2%, compared to season pass      sales as of July 31, 2008 for the 2008/2009 ski season.  The      Company cannot predict if this trend will continue through the fall 2009      pass sales campaign or the impact that season pass sales may have on total      lift revenue or ETP for the 2009/2010 ski  season. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Company has historically implemented annual price      increases.  However, the Company held prices flat for most      multi-day lift ticket and certain other products and services for the      2008/2009 ski season.  Prices for the 2009/2010 ski season have      not yet been finalized; and as such there are no assurances as to the      level of price increases, if any, which will occur or the impact that      pricing may have on visitation orrevenue. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Company operates its ski areas under various Forest Service permits, and      many of the Company's operations require permits and approval from      governmental authorities; therefore many of the Company’s on-mountain      capital improvements must go through an approval      process.  Changes or impacts to the applicable regulatory      environment may have detrimental effects on the  Company. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Real      Estate Reported EBITDA is highly dependent on, among other things, the      timing of closings on real estate under contract, which determines when      revenue and associated cost of sales is recognized.  Changes to      the anticipated timing or mix of closing on one or more real estate      projects, or unit closings within a real estate project, could materially      impact Real Estate Reported EBITDA for a particular quarter or fiscal      year. The Company has two real estate projects currently under development      which are scheduled to be completed in the spring/summer of 2010 (One Ski      Hill Place in Breckenridge) and the fall of 2010 (The Ritz-Carlton      Residences, Vail) and has entered into definitive sales contracts with a      value of approximately $324.3 million, which represents approximately 68%      of the total current estimated sales value for these two      projects.  The Company has increased risk associated with      selling and closing real estate as a result of the continued instability      in the capital and credit markets and slowdown in the overall real estate      market.  In April 2009, in response to current market      conditions, the Company announced a reduction of approximately 20% to the      listed selling prices of its Ritz-Carlton Residences, Vail, as well as      price reductions of approximately 15% for purchasers currently under      contract.  The Company cannot predict the ultimate number of      units that it will sell, the ultimate price it will receive, or when the      units will sell.  Additionally, if a more severe prolonged      economic downturn were to occur the Company may have to further adjust its      selling prices in an effort to sell and close on units currently under      development, although it currently has no plans to do  so. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Company had $69.3 million in cash and cash equivalents as of July 31, 2009      as well as $304.7 million available under the revolver component of its      Credit Facility. The Company’s plan to continue to self-fund its      current real estate projects under construction (the Company estimates to      incur between $190 million and $210 million in cash expenditures      subsequent to July 31, 2009) combined with historically low operating cash      flows during the Company’s first fiscal quarter will likely require the      Company to borrow under the revolver component of its Credit Facility from      time to time beginning in the first quarter of fiscal 2010.  The      Company currently believes it has adequate capacity under its revolver to      address potential borrowing needs, even in the event of a more sustained      negative economic environment. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Under      GAAP, the Company is required to test goodwill for impairment annually,      which the Company does so during the fourth quarter of each fiscal      year.  The Company evaluates the recoverability of its goodwill      by estimating the future discounted cash flows of its reporting units and      terminal values of the businesses using projected future levels of income      as well as business trends, prospects and market and economic      conditions.  The Company evaluates the recoverability of      indefinite-lived intangible assets using the income approach based upon      estimated future revenue streams.  The Company’s 2009 annual      impairment test did not result in a goodwill or indefinite-lived      intangible asset impairment (see Critical Accounting Policies in this      section of this Form 10-K).  However, if a more severe prolonged      economic downturn were to occur it could cause less than expected growth      and/or reduction in terminal values of the Company’s reporting units which      may result in a goodwill and/or indefinite-lived intangible asset      impairment charge attributable to certain goodwill and/or indefinite      lived-intangible assets, particularly related to its lodging and      retail/rental operations. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                          |   | Year      Ended July 31, |
|-----------------------------------------------|--------|--------------------------|
|                                          |   | 2009                     |   | 2008 |   | 2007 |
| Mountain      Reported EBITDA                 |   | $                        | 164,389 |   |   | $ | 220,561 |   |   | $ | 207,728 |   |
| Lodging      Reported EBITDA                  |   |                     | 6,759 |   |   |   | 10,225 |   |   |   | 18,199 |   |
| Resort      Reported EBITDA                   |   |                     | 171,148 |   |   |   | 230,786 |   |   |   | 225,927 |   |
| Real      Estate Reported EBITDA              |   |                     | 44,080 |   |   |   | 45,937 |   |   |   | (2,482 | ) |
|                                          |   |                     |   |   |   |   |   |   |   |   |   |   |
| Income      before provision for income taxes |   |                     | 79,594 |   |   |   | 166,013 |   |   |   | 100,651 |   |
| Net      income                               |   | $                        | 48,950 |   |   | $ | 102,927 |   |   | $ | 61,397 |   |

|                                                                |   |                     |    |                |   |    |   |      |    |      | Percentage |
|---------------------------------------------------------------------|--------|--------------------------|---------|---------------------|--------|---------|--------|-----------|---------|-----------|------------|
|                                                                |   | Year      Ended July 31, |    | Increase/(Decrease) |
|                                                                |   | 2009                     |    | 2008                |   | 2007    |   | 2009/2008 |    | 2008/2007 |
| Net      Mountain revenue:                                          |   |                     |    |                |   |    |   |      |    |      |       |   |   |   |   |
|      Lift      tickets                     |   | $                        | 276,542 |                | $      | 301,914 |   | $         | 286,997 |      | (8.4       | )      % |   | 5.2 |  % |
|      Ski      school                       |   |                     | 65,336  |                |   | 81,384  |   |      | 78,848  |      | (19.7      | )      % |   | 3.2 |  % |
|      Dining                                |   |                     | 52,259  |                |   | 62,506  |   |      | 59,653  |      | (16.4      | )      % |   | 4.8 |  % |
|      Retail/rental                         |   |                     | 147,415 |                |   | 168,765 |   |      | 160,542 |      | (12.7      | )      % |   | 5.1 |  % |
|      Other                                 |   |                     | 73,045  |                |   | 70,964  |   |      | 79,337  |      | 2.9        |   % |   | (10.6 | )% |
| Total      Mountain net revenue                                     |   | $                        | 614,597 |                | $      | 685,533 |   | $         | 665,377 |      | (10.3      | )      % |   | 3.0 |  % |
| Mountain      operating expense:                                    |   |                     |    |                |   |    |   |      |    |      |       |   |   |   |   |
|      Labor      and labor-related benefits |   | $                        | 165,550 |                | $      | 175,674 |   | $         | 167,442 |      | (5.8       | )      % |   | 4.9 |  % |
|      Retail      cost of sales             |   |                     | 66,022  |                |   | 72,559  |   |      | 69,218  |      | (9.0       | )      % |   | 4.8 |  % |
|      Resort      related fees              |   |                     | 33,102  |                |   | 36,335  |   |      | 34,943  |      | (8.9       | )      % |   | 4.0 |  % |
|      General      and administrative       |   |                     | 83,117  |                |   | 81,220  |   |      | 81,983  |      | 2.3        |   % |   | (0.9 | )% |
|      Other                                 |   |                     | 103,234 |                |   | 104,574 |   |      | 109,122 |      | (1.3       | )      % |   | (4.2 | )% |
| Total      Mountain operating expense                               |   | $                        | 451,025 |                | $      | 470,362 |   | $         | 462,708 |      | (4.1       | )      % |   | 1.7 |  % |
| Mountain      equity investment income, net                         |   |                     | 817     |                |   | 5,390   |   |      | 5,059   |      | (84.8      | )      % |   | 6.5 |  % |
| Total      Mountain Reported EBITDA                                 |   | $                        | 164,389 |                | $      | 220,561 |   | $         | 207,728 |      | (25.5      | )      % |   | 6.2 |  % |
|                                                                |   |                     |    |                |   |    |   |      |    |      |       |   |   |   |   |
| Total      skier visits                                             |   |                     | 5,864   |                |   | 6,195   |   |      | 6,219   |      | (5.3       | )      % |   | (0.4 | )% |
| ETP                                                                 |   | $                        | 47.16   |                | $      | 48.74   |   | $         | 46.15   |      | (3.2       | )      % |   | 5.6 |  % |

|                                                                |                     |    |                |    |      |      |   | Percentage |
|---------------------------------------------------------------------|--------------------------|---------|---------------------|---------|-----------|-----------|--------|------------|
|                                                                | Year      Ended July 31, |    | Increase/(Decrease) |
|                                                                | 2009                     | 2008    | 2007                |    | 2009/2008 | 2008/2007 |
| Lodging      net revenue:                                           |                     |    |                |    |      |      |   |       |   |   |   |   |   |
|      Owned      hotel rooms                | $                        | 43,153  | $                   | 46,806  | $         | 42,179    |   | (7.8       | ) | % | 11.0 |   | % |
|      Managed      condominium rooms        |                     | 34,571  |                | 37,132  |      | 36,657    |   | (6.9       | ) | % | 1.3 |   | % |
|      Dining                                |                     | 30,195  |                | 31,763  |      | 28,191    |   | (4.9       | ) | % | 12.7 |   | % |
|      Transportation                        |                     | 17,975  |                | --      |      | --        |   | --         |   | % | -- |   | % |
|      Golf                                  |                     | 15,000  |                | 16,224  |      | 15,185    |   | (7.5       | ) | % | 6.8 |   | % |
|      Other                                 |                     | 35,347  |                | 38,132  |      | 40,239    |   | (7.3       | ) | % | (5.2 | ) | % |
| Total      Lodging net revenue                                      | $                        | 176,241 | $                   | 170,057 | $         | 162,451   |   | 3.6        |   | % | 4.7 |   | % |
| Lodging      operating expense                                      |                     |    |                |    |      |      |   |       |   |   |   |   |   |
|      Labor      and labor-related benefits | $                        | 81,290  | $                   | 75,746  | $         | 67,224    |   | 7.3        |   | % | 12.7 |   | % |
|      General      and administrative       |                     | 27,823  |                | 26,877  |      | 26,408    |   | 3.5        |   | % | 1.8 |   | % |
|      Other                                 |                     | 60,369  |                | 57,209  |      | 50,620    |   | 5.5        |   | % | 13.0 |   | % |
| Total      Lodging operating expense                                | $                        | 169,482 | $                   | 159,832 | $         | 144,252   |   | 6.0        |   | % | 10.8 |   | % |
| Total      Lodging Reported EBITDA                                  | $                        | 6,759   | $                   | 10,225  | $         | 18,199    |   | (33.9      | ) | % | (43.8 | ) | % |
|                                                                |                     |    |                |    |      |      |   |       |   |   |   |   |   |
| Owned      hotel statistics:                                        |                     |    |                |    |      |      |   |       |   |   |   |   |   |
|      ADR                                   | $                        | 183.59  | $                   | 184.42  | $         | 167.15    |   | (0.5       | ) | % | 10.3 |   | % |
|      RevPar                                | $                        | 107.06  | $                   | 118.97  | $         | 108.10    |   | (10.0      | ) | % | 10.1 |   | % |
|                                                                |                     |    |                |    |      |      |   |       |   |   |   |   |   |
| Managed      condominium statistics:                                |                     |    |                |    |      |      |   |       |   |   |   |   |   |
|      ADR                                   | $                        | 273.38  | $                   | 280.37  | $         | 268.83    |   | (2.5       | ) | % | 4.3 |   | % |
|      RevPar                                | $                        | 84.50   | $                   | 98.68   | $         | 94.50     |   | (14.4      | ) | % | 4.4 |   | % |
|                                                                |                     |    |                |    |      |      |   |       |   |   |   |   |   |
| Owned      hotel and managed condominium statistics (combined):     |                     |    |                |    |      |      |   |       |   |   |   |   |   |
|      ADR                                   | $                        | 225.12  | $                   | 230.17  | $         | 216.83    |   | (2.2       | ) | % | 6.2 |   | % |
|      RevPar                                | $                        | 93.10   | $                   | 106.43  | $         | 99.58     |   | (12.5      | ) | % | 6.9 |   | % |
|                                                                |                     |    |                |    |      |      |   |       |   |   |   |   |   |

|                                     |   |                     |    |                |   |    |   |      |   |      |   | Percentage |
|------------------------------------------|--------|--------------------------|---------|---------------------|--------|---------|--------|-----------|--------|-----------|--------|------------|
|                                     |   | Year      Ended July 31, |    | Increase/(Decrease) |
|                                     |   | 2009                     |    | 2008                |   | 2007    |   | 2009/2008 |   | 2008/2007 |
| Total      Real Estate net revenue       |   | $                        | 186,150 |                | $      | 296,566 |   |      | $      | 112,708   |   | (37.2      | ) | % |   | 163.1 |   | % |
| Total      Real Estate operating expense |   |                     | 142,070 |                |   | 251,338 |   |      |   | 115,190   |   | (43.5      | ) | % |   | 118.2 |   | % |
| Gain      on sale of real property       |   |                     | --      |                |   | 709     |   |      |   | --        |   | (100.0     | ) | % |   | -- |   | % |
| Total      Real Estate Reported EBITDA   |   | $                        | 44,080  |                | $      | 45,937  |   |      | $      | (2,482    | )      | (4.0       | ) | % |   | 1,950.8 |   | % |

The decrease in investment income for Fiscal 2008 comparedto Fiscal 2007 is primarily due to a reduction in the average interest earned oninvestments, a decrease in average invested cash during the period and a $1.0million impairment on a short-term investment resulting from a commercial paperwrite-down. 

|                                                               |   | Year      Ended July 31, |
|--------------------------------------------------------------------|--------|--------------------------|
|                                                               |   | 2009                     |   | 2008 |   | 2007 |
| Mountain      Reported EBITDA                                      |   | $                        | 164,389 |   |   | $ | 220,561 |   |   | $ | 207,728 |   |
| Lodging      Reported EBITDA                                       |   |                     | 6,759 |   |   |   | 10,225 |   |   |   | 18,199 |   |
| Resort      Reported EBITDA                                        |   |                     | 171,148 |   |   |   | 230,786 |   |   |   | 225,927 |   |
| Real      Estate Reported EBITDA                                   |   |                     | 44,080 |   |   |   | 45,937 |   |   |   | (2,482 | ) |
| Total      Reported EBITDA                                         |   |                     | 215,228 |   |   |   | 276,723 |   |   |   | 223,445 |   |
| Depreciation      and amortization                                 |   |                     | (107,213 | ) |   |   | (93,794 | ) |   |   | (87,664 | ) |
| Relocation      and separation charges                             |   |                     | -- |   |   |   | -- |   |   |   | (1,433 | ) |
| Loss      on disposal of fixed assets, net                         |   |                     | (1,064 | ) |   |   | (1,534 | ) |   |   | (1,083 | ) |
| Investment      income, net                                        |   |                     | 1,793 |   |   |   | 8,285 |   |   |   | 12,403 |   |
| Interest      expense, net                                         |   |                     | (27,548 | ) |   |   | (30,667 | ) |   |   | (32,625 | ) |
| Loss      on sale of business, net                                 |   |                     | -- |   |   |   | -- |   |   |   | (639 | ) |
| Contract      dispute credit (charges), net                        |   |                     | -- |   |   |   | 11,920 |   |   |   | (4,642 | ) |
| Gain      on put option, net                                       |   |                     |   |   |   |   | -- |   |   |   | 690 |   |
| Minority      interest in income of consolidated subsidiaries, net |   |                     | (1,602 | ) |   |   | (4,920 | ) |   |   | (7,801 | ) |
| Income      before provision for income taxes                      |   |                     | 79,594 |   |   |   | 166,013 |   |   |   | 100,651 |   |
| Provision      for income taxes                                    |   |                     | (30,644 | ) |   |   | (63,086 | ) |   |   | (39,254 | ) |
| Net      income                                                    |   | $                        | 48,950 |   |   | $ | 102,927 |   |   | $ | 61,397 |   |

|                                    |   | July      31, |
|-----------------------------------------|--------|---------------|
|                                    |   | 2009          |   | 2008 |
| Long-term      debt                     |   | $             | 491,608 |   | $ | 541,350 |
| Long-term      debt due within one year |   |          | 352 |   |   | 15,355 |
| Total      debt                         |   |          | 491,960 |   |   | 556,705 |
| Less:      cash and cash equivalents    |   |          | 69,298 |   |   | 162,345 |
| Net      Debt                           |   | $             | 422,662 |   | $ | 394,360 |

|                                        |   |   |      | Payments      Due by Period |
|---------------------------------------------|--------|--------|-----------|-----------------------------|
|                                        |   |   |      | Fiscal                      |   | 2-3 |   | 4-5 |   |   | More      than |
| Contractual      Obligations                |   | Total  |      | 2010                        |   | years |   | years |   |   | 5      years |
| Long-Term      Debt (1)                     |   | $      | 491,960   |                        | $ | 352 |   | $ | 2,132 |   | $ | 390,538 |   | $ | 98,938 |
| Fixed      Rate Interest (1)                |   |   | 165,958   |                        |   | 29,634 |   |   | 59,073 |   |   | 58,975 |   |   | 18,276 |
| Operating      Leases and Service Contracts |   |   | 81,608    |                        |   | 17,350 |   |   | 23,710 |   |   | 16,847 |   |   | 23,701 |
| Purchase      Obligations (2)               |   |   | 380,884   |                        |   | 309,812 |   |   | 71,072 |   |   | -- |   |   | -- |
| Other      Long-Term Obligations (3)        |   |   | 1,882     |                        |   | 340 |   |   | 132 |   |   | 106 |   |   | 1,304 |
| Total      Contractual Cash Obligations     |   | $      | 1,122,292 |                        | $ | 357,488 |   | $ | 156,119 |   | $ | 466,466 |   | $ | 142,219 |

ITEM7A.                      QUANTITATIVEAND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. 

ITEM8.                      FINANCIALSTATEMENTS AND SUPPLEMENTARY DATA. 

| Management's Report on Internal Control Over      Financial Reporting                                                                                                                                                           | F-2    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                            |   |
| Report of Independent Registered Public      Accounting Firm                                                                                                                                                                    | F-3    |
|                                                                                                                                                                                                                            |   |
| Consolidated      Financial Statements                                                                                                                                                                                          |   |
| Consolidated Balance Sheets                                                                                                                                                                                                     | F-4    |
| Consolidated Statements of      Operations                                                                                                                                                                                      | F-5    |
| Consolidated Statements of Stockholders'      Equity                                                                                                                                                                            | F-6    |
| Consolidated Statements of Cash      Flows                                                                                                                                                                                      | F-7    |
| Notes to Consolidated Financial    Statements                                                                                                                                                                                   | F-8    |
|                                                                                                                                                                                                                            |   |
| Financial      Statement Schedule:                                                                                                                                                                                              |   |
| The      following consolidated financial statement schedule of the Company is      filed as part of this Report on Form 10-K and should be read in      conjunction with the Company's Consolidated Financial      Statements: |   |
|                                                                                                                                                                                                                            |   |
| Schedule II - Valuation and Qualifying Accounts and      Reserves                                                                                                                                                               | 60     |

Management's Report on Internal Control over FinancialReporting 

Report of Independent Registered Public Accounting Firm

Consolidated Balance Sheets 

|                                                                                                                              | July      31, |
|-----------------------------------------------------------------------------------------------------------------------------------|---------------|
|                                                                                                                              |          | 2009 |   |   | 2008 |   |
| Assets                                                                                                                            |          |   |   |   |   |   |
| Current      assets:                                                                                                              |          |   |   |   |   |   |
| Cash      and cash equivalents                                                                                                    | $             | 69,298 |   | $ | 162,345 |   |
| Restricted      cash                                                                                                              |          | 11,065 |   |   | 58,437 |   |
| Trade      receivables, net of allowances of $1,877 and $1,666,      respectively                                                 |          | 58,063 |   |   | 50,185 |   |
| Inventories,      net of reserves of $1,455 and $1,211, respectively                                                              |          | 48,947 |   |   | 49,708 |   |
| Deferred      income taxes (Note 12)                                                                                              |          | 21,297 |   |   | 15,142 |   |
| Other      current assets                                                                                                         |          | 20,318 |   |   | 23,078 |   |
| Total      current assets                                                                                                         |          | 228,988 |   |   | 358,895 |   |
| Property,      plant and equipment, net (Note 5)                                                                                  |          | 1,057,658 |   |   | 1,056,837 |   |
| Real      estate held for sale and investment                                                                                     |          | 311,485 |   |   | 249,305 |   |
| Deferred      charges and other assets                                                                                            |          | 31,976 |   |   | 38,054 |   |
| Notes      receivable                                                                                                             |          | 6,994 |   |   | 8,051 |   |
| Goodwill,      net (Note 5)                                                                                                       |          | 167,950 |   |   | 142,282 |   |
| Intangible      assets, net (Note 5)                                                                                              |          | 79,429 |   |   | 72,530 |   |
| Total      assets                                                                                                                 | $             | 1,884,480 |   | $ | 1,925,954 |   |
|                                                                                                                              |          |   |   |   |   |   |
| Liabilities      and Stockholders' Equity                                                                                         |          |   |   |   |   |   |
| Current      liabilities:                                                                                                         |          |   |   |   |   |   |
| Accounts      payable and accrued expenses (Note 5)                                                                               | $             | 245,536 |   | $ | 294,182 |   |
| Income      taxes payable                                                                                                         |          | 5,460 |   |   | 57,474 |   |
| Long-term      debt due within one year (Note 4)                                                                                  |          | 352 |   |   | 15,355 |   |
| Total      current liabilities                                                                                                    |          | 251,348 |   |   | 367,011 |   |
| Long-term      debt (Note 4)                                                                                                      |          | 491,608 |   |   | 541,350 |   |
| Other      long-term liabilities (Note 5)                                                                                         |          | 233,169 |   |   | 183,643 |   |
| Deferred      income taxes (Note 12)                                                                                              |          | 112,234 |   |   | 75,279 |   |
| Commitments      and contingencies (Note 14)                                                                                      |          |   |   |   |   |   |
| Minority      interest in net assets of consolidated subsidiaries                                                                 |          | 30,826 |   |   | 29,915 |   |
| Stockholders’      equity:                                                                                                  |          |   |   |   |   |   |
| Preferred      stock, $0.01 par value, 25,000,000 shares authorized, no shares issued and      outstanding                        |          | -- |   |   | -- |   |
| Common      stock, $0.01 par value, 100,000,000 shares authorized, and 40,049,988 and      39,926,496 shares issued, respectively |          | 400 |   |   | 399 |   |
| Additional      paid-in capital                                                                                                   |          | 555,728 |   |   | 545,773 |   |
| Retained      earnings                                                                                                            |          | 356,995 |   |   | 308,045 |   |
| Treasury      stock, at cost; 3,878,535 and 3,004,108 shares, respectively (Note      17)                                         |          | (147,828 | ) |   | (125,461 | ) |
| Total      stockholders’ equity                                                                                             |          | 765,295 |   |   | 728,756 |   |
| Total      liabilities and stockholders’ equity                                                                             | $             | 1,884,480 |   | $ | 1,925,954 |   |

Consolidated Statements of Operations 

|                                                                                                     |   | Year      ended July 31, |
|----------------------------------------------------------------------------------------------------------|--------|--------------------------|
|                                                                                                     |   | 2009                     | 2008 | 2007 |
| Net      revenue:                                                                                        |   |                     |   |   |   |   |   |   |   |   |
| Mountain                                                                                                 |   | $                        | 614,597 |   | $ | 685,533 |   | $ | 665,377 |   |
| Lodging                                                                                                  |   |                     | 176,241 |   |   | 170,057 |   |   | 162,451 |   |
| Real      estate                                                                                         |   |                     | 186,150 |   |   | 296,566 |   |   | 112,708 |   |
| Total      net revenue                                                                                   |   |                     | 976,988 |   |   | 1,152,156 |   |   | 940,536 |   |
| Segment      operating expense (exclusive of depreciation and amortization shown      separately below): |   |                     |   |   |   |   |   |   |   |   |
| Mountain                                                                                                 |   |                     | 451,025 |   |   | 470,362 |   |   | 462,708 |   |
| Lodging                                                                                                  |   |                     | 169,482 |   |   | 159,832 |   |   | 144,252 |   |
| Real      estate                                                                                         |   |                     | 142,070 |   |   | 251,338 |   |   | 115,190 |   |
| Total      segment operating expense                                                                     |   |                     | 762,577 |   |   | 881,532 |   |   | 722,150 |   |
| Other      operating (expense) income:                                                                   |   |                     |   |   |   |   |   |   |   |   |
| Gain      on sale of real property                                                                       |   |                     | -- |   |   | 709 |   |   | -- |   |
| Depreciation      and amortization                                                                       |   |                     | (107,213 | ) |   | (93,794 | ) |   | (87,664 | ) |
| Relocation      and separation charges (Note 9)                                                          |   |                     | -- |   |   | -- |   |   | (1,433 | ) |
| Loss      on disposal of fixed assets, net                                                               |   |                     | (1,064 | ) |   | (1,534 | ) |   | (1,083 | ) |
| Income      from operations                                                                              |   |                     | 106,134 |   |   | 176,005 |   |   | 128,206 |   |
| Mountain      equity investment income, net                                                              |   |                     | 817 |   |   | 5,390 |   |   | 5,059 |   |
| Investment      income, net                                                                              |   |                     | 1,793 |   |   | 8,285 |   |   | 12,403 |   |
| Interest      expense, net                                                                               |   |                     | (27,548 | ) |   | (30,667 | ) |   | (32,625 | ) |
| Loss      on sale of business, net (Note 10)                                                             |   |                     | -- |   |   | -- |   |   | (639 | ) |
| Contract      dispute credit (charges), net (Note 14)                                                    |   |                     | -- |   |   | 11,920 |   |   | (4,642 | ) |
| Gain      on put option, net (Note 10)                                                                   |   |                     | -- |   |   | -- |   |   | 690 |   |
| Minority      interest in income of consolidated subsidiaries, net                                       |   |                     | (1,602 | ) |   | (4,920 | ) |   | (7,801 | ) |
| Income      before provision for income taxes                                                            |   |                     | 79,594 |   |   | 166,013 |   |   | 100,651 |   |
| Provision      for income taxes (Note 12)                                                                |   |                     | (30,644 | ) |   | (63,086 | ) |   | (39,254 | ) |
| Net      income                                                                                          |   | $                        | 48,950 |   | $ | 102,927 |   | $ | 61,397 |   |
|                                                                                                     |   |                     |   |   |   |   |   |   |   |   |
| Per      share amounts (Note 3):                                                                         |   |                     |   |   |   |   |   |   |   |   |
| Basic      net income per share                                                                          |   | $                        | 1.34 |   | $ | 2.67 |   | $ | 1.58 |   |
| Diluted      net income per share                                                                        |   | $                        | 1.33 |   | $ | 2.64 |   | $ | 1.56 |   |

Consolidated Statements of Stockholders' Equity

|                             |   |   |   |              |   |    |   |     |       |   |     |    |                |   |   |    |
|----------------------------------|--------|--------|--------|-------------------|--------|---------|--------|----------|------------|--------|----------|---------|---------------------|--------|--------|---------|
|                             |   |   |   |              |   |    |   |     | Additional |   |     |    |                |   |   | Total   |
|                             |   |   |   | Common      Stock |   | Paid-in |   | Retained |       |   | Treasury |    | Stockholders’ |
|                             |   |   |   | Shares            |   |    | Amount |     | Capital    |   | Earnings |    |                | Stock  |   | Equity  |
| Balance,      July 31, 2006      |   |   |   | 39,036,282        |   |    | $      | 390      |       |   | $        | 509,505 |                |   | $      | 143,721 |   |   | $ | (10,839 | ) | $ | 642,777 |   |
| Net      income                  |   |   |   | --                |   |    |   | --       |       |   |     | --      |                |   |   | 61,397  |   |   |   | -- |   |   | 61,397 |   |
| Stock-based      compensation    |   |   |   |              |   |    |   |     |       |   |     |    |                |   |   |    |   |   |   |   |   |   |   |   |
| (Note      18)                   |   |   |   | --                |   |    |   | --       |       |   |     | 6,965   |                |   |   | --      |   |   |   | -- |   |   | 6,965 |   |
| Issuance      of shares          |   |   |   |              |   |    |   |     |       |   |     |    |                |   |   |    |   |   |   |   |   |   |   |   |
| under      share                 |   |   |   |              |   |    |   |     |       |   |     |    |                |   |   |    |   |   |   |   |   |   |   |   |
| award      plans (Note 18)       |   |   |   | 711,694           |   |    |   | 7        |       |   |     | 10,975  |                |   |   | --      |   |   |   | -- |   |   | 10,982 |   |
| Tax      benefit from share      |   |   |   |              |   |    |   |     |       |   |     |    |                |   |   |    |   |   |   |   |   |   |   |   |
| award      plans                 |   |   |   | --                |   |    |   | --       |       |   |     | 6,925   |                |   |   | --      |   |   |   | -- |   |   | 6,925 |   |
| Repurchases      of common stock |   |   |   |              |   |    |   |     |       |   |     |    |                |   |   |    |   |   |   |   |   |   |   |   |
| (Note      17)                   |   |   |   | --                |   |    |   | --       |       |   |     | --      |                |   |   | --      |   |   |   | (15,007 | ) |   | (15,007 | ) |
| Balance,      July 31, 2007      |   |   |   | 39,747,976        |   |    |   | 397      |       |   |     | 534,370 |                |   |   | 205,118 |   |   |   | (25,846 | ) |   | 714,039 |   |
| Net      income                  |   |   |   | --                |   |    |   | --       |       |   |     | --      |                |   |   | 102,927 |   |   |   | -- |   |   | 102,927 |   |
| Stock-based      compensation    |   |   |   |              |   |    |   |     |       |   |     |    |                |   |   |    |   |   |   |   |   |   |   |   |
| (Note      18)                   |   |   |   | --                |   |    |   | --       |       |   |     | 8,414   |                |   |   | --      |   |   |   | -- |   |   | 8,414 |   |
| Issuance      of shares          |   |   |   |              |   |    |   |     |       |   |     |    |                |   |   |    |   |   |   |   |   |   |   |   |
| under      share                 |   |   |   |              |   |    |   |     |       |   |     |    |                |   |   |    |   |   |   |   |   |   |   |   |
| award      plans (Note 18)       |   |   |   | 178,520           |   |    |   | 2        |       |   |     | 1,122   |                |   |   | --      |   |   |   | -- |   |   | 1,124 |   |
| Tax      benefit from share      |   |   |   |              |   |    |   |     |       |   |     |    |                |   |   |    |   |   |   |   |   |   |   |   |
| award      plans                 |   |   |   | --                |   |    |   | --       |       |   |     | 1,867   |                |   |   | --      |   |   |   | -- |   |   | 1,867 |   |
| Repurchases      of common stock |   |   |   |              |   |    |   |     |       |   |     |    |                |   |   |    |   |   |   |   |   |   |   |   |
| (Note      17)                   |   |   |   | --                |   |    |   | --       |       |   |     | --      |                |   |   | --      |   |   |   | (99,615 | ) |   | (99,615 | ) |
| Balance,      July 31, 2008      |   |   |   | 39,926,496        |   |    |   | 399      |       |   |     | 545,773 |                |   |   | 308,045 |   |   |   | (125,461 | ) |   | 728,756 |   |
| Net      income                  |   |   |   | --                |   |    |   | --       |       |   |     | --      |                |   |   | 48,950  |   |   |   | -- |   |   | 48,950 |   |
| Stock-based      compensation    |   |   |   |              |   |    |   |     |       |   |     |    |                |   |   |    |   |   |   |   |   |   |   |   |
| (Note      18)                   |   |   |   | --                |   |    |   | --       |       |   |     | 10,741  |                |   |   | --      |   |   |   | -- |   |   | 10,741 |   |
| Issuance      of shares          |   |   |   |              |   |    |   |     |       |   |     |    |                |   |   |    |   |   |   |   |   |   |   |   |
| under      share                 |   |   |   |              |   |    |   |     |       |   |     |    |                |   |   |    |   |   |   |   |   |   |   |   |
| award      plans (Note 18)       |   |   |   | 123,492           |   |    |   | 1        |       |   |     | (550    | )                   |   |   | --      |   |   |   | -- |   |   | (549 | ) |
| Tax      benefit from share      |   |   |   |              |   |    |   |     |       |   |     |    |                |   |   |    |   |   |   |   |   |   |   |   |
| award      plans                 |   |   |   | --                |   |    |   | --       |       |   |     | (236    | )                   |   |   | --      |   |   |   | -- |   |   | (236 | ) |
| Repurchases      of common stock |   |   |   |              |   |    |   |     |       |   |     |    |                |   |   |    |   |   |   |   |   |   |   |   |
| (Note      17)                   |   |   |   | --                |   |    |   | --       |       |   |     | --      |                |   |   | --      |   |   |   | (22,367 | ) |   | (22,367 | ) |
| Balance,      July 31, 2009      |   |   |   | 40,049,988        |   |    | $      | 400      |       |   | $        | 555,728 |                |   | $      | 356,995 |   |   | $ | (147,828 | ) | $ | 765,295 |   |

Consolidated Statements of Cash Flows 

|                                                                                        |   | Year      Ended July 31, |
|---------------------------------------------------------------------------------------------|--------|--------------------------|
|                                                                                        |   | 2009                     |   | 2008 |   | 2007 |
| Cash      flows from operating activities:                                                  |   |                     |   |   |   |   |   |   |   |   |   |   |
| Net      income                                                                             |   | $                        | 48,950 |   |   | $ | 102,927 |   |   | $ | 61,397 |   |
| Adjustments      to reconcile net income to net cash provided by operating      activities: |   |                     |   |   |   |   |   |   |   |   |   |   |
| Depreciation      and amortization                                                          |   |                     | 107,213 |   |   |   | 93,794 |   |   |   | 87,664 |   |
| Cost      of real estate sales                                                              |   |                     | 103,893 |   |   |   | 208,820 |   |   |   | 81,176 |   |
| Stock-based      compensation expense                                                       |   |                     | 10,741 |   |   |   | 8,414 |   |   |   | 6,998 |   |
| Loss      on sale of business, net                                                          |   |                     | -- |   |   |   | -- |   |   |   | 639 |   |
| Deferred      income taxes, net                                                             |   |                     | 30,767 |   |   |   | 2,980 |   |   |   | (3,968 | ) |
| Minority      interest in net income of consolidated subsidiaries, net                      |   |                     | 1,602 |   |   |   | 4,920 |   |   |   | 7,801 |   |
| Other      non-cash (income) expense, net                                                   |   |                     | (5,300 | ) |   |   | (7,268 | ) |   |   | 720 |   |
| Changes      in assets and liabilities:                                                     |   |                     |   |   |   |   |   |   |   |   |   |   |
| Restricted      cash                                                                        |   |                     | 47,372 |   |   |   | (3,688 | ) |   |   | (34,427 | ) |
| Accounts      receivable, net                                                               |   |                     | (7,833 | ) |   |   | (12,173 | ) |   |   | (4,496 | ) |
| Inventories,      net                                                                       |   |                     | 761 |   |   |   | (1,643 | ) |   |   | (5,171 | ) |
| Investments      in real estate                                                             |   |                     | (161,608 | ) |   |   | (217,482 | ) |   |   | (179,234 | ) |
| Accounts      payable and accrued expenses                                                  |   |                     | (19,568 | ) |   |   | 5,946 |   |   |   | 30,691 |   |
| Income      taxes payable                                                                   |   |                     | (27,297 | ) |   |   | 20,033 |   |   |   | 19,924 |   |
| Deferred      real estate deposits                                                          |   |                     | (46,011 | ) |   |   | (2,308 | ) |   |   | 25,330 |   |
| Private      club deferred initiation fees and deposits                                     |   |                     | 41,591 |   |   |   | 15,867 |   |   |   | 21,438 |   |
| Other      assets and liabilities, net                                                      |   |                     | 9,003 |   |   |   | (2,143 | ) |   |   | 1,960 |   |
| Net      cash provided by operating activities                                              |   |                     | 134,276 |   |   |   | 216,996 |   |   |   | 118,442 |   |
| Cash      flows from investing activities:                                                  |   |                     |   |   |   |   |   |   |   |   |   |   |
| Capital      expenditures                                                                   |   |                     | (106,491 | ) |   |   | (150,892 | ) |   |   | (119,232 | ) |
| Acquisition      of business                                                                |   |                     | (38,170 | ) |   |   | -- |   |   |   | -- |   |
| Cash      received from sale of business                                                    |   |                     | -- |   |   |   | -- |   |   |   | 3,544 |   |
| Purchase      of minority interests                                                         |   |                     | -- |   |   |   | -- |   |   |   | (8,387 | ) |
| Other      investing activities, net                                                        |   |                     | 36 |   |   |   | 2,757 |   |   |   | (8,071 | ) |
| Net      cash used in investing activities                                                  |   |                     | (144,625 | ) |   |   | (148,135 | ) |   |   | (132,146 | ) |
| Cash      flows from financing activities:                                                  |   |                     |   |   |   |   |   |   |   |   |   |   |
| Repurchases      of common stock                                                            |   |                     | (22,367 | ) |   |   | (99,615 | ) |   |   | (15,007 | ) |
| Proceeds      from borrowings under non-recourse real estate financings                     |   |                     | 9,013 |   |   |   | 136,519 |   |   |   | 75,019 |   |
| Payments      of non-recourse real estate financings                                        |   |                     | (58,407 | ) |   |   | (174,008 | ) |   |   | (1,493 | ) |
| Proceeds      from borrowings under other long-term debt                                    |   |                     | 67,280 |   |   |   | 77,641 |   |   |   | 64,612 |   |
| Payments      of other long-term debt                                                       |   |                     | (82,632 | ) |   |   | (78,121 | ) |   |   | (75,284 | ) |
| Other      financing activities, net                                                        |   |                     | 4,415 |   |   |   | 249 |   |   |   | 4,882 |   |
| Net      cash (used in) provided by financing activities                                    |   |                     | (82,698 | ) |   |   | (137,335 | ) |   |   | 52,729 |   |
| Net      (decrease) increase in cash and cash equivalents                                   |   |                     | (93,047 | ) |   |   | (68,474 | ) |   |   | 39,025 |   |
|  Cash      and cash equivalents:                                                       |   |                     |   |   |   |   |   |   |   |   |   |   |
| Beginning      of period                                                                    |   |                     | 162,345 |   |   |   | 230,819 |   |   |   | 191,794 |   |
| End      of period                                                                          |   | $                        | 69,298 |   |   | $ | 162,345 |   |   | $ | 230,819 |   |
|                                                                                        |   |                     |   |   |   |   |   |   |   |   |   |   |
| Cash      paid for interest, net of amounts capitalized                                     |   | $                        | 25,556 |   |   | $ | 34,298 |   |   | $ | 23,573 |   |
| Taxes      paid, net                                                                        |   | $                        | 25,545 |   |   | $ | 35,483 |   |   | $ | 16,357 |   |

 Notes to Consolidated Financial Statements 

|                                     | Estimated      Life |
|------------------------------------------|---------------------|
|                                     | in      Years       |
| Land      improvements                   | 10-35               |
| Buildings      and building improvements | 7-30                |
| Machinery      and equipment             | 2-30                |
| Furniture      and fixtures              | 3-10                |
| Software                                 | 3                   |
| Vehicles                                 | 3-4                 |

|                              |   | July      31, 2009 |    | July      31, 2008 |
|-----------------------------------|--------|--------------------|---------|--------------------|
|                              |   | Carrying           |    | Fair               |   | Carrying |   | Fair |
|                              |   | Value              |    | Value              |   | Value |   | Value |
| 6.75%      Notes                  |   | $                  | 390,000 |               | $ | 374,400 |   | $ | 390,000 |   | $ | 362,700 |
| Industrial      Development Bonds |   | $                  | 42,700  |               | $ | 43,702 |   | $ | 57,700 |   | $ | 57,556 |
| Other      long-term debt         |   | $                  | 6,685   |               | $ | 6,651 |   | $ | 7,036 |   | $ | 6,590 |

|                                          |   | Year      Ended July 31, |
|-----------------------------------------------|--------|--------------------------|
|                                          |   | 2009                     | 2008 |   | 2007 |
| Mountain      operating expense               |   | $                        | 4,826 |   | $ | 3,834 |   |   | $ | 3,824 |   |
| Lodging      operating expense                |   |                     | 1,778 |   |   | 1,294 |   |   |   | 1,091 |   |
| Real      estate operating expense            |   |                     | 4,129 |   |   | 3,136 |   |   |   | 2,083 |   |
| Pre-tax      stock-based compensation expense |   |                     | 10,733 |   |   | 8,264 |   |   |   | 6,998 |   |
| Less:      benefit for income taxes           |   |                     | 4,071 |   |   | 3,134 |   |   |   | 2,628 |   |
| Net      stock-based compensation expense     |   | $                        | 6,662 |   | $ | 5,130 |   |   | $ | 4,370 |   |

|                                     |   | Year      Ended July 31, |
|------------------------------------------|--------|--------------------------|
|                                     |   | 2009                     |   | 2008 |   | 2007 |
|                                     |   | Basic                    |   | Diluted |   | Basic |   | Diluted |   | Basic |   | Diluted |
| Net      income per share:               |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income                          |   | $                        | 48,950 |   |   | $ | 48,950 |   |   | $ | 102,927 |   |   | $ | 102,927 |   |   | $ | 61,397 |   |   | $ | 61,397 |   |
|                                     |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted-average      shares outstanding |   |                     | 36,546 |   |   |   | 36,546 |   |   |   | 38,616 |   |   |   | 38,616 |   |   |   | 38,849 |   |   |   | 38,849 |   |
| Effect      of dilutive securities       |   |                     | -- |   |   |   | 127 |   |   |   | -- |   |   |   | 318 |   |   |   | -- |   |   |   | 525 |   |
| Total      shares                        |   |                     | 36,546 |   |   |   | 36,673 |   |   |   | 38,616 |   |   |   | 38,934 |   |   |   | 38,849 |   |   |   | 39,374 |   |
| Net      income per share                |   | $                        | 1.34 |   |   | $ | 1.33 |   |   | $ | 2.67 |   |   | $ | 2.64 |   |   | $ | 1.58 |   |   | $ | 1.56 |   |

|                                         | Fiscal      Year  |   |   | July      31, |   |   | July      31, |
|----------------------------------------------|-------------------|--------|--------|---------------|--------|--------|---------------|
|                                         | Maturity      (i) |   |   | 2009          |   |   | 2008          |
| Credit      Facility Revolver (a)            | 2012              |   | $      | --            |   | $      | --            |
| SSV      Facility (b)                        | 2011              |   |   | --            |   |   | --            |
| Industrial      Development Bonds (c)        | 2011-2020         |   |   | 42,700        |   |   | 57,700        |
| Employee      Housing Bonds (d)              | 2027-2039         |   |   | 52,575        |   |   | 52,575        |
| Non-Recourse      Real Estate Financings (e) | --                |   |   | --            |   |   | 49,394        |
| 6.75%      Senior Subordinated Notes (f)     | 2014              |   |   | 390,000       |   |   | 390,000       |
| Other      (g)                               | 2010-2029         |   |   | 6,685         |   |   | 7,036         |
| Total      debt                              |              |   |   | 491,960       |   |   | 556,705       |
| Less:  Current      maturities (h) |              |   |   | 352           |   |   | 15,355        |
| Long-term      debt                          |              |   | $      | 491,608       |   | $      | 541,350       |

| (a) | On      March 20, 2008, The Vail Corporation (“Vail Corp.”), a wholly-owned      subsidiary of the Company, exercised the accordion feature under the      revolver component of its senior credit facility (the “Credit Facility”)      as provided in the existing Fourth Amended and Restated Credit Agreement,      dated as of January 28, 2005, as amended, between The Vail Corp., Bank of      America, N.A. as administrative agent and the Lenders party thereto (the      “Credit Agreement”) governing the Company’s Credit Facility and the      Indenture, dated as of January 29, 2004 among the Company, the guarantors      therein and The Bank of New York Mellon Trust Company, N.A. as Trustee      (“Indenture”), governing the 6.75% Senior Subordinated Notes due 2014      (“6.75% Notes”), which expanded the borrowing capacity from $300.0 million      to $400.0 million at the same terms existing in the Credit      Agreement. Vail      Corp. obligations under the Credit Agreement are guaranteed by the Company      and certain of its subsidiaries and are collateralized by a pledge of all      of the capital stock of Vail Corp., substantially all of its subsidiaries      and the Company's interest in SSV.  The proceeds of loans made      under the Credit Agreement may be used to fund the Company's working      capital needs, capital expenditures, investment in real estate,      acquisitions and other general corporate purposes, including the issuance      of letters of credit.  Borrowings under the Credit Agreement      bear interest annually at the Company's option currently at the rate of      (i) LIBOR plus 0.5% (0.78% at July 31, 2009) or (ii) the Agent's prime      lending rate plus, in certain circumstances, a margin (3.25% at July 31,      2009).  Interest rate margins fluctuate based upon the ratio of      the Company's Net Funded Debt to Adjusted EBITDA (as defined in the Credit      Agreement) on a trailing twelve-month basis.  The Credit      Agreement also includes a quarterly unused commitment fee, which is equal      to a percentage determined by the Net Funded Debt to Adjusted EBITDA      ratio, as defined in the Credit Agreement, times the daily amount by which      the Credit Agreement commitment exceeds the total of outstanding loans and      outstanding letters of credit.  The unused amounts are      accessible to the extent that the Net Funded Debt to Adjusted EBITDA ratio      does not exceed the maximum ratio allowed at quarter-end.  The      unused amount available for borrowing under the Credit Agreement was      $304.7 million as of July 31, 2009, net of certain letters of credit of      $95.3 million outstanding under the Credit Agreement.  The      Credit Agreement provides for affirmative and negative covenants that      restrict, among other things, the Company's ability to incur indebtedness,      dispose of assets, make capital expenditures, make distributions and make      investments.  In addition, the Credit Agreement includes the      following restrictive financial covenants: Net Funded Debt to Adjusted      EBITDA ratio, Interest Coverage ratio, and Minimum Net Worth (each as      defined in the Credit Agreement). |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  (b) | The      SSV Credit Facility (“SSV Facility”) provides for financing up to an      aggregate $33.0 million consisting of (i) an $18.0 million working capital      revolver, (ii) a $10.0 million reducing revolver and (iii) a $5.0 million      acquisition revolver.  Obligations under the SSV Facility are      collateralized by a first priority security interest in all the assets of      SSV ($91.6 million at July 31, 2009).  Availability under the      SSV Facility is based on the book values of accounts receivable,      inventories and rental equipment of SSV.  Borrowings bear      interest annually at SSV's option of (i) LIBOR plus 0.875% (1.15% at July      31, 2009) or (ii) U.S. Bank's prime rate minus 1.75% (1.50% at July 31,      2009).  Proceeds under the working capital revolver are for      SSV's seasonal working capital needs.  No principal payments are      due until maturity, and principal may be drawn and repaid at any      time.  Principal under the reducing revolver may be drawn and      repaid at any time.  The reducing revolver commitments decrease      by $0.3 million on January 31, April 30, July 31 and October 31 of each      year beginning January 31, 2006 ($5.3 million available at July 31,      2009).  Any outstanding balance in excess of the reduced      commitment amount is due on the day of each commitment      reduction.  The acquisition revolver is to be utilized to make      acquisitions subject to U.S. Bank's approval.  Principal under      the acquisition revolver may be drawn and repaid at any      time.  The acquisition revolver commitments decrease by $0.2      million on January 31, April 30, July 31 and October 31 of each year      beginning January 31, 2007 ($3.3 million available at July 31,      2009).  Any outstanding balance in excess of the reduced      commitment amount is due on the day of each commitment      reduction.  The SSV Facility contains certain restrictive      financial covenants, including a Consolidated Leverage Ratio and a Minimum      Fixed Charge Coverage Ratio (each as defined in the underlying credit      agreement). |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | The      Company has outstanding $42.7 million of industrial development bonds      (collectively, the “Industrial Development Bonds”), of which $41.2 million      were issued by Eagle County, Colorado (the “Eagle County Bonds”) and      mature, subject to prior redemption, on August 1, 2019.  These      bonds accrue interest at 6.95% per annum, with interest being payable      semi-annually on February 1 and August 1.  The promissory note      with respect to the Eagle County Bonds between Eagle County and the      Company is collateralized by the Forest Service permits for Vail and      Beaver Creek.  The Series 1991 Sports Facilities Refunding      Revenue Bonds, issued by Summit County, Colorado, have an aggregate      outstanding principal amount of $1.5 million maturing in the year ending      July 31, 2011 and bear interest at 7.375%.  The promissory note      with respect to the Summit County Bonds between Summit County and the      Company is pledged and endorsed to the Bank of New York as Trustee under      the Indenture of Trust underlying the Summit County Bonds.  The      promissory note is also collateralized in accordance with a guaranty from      Ralston Purina Company (subsequently assumed by Vail Corp. to the Trustee      for the benefit of the registered owners of the bonds).  On      August 29, 2008, $15.0 million of borrowings under the Series 1990 Sports      Facilities Refunding Revenue Bonds, issued by Summit County, Colorado was      paid in full. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | The      Company has recorded for financial reporting purposes the outstanding debt      of four Employee Housing Entities (each an “Employee Housing Entity” and      collectively the “Employee Housing Entities”): Breckenridge Terrace,      Tarnes, BC Housing and Tenderfoot.  The proceeds of the Employee      Housing Bonds were used to develop apartment complexes designated      primarily for use by the Company's seasonal employees at its mountain      resorts.  The Employee Housing Bonds are variable rate,      interest-only instruments with interest rates tied to LIBOR plus 0% to      0.05% (0.28% to 0.33% at July 31, 2009).  Interest on the      Employee Housing Bonds is paid monthly in arrears and the interest rate is      adjusted weekly.  No principal payments are due on the Employee      Housing Bonds until maturity.  Each Employee Housing Entity’s      bonds were issued in two series.  The bonds for each Employee      Housing Entity are backed by letters of credit issued under the Credit      Facility.  The table below presents the principal amounts      outstanding for the Employee Housing Bonds as of July 31, 2009 (in      thousands): |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                      | Maturity      (i) |   |   | Tranche      A |   |   | Tranche      B |   |   | Total  |
|---------------------------|-------------------|--------|--------|----------------|--------|--------|----------------|--------|--------|--------|
| Breckenridge      Terrace | 2039              |   | $      | 14,980         |   | $      | 5,000          |   | $      | 19,980 |
| Tarnes                    | 2039              |   |   | 8,000          |   |   | 2,410          |   |   | 10,410 |
| BC      Housing           | 2027              |   |   | 9,100          |   |   | 1,500          |   |   | 10,600 |
| Tenderfoot                | 2035              |   |   | 5,700          |   |   | 5,885          |   |   | 11,585 |
| Total                     |              |   | $      | 37,780         |   | $      | 14,795         |   | $      | 52,575 |

| (e) | In      March 2007, The Chalets at The Lodge at Vail, LLC (“Chalets”), a      wholly-owned subsidiary of the Company, entered into a construction loan      agreement (“Chalets Facility”) in the amount of up to $123.0 million with      Wells Fargo, as administrative agent, book manager, and joint lead      arranger, U.S. Bank as joint lead arranger and syndication agent, and the      lenders party thereto.  Borrowings under the Chalets Facility      were non-revolving and had to be used for the payment of certain costs      associated with the construction and development of The Lodge at Vail      Chalets, a residential development consisting of 13 luxury condominium      units, as well as a private mountain club, a spa, skier services building      and parking structure.  As of July 31, 2008      borrowings under the Chalets Facility were $49.4      million.  The Chalets Facility was paid in full during the year      ended July 31, 2009. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f) | The      Company has outstanding $390.0 million of 6.75% Notes issued in January      2004.  The 6.75% Notes have a fixed annual interest rate of      6.75% with interest due semi-annually on February 15 and August      15.  No principal payments are due to be paid until      maturity.  The Company has certain early redemption options      under the terms of the 6.75% Notes.  The premium for early      redemption of the 6.75% Notes ranges from 0% to 3.375%, depending on the      date of redemption.  The 6.75% Notes are subordinated to certain      of the Company's debts, including the Credit Facility.  The      Company's payment obligations under the 6.75% Notes are jointly and      severally guaranteed by substantially all of the Company's current and      future domestic subsidiaries (see Note 20, Guarantor Subsidiaries and      Non-Guarantor Subsidiaries).  The Indenture governing the 6.75%      Notes contains restrictive covenants which, among other things, limit the      ability of the Company and its Restricted Subsidiaries (as defined in the      Indenture) to (i) borrow money or sell preferred stock, (ii) create liens,      (iii) pay dividends on or redeem or repurchase stock, (iv) make certain      types of investments, (v) sell stock in the Restricted Subsidiaries, (vi)      create restrictions on the ability of the Restricted Subsidiaries to pay      dividends or make other payments to the Company, (vii) enter into      transactions with affiliates, (viii) issue guarantees of debt and (ix)      sell assets or merge with othercompanies. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g) | Other      obligations primarily consist of a $6.2 million note outstanding to the      Colorado Water Conservation Board, which matures in the year ending July      31, 2029, and capital leases totaling $0.5 million.  Other      obligations, including the Colorado Water Conservation Board note and the      capital leases, bear interest at rates ranging from 3.5% to 6.0% and have      maturities ranging from in the year ending July 31, 2010 to the year      ending July 31, 2029. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h) | Current      maturities represent principal payments due in the next 12      months. |
|-----|--------------------------------------------------------------------------------------|

| (i) | Maturities      are based on the Company's July 31 fiscal year  end. |
|-----|----------------------------------------------------------------------|

|            |   | Total   |
|-----------------|--------|---------|
| 2010            | $      | 352     |
| 2011            |   | 1,827   |
| 2012            |   | 305     |
| 2013            |   | 319     |
| 2014            |   | 390,219 |
| Thereafter      |   | 98,938  |
| Total      debt | $      | 491,960 |

|                                                             |   | July      31, |
|------------------------------------------------------------------|--------|---------------|
|                                                             |   | 2009          |   | 2008 |
| Land      and land improvements                                  |   | $             | 261,263 |   |   | $ | 265,123 |   |
| Buildings      and building improvements                         |   |          | 750,063 |   |   |   | 685,393 |   |
| Machinery      and equipment                                     |   |          | 496,963 |   |   |   | 457,825 |   |
| Furniture      and fixtures                                      |   |          | 174,770 |   |   |   | 149,251 |   |
| Software                                                         |   |          | 44,584 |   |   |   | 39,605 |   |
| Vehicles                                                         |   |          | 33,991 |   |   |   | 28,829 |   |
| Construction      in progress                                    |   |          | 40,724 |   |   |   | 80,601 |   |
|     Gross      property, plant and equipment |   |          | 1,802,358 |   |   |   | 1,706,627 |   |
| Accumulated      depreciation                                    |   |          | (744,700 | ) |   |   | (649,790 | ) |
|     Property,      plant and equipment, net  |   | $             | 1,057,658 |   |   | $ | 1,056,837 |   |

|                                          |   | July      31, |
|-----------------------------------------------|--------|---------------|
|                                          |   |          | 2009 |   |   |   | 2008 |   |
| Indefinite      lived intangible assets       |   |          |   |   |   |   |   |   |
| Trademarks                                    |   | $             | 66,013 |   |   | $ | 61,714 |   |
| Water      rights                             |   |          | 10,684 |   |   |   | 10,684 |   |
| Excess      reorganization value              |   |          | 14,145 |   |   |   | 14,145 |   |
| Other      intangible assets                  |   |          | 6,200 |   |   |   | 6,200 |   |
| Gross      indefinite-lived intangible assets |   |          | 97,042 |   |   |   | 92,743 |   |
| Accumulated      amortization                 |   |          | (24,713 | ) |   |   | (24,713 | ) |
| Indefinite-lived      intangible assets, net  |   |          | 72,329 |   |   |   | 68,030 |   |
|                                          |   |          |   |   |   |   |   |   |
| Goodwill                                      |   |          |   |   |   |   |   |   |
| Goodwill                                      |   |          | 185,304 |   |   |   | 159,636 |   |
| Accumulated      amortization                 |   |          | (17,354 | ) |   |   | (17,354 | ) |
| Goodwill,      net                            |   |          | 167,950 |   |   |   | 142,282 |   |
|                                          |   |          |   |   |   |   |   |   |
| Amortizable      intangible assets            |   |          |   |   |   |   |   |   |
| Customer      lists                           |   |          | 19,414 |   |   |   | 17,814 |   |
| Property      management contracts            |   |          | 4,412 |   |   |   | 4,412 |   |
| Forest      Service permits                   |   |          | 5,902 |   |   |   | 5,905 |   |
| Other      intangible assets                  |   |          | 16,759 |   |   |   | 15,159 |   |
| Gross      amortizable intangible assets      |   |          | 46,487 |   |   |   | 43,290 |   |
| Accumulated      amortization                 |   |          |   |   |   |   |   |   |
| Customer      lists                           |   |          | (17,934 | ) |   |   | (17,814 | ) |
| Property      management contracts            |   |          | (3,809 | ) |   |   | (3,726 | ) |
| Forest      Service permits                   |   |          | (2,348 | ) |   |   | (2,174 | ) |
| Other      intangible assets                  |   |          | (15,296 | ) |   |   | (15,076 | ) |
| Accumulated      amortization                 |   |          | (39,387 | ) |   |   | (38,790 | ) |
| Amortizable      intangible assets, net       |   |          | 7,100 |   |   |   | 4,500 |   |
|                                          |   |          |   |   |   |   |   |   |
| Total      gross intangible assets            |   |          | 328,833 |   |   |   | 295,669 |   |
| Total      accumulated amortization           |   |          | (81,454 | ) |   |   | (80,857 | ) |
| Total      intangible assets, net             |   | $             | 247,379 |   |   | $ | 214,812 |   |

|                          |   |   | Mountain |   |   | Lodging |   |   | Goodwill,      net |
|-------------------------------|--------|--------|----------|--------|--------|---------|--------|--------|--------------------|
| Balance      at July 31, 2007 |   | $      | 107,139  |   | $      | 34,560  |   | $      | 141,699            |
| Acquisition                   |   |   | 583      |   |   | --      |   |   | 583                |
| Balance      at July 31, 2008 |   |   | 107,722  |   |   | 34,560  |   |   | 142,282            |
| Acquisition                   |   |   | --       |   |   | 25,668  |   |   | 25,668             |
| Balance      at July 31, 2009 |   | $      | 107,722  |   | $      | 60,228  |   | $      | 167,950            |

|                                                        |   | July      31, |
|-------------------------------------------------------------|--------|---------------|
|                                                        |   | 2009          | 2008 |
| Trade      payables                                         |   | $             | 42,591 |   | $ | 53,187 |
| Real      estate development payables                       |   |          | 45,681 |   |   | 52,574 |
| Deferred      revenue                                       |   |          | 57,171 |   |   | 45,805 |
| Deferred      real estate and other deposits                |   |          | 21,576 |   |   | 58,421 |
| Accrued      salaries, wages and deferred compensation      |   |          | 15,202 |   |   | 22,397 |
| Accrued      benefits                                       |   |          | 23,496 |   |   | 22,777 |
| Accrued      interest                                       |   |          | 14,002 |   |   | 14,552 |
| Liability      to complete real estate projects, short term |   |          | 3,972 |   |   | 4,199 |
| Other      accruals                                         |   |          | 21,845 |   |   | 20,270 |
| Total      accounts payable and accrued expenses            |   | $             | 245,536 |   | $ | 294,182 |

|                                                           |   | July      31, |
|----------------------------------------------------------------|--------|---------------|
|                                                           |   | 2009          | 2008 |
| Private      club deferred initiation fee revenue and deposits |   | $             | 153,265 |   | $ | 121,947 |
| Deferred      real estate deposits                             |   |          | 32,792 |   |   | 45,775 |
| Other      long-term liabilities                               |   |          | 47,112 |   |   | 15,921 |
| Total      other long-term liabilities                         |   | $             | 233,169 |   | $ | 183,643 |

| Equity      Method Affiliates                                                                   |   | OwnershipInterest |
|-------------------------------------------------------------------------------------------------|--------|-------------------|
| Slifer,      Smith, and Frampton/Vail Associates Real Estate, LLC      (“SSF/VARE”) |   | 50                | % |
| KRED                                                                                            |   | 50                | % |
| Clinton      Ditch and Reservoir Company                                                        |   | 43                | % |

|                  |   |            | Fair      Value Measurements at Reporting Date Using |
|-----------------------|--------|-----------------|------------------------------------------------------|
|                  |   | Balance      at |                                                 |   |   |   |   |   |
|                  |   | July      31,   |                                                 |   |   |   |   |   |
| Description           |   | 2009            |                                                 | Level      1 |   | Level      2 |   | Level      3 |
| Cash      equivalents |   | $               | 61,215                                               |   | $ | 47,915 |   | $ | 13,300 |   | $ | -- |

|                                                        |   | July      31, |
|-------------------------------------------------------------|--------|---------------|
|                                                        |   | 2009          |   | 2008 |
| Deferred      income tax liabilities:                       |   |          |   |   |   |   |   |   |
| Fixed      assets                                           |   | $             | 108,417 |   |   | $ | 89,343 |   |
| Intangible      assets                                      |   |          | 27,878 |   |   |   | 26,542 |   |
| Real      estate and other investments                      |   |          | 944 |   |   |   | -- |   |
| Other,      net                                             |   |          | 2,647 |   |   |   | 2,455 |   |
| Total                                                       |   |          | 139,886 |   |   |   | 118,340 |   |
| Deferred      income tax assets:                            |   |          |   |   |   |   |   |   |
| Deferred      membership revenue                            |   |          | 28,722 |   |   |   | 30,807 |   |
| Real      estate and other investments                      |   |          | 652 |   |   |   | 11,007 |   |
| Deferred      compensation and other accrued expenses       |   |          | 18,315 |   |   |   | 14,083 |   |
| Net      operating loss carryforwards other tax credits     |   |          | 1,444 |   |   |   | 2,775 |   |
| Other,      net                                             |   |          | 1,404 |   |   |   | 1,119 |   |
| Total                                                       |   |          | 50,537 |   |   |   | 59,791 |   |
| Valuation      allowance for deferred income taxes          |   |          | (1,588 | ) |   |   | (1,588 | ) |
| Deferred      income tax assets, net of valuation allowance |   |          | 48,949 |   |   |   | 58,203 |   |
| Net      deferred income tax liability                      |   | $             | 90,937 |   |   | $ | 60,137 |   |

|                                               |   | July      31, |
|----------------------------------------------------|--------|---------------|
|                                               |   | 2009          |   | 2008 |
| Net      current deferred income tax asset         |   | $             | 21,297 |   | $ | 15,142 |   |
| Net      non-current deferred income tax liability |   |          | 112,234 |   |   | 75,279 |   |
| Net      deferred income tax liability             |   | $             | 90,937 |   | $ | 60,137 |   |

|                            |   | Year      Ended July 31, |
|---------------------------------|--------|--------------------------|
|                            |   | 2009                     |   | 2008 |   | 2007 |
| Current:                        |   |                     |   |   |   |   |   |   |   |   |   |   |
| Federal                         |   | $                        | (242 | ) |   | $ | 50,169 |   |   | $ | 37,962 |   |
| State                           |   |                     | 119 |   |   |   | 6,710 |   |   |   | 5,566 |   |
| Total      current              |   |                     | (123 | ) |   |   | 56,879 |   |   |   | 43,528 |   |
| Deferred:                       |   |                     |   |   |   |   |   |   |   |   |   |   |
| Federal                         |   |                     | 27,358 |   |   |   | 5,533 |   |   |   | (4,125 | ) |
| State                           |   |                     | 3,409 |   |   |   | 674 |   |   |   | (149 | ) |
| Total      deferred             |   |                     | 30,767 |   |   |   | 6,207 |   |   |   | (4,274 | ) |
| Provision      for income taxes |   | $                        | 30,644 |   |   | $ | 63,086 |   |   | $ | 39,254 |   |

|                                          |   | Year      Ended July 31, |
|-----------------------------------------------|--------|--------------------------|
|                                          |   | 2009                     | 2008 |   | 2007 |
| At      U.S. Federal income tax rate          |   | 35.0                     |   | % | 35.0 |   | % |   | 35.0 |   | % |
| State      income tax, net of Federal benefit |   | 2.9                      |   | % | 2.9 |   | % |   | 3.5 |   | % |
| Nondeductible      compensation               |   | --                       |   | % | -- |   | % |   | 0.4 |   | % |
| Nondeductible      meals or entertainment     |   | 0.2                      |   | % | 0.1 |   | % |   | 0.2 |   | % |
| General      business credits                 |   | (0.8                     | ) | % | (0.4 | ) | % |   | (0.6 | ) | % |
| Other                                         |   | 1.2                      |   | % | 0.4 |   | % |   | 0.5 |   | % |
|                                          |   | 38.5                     |   | % | 38.0 |   | % |   | 39.0 |   | % |

|                                                              |   | Unrecognized      Tax Benefits |
|-------------------------------------------------------------------|--------|--------------------------------|
| Balance      as of August 1, 2007                                 | $      | 12,257                         |   |
| Additions      based on tax positions related to the current year |   | --                             |   |
| Additions      for tax positions of prior years                   |   | 6,331                          |   |
| Reductions      for tax positions of prior years                  |   | (237                           | ) |
| Settlements                                                       |   | (555                           | ) |
| Balance      as of July 31, 2008                                  | $      | 17,796                         |   |
| Additions      based on tax positions related to the current year |   | --                             |   |
| Additions      for tax positions of prior years                   |   | 9,524                          |   |
| Reductions      for tax positions of prior years                  |   | --                             |   |
| Settlements                                                       |   | --                             |   |
| Balance      as of July 31, 2009                                  | $      | 27,320                         |   |

| 2010       | $      | 16,550 |
|------------|--------|--------|
| 2011       |   | 13,120 |
| 2012       |   | 10,583 |
| 2013       |   | 9,269  |
| 2014       |   | 7,578  |
| Thereafter |   | 23,701 |
| Total      | $      | 80,801 |

|                                                               |   | Year      Ended July 31, |
|--------------------------------------------------------------------|--------|--------------------------|
|                                                               |   | 2009                     |   | 2008 |   | 2007 |
| Net      revenue:                                                  |   |                     |   |   |   |   |   |   |   |   |   |   |
| Lift      tickets                                                  |   | $                        | 276,542 |   |   | $ | 301,914 |   |   | $ | 286,997 |   |
| Ski      school                                                    |   |                     | 65,336 |   |   |   | 81,384 |   |   |   | 78,848 |   |
| Dining                                                             |   |                     | 52,259 |   |   |   | 62,506 |   |   |   | 59,653 |   |
| Retail/rental                                                      |   |                     | 147,415 |   |   |   | 168,765 |   |   |   | 160,542 |   |
| Other                                                              |   |                     | 73,045 |   |   |   | 70,964 |   |   |   | 79,337 |   |
| Total      Mountain net revenue                                    |   |                     | 614,597 |   |   |   | 685,533 |   |   |   | 665,377 |   |
| Lodging                                                            |   |                     | 176,241 |   |   |   | 170,057 |   |   |   | 162,451 |   |
| Resort                                                             |   |                     | 790,838 |   |   |   | 855,590 |   |   |   | 827,828 |   |
| Real      estate                                                   |   |                     | 186,150 |   |   |   | 296,566 |   |   |   | 112,708 |   |
| Total      net revenue                                             |   | $                        | 976,988 |   |   | $ | 1,152,156 |   |   | $ | 940,536 |   |
| Segment      operating expense:                                    |   |                     |   |   |   |   |   |   |   |   |   |   |
| Mountain                                                           |   | $                        | 451,025 |   |   | $ | 470,362 |   |   | $ | 462,708 |   |
| Lodging                                                            |   |                     | 169,482 |   |   |   | 159,832 |   |   |   | 144,252 |   |
| Resort                                                             |   |                     | 620,507 |   |   |   | 630,194 |   |   |   | 606,960 |   |
| Real      estate                                                   |   |                     | 142,070 |   |   |   | 251,338 |   |   |   | 115,190 |   |
| Total      segment operating expense                               |   | $                        | 762,577 |   |   | $ | 881,532 |   |   | $ | 722,150 |   |
|                                                               |   |                     |   |   |   |   |   |   |   |   |   |   |
| Gain      on sale of real property                                 |   | $                        | -- |   |   | $ | 709 |   |   | $ | -- |   |
| Mountain      equity investment income, net                        |   | $                        | 817 |   |   | $ | 5,390 |   |   | $ | 5,059 |   |
|                                                               |   |                     |   |   |   |   |   |   |   |   |   |   |
| Reported      EBITDA:                                              |   |                     |   |   |   |   |   |   |   |   |   |   |
| Mountain                                                           |   | $                        | 164,389 |   |   | $ | 220,561 |   |   | $ | 207,728 |   |
| Lodging                                                            |   |                     | 6,759 |   |   |   | 10,225 |   |   |   | 18,199 |   |
| Resort                                                             |   |                     | 171,148 |   |   |   | 230,786 |   |   |   | 225,927 |   |
| Real      estate                                                   |   |                     | 44,080 |   |   |   | 45,937 |   |   |   | (2,482 | ) |
| Total      Reported EBITDA                                         |   | $                        | 215,228 |   |   | $ | 276,723 |   |   | $ | 223,445 |   |
|                                                               |   |                     |   |   |   |   |   |   |   |   |   |   |
| Real      estate held for sale and investment                      |   | $                        | 311,485 |   |   | $ | 249,305 |   |   | $ | 357,586 |   |
|                                                               |   |                     |   |   |   |   |   |   |   |   |   |   |
| Reconciliation      to net income:                            |   |                     |   |   |   |   |   |   |   |   |   |   |
| Total      Reported EBITDA                                         |   | $                        | 215,228 |   |   | $ | 276,723 |   |   | $ | 223,445 |   |
| Depreciation      and amortization                                 |   |                     | (107,213 | ) |   |   | (93,794 | ) |   |   | (87,664 | ) |
| Relocation      and separation charges                             |   |                     | -- |   |   |   | -- |   |   |   | (1,433 | ) |
| Loss      on disposal of fixed assets, net                         |   |                     | (1,064 | ) |   |   | (1,534 | ) |   |   | (1,083 | ) |
| Investment      income, net                                        |   |                     | 1,793 |   |   |   | 8,285 |   |   |   | 12,403 |   |
| Interest      expense, net                                         |   |                     | (27,548 | ) |   |   | (30,667 | ) |   |   | (32,625 | ) |
| Loss      from sale of business, net                               |   |                     | -- |   |   |   | -- |   |   |   | (639 | ) |
| Contact      dispute credit (charges), net                         |   |                     | -- |   |   |   | 11,920 |   |   |   | (4,642 | ) |
| Gain      on put option, net                                       |   |                     | -- |   |   |   | -- |   |   |   | 690 |   |
| Minority      interest in income of consolidated subsidiaries, net |   |                     | (1,602 | ) |   |   | (4,920 | ) |   |   | (7,801 | ) |
| Income      before provision for income taxes                      |   |                     | 79,594 |   |   |   | 166,013 |   |   |   | 100,651 |   |
| Provision      for income taxes                                    |   |                     | (30,644 | ) |   |   | (63,086 | ) |   |   | (39,254 | ) |
| Net      income                                                    |   | $                        | 48,950 |   |   | $ | 102,927 |   |   | $ | 61,397 |   |

|                                            |   | 2009          |
|-------------------------------------------------|--------|---------------|
|                                            |   | Year          |   | Quarter |   | Quarter |   | Quarter |   | Quarter |
|                                            |   | Ended         |   | Ended |   | Ended |   | Ended |   | Ended |
|                                            |   | July      31, |   | July      31, |   | April      30, |   | January      31, |   | October      31, |
|                                            |   | 2009          |   | 2009 |   | 2009 |   | 2009 |   | 2008 |
| Mountain      revenue                           |   | $             | 614,597 |   |   | $ | 36,150 |   |   | $ | 279,180 |   |   | $ | 258,489 |   |   | $ | 40,778 |   |
| Lodging      revenue                            |   |          | 176,241 |   |   |   | 44,942 |   |   |   | 44,896 |   |   |   | 41,150 |   |   |   | 45,253 |   |
| Real      estate revenue                        |   |          | 186,150 |   |   |   | 20,836 |   |   |   | 9,407 |   |   |   | 89,157 |   |   |   | 66,750 |   |
| Total      net revenue                          |   |          | 976,988 |   |   |   | 101,928 |   |   |   | 333,483 |   |   |   | 388,796 |   |   |   | 152,781 |   |
| Income      (loss) from operations              |   |          | 106,134 |   |   |   | (58,014 | ) |   |   | 107,580 |   |   |   | 106,543 |   |   |   | (49,975 | ) |
| Net      income (loss)                          |   | $             | 48,950 |   |   | $ | (38,730 | ) |   | $ | 61,639 |   |   | $ | 60,545 |   |   | $ | (34,504 | ) |
| Basic      net income (loss) per common share   |   | $             | 1.34 |   |   | $ | (1.07 | ) |   | $ | 1.69 |   |   | $ | 1.66 |   |   | $ | (0.93 | ) |
| Diluted      net income (loss) per common share |   | $             | 1.33 |   |   | $ | (1.07 | ) |   | $ | 1.68 |   |   | $ | 1.65 |   |   | $ | (0.93 | ) |
|                                            |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            |   | 2008          |
|                                            |   | Year          |   | Quarter |   | Quarter |   | Quarter |   | Quarter |
|                                            |   | Ended         |   | Ended |   | Ended |   | Ended |   | Ended |
|                                            |   | July      31, |   | July      31, |   | April      30, |   | January      31, |   | October      31, |
|                                            |   | 2008          |   | 2008 |   | 2008 |   | 2008 |   | 2007 |
| Mountain      revenue                           |   | $             | 685,533 |   |   | $ | 37,549 |   |   | $ | 325,726 |   |   | $ | 279,722 |   |   | $ | 42,536 |   |
| Lodging      revenue                            |   |          | 170,057 |   |   |   | 48,323 |   |   |   | 43,590 |   |   |   | 34,827 |   |   |   | 43,317 |   |
| Real      estate revenue                        |   |          | 296,566 |   |   |   | 184,587 |   |   |   | 54,474 |   |   |   | 45,471 |   |   |   | 12,034 |   |
| Total      net revenue                          |   |          | 1,152,156 |   |   |   | 270,459 |   |   |   | 423,790 |   |   |   | 360,020 |   |   |   | 97,887 |   |
| Income      (loss) from operations              |   |          | 176,005 |   |   |   | (15,824 | ) |   |   | 151,461 |   |   |   | 92,572 |   |   |   | (52,204 | ) |
| Contract      dispute credit, net               |   |          | 11,920 |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | 11,920 |   |
| Net      income (loss)                          |   | $             | 102,927 |   |   | $ | (11,123 | ) |   | $ | 87,341 |   |   | $ | 51,319 |   |   | $ | (24,610 | ) |
| Basic      net income (loss) per common share   |   | $             | 2.67 |   |   | $ | (0.29 | ) |   | $ | 2.26 |   |   | $ | 1.32 |   |   | $ | (0.63 | ) |
| Diluted      net income (loss) per common share |   | $             | 2.64 |   |   | $ | (0.29 | ) |   | $ | 2.24 |   |   | $ | 1.31 |   |   | $ | (0.63 | ) |

|                                  |   | Year      Ended July 31, |
|---------------------------------------|--------|--------------------------|
|                                  |   | 2009                     |   | 2008 | 2007 |
| Expected      volatility              |   | 37.1-      41.0          | % |   | 36.6 | % | 37.4 | % |
| Expected      dividends               |   | --                       | % |   | -- | % | -- | % |
| Expected      term (average in years) |   | 5.4      – 5.7     |   |   | 5.4 |   | 5.3 |   |
| Risk-free      rate                   |   | 2.1-4.9                  | % |   | 4.0-5.1 | % | 4.3-4.8 | % |

|                              |   |   |   |   | Weighted-Average |   | Weighted-Average      |   | Aggregate      |
|-----------------------------------|--------|--------|--------|--------|------------------|--------|-----------------------|--------|----------------|
|                              |   |   |   |   | Exercise         |   | Remaining             |   | Intrinsic      |
|                              |   | Awards |   |   | Price            |   | Contractual      Term |   | Value          |
| Outstanding      at July 31, 2006 |   | 1,783  |   |   | $                | 22.18  |                  |   |           |   |   |   |   |
| Granted                           |   | 227    |   |   |             | 42.37  |                  |   |           |   |   |   |   |
| Exercised                         |   | (649   | )      |   |             | 17.71  |                  |   |           |   |   |   |   |
| Forfeited      or expired         |   | (165   | )      |   |             | 28.63  |                  |   |           |   |   |   |   |
| Outstanding      at July 31, 2007 |   | 1,196  |   |   | $                | 27.55  |                  |   |           |   |   |   |   |
| Granted                           |   | 221    |   |   |             | 59.56  |                  |   |           |   |   |   |   |
| Exercised                         |   | (117   | )      |   |             | 20.40  |                  |   |           |   |   |   |   |
| Forfeited      or expired         |   | (81    | )      |   |             | 45.71  |                  |   |           |   |   |   |   |
| Outstanding      at July 31, 2008 |   | 1,219  |   |   | $                | 32.83  |                  |   |           |   |   |   |   |
| Granted                           |   | 1,055  |   |   |             | 27.88  |                  |   |           |   |   |   |   |
| Exercised                         |   | (31)   |   |   |             | 17.54  |                  |   |           |   |   |   |   |
| Forfeited      or expired         |   | (60)   |   |   |             | 38.97  |                  |   |           |   |   |   |   |
| Outstanding      at July 31, 2009 |   | 2,183  |   |   | $                | 30.49  |                  |   | 7.8      years |   | $ | 9,438 |   |
| Exercisable      at July 31, 2009 |   | 999    |   |   | $                | 29.23  |                  |   | 6.0      years |   | $ | 3,555 |   |

|                               |   |   |   | Weighted-Average |
|------------------------------------|--------|--------|--------|------------------|
|                               |   |   |   | Grant-Date       |
|                               |   | Awards |   | Fair      Value  |
| Outstanding      at August 1, 2008 |   | 497    |   | $                | 16.98 |   |
| Granted                            |   | 1,055  |   |             | 10.34 |   |
| Vested                             |   | (315)  |   |             | 15.22 |   |
| Forfeited                          |   | (53)   |   |             | 14.60 |   |
| Nonvested      at July 31, 2009    |   | 1,184  |   | $                | 11.64 |   |

|                               |   |   |   | Weighted-Average |
|------------------------------------|--------|--------|--------|------------------|
|                               |   |   |   | Grant-Date       |
|                               |   | Awards |   | Fair      Value  |
| Outstanding      at August 1, 2008 |   | 186    |   | $                | 43.32 |   |
| Granted                            |   | 397    |   |             | 28.63 |   |
| Vested                             |   | (137)  |   |             | 36.62 |   |
| Forfeited                          |   | (23)   |   |             | 38.29 |   |
| Nonvested      at July 31, 2009    |   | 423    |   | $                | 30.29 |   |

|                                                              |   |    |      |         |   | 100%      Owned |      |        |   |         |    |   |   |   |       |   |   |   |
|-------------------------------------------------------------------|--------|---------|-----------|--------------|--------|-----------------|-----------|-------------|--------|--------------|---------|--------|--------|--------|------------|--------|--------|--------|
|                                                              |   | Parent  |      | Guarantor    |   | Other           |      | Eliminating |   |         |    |   |
|                                                              |   | Company |      | Subsidiaries |   | Subsidiaries    |      | Entries     |   | Consolidated |
| Current      assets:                                              |   |    |      |         |   |            |      |        |   |         |    |   |   |   |       |   |   |   |   |   |
| Cash      and cash equivalents                                    |   | $       | --        |         |   | $               | 66,364    |        |   | $            | 2,934   |   |   | $      | --         |   |   | $      | 69,298 |   |
| Restricted      cash                                              |   |    | --        |         |   |            | 11,065    |        |   |         | --      |   |   |   | --         |   |   |   | 11,065 |   |
| Trade      receivables, net                                       |   |    | --        |         |   |            | 56,834    |        |   |         | 1,229   |   |   |   | --         |   |   |   | 58,063 |   |
| Inventories,      net                                             |   |    | --        |         |   |            | 11,895    |        |   |         | 37,052  |   |   |   | --         |   |   |   | 48,947 |   |
| Other      current assets                                         |   |    | 21,333    |         |   |            | 18,407    |        |   |         | 1,875   |   |   |   | --         |   |   |   | 41,615 |   |
| Total      current assets                                         |   |    | 21,333    |         |   |            | 164,565   |        |   |         | 43,090  |   |   |   | --         |   |   |   | 228,988 |   |
| Property,      plant and equipment, net                           |   |    | --        |         |   |            | 991,027   |        |   |         | 66,631  |   |   |   | --         |   |   |   | 1,057,658 |   |
| Real      estate held for sale and investment                     |   |    | --        |         |   |            | 311,485   |        |   |         | --      |   |   |   | --         |   |   |   | 311,485 |   |
| Goodwill,      net                                                |   |    | --        |         |   |            | 148,702   |        |   |         | 19,248  |   |   |   | --         |   |   |   | 167,950 |   |
| Intangible      assets, net                                       |   |    | --        |         |   |            | 63,580    |        |   |         | 15,849  |   |   |   | --         |   |   |   | 79,429 |   |
| Other      assets                                                 |   |    | 3,226     |         |   |            | 30,710    |        |   |         | 5,034   |   |   |   | --         |   |   |   | 38,970 |   |
| Investments      in subsidiaries and advances to (from) parent    |   |    | 1,290,532 |         |   |            | 307,124   |        |   |         | (15,179 | )      |   |   | (1,582,477 | )      |   |   | -- |   |
| Total      assets                                                 |   | $       | 1,315,091 |         |   | $               | 2,017,193 |        |   | $            | 134,673 |   |   | $      | (1,582,477 | )      |   | $      | 1,884,480 |   |
|                                                              |   |    |      |         |   |            |      |        |   |         |    |   |   |   |       |   |   |   |   |   |
| Current      liabilities:                                         |   |    |      |         |   |            |      |        |   |         |    |   |   |   |       |   |   |   |   |   |
| Accounts      payable and accrued expenses                        |   | $       | 12,412    |         |   | $               | 214,021   |        |   | $            | 19,103  |   |   | $      | --         |   |   | $      | 245,536 |   |
| Income      taxes payable                                         |   |    | 5,460     |         |   |            | --        |        |   |         | --      |   |   |   | --         |   |   |   | 5,460 |   |
| Long-term      debt due within one year                           |   |    | --        |         |   |            | 9         |        |   |         | 343     |   |   |   | --         |   |   |   | 352 |   |
| Total      current liabilities                                    |   |    | 17,872    |         |   |            | 214,030   |        |   |         | 19,446  |   |   |   | --         |   |   |   | 251,348 |   |
| Long-term      debt                                               |   |    | 390,000   |         |   |            | 42,716    |        |   |         | 58,892  |   |   |   | --         |   |   |   | 491,608 |   |
| Other      long-term liabilities                                  |   |    | 29,690    |         |   |            | 200,974   |        |   |         | 2,505   |   |   |   | --         |   |   |   | 233,169 |   |
| Deferred      income taxes                                        |   |    | 112,234   |         |   |            | --        |        |   |         | --      |   |   |   | --         |   |   |   | 112,234 |   |
| Minority      interest in net assets of consolidated subsidiaries |   |    | --        |         |   |            | --        |        |   |         | --      |   |   |   | 30,826     |   |   |   | 30,826 |   |
| Total      stockholders’ equity                             |   |    | 765,295   |         |   |            | 1,559,473 |        |   |         | 53,830  |   |   |   | (1,613,303 | )      |   |   | 765,295 |   |
| Total      liabilities and stockholders’ equity             |   | $       | 1,315,091 |         |   | $               | 2,017,193 |        |   | $            | 134,673 |   |   | $      | (1,582,477 | )      |   | $      | 1,884,480 |   |

|                                                              |   |    |      |         |   | 100%      Owned |      |        |   |         |    |   |   |   |       |   |   |   |
|-------------------------------------------------------------------|--------|---------|-----------|--------------|--------|-----------------|-----------|-------------|--------|--------------|---------|--------|--------|--------|------------|--------|--------|--------|
|                                                              |   | Parent  |      | Guarantor    |   | Other           |      | Eliminating |   |         |    |   |
|                                                              |   | Company |      | Subsidiaries |   | Subsidiaries    |      | Entries     |   | Consolidated |
| Current      assets:                                              |   |    |      |         |   |            |      |        |   |         |    |   |   |   |       |   |   |   |   |   |
| Cash      and cash equivalents                                    |   | $       | --        |         |   | $               | 156,782   |        |   | $            | 5,563   |   |   | $      | --         |   |   | $      | 162,345 |   |
| Restricted      cash                                              |   |    | --        |         |   |            | 10,526    |        |   |         | 47,911  |   |   |   | --         |   |   |   | 58,437 |   |
| Trade      receivables, net                                       |   |    | --        |         |   |            | 47,953    |        |   |         | 2,232   |   |   |   | --         |   |   |   | 50,185 |   |
| Inventories,      net                                             |   |    | --        |         |   |            | 11,786    |        |   |         | 37,922  |   |   |   | --         |   |   |   | 49,708 |   |
| Other      current assets                                         |   |    | 15,142    |         |   |            | 19,205    |        |   |         | 3,873   |   |   |   | --         |   |   |   | 38,220 |   |
| Total      current assets                                         |   |    | 15,142    |         |   |            | 246,252   |        |   |         | 97,501  |   |   |   | --         |   |   |   | 358,895 |   |
| Property,      plant and equipment, net                           |   |    | --        |         |   |            | 806,696   |        |   |         | 250,141 |   |   |   | --         |   |   |   | 1,056,837 |   |
| Real      estate held for sale and investment                     |   |    | --        |         |   |            | 204,260   |        |   |         | 45,045  |   |   |   | --         |   |   |   | 249,305 |   |
| Goodwill,      net                                                |   |    | --        |         |   |            | 123,034   |        |   |         | 19,248  |   |   |   | --         |   |   |   | 142,282 |   |
| Intangible      assets, net                                       |   |    | --        |         |   |            | 56,650    |        |   |         | 15,880  |   |   |   | --         |   |   |   | 72,530 |   |
| Other      assets                                                 |   |    | 3,936     |         |   |            | 34,922    |        |   |         | 7,247   |   |   |   | --         |   |   |   | 46,105 |   |
| Investments      in subsidiaries and advances to (from) parent    |   |    | 1,248,019 |         |   |            | 599,199   |        |   |         | (61,968 | )      |   |   | (1,785,250 | )      |   |   | -- |   |
| Total      assets                                                 |   | $       | 1,267,097 |         |   | $               | 2,071,013 |        |   | $            | 373,094 |   |   | $      | (1,785,250 | )      |   | $      | 1,925,954 |   |
|                                                              |   |    |      |         |   |            |      |        |   |         |    |   |   |   |       |   |   |   |   |   |
| Current      liabilities:                                         |   |    |      |         |   |            |      |        |   |         |    |   |   |   |       |   |   |   |   |   |
| Accounts      payable and accrued expenses                        |   | $       | 12,446    |         |   | $               | 196,360   |        |   | $            | 85,376  |   |   | $      | --         |   |   | $      | 294,182 |   |
| Income      taxes payable                                         |   |    | 57,474    |         |   |            | --        |        |   |         | --      |   |   |   | --         |   |   |   | 57,474 |   |
| Long-term      debt due within one year                           |   |    | --        |         |   |            | 15,022    |        |   |         | 333     |   |   |   | --         |   |   |   | 15,355 |   |
| Total      current liabilities                                    |   |    | 69,920    |         |   |            | 211,382   |        |   |         | 85,709  |   |   |   | --         |   |   |   | 367,011 |   |
| Long-term      debt                                               |   |    | 390,000   |         |   |            | 42,722    |        |   |         | 108,628 |   |   |   | --         |   |   |   | 541,350 |   |
| Other      long-term liabilities                                  |   |    | 3,142     |         |   |            | 149,557   |        |   |         | 30,944  |   |   |   | --         |   |   |   | 183,643 |   |
| Deferred      income taxes                                        |   |    | 75,279    |         |   |            | --        |        |   |         | --      |   |   |   | --         |   |   |   | 75,279 |   |
| Minority      interest in net assets of consolidated subsidiaries |   |    | --        |         |   |            | --        |        |   |         | --      |   |   |   | 29,915     |   |   |   | 29,915 |   |
| Total      stockholders’ equity                             |   |    | 728,756   |         |   |            | 1,667,352 |        |   |         | 147,813 |   |   |   | (1,815,165 | )      |   |   | 728,756 |   |
| Total      liabilities and stockholders’ equity             |   | $       | 1,267,097 |         |   | $               | 2,071,013 |        |   | $            | 373,094 |   |   | $      | (1,785,250 | )      |   | $      | 1,925,954 |   |

|                                                                             |   |    |    | 100%      Owned |   |         |    |        |   |         |
|----------------------------------------------------------------------------------|--------|---------|---------|-----------------|--------|--------------|---------|-------------|--------|--------------|
|                                                                             |   | Parent  |    | Guarantor       |   | Other        |    | Eliminating |   |         |
|                                                                             |   | Company |    | Subsidiaries    |   | Subsidiaries |    | Entries     |   | Consolidated |
| Total      net revenue                                                           |   | $       | --      |            |   | $            | 828,300 |        |   | $            | 158,016 |   |   | $ | (9,328 | ) |   | $ | 976,988 |   |
| Total      operating expense                                                     |   |    | 498     |            |   |         | 724,985 |        |   |         | 154,547 |   |   |   | (9,176 | ) |   |   | 870,854 |   |
| (Loss)      income from operations                                               |   |    | (498    | )               |   |         | 103,315 |        |   |         | 3,469 |   |   |   | (152 | ) |   |   | 106,134 |   |
| Other      (expense) income, net                                                 |   |    | (27,035 | )               |   |         | 3,813   |        |   |         | (2,685 | ) |   |   | 152 |   |   |   | (25,755 | ) |
| Equity      investment income, net                                               |   |    | --      |            |   |         | 817     |        |   |         | -- |   |   |   | -- |   |   |   | 817 |   |
| Minority      interest in income of consolidated subsidiaries, net               |   |    | --      |            |   |         | --      |        |   |         | -- |   |   |   | (1,602 | ) |   |   | (1,602 | ) |
| (Loss)      income before income taxes                                           |   |    | (27,533 | )               |   |         | 107,945 |        |   |         | 784 |   |   |   | (1,602 | ) |   |   | 79,594 |   |
| Benefit      (provision) for income taxes                                        |   |    | 10,600  |            |   |         | (41,244 | )           |   |         | -- |   |   |   | -- |   |   |   | (30,644 | ) |
| Net      (loss) income before equity in income of consolidated      subsidiaries |   |    | (16,933 | )               |   |         | 66,701  |        |   |         | 784 |   |   |   | (1,602 | ) |   |   | 48,950 |   |
| Equity      in income (loss) of consolidated subsidiaries                        |   |    | 65,883  |            |   |         | (818    | )           |   |         | -- |   |   |   | (65,065 | ) |   |   | -- |   |
| Net      income                                                                  |   | $       | 48,950  |            |   | $            | 65,883  |        |   | $            | 784 |   |   | $ | (66,667 | ) |   | $ | 48,950 |   |

|                                                                             |   |    |    | 100%      Owned |   |         |    |        |   |         |
|----------------------------------------------------------------------------------|--------|---------|---------|-----------------|--------|--------------|---------|-------------|--------|--------------|
|                                                                             |   | Parent  |    | Guarantor       |   | Other        |    | Eliminating |   |         |
|                                                                             |   | Company |    | Subsidiaries    |   | Subsidiaries |    | Entries     |   | Consolidated |
| Total      net revenue                                                           |   | $       | --      |            |   | $            | 709,572 |        |   | $            | 453,741 |   |   | $ | (11,157 | ) |   | $ | 1,152,156 |   |
| Total      operating expense                                                     |   |    | 127     |            |   |         | 599,954 |        |   |         | 387,075 |   |   |   | (11,005 | ) |   |   | 976,151 |   |
| (Loss)      income from operations                                               |   |    | (127    | )               |   |         | 109,618 |        |   |         | 66,666 |   |   |   | (152 | ) |   |   | 176,005 |   |
| Other      (expense) income, net                                                 |   |    | (27,015 | )               |   |         | 20,740  |        |   |         | (4,339 | ) |   |   | 152 |   |   |   | (10,462 | ) |
| Equity      investment income, net                                               |   |    | --      |            |   |         | 5,390   |        |   |         | -- |   |   |   | -- |   |   |   | 5,390 |   |
| Minority      interest in income of consolidated subsidiaries, net               |   |    | --      |            |   |         | --      |        |   |         | -- |   |   |   | (4,920 | ) |   |   | (4,920 | ) |
| (Loss)      income before income taxes                                           |   |    | (27,142 | )               |   |         | 135,748 |        |   |         | 62,327 |   |   |   | (4,920 | ) |   |   | 166,013 |   |
| Benefit      (provision) for income taxes                                        |   |    | 10,341  |            |   |         | (73,401 | )           |   |         | (26 | ) |   |   | -- |   |   |   | (63,086 | ) |
| Net      (loss) income before equity in income of consolidated      subsidiaries |   |    | (16,801 | )               |   |         | 62,347  |        |   |         | 62,301 |   |   |   | (4,920 | ) |   |   | 102,927 |   |
| Equity      in income of consolidated subsidiaries                               |   |    | 119,728 |            |   |         | 46,449  |        |   |         | -- |   |   |   | (166,177 | ) |   |   | -- |   |
| Net      income                                                                  |   | $       | 102,927 |            |   | $            | 108,796 |        |   | $            | 62,301 |   |   | $ | (171,097 | ) |   | $ | 102,927 |   |

|                                                                             |   |    |    | 100%      Owned |   |         |    |        |   |         |
|----------------------------------------------------------------------------------|--------|---------|---------|-----------------|--------|--------------|---------|-------------|--------|--------------|
|                                                                             |   | Parent  |    | Guarantor       |   | Other        |    | Eliminating |   |         |
|                                                                             |   | Company |    | Subsidiaries    |   | Subsidiaries |    | Entries     |   | Consolidated |
| Total      net revenue                                                           |   | $       | --      |            |   | $            | 719,258 |        |   | $            | 234,780 |   |   | $ | (13,502 | ) |   | $ | 940,536 |   |
| Total      operating expense                                                     |   |    | 510     |            |   |         | 612,972 |        |   |         | 210,301 |   |   |   | (11,453 | ) |   |   | 812,330 |   |
| (Loss)      income from operations                                               |   |    | (510    | )               |   |         | 106,286 |        |   |         | 24,479 |   |   |   | (2,049 | ) |   |   | 128,206 |   |
| Other      (expense) income, net                                                 |   |    | (27,037 | )               |   |         | 5,950   |        |   |         | (3,929 | ) |   |   | 152 |   |   |   | (24,864 | ) |
| Equity      investment income, net                                               |   |    | --      |            |   |         | 5,059   |        |   |         | -- |   |   |   | -- |   |   |   | 5,059 |   |
| Loss      on sale of business, net                                               |   |    | --      |            |   |         | (639    | )           |   |         | -- |   |   |   | -- |   |   |   | (639 | ) |
| Gain      on put option, net                                                     |   |    | --      |            |   |         | 690     |        |   |         | -- |   |   |   | -- |   |   |   | 690 |   |
| Minority      interest in income of consolidated subsidiaries, net               |   |    | --      |            |   |         | --      |        |   |         | -- |   |   |   | (7,801 | ) |   |   | (7,801 | ) |
| (Loss)      income before income taxes                                           |   |    | (27,547 | )               |   |         | 117,346 |        |   |         | 20,550 |   |   |   | (9,698 | ) |   |   | 100,651 |   |
| Benefit      (provision) for income taxes                                        |   |    | 10,743  |            |   |         | (50,124 | )           |   |         | 127 |   |   |   | -- |   |   |   | (39,254 | ) |
| Net      (loss) income before equity in income of consolidated      subsidiaries |   |    | (16,804 | )               |   |         | 67,222  |        |   |         | 20,677 |   |   |   | (9,698 | ) |   |   | 61,397 |   |
| Equity      in income of consolidated subsidiaries                               |   |    | 78,201  |            |   |         | --      |        |   |         | -- |   |   |   | (78,201 | ) |   |   | -- |   |
| Net      income                                                                  |   | $       | 61,397  |            |   | $            | 67,222  |        |   | $            | 20,677 |   |   | $ | (87,899 | ) |   | $ | 61,397 |   |

|                                                                         |   |    |    |         |   | 100%      Owned |     |         |   |   |    |   |   |   |
|------------------------------------------------------------------------------|--------|---------|---------|--------------|--------|-----------------|----------|--------------|--------|--------|---------|--------|--------|--------|
|                                                                         |   | Parent  |    | Guarantor    |   | Other           |     |         |   |   |
|                                                                         |   | Company |    | Subsidiaries |   | Subsidiaries    |     | Consolidated |
| Net      cash provided by operating activities                               |   | $       | (11,385 | )            |   | $               | 137,693  |         |   | $      | 7,968   |   |   | $      | 134,276 |   |
|                                                                         |   |    |    |         |   |            |     |         |   |   |    |   |   |   |   |   |
| Cash      flows from investing activities:                                   |   |    |    |         |   |            |     |         |   |   |    |   |   |   |   |   |
| Capital      expenditures                                                    |   |    | --      |         |   |            | (97,215  | )            |   |   | (9,276  | )      |   |   | (106,491 | ) |
| Acquisition      of business                                                 |   |    | --      |         |   |            | (38,170  | )            |   |   | --      |   |   |   | (38,170 | ) |
| Other      investing activities, net                                         |   |    | --      |         |   |            | (496     | )            |   |   | 532     |   |   |   | 36 |   |
| Net      cash used in investing activities                                   |   |    | --      |         |   |            | (135,881 | )            |   |   | (8,744  | )      |   |   | (144,625 | ) |
|                                                                         |   |    |    |         |   |            |     |         |   |   |    |   |   |   |   |   |
| Cash      flows from financing activities:                                   |   |    |    |         |   |            |     |         |   |   |    |   |   |   |   |   |
| Repurchase      of common stock                                              |   |    | (22,367 | )            |   |            | --       |         |   |   | --      |   |   |   | (22,367 | ) |
| Proceeds      from borrowings under Non-Recourse Real Estate      Financings |   |    | --      |         |   |            | 9,013    |         |   |   | --      |   |   |   | 9,013 |   |
| Payments      of Non-Recourse Real Estate Financings                         |   |    | --      |         |   |            | (58,407  | )            |   |   | --      |   |   |   | (58,407 | ) |
| Proceeds      from borrowings under other long-term debt                     |   |    | --      |         |   |            | --       |         |   |   | 67,280  |   |   |   | 67,280 |   |
| Payments      of other long-term debt                                        |   |    | --      |         |   |            | (15,019  | )            |   |   | (67,613 | )      |   |   | (82,632 | ) |
| Advances      from (to) affiliates                                           |   |    | 33,010  |         |   |            | (32,032  | )            |   |   | (978    | )      |   |   | -- |   |
| Other      financing activities, net                                         |   |    | 742     |         |   |            | 4,215    |         |   |   | (542    | )      |   |   | 4,415 |   |
| Net      cash provided by (used in) financing activities                     |   |    | 11,385  |         |   |            | (92,230  | )            |   |   | (1,853  | )      |   |   | (82,698 | ) |
|                                                                         |   |    |    |         |   |            |     |         |   |   |    |   |   |   |   |   |
| Net      decrease in cash and cash equivalents                               |   |    | --      |         |   |            | (90,418  | )            |   |   | (2,629  | )      |   |   | (93,047 | ) |
| Cash      and cash equivalents                                               |   |    |    |         |   |            |     |         |   |   |    |   |   |   |   |   |
| Beginning      of period                                                     |   |    | --      |         |   |            | 156,782  |         |   |   | 5,563   |   |   |   | 162,345 |   |
| End      of period                                                           |   | $       | --      |         |   | $               | 66,364   |         |   | $      | 2,934   |   |   | $      | 69,298 |   |

|                                                                         |   |    |    |         |   | 100%      Owned |    |         |   |   |     |   |   |   |
|------------------------------------------------------------------------------|--------|---------|---------|--------------|--------|-----------------|---------|--------------|--------|--------|----------|--------|--------|--------|
|                                                                         |   | Parent  |    | Guarantor    |   | Other           |    |         |   |   |
|                                                                         |   | Company |    | Subsidiaries |   | Subsidiaries    |    | Consolidated |
| Net      cash provided by operating activities                               |   | $       | 9,792   |         |   | $               | 103,610 |         |   | $      | 103,594  |   |   | $      | 216,996 |   |
|                                                                         |   |    |    |         |   |            |    |         |   |   |     |   |   |   |   |   |
| Cash      flows from investing activities:                                   |   |    |    |         |   |            |    |         |   |   |     |   |   |   |   |   |
| Capital      expenditures                                                    |   |    | --      |         |   |            | (95,291 | )            |   |   | (55,601  | )      |   |   | (150,892 | ) |
| Other      investing activities, net                                         |   |    | --      |         |   |            | 2,956   |         |   |   | (199     | )      |   |   | 2,757 |   |
| Net      cash used in investing activities                                   |   |    | --      |         |   |            | (92,335 | )            |   |   | (55,800  | )      |   |   | (148,135 | ) |
|                                                                         |   |    |    |         |   |            |    |         |   |   |     |   |   |   |   |   |
| Cash      flows from financing activities:                                   |   |    |    |         |   |            |    |         |   |   |     |   |   |   |   |   |
| Repurchase      of common stock                                              |   |    | (99,615 | )            |   |            | --      |         |   |   | --       |   |   |   | (99,615 | ) |
| Proceeds      from borrowings under Non-Recourse Real Estate      Financings |   |    | --      |         |   |            | --      |         |   |   | 136,519  |   |   |   | 136,519 |   |
| Payments      of Non-Recourse Real Estate Financings                         |   |    | --      |         |   |            | --      |         |   |   | (174,008 | )      |   |   | (174,008 | ) |
| Proceeds      from borrowings under other long-term debt                     |   |    | --      |         |   |            | --      |         |   |   | 77,641   |   |   |   | 77,641 |   |
| Payments      of other long-term debt                                        |   |    | --      |         |   |            | (65     | )            |   |   | (78,056  | )      |   |   | (78,121 | ) |
| Advances      from (to) affiliates                                           |   |    | 85,962  |         |   |            | (85,048 | )            |   |   | (914     | )      |   |   | -- |   |
| Other      financing activities, net                                         |   |    | 3,861   |         |   |            | 4,668   |         |   |   | (8,280   | )      |   |   | 249 |   |
| Net      cash used in financing activities                                   |   |    | (9,792  | )            |   |            | (80,445 | )            |   |   | (47,098  | )      |   |   | (137,335 | ) |
|                                                                         |   |    |    |         |   |            |    |         |   |   |     |   |   |   |   |   |
| Net      (decrease) increase in cash and cash equivalents                    |   |    | --      |         |   |            | (69,170 | )            |   |   | 696      |   |   |   | (68,474 | ) |
| Cash      and cash equivalents                                               |   |    |    |         |   |            |    |         |   |   |     |   |   |   |   |   |
| Beginning      of period                                                     |   |    | --      |         |   |            | 225,952 |         |   |   | 4,867    |   |   |   | 230,819 |   |
| End      of period                                                           |   | $       | --      |         |   | $               | 156,782 |         |   | $      | 5,563    |   |   | $      | 162,345 |   |

|                                                                                                      |   |    |    |         |   | 100%      Owned |    |         |   |   |    |   |   |   |
|-----------------------------------------------------------------------------------------------------------|--------|---------|---------|--------------|--------|-----------------|---------|--------------|--------|--------|---------|--------|--------|--------|
|                                                                                                      |   | Parent  |    | Guarantor    |   | Other           |    |         |   |   |
|                                                                                                      |   | Company |    | Subsidiaries |   | Subsidiaries    |    | Consolidated |
| Net      cash (used in) provided by operating activities                                                  |   | $       | (41,046 | )            |   | $               | 191,441 |         |   | $      | (31,953 | )      |   | $      | 118,442 |   |
|                                                                                                      |   |    |    |         |   |            |    |         |   |   |    |   |   |   |   |   |
| Cash      flows from investing activities:                                                                |   |    |    |         |   |            |    |         |   |   |    |   |   |   |   |   |
| Capital      expenditures                                                                                 |   |    | --      |         |   |            | (76,563 | )            |   |   | (42,669 | )      |   |   | (119,232 | ) |
| Cash      received from sale of businesses                                                                |   |    | --      |         |   |            | 3,544   |         |   |   | --      |   |   |   | 3,544 |   |
| Purchase      of minority interest                                                                        |   |    | --      |         |   |            | (8,387  | )            |   |   | --      |   |   |   | (8,387 | ) |
| Other      investing activities, net                                                                      |   |    | --      |         |   |            | (2,561  | )            |   |   | (5,510  | )      |   |   | (8,071 | ) |
| Net      cash used in investing activities                                                                |   |    | --      |         |   |            | (83,967 | )            |   |   | (48,179 | )      |   |   | (132,146 | ) |
|                                                                                                      |   |    |    |         |   |            |    |         |   |   |    |   |   |   |   |   |
| Cash      flows from financing activities:                                                                |   |    |    |         |   |            |    |         |   |   |    |   |   |   |   |   |
| Repurchase      of common stock                                                                           |   |    | (15,007 | )            |   |            | --      |         |   |   | --      |   |   |   | (15,007 | ) |
| Net      proceeds (payments) from borrowings under      long-term      debt |   |    | --      |         |   |            | (9,898  | )            |   |   | 72,752  |   |   |   | 62,854 |   |
| Advances      from (to) affiliates                                                                        |   |    | 38,926  |         |   |            | (53,384 | )            |   |   | 14,458  |   |   |   | -- |   |
| Other      financing activities, net                                                                      |   |    | 17,127  |         |   |            | 1,762   |         |   |   | (14,007 | )      |   |   | 4,882 |   |
| Net      cash provided by (used in) financing activities                                                  |   |    | 41,046  |         |   |            | (61,520 | )            |   |   | 73,203  |   |   |   | 52,729 |   |
|                                                                                                      |   |    |    |         |   |            |    |         |   |   |    |   |   |   |   |   |
| Net      increase (decrease) in cash and cash equivalents                                                 |   |    | --      |         |   |            | 45,954  |         |   |   | (6,929  | )      |   |   | 39,025 |   |
| Cash      and cash equivalents                                                                            |   |    |    |         |   |            |    |         |   |   |    |   |   |   |   |   |
| Beginning      of period                                                                                  |   |    | --      |         |   |            | 179,998 |         |   |   | 11,796  |   |   |   | 191,794 |   |
| End      of period                                                                                        |   | $       | --      |         |   | $               | 225,952 |         |   | $      | 4,867   |   |   | $      | 230,819 |   |

ITEM 9A.  CONTROLS AND PROCEDURES. 

ITEM 9B.  OTHER INFORMATION. 

ITEM 10.  DIRECTORS, EXECUTIVE OFFICERS AND CORPORATEGOVERNANCE. 

ITEM 11.  EXECUTIVE COMPENSATION. 

ITEM 12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERSAND MANAGEMENT AND RELATED STOCKHOLDER MATTERS. 

ITEM 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS,AND DIRECTOR INDEPENDENCE. 

ITEM 14.  PRINCIPAL ACCOUNTANT FEES AND SERVICES.

ITEM 15.  EXHIBITS, FINANCIAL STATEMENTS SCHEDULES.

|   | (1) | See      “Item 8.  Financial Statements and Supplementary Data” for the      index to the Financial Statements. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | All      other schedules have been omitted because the required information is not      applicable or because the information required has been included in the      financial statements or notesthereto. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Posted      Exhibit Number                                                                                                                                                                                                             | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Sequentially      Numbered Page |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------|
| 3.1                                                                                                                                                                                                                                    | Amended      and Restated Certificate of Incorporation of Vail Resorts, Inc., dated      January 5, 2005.  (Incorporated by reference to Exhibit 3.1 on      Form 10-Q of Vail Resorts, Inc. for the quarter ended January 31,      2005.)                                                                                                                                                                                                                                                                                                         |                            |
| 3.2                                                                                                                                                                                                                                    | Amended      and Restated By-Laws. (Incorporated by reference to Exhibit 3.1 on Form      8-K of Vail Resorts, Inc. filed February 6, 2009.)                                                                                                                                                                                                                                                                                                                                                                                                                 |                            |
| 4.1(a)                                                                                                                                                                                                                                 | Indenture,      dated as of January 29, 2004, among Vail Resorts, Inc., the guarantors      therein and the Bank of New York as Trustee (Including Exhibit A, Form of      Global Note).  (Incorporated by reference to Exhibit 4.1 on Form      8-K of Vail Resorts, Inc. filed on February 2, 2004.)                                                                                                                                                                                                                                             |                            |
| 4.1(b)                                                                                                                                                                                                                                 | Supplemental      Indenture, dated as of March 10, 2006 to Indenture dated as of January 29,      2004 among Vail Resorts, Inc., as Issuer, the Guarantors named therein, as      Guarantors, and The Bank of New York, as Trustee.  (Incorporated      by reference to Exhibit 10.34 on Form 10-Q of Vail Resorts, Inc. for the      quarter ended January 31, 2006.)                                                                                                                                                                             |                            |
| 4.1(c)                                                                                                                                                                                                                                 | Form      of Global Note.  (Incorporated by reference to Exhibit 4.1 on      Form 8-K of Vail Resorts, Inc. filed February 2, 2004.)                                                                                                                                                                                                                                                                                                                                                                                                               |                            |
| 4.1(d)                                                                                                                                                                                                                                 | Supplemental      Indenture, dated as of April 26, 2007 to Indenture dated as of January 29,      2004 among Vail Resorts, Inc., as Issuer, the Guarantors named therein, as      Guarantors, and The Bank of New York, as Trustee.  (Incorporated      by reference to Exhibit 4.1(d) on Form 10-K of Vail Resorts, Inc. for the      year ended July 31, 2008.)                                                                                                                                                                                  |                            |
| 4.1(e)                                                                                                                                                                                                                                 | Supplemental      Indenture, dated as of July 11, 2008 to Indenture dated as of January 29,      2004 among Vail Resorts, Inc., as Issuer, the Guarantors named therein, as      Guarantors, and The Bank of New York Mellon Trust Company, N.A., as      Trustee.  (Incorporated by reference to Exhibit 4.1(e) on Form      10-K of Vail Resorts, Inc. for the year ended July 31,    2008.)                                                                                                                                                     |                            |
| 4.1(f)                                                                                                                                                                                                                                 | Supplemental      Indenture, dated as of January 29, 2009 to Indenture dated as of January      29, 2004 among Vail Resorts, Inc., as Issuer, the Guarantors named      therein, as Guarantors, and The Bank of New York Mellon Trust Company,      N.A., as Trustee.   (Incorporated by reference to Exhibit      4.1(f) on Form 10-Q of Vail Resorts, Inc. for the quarter ended January      31, 2009.)                                                                                                                                    |                            |
| 4.1(g)                                                                                                                                                                                                                                 | Supplemental      Indenture, dated as of August 24, 2009 to Indenture dated as of January      29, 2004 among Vail Resorts, Inc., as Issuer, the Guarantors named      therein, as Guarantors, and The Bank of New York Mellon Trust Company,      N.A., as Trustee.                                                                                                                                                                                                                                                                                         | 63                              |
| 10.1                                                                                                                                                                                                                                   | Forest      Service Unified Permit for Heavenly ski area, dated April 29,      2002.  (Incorporated by reference to Exhibit 99.13 of the report      on Form 10-Q of Vail Resorts, Inc. for the quarter ended April 30,      2002.)                                                                                                                                                                                                                                                                                                                |                            |
| 10.2(a)                                                                                                                                                                                                                                | Forest      Service Unified Permit for Keystone ski area, dated December 30,      1996.  (Incorporated by reference to Exhibit 99.2(a) on Form      10-Q of Vail Resorts, Inc. for the quarter ended October 31,      2002.)                                                                                                                                                                                                                                                                                                                       |                            |
| 10.2(b)                                                                                                                                                                                                                                | Amendment      No. 2 to Forest Service Unified Permit for Keystone ski      area.  (Incorporated by reference to Exhibit 99.2(b) on Form      10-Q of Vail Resorts, Inc. for the quarter ended October 31,      2002.)                                                                                                                                                                                                                                                                                                                             |                            |
| 10.2(c)                                                                                                                                                                                                                                | Amendment      No. 3 to Forest Service Unified Permit for Keystone ski area.      (Incorporated by reference to Exhibit 10.3 (c) on Form 10-K of Vail      Resorts, Inc. for the year ended July 31, 2005.)                                                                                                                                                                                                                                                                                                                                                  |                            |
| 10.2(d)                                                                                                                                                                                                                                | Amendment      No. 4 to Forest Service Unified Permit for Keystone ski area.      (Incorporated by reference to Exhibit 10.3 (d) on Form 10-K of Vail      Resorts, Inc. for the year ended July 31, 2005.)                                                                                                                                                                                                                                                                                                                                                  |                            |
| 10.2(e)                                                                                                                                                                                                                                | Amendment      No. 5 to Forest Service Unified Permit for Keystone ski area.      (Incorporated by reference to Exhibit 10.3 (e) on Form 10-K of Vail      Resorts, Inc. for the year ended July 31, 2005.)                                                                                                                                                                                                                                                                                                                                                  |                            |
| 10.3(a)                                                                                                                                                                                                                                | Forest      Service Unified Permit for Breckenridge ski area, dated December 30,      1996.  (Incorporated by reference to Exhibit 99.3(a) on Form      10-Q of Vail Resorts, Inc. for the quarter ended October 31,      2002.)                                                                                                                                                                                                                                                                                                                   |                            |
| 10.3(b)                                                                                                                                                                                                                                | Amendment      No. 1 to Forest Service Unified Permit for Breckenridge ski      area.  (Incorporated by reference to Exhibit 99.3(b) on Form      10-Q of Vail Resorts, Inc. for the quarter ended October 31,      2002.)                                                                                                                                                                                                                                                                                                                         |                            |
| 10.3(c)                                                                                                                                                                                                                                | Amendment      No. 2 to Forest Service Unified Permit for Breckenridge ski area.      (Incorporated by reference to Exhibit 10.4 (c) on Form 10-K of Vail      Resorts, Inc. for the year ended July 31, 2005.)                                                                                                                                                                                                                                                                                                                                              |                            |
| 10.3(d)                                                                                                                                                                                                                                | Amendment      No. 3 to Forest Service Unified Permit for Breckenridge ski area.      (Incorporated by reference to Exhibit 10.4 (d) on Form 10-K of Vail      Resorts, Inc. for the year ended July 31, 2005.)                                                                                                                                                                                                                                                                                                                                              |                            |
| 10.3(e)                                                                                                                                                                                                                                | Amendment      No. 4 to Forest Service Unified Permit for Breckenridge ski area.      (Incorporated by reference to Exhibit 10.4 (e) on Form 10-K of Vail      Resorts, Inc. for the year ended July 31, 2005.)                                                                                                                                                                                                                                                                                                                                              |                            |
| 10.3(f)                                                                                                                                                                                                                                | Amendment      No. 5 to Forest Service Unified Permit for Breckenridge ski area.      (Incorporated by reference to Exhibit 10.4(f) on Form 10-Q of Vail      Resorts, Inc. for the quarter ended January 31, 2006.)                                                                                                                                                                                                                                                                                                                                         |                            |
| 10.4(a)                                                                                                                                                                                                                                | Forest      Service Unified Permit for Beaver Creek ski area.  (Incorporated      by reference to Exhibit 99.4(a) on Form 10-Q of Vail Resorts, Inc. for the      quarter ended October 31, 2002.)                                                                                                                                                                                                                                                                                                                                                 |                            |
| 10.4(b)                                                                                                                                                                                                                                | Exhibits      to Forest Service Unified Permit for Beaver Creek ski      area.  (Incorporated by reference to Exhibit 99.4(b) on Form      10-Q of Vail Resorts, Inc. for the quarter ended October 31,      2002.)                                                                                                                                                                                                                                                                                                                                |                            |
| 10.4(c)                                                                                                                                                                                                                                | Amendment      No. 1 to Forest Service Unified Permit for Beaver Creek ski area.      (Incorporated by reference to Exhibit 10.5(c) on Form 10-K of Vail      Resorts, Inc. for the year ended July 31, 2005.)                                                                                                                                                                                                                                                                                                                                               |                            |
| 10.4(d)                                                                                                                                                                                                                                | Amendment      No. 2 to Forest Service Unified Permit for Beaver Creek ski area.      (Incorporated by reference to Exhibit 10.5(d) on Form 10-K of Vail      Resorts, Inc. for the year ended July 31, 2005.)                                                                                                                                                                                                                                                                                                                                               |                            |
| 10.4(e)                                                                                                                                                                                                                                | Amendment      to Forest Service Unified Permit for Beaver Creek ski area. (Incorporated      by reference to Exhibit 10.5(e) on Form 10-K of Vail Resorts, Inc. for the      year ended July 31, 2005.)                                                                                                                                                                                                                                                                                                                                                     |                            |
| 10.4(f)                                                                                                                                                                                                                                | Amendment      No. 3 to Forest Service Unified Permit for Beaver Creek ski      area.  (Incorporated by reference to Exhibit 10.4(f) on Form      10-K of Vail Resorts, Inc. for the year ended July 31,    2008.)                                                                                                                                                                                                                                                                                                                                 |                            |
| 10.5(a)                                                                                                                                                                                                                                | Forest      Service Unified Permit for Vail ski area, dated November 23,      1993.  (Incorporated by reference to Exhibit 99.5(a) on Form      10-Q of Vail Resorts, Inc. for the quarter ended October 31,      2002.)                                                                                                                                                                                                                                                                                                                           |                            |
| 10.5(b)                                                                                                                                                                                                                                | Exhibits      to Forest Service Unified Permit for Vail ski      area.  (Incorporated by reference to Exhibit 99.5(b) on Form      10-Q of Vail Resorts, Inc. for the quarter ended October 31,      2002.)                                                                                                                                                                                                                                                                                                                                        |                            |
| 10.5(c)                                                                                                                                                                                                                                | Amendment      No. 2 to Forest Service Unified Permit for Vail ski      area.  (Incorporated by reference to Exhibit 99.5(c) on Form      10-Q of Vail Resorts, Inc. for the quarter ended October 31,      2002.)                                                                                                                                                                                                                                                                                                                                 |                            |
| 10.5(d)                                                                                                                                                                                                                                | Amendment      No. 3 to Forest Service Unified Permit for Vail ski area. (Incorporated by      reference to Exhibit 10.6 (d) on Form 10-K of Vail Resorts, Inc. for the      year ended July 31, 2005.)                                                                                                                                                                                                                                                                                                                                                      |                            |
| 10.5(e)                                                                                                                                                                                                                                | Amendment      No. 4 to Forest Service Unified Permit for Vail ski area. (Incorporated by      reference to Exhibit 10.6 (e) on Form 10-K of Vail Resorts, Inc. for the      year ended July 31, 2005.)                                                                                                                                                                                                                                                                                                                                                      |                            |
| 10.6(a)                                                                                                                                                                                                                                | Purchase      and Sale Agreement by and between VAHMC, Inc. and DiamondRock Hospitality      Limited Partnership, dated May 3, 2005.  (Incorporated by      reference to Exhibit 10.18(a) on Form 10-Q of Vail Resorts, Inc. for the      quarter ended April 30, 2005.)                                                                                                                                                                                                                                                                           |                            |
| 10.6(b)                                                                                                                                                                                                                                | First      Amendment to Purchase and Sale Agreement by and between VAHMC, Inc. and      DiamondRock Hospitality Limited Partnership, dated May 10,      2005.  (Incorporated by reference to Exhibit 10.18(b) on Form      10-Q of Vail Resorts, Inc. for the quarter ended April 30,      2005.)                                                                                                                                                                                                                                                  |                            |
| 10.7(a)                                                                                                                                                                                                                                | Sports      and Housing Facilities Financing Agreement between the Vail Corporation      (d/b/a “Vail Associates, Inc.”) and Eagle County, Colorado, dated April 1,      1998. (Incorporated by reference to Exhibit 10 on Form 10-Q of Vail      Resorts, Inc. for the quarter ended April 30, 1998.)                                                                                                                                                                                                                                           |                            |
| 10.7(b)                                                                                                                                                                                                                                | Trust      Indenture, dated as of April 1, 1998 securing Sports and Housing      Facilities Revenue Refunding Bonds by and between Eagle County, Colorado      and U.S. Bank, N.A., as Trustee.  (Incorporated by reference to      Exhibit 10.1 on Form 10-Q of Vail Resorts, Inc. for the quarter ended      April 30, 1998.)                                                                                                                                                                                                                    |                            |
| 10.8(a)                                                                                                                                                                                                                                | Fourth      Amended and Restated Credit Agreement, dated as of January 28, 2005 among      The Vail Corporation (d/b/a Vail Associates, Inc.), as borrower, Bank of      America, N.A., as Administrative Agent, U.S. Bank National Association and      Wells Fargo Bank, National Association as Co-Syndication Agents, Deutsche      Bank Trust Company Americas and LaSalle Bank National Association as      Co-Documentation Agents the Lenders party thereto and Banc of America      Securities LLC, as Sole Lead Arranger and Sole Book    Manager. | 69                              |
| 10.8(b)                                                                                                                                                                                                                                | First      Amendment to Fourth Amended and Restated Credit Agreement, dated as of      June 29, 2005 among The Vail Corporation (d/b/a Vail Associates, Inc.), as      borrower and Bank of America, N.A., as Administrative      Agent.  (Incorporated by reference to Exhibit 10.16(b) on Form      10-K of Vail Resorts, Inc. for the year ended July 31,    2005.)                                                                                                                                                                             |                            |
| 10.8(c)                                                                                                                                                                                                                                | Second      Amendment to Fourth Amended and Restated Credit Agreement among The Vail      Corporation, the Required Lenders and Bank of America, as Administrative      Agent.  (Incorporated by reference to Exhibit 10.3 of Form 8-K      of Vail Resorts, Inc. filed on March 3, 2006.)                                                                                                                                                                                                                                                         |                            |
| 10.8(d)                                                                                                                                                                                                                                | Limited      Waiver, Release, and Third Amendment to Fourth Amended and Restated Credit      Agreement, dated March 13, 2007.                                                                                                                                                                                                                                                                                                                                                                                                                                | 196                             |
| 10.8(e)                                                                                                                                                                                                                                | Fourth      Amendment to Fourth Amended and Restated Credit Agreement, dated April 30,      2008, among The Vail Corporation (d/b/a Vail Associates, Inc.) as      borrower, the lenders party thereto and Bank of America, N.A., as      Administrative Agent.  (Incorporated by reference to Exhibit      10.1 of the report on Form 10-Q of Vail Resorts, Inc. for the quarter      ended April 30, 2008.)                                                                                                                                      |                            |
| 10.9(a)                                                                                                                                                                                                                                | Construction      Loan Agreement, dated January 31, 2006 among Arrabelle at Vail Square,      LLC, U.S. Bank National Association and Wells Fargo Bank,      N.A..  (Incorporated by reference to Exhibit 10.33(a) on Form      10-Q of Vail Resorts, Inc. for the quarter ended January 31,      2006.)                                                                                                                                                                                                                                           |                            |
| 10.9(b)                                                                                                                                                                                                                                | Completion      Guaranty Agreement by and between The Vail Resorts Corporation and U.S.      Bank National Association, dated January 31,      2006.  (Incorporated by reference to Exhibit 10.33(b) on Form      10-Q of Vail Resorts, Inc. for the quarter ended January 31,      2006.)                                                                                                                                                                                                                                                         |                            |
| 10.9(c)                                                                                                                                                                                                                                | Completion      Guaranty Agreement by and between Vail Resorts, Inc. and U.S. Bank      National Association dated January 31, 2006. (Incorporated by reference to      Exhibit 10.33(c) on Form 10-Q of Vail Resorts, Inc. for the quarter ended      January 31, 2006.)                                                                                                                                                                                                                                                                                    |                            |
| 10.10(a)**                                                                                                                                                                                                                             | Construction      Loan Agreement, dated March 19, 2007 among The Chalets at The Lodge at      Vail, LLC, and Wells Fargo Bank, N.A.  (Incorporated by      reference to Exhibit 10.3 of the report on Form 10-Q of Vail Resorts, Inc.      for the quarter ended April 30, 2007.)                                                                                                                                                                                                                                                                  |                            |
| 10.10(b)                                                                                                                                                                                                                               | Completion      Guaranty Agreement by and between The Vail Corporation and Wells Fargo      Bank, N.A., dated March 19, 2007.  (Incorporated by reference to      Exhibit 10.4 of the report on Form 10-Q of Vail Resorts, Inc. for the      quarter ended April 30, 2007.)                                                                                                                                                                                                                                                                        |                            |
| 10.10(c)                                                                                                                                                                                                                               | Completion      Guaranty Agreement by and between Vail Resorts, Inc. and Wells Fargo Bank,      N.A., dated March 19, 2007.  (Incorporated by reference to      Exhibit 10.5 of the report on Form 10-Q of Vail Resorts, Inc. for the      quarter ended April 30, 2007.)                                                                                                                                                                                                                                                                          |                            |
| 10.10(d)                                                                                                                                                                                                                               | Development      Agreement Guaranty by and between The Vail Corporation and Wells Fargo      Bank, N.A., dated March 19, 2007.  (Incorporated by reference to      Exhibit 10.6 of the report on Form 10-Q of Vail Resorts, Inc. for the      quarter ended April 30, 2007.)                                                                                                                                                                                                                                                                       |                            |
| 10.10(e)                                                                                                                                                                                                                               | Development      Agreement Guaranty by and between Vail Resorts, Inc. and Wells Fargo Bank,      N.A., dated March 19, 2007.  (Incorporated by reference to      Exhibit 10.7 of the report on Form 10-Q of Vail Resorts, Inc. for the      quarter ended April 30, 2007.)                                                                                                                                                                                                                                                                         |                            |
| 10.11                                                                                                                                                                                                                                  | Amended      and Restated Revolving Credit and Security Agreement between SSI Venture,      LLC and U.S. Bank National Association, dated September 23, 2005.      (Incorporated by reference to Exhibit 10.1 on Form 8-K of Vail Resorts,      Inc. filed on September 29, 2005.)                                                                                                                                                                                                                                                                           |                            |
| 10.12*                                                                                                                                                                                                                                 | Vail      Resorts, Inc. 1993 Stock Option Plan (Incorporated by reference to Exhibit      4.A of the registration statement on Form S-8 of Vail Resorts, Inc., dated      October 21, 1997, File No. 333-38321.)                                                                                                                                                                                                                                                                                                                                             |                            |
| 10.13*                                                                                                                                                                                                                                 | Vail      Resorts, Inc. 1996 Long Term Incentive and Share Award Plan (Incorporated      by reference to the Exhibit 4.B of the registration statement on Form S-8      of Vail Resorts, Inc., dated October 21, 1997, File No.      333-38321.)                                                                                                                                                                                                                                                                                                             |                            |
| 10.14*                                                                                                                                                                                                                                 | Vail      Resorts, Inc. 1999 Long Term Incentive and Share Award      Plan.  (Incorporated by reference to Exhibit 4.1 of the      registration statement on Form S-8 of Vail Resorts, Inc., dated September      7, 2007, File No. 333-145934.)                                                                                                                                                                                                                                                                                                   |                            |
| 10.15*                                                                                                                                                                                                                                 | Vail      Resorts, Inc. Amended and Restated 2002 Long Term Incentive and Share      Award Plan.  (Incorporated by reference to Exhibit 4.2 of the      registration statement on Form S-8 of Vail Resorts, Inc., dated September      7, 2007, File No. 333-145934.)                                                                                                                                                                                                                                                                              |                            |
| 10.16*                                                                                                                                                                                                                                 | Form      of Stock Option Agreement.  (Incorporated by reference to      Exhibit 10.20 of Form 10-K of Vail Resorts, Inc. for the year ended July      31, 2007.)                                                                                                                                                                                                                                                                                                                                                                                  |                            |
| 10.17*                                                                                                                                                                                                                                 | Form      of Restricted Share [Unit] Agreement.  (Incorporated by      reference to Exhibit 10.17 on Form 10-K of Vail Resorts, Inc. for the year      ended July 31, 2008.)                                                                                                                                                                                                                                                                                                                                                                       |                            |
| 10.18*                                                                                                                                                                                                                                 | Form      of Share Appreciation Rights Agreement.  (Incorporated by      reference to Exhibit 10.18 on Form 10-K of Vail Resorts, Inc. for the year      ended July 31, 2008.)                                                                                                                                                                                                                                                                                                                                                                     |                            |
| 10.19*                                                                                                                                                                                                                                 | Stock      Option Agreement between Vail Resorts, Inc. and Jeffrey W. Jones, dated      September 30, 2005.  (Incorporated by reference to Exhibit 10.6      on Form 8-K of Vail Resorts, Inc. filed on March 3, 2006.)                                                                                                                                                                                                                                                                                                                            |                            |
| 10.20*                                                                                                                                                                                                                                 | Summary      of Vail Resorts, Inc. Director Compensation, effective March 10,      2009.                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 231                             |
| 10.21*                                                                                                                                                                                                                                 | Vail      Resorts Deferred Compensation Plan, effective as of October 1,      2000.  (Incorporated by reference to Exhibit 10.23 on Form 10-K      of Vail Resorts, Inc. for the year ended July 31, 2000.)                                                                                                                                                                                                                                                                                                                                        |                            |
| 10.22                                                                                                                                                                                                                                  | Vail      Resorts Deferred Compensation Plan, effective as of January 1,      2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 232                             |
| 10.23*                                                                                                                                                                                                                                 | Vail      Resorts, Inc. Executive Perquisite Fund Program. (Incorporated by      reference to Exhibit 10.27 on Form 10-K of Vail Resorts, Inc. for the year      ended July 31, 2007.)                                                                                                                                                                                                                                                                                                                                                                       |                            |
| 10.24*                                                                                                                                                                                                                                 | Vail      Resorts, Inc. Management Incentive Plan. (Incorporated by reference to      Exhibit 10.7 of the report on Form 10-Q of Vail Resorts, Inc. for the      quarter ended October 31, 2008.)                                                                                                                                                                                                                                                                                                                                                            |                            |
| 10.25*                                                                                                                                                                                                                                 | Agreement,      dated January 7, 2008, by and among Vail Associates, Inc., William A.      Jensen and Intrawest ULC.  (Incorporated by reference to Exhibit      10.1 of the report on Form 10-Q of Vail Resorts, Inc. for the quarter      ended January 31, 2008.)                                                                                                                                                                                                                                                                               |                            |
| 10.26*                                                                                                                                                                                                                                 | Executive      Employment Agreement made and entered into October 15, 2008 by and between      Vail Resorts, Inc. and Robert A. Katz.  (Incorporated by      reference to Exhibit 10.1 of the report on Form 10-Q of Vail Resorts, Inc.      for the quarter ended October 31, 2008.)                                                                                                                                                                                                                                                              |                            |
| 10.27(a)*                                                                                                                                                                                                                              | Executive      Employment Agreement made and entered into October 15, 2008 by and between      Jeffrey W. Jones and Vail Resorts, Inc. (Incorporated by reference to      Exhibit 10.2 of the report on Form 10-Q of Vail Resorts, Inc. for the      quarter ended October 31, 2008.)                                                                                                                                                                                                                                                                        |                            |
| 10.27(b)*                                                                                                                                                                                                                              | Restated      First Amendment to Amended and Restated Employment Agreement, dated      September 18, 2008, by and between Vail Resorts, Inc. and Jeffrey W.      Jones. (Incorporated by reference to Exhibit 10.28(b) of Form 10-K of Vail      Resorts, Inc. for the year ended July 31, 2008.)                                                                                                                                                                                                                                                            |                            |
| 10.28*                                                                                                                                                                                                                                 | Executive      Employment Agreement made and entered into October 15, 2008 by and between      Vail Holdings, Inc., a wholly-owned subsidiary of Vail Resorts, Inc., and      Keith Fernandez.  (Incorporated by reference to Exhibit 10.3 of      the report on Form 10-Q of Vail Resorts, Inc. for the quarter ended      October 31, 2008.)                                                                                                                                                                                                     |                            |
| 10.29*                                                                                                                                                                                                                                 | Executive      Employment Agreement made and entered into October 15, 2008 by and between      Vail Holdings, Inc., a wholly-owned subsidiary of Vail Resorts, Inc., and      John McD. Garnsey.  (Incorporated by reference to Exhibit 10.4      of the report on Form 10-Q of Vail Resorts, Inc. for the quarter ended      October 31, 2008.)                                                                                                                                                                                                   |                            |
| 10.30(a)*                                                                                                                                                                                                                              | Executive      Employment Agreement made and entered into October 15, 2008 by and between      Vail Holdings, Inc., a wholly-owned subsidiary of Vail Resorts, Inc., and      Blaise Carrig.  (Incorporated by reference to Exhibit 10.5 of      the report on Form 10-Q of Vail Resorts, Inc. for the quarter ended      October 31, 2008.)                                                                                                                                                                                                       |                            |
| 10.30(b)*                                                                                                                                                                                                                              | Addendum      to the Employment Agreement, dated September 1, 2002, between Blaise      Carrig and Heavenly Valley, Limited Partnership. (Incorporated by      reference to Exhibit 10.31(b) of Form 10-K of Vail Resorts, Inc. for the      year ended July 31, 2008.)                                                                                                                                                                                                                                                                                      |                            |
| 10.31                                                                                                                                                                                                                                  |  Form      of Indemnification Agreement.  (Incorporated by reference to      Exhibit 10.8 of the report on Form 10-Q of Vail Resorts, Inc. for the      quarter ended October 31, 2008.)                                                                                                                                                                                                                                                                                                                                                      |                            |
| 21                                                                                                                                                                                                                                     | Subsidiaries      of Vail Resorts, Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 258                             |
| 22                                                                                                                                                                                                                                     | Consent      of Independent Registered Public Accounting Firm.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 264                             |
| 23                                                                                                                                                                                                                                     | Power      of Attorney.  Included on signature pageshereto.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                            |
| 31.1                                                                                                                                                                                                                                   | Certification      of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley      Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                | 265                             |
| 31.2                                                                                                                                                                                                                                   | Certification      of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley      Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                | 266                             |
| 32                                                                                                                                                                                                                                     | Certifications      of Chief Executive Officer and Chief Financial Officer pursuant to 18      U.S.C. Section 1350 as adopted pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                | 267                             |
| *Management      contracts and compensatory plans and arrangements.                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| **Portions      of this Exhibit have been omitted pursuant to a request for confidential      treatment filed with the Securities and Exchange Commission.  Omitted      portions have been filed separately with the Commission. |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

| Consolidated      Financial Statement Schedule                    |
|-------------------------------------------------------------------|
| Schedule II - Valuation and Qualifying Accounts and      Reserves |
| (in      thousands)                                               |
| For      the Years Ended July 31,                                 |
|                                                              |   |   |   |   |   |   |   |   |
|                                                              |   | Balance      at |   | Charged      to |   |   |   | Balance      at |
|                                                              |   | Beginning      of |   | Costs      and |   |   |   | End      of |
|                                                              |   | Period |   | Expenses |   | Deductions |   | Period |
| 2007                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Inventory      Reserves                                           |   | $ | 755 |   | $ | 2,202 |   | $ | (2,131 | ) |   | $ | 826 |
| Valuation      Allowance on Income Taxes                          |   |   | 1,605 |   |   | -- |   |   | (17 | ) |   |   | 1,588 |
| Trade      Receivable Allowances                                  |   |   | 1,388 |   |   | 1,638 |   |   | (908 | ) |   |   | 2,118 |
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2008                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Inventory      Reserves                                           |   |   | 826 |   |   | 2,729 |   |   | (2,344 | ) |   |   | 1,211 |
| Valuation      Allowance on Income Taxes                          |   |   | 1,588 |   |   | -- |   |   | -- |   |   |   | 1,588 |
| Trade      Receivable Allowances                                  |   |   | 2,118 |   |   | 670 |   |   | (1,122 | ) |   |   | 1,666 |
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2009                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Inventory      Reserves                                           |   |   | 1,211 |   |   | 2,496 |   |   | (2,252 | ) |   |   | 1,455 |
| Valuation      Allowance on Income Taxes                          |   |   | 1,588 |   |   | -- |   |   | -- |   |   |   | 1,588 |
| Trade      Receivable Allowances                                  |   | $ | 1,666 |   | $ | 2,109 |   | $ | (1,898 | ) |   | $ | 1,877 |

| Date:  September      24, 2009 | Vail      Resorts, Inc.                  |
|------------------------------------------|------------------------------------------|
|                                     |                                     |
|                                     | By:                                      | /s/ Jeffrey W. Jones |
|                                     | Jeffrey      W. Jones                    |
|                                     | Senior      Executive Vice President and |
|                                     | Chief      Financial Officer             |
|                                     | (Principal      Financial Officer)       |

| Date:  September      24, 2009 | Vail      Resorts, Inc.             |
|------------------------------------------|-------------------------------------|
|                                     |                                |
|                                     | By:                                 | /s/ Mark L. Schoppet |
|                                     | Mark      L. Schoppet               |
|                                     | Vice      President, Controller and |
|                                     | Chief      Accounting Officer       |
|                                     | (Principal      Accounting Officer) |

| Signature                    | Title                                                  |
|------------------------------|--------------------------------------------------------|
|                         |                                                   |
| /s/      Robert A. Katz      | Chief      Executive Officer and Chairman of the Board |
| Robert      A. Katz          | (Principal      Executive Officer)                     |
|                         |                                                   |
| /s/      Jeffrey W. Jones    | Senior      Executive Vice President,                  |
| Jeffrey      W. Jones        | Chief      Financial Officer and Director              |
|                         | (Principal      Financial Officer)                     |
|                         |                                                   |
| /s/      Roland A. Hernandez |                                                   |
| Roland      A. Hernandez     | Director                                               |
|                         |                                                   |
| /s/      Thomas D. Hyde      |                                                   |
| Thomas      D. Hyde          | Director                                               |
|                         |                                                   |
| /s/      Richard D. Kincaid  |                                                   |
| Richard      D. Kincaid      | Director                                               |
|                         |                                                   |
| /s/      John T. Redmond     |                                                   |
| John      T. Redmond         | Director                                               |
|                         |                                                   |
| /s/      John F. Sorte       |                                                   |
| John      F. Sorte           | Director                                               |
|                         |                                                   |
| /s/      William P. Stiritz  |                                                   |
| William      P. Stiritz      | Director                                               |
|                         |                                                   |