----

**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**FORM      10-Q**

**x**
** **
**QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934**

**¨**
** **
**TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934**

**Vail      Resorts, Inc.**

| **Delaware**                                                                                    |   | **51-0291762**                                      |
|-------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|
| (State                or Other Jurisdiction of Incorporation or Organization)                   |   | (I.R.S.                Employer Identification No.) |
|                                                                                            |   |                                                |
| **390                Interlocken Crescent, Suite 1000,****Broomfield,                Colorado** |   | **80021**                                           |
| (Address                of Principal Executive Offices)                                         |   | (Zip                Code)                           |

| **(303)                404-1800**                                                        |
|------------------------------------------------------------------------------------------|
| (Registrant’s                Telephone Number, Including Area                Code) |

| **Table                of Contents** |
|--------------------------------------|
|                                 |   |   |
| **PART                I**            | **FINANCIAL                INFORMATION** |   |
|                                 |   |   |
| Item                1.               | Financial                Statements. | F-1 |
| Item                2.               | Management's                Discussion and Analysis of Financial Condition                and Results of Operations. | 1 |
| Item                3.               | Quantitative                and Qualitative Disclosures About Market Risk. | 13 |
| Item                4.               | Controls                and Procedures. | 13 |
|                                 |   |   |
|                                 |   |   |
| **PART                II**           | **OTHER                INFORMATION** |   |
|                                 |   |   |
| Item                1.               | Legal                Proceedings. | 13 |
| Item                1A.              | Risk                Factors. | 13 |
| Item                2.               | Unregistered                Sales of Equity Securities and Use of Proceeds. | 13 |
| Item                3.               | Defaults                Upon Senior Securities. | 13 |
| Item                4.               | Submission                of Matters to a Vote of Security Holders. | 13 |
| Item                5.               | Other                Information. | 14 |
| Item                6.               | Exhibits. | 14 |

| **PART                I**                                                                                                                       | **FINANCIAL                INFORMATION**             |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------|--------|
|                                                                                                                                            |                                                 |   |
| **Item                1.**                                                                                                                      | **Financial                Statements -- Unaudited** |   |
|                                                                                                                                            |                                                 |   |
| Consolidated                Condensed                Balance Sheets as of April 30, 2007, July 31, 2006 and April 30,                2006       | F-2                                                  |
| Consolidated                Condensed Statements of Operations for the Three Months Ended April                30,                2007 and 2006 | F-3                                                  |
| Consolidated                Condensed Statements of Operations for the Nine Months Ended April                30,                2007 and 2006  | F-4                                                  |
| Consolidated                Condensed Statements of Cash Flows for the Nine Months Ended April                30,                2007 and 2006  | F-5                                                  |
| Notes                to Consolidated Condensed Financial Statements                                                                             | F-6                                                  |

**Vail      Resorts, Inc.**

**Consolidated      Condensed Balance Sheets**

**(In      thousands, except share and per share amounts)**

|                                                                                                                                                                                                                                              |   |   | **April                30,** |   |   |   | **July                31,** |   |   |   | **April                30,** |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------------------------|--------|--------|--------|-----------------------------|--------|--------|--------|------------------------------|--------|
|                                                                                                                                                                                                                                              |   |   | **2007**                     |   |   |   | **2006**                    |   |   |   | **2006**                     |   |
|                                                                                                                                                                                                                                              |   |   | **(Unaudited)**              |   |   |   |                        |   |   |   | **(Unaudited)**              |   |
| Assets                                                                                                                                                                                                                                            |   |   |                         |   |   |   |                        |   |   |   |                         |   |
| Current                assets:                                                                                                                                                                                                                    |   |   |                         |   |   |   |                        |   |   |   |                         |   |
| Cash                and cash equivalents                                                                                                                                                                                                          |   | $      | 316,439                      |   |   | $      | 191,794                     |   |   | $      | 240,116                      |   |
| Restricted                cash                                                                                                                                                                                                                    |   |   | 40,408                       |   |   |   | 20,322                      |   |   |   | 32,307                       |   |
| Trade                receivables, net                                                                                                                                                                                                             |   |   | 35,258                       |   |   |   | 35,949                      |   |   |   | 35,618                       |   |
| Inventories,                net                                                                                                                                                                                                                   |   |   | 42,627                       |   |   |   | 42,278                      |   |   |   | 36,830                       |   |
| Other                current assets                                                                                                                                                                                                               |   |   | 32,833                       |   |   |   | 35,631                      |   |   |   | 34,744                       |   |
| Total                current assets                                                                                                                                                                                                               |   |   | 467,565                      |   |   |   | 325,974                     |   |   |   | 379,615                      |   |
| Property,                plant and equipment, net (Note 5)                                                                                                                                                                                        |   |   | 868,723                      |   |   |   | 851,112                     |   |   |   | 848,984                      |   |
| Real                estate held for sale and investment                                                                                                                                                                                           |   |   | 305,085                      |   |   |   | 259,384                     |   |   |   | 240,615                      |   |
| Goodwill,                net                                                                                                                                                                                                                      |   |   | 135,939                      |   |   |   | 135,811                     |   |   |   | 135,811                      |   |
| Intangible                assets, net                                                                                                                                                                                                             |   |   | 73,199                       |   |   |   | 75,109                      |   |   |   | 76,587                       |   |
| Other                assets                                                                                                                                                                                                                       |   |   | 44,607                       |   |   |   | 40,253                      |   |   |   | 31,123                       |   |
| Total                assets                                                                                                                                                                                                                       |   | $      | 1,895,118                    |   |   | $      | 1,687,643                   |   |   | $      | 1,712,735                    |   |
|                                                                                                                                                                                                                                              |   |   |                         |   |   |   |                        |   |   |   |                         |   |
| Liabilities                and Stockholders’ Equity                                                                                                                                                                                         |   |   |                         |   |   |   |                        |   |   |   |                         |   |
| Current                liabilities:                                                                                                                                                                                                               |   |   |                         |   |   |   |                        |   |   |   |                         |   |
| Accounts                payable and accrued expenses (Note 5)                                                                                                                                                                                     |   | $      | 237,981                      |   |   | $      | 230,762                     |   |   | $      | 206,471                      |   |
| Income                taxes payable                                                                                                                                                                                                               |   |   | 11,739                       |   |   |   | 17,517                      |   |   |   | 1,324                        |   |
| Long-term                debt due within one year (Note 4)                                                                                                                                                                                        |   |   | 401                          |   |   |   | 5,915                       |   |   |   | 4,420                        |   |
| Total                current liabilities                                                                                                                                                                                                          |   |   | 250,121                      |   |   |   | 254,194                     |   |   |   | 212,215                      |   |
| Long-term                debt (Note 4)                                                                                                                                                                                                            |   |   | 575,162                      |   |   |   | 525,313                     |   |   |   | 516,871                      |   |
| Other                long-term liabilities (Note 5)                                                                                                                                                                                               |   |   | 166,382                      |   |   |   | 158,490                     |   |   |   | 149,881                      |   |
| Deferred                income taxes                                                                                                                                                                                                              |   |   | 130,212                      |   |   |   | 73,064                      |   |   |   | 118,846                      |   |
| Commitments                and contingencies (Note 11)                                                                                                                                                                                            |   |   |                         |   |   |   |                        |   |   |   |                         |   |
| Put                option liabilities (Note 9)                                                                                                                                                                                                    |   |   | --                           |   |   |   | 1,245                       |   |   |   | 113                          |   |
| Minority                interest in net assets of consolidated subsidiaries                                                                                                                                                                       |   |   | 30,052                       |   |   |   | 32,560                      |   |   |   | 35,224                       |   |
| Stockholders’                equity:                                                                                                                                                                                                        |   |   |                         |   |   |   |                        |   |   |   |                         |   |
| Preferred                stock, $0.01 par value, 25,000,000 shares authorized, zero shares                issued                and outstanding                                                                                                   |   |   | --                           |   |   |   | --                          |   |   |   | --                           |   |
| Common                stock, $0.01, 100,000,000 shares authorized, 39,630,543 (unaudited),                39,036,282 and 38,876,070 (unaudited) shares issued as                of April 30, 2007, July 31, 2006 and April 30, 2006, respectively |   |   | 396                          |   |   |   | 390                         |   |   |   | 389                          |   |
| Additional                paid-in capital                                                                                                                                                                                                         |   |   | 529,199                      |   |   |   | 509,505                     |   |   |   | 504,212                      |   |
| Retained                earnings                                                                                                                                                                                                                  |   |   | 239,440                      |   |   |   | 143,721                     |   |   |   | 174,984                      |   |
| Treasury                stock (Note 12)                                                                                                                                                                                                           |   |   | (25,846                      | )      |   |   | (10,839                     | )      |   |   | --                           |   |
| Total                stockholders’ equity                                                                                                                                                                                                   |   |   | 743,189                      |   |   |   | 642,777                     |   |   |   | 679,585                      |   |
| Total                liabilities and stockholders’ equity                                                                                                                                                                                   |   | $      | 1,895,118                    |   |   | $      | 1,687,643                   |   |   | $      | 1,712,735                    |   |

**Vail      Resorts, Inc.**

**Consolidated      Condensed Statements of Operations**

**(In      thousands, except per share amounts)**

**(Unaudited)**

|                                                                         |   | **Three                Months Ended** |     |
|------------------------------------------------------------------------------|--------|---------------------------------------|----------|
|                                                                         |   | **April                30,**          |     |
|                                                                         |   |                                  | **2007** |   |   |   | **2006** |   |
| Net                revenue:                                                  |   |                                  |     |   |   |   |   |   |
| Mountain                                                                     |   | $                                     | 308,712  |   |   | $ | 294,773 |   |
| Lodging                                                                      |   |                                  | 43,643   |   |   |   | 39,492 |   |
| Real                estate                                                   |   |                                  | 17,134   |   |   |   | 7,124 |   |
| Total                net revenue                                             |   |                                  | 369,489  |   |   |   | 341,389 |   |
| Segment                operating expense:                                    |   |                                  |     |   |   |   |   |   |
| Mountain                                                                     |   |                                  | 152,997  |   |   |   | 149,431 |   |
| Lodging                                                                      |   |                                  | 31,126   |   |   |   | 30,515 |   |
| Real                estate                                                   |   |                                  | 25,261   |   |   |   | 11,370 |   |
| Total                segment operating expense                               |   |                                  | 209,384  |   |   |   | 191,316 |   |
| Other                operating expense:                                      |   |                                  |     |   |   |   |   |   |
| Depreciation                and amortization                                 |   |                                  | (23,513  | ) |   |   | (22,942 | ) |
| Relocation                and separation charges (Note 7)                    |   |                                  | (166     | ) |   |   | (3,778 | ) |
| Loss                on disposal of fixed assets, net                         |   |                                  | (242     | ) |   |   | (108 | ) |
| Income                from operations                                        |   |                                  | 136,184  |   |   |   | 123,245 |   |
| Mountain                equity investment income, net                        |   |                                  | 1,660    |   |   |   | 780 |   |
| Real                estate equity investment loss                            |   |                                  | --       |   |   |   | (20 | ) |
| Investment                income                                             |   |                                  | 4,334    |   |   |   | 3,156 |   |
| Interest                expense, net                                         |   |                                  | (8,039   | ) |   |   | (8,849 | ) |
| Loss                on sale of business (Note 8)                             |   |                                  | (601     | ) |   |   | -- |   |
| Contract                dispute charges (Note 11)                            |   |                                  | (184     | ) |   |   | (816 | ) |
| Gain                (loss) on put options, net (Note 9)                      |   |                                  | 690      |   |   |   | (113 | ) |
| Minority                interest in income of consolidated subsidiaries, net |   |                                  | (5,343   | ) |   |   | (5,355 | ) |
| Income                before provision for income taxes                      |   |                                  | 128,701  |   |   |   | 112,028 |   |
| Provision                for income taxes                                    |   |                                  | (50,193  | ) |   |   | (43,691 | ) |
| Net                income                                                    |   | $                                     | 78,508   |   |   | $ | 68,337 |   |
|                                                                         |   |                                  |     |   |   |   |   |   |
| Per                share amounts (Note 3):                                   |   |                                  |     |   |   |   |   |   |
| Basic                net income per share                                    |   | $                                     | 2.02     |   |   | $ | 1.78 |   |
| Diluted                net income per share                                  |   | $                                     | 1.99     |   |   | $ | 1.75 |   |

**Vail      Resorts, Inc.**

**Consolidated      Condensed Statements of Operations**

**(In      thousands, except per share amounts)**

**(Unaudited)**

|                                                                         |   | **Nine                Months Ended** |     |
|------------------------------------------------------------------------------|--------|--------------------------------------|----------|
|                                                                         |   | **April                30,**         |     |
|                                                                         |   |                                 | **2007** |   |   |   | **2006** |   |
| Net                revenue:                                                  |   |                                 |     |   |   |   |   |   |
| Mountain                                                                     |   | $                                    | 626,902  |   |   | $ | 581,279 |   |
| Lodging                                                                      |   |                                 | 116,848  |   |   |   | 113,321 |   |
| Real                estate                                                   |   |                                 | 100,272  |   |   |   | 20,226 |   |
| Total                net revenue                                             |   |                                 | 844,022  |   |   |   | 714,826 |   |
| Segment                operating expense:                                    |   |                                 |     |   |   |   |   |   |
| Mountain                                                                     |   |                                 | 392,355  |   |   |   | 372,387 |   |
| Lodging                                                                      |   |                                 | 98,233   |   |   |   | 101,050 |   |
| Real                estate                                                   |   |                                 | 101,770  |   |   |   | 23,823 |   |
| Total                segment operating expense                               |   |                                 | 592,358  |   |   |   | 497,260 |   |
| Other                operating (expense) income:                             |   |                                 |     |   |   |   |   |   |
| Depreciation                and amortization                                 |   |                                 | (66,857  | ) |   |   | (63,296 | ) |
| Relocation                and separation charges (Note 7)                    |   |                                 | (1,401   | ) |   |   | (3,778 | ) |
| Asset                impairment charge                                       |   |                                 | --       |   |   |   | (136 | ) |
| Mold                remediation credit (Note 11)                             |   |                                 | --       |   |   |   | 852 |   |
| Loss                on disposal of fixed assets, net                         |   |                                 | (332     | ) |   |   | (835 | ) |
| Income                from operations                                        |   |                                 | 183,074  |   |   |   | 150,373 |   |
| Mountain                equity investment income, net                        |   |                                 | 3,990    |   |   |   | 3,085 |   |
| Real                estate equity investment income                          |   |                                 | --       |   |   |   | 79 |   |
| Investment                income                                             |   |                                 | 8,815    |   |   |   | 5,390 |   |
| Interest                expense, net                                         |   |                                 | (24,885  | ) |   |   | (27,788 | ) |
| (Loss)                gain on sale of businesses, net (Note 8)               |   |                                 | (601     | ) |   |   | 4,625 |   |
| Contract                dispute charges (Note 11)                            |   |                                 | (4,460   | ) |   |   | (816 | ) |
| Gain                (loss) on put options, net (Note 9)                      |   |                                 | 690      |   |   |   | (79 | ) |
| Other                income, net                                             |   |                                 | --       |   |   |   | 50 |   |
| Minority                interest in income of consolidated subsidiaries, net |   |                                 | (9,707   | ) |   |   | (8,660 | ) |
| Income                before provision for income taxes                      |   |                                 | 156,916  |   |   |   | 126,259 |   |
| Provision                for income taxes                                    |   |                                 | (61,197  | ) |   |   | (49,240 | ) |
| Net                income                                                    |   | $                                    | 95,719   |   |   | $ | 77,019 |   |
|                                                                         |   |                                 |     |   |   |   |   |   |
| Per                share amounts (Note 3):                                   |   |                                 |     |   |   |   |   |   |
| Basic                net income per share                                    |   | $                                    | 2.47     |   |   | $ | 2.05 |   |
| Diluted                net income per share                                  |   | $                                    | 2.44     |   |   | $ | 2.01 |   |

**Vail      Resorts, Inc.**

**Consolidated      Condensed Statements of Cash Flows**

**(In      thousands)**

**(Unaudited)**

|                                                                              |   | **Nine                Months Ended** |
|-----------------------------------------------------------------------------------|--------|--------------------------------------|
|                                                                              |   | **April                30,**         |
|                                                                              |   | **2007**                             |   | **2006** |
| Net                cash provided by operating activities                          |   | $                                    | 285,425 |   |   | $ | 177,718 |   |   |
| Cash                flows from investing activities:                              |   |                                 |   |   |   |   |   |   |   |
| Capital                expenditures                                               |   |                                 | (82,012 | ) |   |   | (63,683 | ) |   |
| Investments                in real estate                                         |   |                                 | (121,114 | ) |   |   | (88,366 | ) |   |
| Proceeds                from sale of businesses                                   |   |                                 | 3,544 |   |   |   | 30,712 |   |   |
| Purchase                of minority interest                                      |   |                                 | (8,387 | ) |   |   | -- |   |   |
| Other                investing activities, net                                    |   |                                 | 453 |   |   |   | (4,419 | ) |   |
| Net                cash used in investing activities                              |   |                                 | (207,516 | ) |   |   | (125,756 | ) |   |
| Cash                flows from financing activities:                              |   |                                 |   |   |   |   |   |   |   |
| Repurchases                of common stock                                        |   |                                 | (15,007 | ) |   |   | -- |   |   |
| Proceeds                from borrowings under Non-Recourse Real Estate Financings |   |                                 | 56,413 |   |   |   | 9,596 |   |   |
| Payments                of Non-Recourse Real Estate Financings                    |   |                                 | (1,493 | ) |   |   | -- |   |   |
| Proceeds                from borrowings under other long-term debt                |   |                                 | 56,587 |   |   |   | 26,470 |   |   |
| Payments                of other long-term debt                                   |   |                                 | (67,171 | ) |   |   | (36,781 | ) |   |
| Proceeds                from exercise of stock options                            |   |                                 | 9,594 |   |   |   | 44,036 |   |   |
| Other                financing activities, net                                    |   |                                 | 7,813 |   |   |   | 8,253 |   |   |
| Net                cash provided by financing activities                          |   |                                 | 46,736 |   |   |   | 51,574 |   |   |
| Net                increase in cash and cash equivalents                          |   |                                 | 124,645 |   |   |   | 103,536 |   |   |
| Cash                and cash equivalents:                                         |   |                                 |   |   |   |   |   |   |   |
| Beginning                of period                                                |   |                                 | 191,794 |   |   |   | 136,580 |   |   |
| End                of period                                                      |   | $                                    | 316,439 |   |   | $ | 240,116 |   |   |

**Vail      Resorts, Inc.**

**Notes      to Consolidated Condensed Financial Statements**

**(Unaudited)**

**1.**
**Organization      and Business**

**2.**
**Summary      of Significant Accounting Policies**

*Use      of Estimates--*

**3.**
**Net      Income Per Common Share**

|                                               |   | **Three                Months Ended April 30,** |
|----------------------------------------------------|--------|-------------------------------------------------|
|                                               |   | **2007**                                        |   | **2006** |
|                                               |   | **Basic**                                       |   | **Diluted** |   | **Basic** |   | **Diluted** |
| Net                income per share:               |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                income                          |   | $                                               | 78,508 |   |   | $ | 78,508 |   |   | $ | 68,337 |   |   | $ | 68,337 |   |
|                                               |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted-average                shares outstanding |   |                                            | 38,897 |   |   |   | 38,897 |   |   |   | 38,365 |   |   |   | 38,365 |   |
| Effect                of dilutive securities       |   |                                            | -- |   |   |   | 532 |   |   |   | -- |   |   |   | 659 |   |
| Total                shares                        |   |                                            | 38,897 |   |   |   | 39,429 |   |   |   | 38,365 |   |   |   | 39,024 |   |
|                                               |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                income per share                |   | $                                               | 2.02 |   |   | $ | 1.99 |   |   | $ | 1.78 |   |   | $ | 1.75 |   |

|                                               |   | **Nine                Months Ended April 30,** |
|----------------------------------------------------|--------|------------------------------------------------|
|                                               |   | **2007**                                       |   | **2006** |
|                                               |   | **Basic**                                      |   | **Diluted** |   | **Basic** | **Diluted** |
| Net                income per share:               |   |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                income                          |   | $                                              | 95,719 |   |   | $ | 95,719 |   |   | $ | 77,019 |   | $ | 77,019 |   |
|                                               |   |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted-average                shares outstanding |   |                                           | 38,787 |   |   |   | 38,787 |   |   |   | 37,535 |   |   | 37,535 |   |
| Effect                of dilutive securities       |   |                                           | -- |   |   |   | 502 |   |   |   | -- |   |   | 822 |   |
| Total                shares                        |   |                                           | 38,787 |   |   |   | 39,289 |   |   |   | 37,535 |   |   | 38,357 |   |
|                                               |   |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                income per share                |   | $                                              | 2.47 |   |   | $ | 2.44 |   |   | $ | 2.05 |   | $ | 2.01 |   |

**4.**
**Long-Term      Debt**

|                                                           |                            | **April                30,** | **July                31,** | **April                30,** |
|----------------------------------------------------------------|---------------------------------|------------------------------|-----------------------------|------------------------------|
|                                                           | **Maturity                (a)** | **2007**                     | **2006**                    | **2006**                     |
| Credit                Facility Revolver (b)                    | 2012                            | $                            | --                          | $                            | -- | $ | -- |
| SSV                Facility                                    | 2011                            |                         | --                          |                         | 6,261 |   | -- |
| Industrial                Development Bonds                    | 2009-2020                       |                         | 57,700                      |                         | 61,700 |   | 61,700 |
| Employee                Housing Bonds                          | 2027-2039                       |                         | 52,575                      |                         | 52,575 |   | 52,575 |
| Non-Recourse                Real Estate Financings (c)         | 2009-2010                       |                         | 68,276                      |                         | 13,357 |   | 9,596 |
| 6.75%                Senior Subordinated Notes ("6.75% Notes") | 2014                            |                         | 390,000                     |                         | 390,000 |   | 390,000 |
| Other                                                          | 2007-2029                       |                         | 7,012                       |                         | 7,335 |   | 7,420 |
| Total                debt                                      |                            |                         | 575,563                     |                         | 531,228 |   | 521,291 |
| Less:                Current maturities (d)                    |                            |                         | 401                         |                         | 5,915 |   | 4,420 |
| Long-term                debt                                  |                            | $                            | 575,162                     | $                            | 525,313 | $ | 516,871 |

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)    | Maturities                are based on the Company's July 31 fiscal year end.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| (b)    | On                March 13, 2007, The Vail Corporation (“Vail Corp.”), a wholly-owned                subsidiary of the Company, entered into an amendment (the “Third                Amendment”) of its existing Fourth Amended and Restated Credit Agreement                (the “Credit Agreement”) among Vail Corp., 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,                and the lenders party thereto. The Third Amendment amends the Credit                Agreement to, among other things, (i) decrease the total loan commitment                from $400 million to $300 million, (ii) improve pricing, including                unused                commitment fees and letter of credit fees and improve flexibility                in the                Company’s ability to make investments, (iii) extend the maturity date from                January 28, 2010 to February 1, 2012 and (iv) eliminate certain covenant                ratios and change, for pricing and covenant purposes, the gross debt                leverage ratio to a net debt ratio.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| (c)    | On                March 19, 2007, The Chalets at The Lodge at Vail, LLC (the “Chalets”), a                wholly-owned subsidiary of the Company, entered into a construction                loan                agreement (the “Construction Loan Agreement”) in the amount of up to $123                million with Wells Fargo Bank, National Association as administrative                agent, book manager, and joint lead arranger, U.S. Bank National                Association as joint lead arranger and syndication agent, and the                lenders                party thereto. Borrowings under the Construction Loan Agreement are                non-revolving and must 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 the associated private membership club, skier services building                and                parking structure. The Construction Loan Agreement matures on September                1,                2009, and principal payments are due at maturity, with certain pre-payment                requirements, including upon the closing of the condominium units.                The                Chalets has the option to extend the term of the Construction Loan                Agreement for six months, subject to certain requirements. Borrowings                under the Construction Loan Agreement bear interest annually at the                rate,                at the Chalets’ option, of (i) LIBOR plus a margin of 1.35% or (ii) the                greater of the (x) administrative agent’s prime commercial lending rate or                (y) the Federal Funds Rate in effect on that day as announced by                the                Federal Reserve Bank of New York, plus 0.5%. Interest is payable                monthly                in arrears. The Construction Loan Agreement provides for affirmative                and                negative covenants that restrict, among other things, the Chalets’ ability                to dispose of assets, transfer or pledge its equity interest, incur                indebtedness and make investments or distributions. The Construction                Loan                Agreement contains non-recourse provisions to the Company with respect                to                repayment, whereby under event of default, the lenders have recourse                only                against the Chalets’ assets and as provided for below the lenders do not                have recourse against assets held by the Company or Vail Corp. All                assets                of the Chalets are provided as collateral under the Construction                Loan                Agreement. In connection with the Construction Loan Agreement, the                Company                and Vail Corp. each entered into completion guarantees, pursuant                to which                each of the Company and Vail Corp. guarantees the completion of the                construction of the project (but not the repayment of any amounts                drawn                under the Construction Loan Agreement). However, Vail Corp. could                be                responsible to pay damages to the lenders under very limited                circumstances. If either the Company or Vail Corp. is required to                perform                the Chalets’ obligation to complete the project, the lenders will make                available to the Company or Vail Corp. any undisbursed commitments                under                the Construction Loan Agreement for the completion of construction                and                development of The Lodge at Vail Chalets. At                April 30, 2007, Non-Recourse Real Estate Financings consist of borrowings                of $59.5 million under the $175 million construction agreement for                Arrabelle at Vail Square, LLC (“Arrabelle”) and borrowings of $8.8 million                under the $123 million construction agreement for the Chalets. At                July 31,                2006, Non-Recourse Real Estate Financings also included borrowings                under                the $30 million construction agreement for Gore Creek Place, LLC                (“Gore                Creek”) which were                paid in full during the nine months ended April 30, 2007. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| (d)    | Current                maturities represent principal payments due in the next 12                months.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

| Fiscal                2007 |   | $      | 88      |
|----------------------------|--------|--------|---------|
| Fiscal                2008 |   |   | 363     |
| Fiscal                2009 |   |   | 74,760  |
| Fiscal                2010 |   |   | 9,043   |
| Fiscal                2011 |   |   | 1,738   |
| Thereafter                 |   |   | 489,571 |
| Total                debt  |   | $      | 575,563 |

**5.**
**Supplementary      Financial Statement Information**

|                                               |                                               |   | **April                30,** |      | **July                31,** |   | **April                30,** |
|----------------------------------------------------|----------------------------------------------------|--------|------------------------------|-----------|-----------------------------|--------|------------------------------|
|                                               |                                               |   | **2007**                     |      | **2006**                    |   | **2006**                     |
| Land                and land improvements          |                                               | $      | 248,275                      |      |                        | $      | 248,941                      |   |   | $ | 244,204 |   |
| Buildings                and building improvements |                                               |   | 538,530                      |      |                        |   | 529,316                      |   |   |   | 527,297 |   |
| Machinery                and equipment             |                                               |   | 455,200                      |      |                        |   | 426,457                      |   |   |   | 427,550 |   |
| Vehicles                                           |                                               |   | 27,051                       |      |                        |   | 25,671                       |   |   |   | 25,217 |   |
| Furniture                and fixtures              |                                               |   | 125,781                      |      |                        |   | 113,696                      |   |   |   | 112,296 |   |
| Construction                in progress            |                                               |   | 59,220                       |      |                        |   | 39,149                       |   |   |   | 30,664 |   |
|                                               | Gross                property, plant and equipment |   |                         | 1,454,057 |                        |   |                         | 1,383,230 |   |   |   | 1,367,228 |   |
| Accumulated                depreciation            |                                               |   | (585,334                     | )         |                        |   | (532,118                     | ) |   |   | (518,244 | ) |
|                                               | Property,                plant and equipment, net  |   | $                            | 868,723   |                        |   | $                            | 851,112  |   |   | $ | 848,984 |   |

|                                                             |                                                       |   | **April                30,** |    | **July                31,** |   | **April                30,** |
|------------------------------------------------------------------|------------------------------------------------------------|--------|------------------------------|---------|-----------------------------|--------|------------------------------|
|                                                             |                                                       |   | **2007**                     |    | **2006**                    |   | **2006**                     |
| Trade                payables                                    |                                                       | $      | 88,938                       |    |                        | $      | 82,599                       |   |   | $ | 71,516 |   |
| Deferred                revenue                                  |                                                       |   | 21,984                       |    |                        |   | 30,785                       |   |   |   | 23,041 |   |
| Deferred                credits and deposits                     |                                                       |   | 46,348                       |    |                        |   | 24,026                       |   |   |   | 32,881 |   |
| Accrued                salaries, wages and deferred compensation |                                                       |   | 25,987                       |    |                        |   | 31,954                       |   |   |   | 26,008 |   |
| Accrued                benefits                                  |                                                       |   | 29,239                       |    |                        |   | 24,538                       |   |   |   | 23,501 |   |
| Accrued                interest                                  |                                                       |   | 6,965                        |    |                        |   | 14,969                       |   |   |   | 7,214 |   |
| Liabilities                to complete real estate projects      |                                                       |   | 5,436                        |    |                        |   | 5,951                        |   |   |   | 8,396 |   |
| Other                accruals                                    |                                                       |   | 13,084                       |    |                        |   | 15,940                       |   |   |   | 13,914 |   |
|                                                             | Total                accounts payable and accrued expenses |   | $                            | 237,981 |                        |   | $                            | 230,762 |   |   | $ | 206,471 |   |

|                                                        |                                             |   | **April                30,** |    | **July                31,** |   | **April                30,** |
|-------------------------------------------------------------|--------------------------------------------------|--------|------------------------------|---------|-----------------------------|--------|------------------------------|
|                                                        |                                             |   | **2007**                     |    | **2006**                    |   | **2006**                     |
| Private                club deferred initiation fee revenue |                                             | $      | 94,262                       |    |                        | $      | 91,438                       |   |   | $ | 89,840 |   |
| Deferred                real estate credits                 |                                             |   | 37,120                       |    |                        |   | 54,578                       |   |   |   | 50,838 |   |
| Private                club initiation deposits             |                                             |   | 16,302                       |    |                        |   | 1,308                        |   |   |   | 1,280 |   |
| Liabilities                to complete real estate projects |                                             |   | 6,301                        |    |                        |   | 550                          |   |   |   | 550 |   |
| Other                long-term liabilities                  |                                             |   | 12,397                       |    |                        |   | 10,616                       |   |   |   | 7,373 |   |
|                                                        | Total                other long-term liabilities |   | $                            | 166,382 |                        |   | $                            | 158,490 |   |   | $ | 149,881 |   |

**6.**
**Variable      Interest Entities**

**7.**
**Relocation      and Separation Charges**

|                                           |    |                |   |    |                  |   |    | ** Facility,**                |   |    |            |   |
|------------------------------------------------|---------|---------------------|--------|---------|-----------------------|--------|---------|------------------------------------|--------|---------|-----------------|--------|
|                                           |    | ** Severance** |   |    |                  |   |    | ** Employee**                 |   |    |            |   |
|                                           |    | ** and**       |   |    | ** Contract**    |   |    | ** and                Other** |   |    |            |   |
|                                           |    | ** Retention** |   |    | ** Termination** |   |    | ** Relocation**               |   |    |            |   |
|                                           |    | ** Benefits**  |   |    | ** Costs**       |   |    | ** Costs**                    |   |    | ** Total** |   |
|  Balance                at July 31, 2006  |  $ |  873           |   |  $ |  --              |   |  $ |  283                          |   |  $ |  1,156     |   |
|  Relocation                charges        |    | 67                  |   |    | 348                   |   |    | 986                                |   |    |  1,401     |   |
|  Payments                                 |    | (940                | )      |    | (157                  | )      |    | (1,259                             | )      |    | (2,235          | )      |
|  Balance                at April 30, 2007 |  $ | --                  |   |  $ | 191                   |   |  $ | 10                                 |   |  $ | 201             |   |

**8.**
**Sale      of Businesses**

**9.**
**Put      and Call Options**

**10.**
**Related      Party Transactions**

**11.**
**Commitments      and Contingencies**

*Metropolitan      Districts*

*Guarantees*

*Commitments*

*Cheeca      Lodge & Spa Contract Dispute*

*Breckenridge      Terrace Employee Housing Construction Defect/Water Intrusion      Claims*

**12.**
**Stock      Repurchase Plan**

**13.**
**Guarantor      Subsidiaries and Non-Guarantor Subsidiaries**

----

| **Supplemental                Condensed Consolidating Balance Sheet**       |
|-----------------------------------------------------------------------------|
| **As                of April 30, 2007**                                     |
| **(in                thousands)**                                           |
| **(Unaudited)**                                                             |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                        |   |   |   |   |   |   | **100%                Owned** |   |   |   |   |   |   |   |   |   |
|                                                                        |   |   |   | **Parent** |   |   | **Guarantor** |   |   | **Other** |   |   | **Eliminating** |   |   |
|                                                                        |   |   |   | **Company** |   |   | **Subsidiaries** |   |   | **Subsidiaries** |   | **Entries** |   |   | **Consolidated** |
| Current                assets:                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                        | Cash                and cash equivalents | $ | -- |   | $ | 273,103 |   | $ | 43,336 |   | $ | -- |   | $ | 316,439 |
|                                                                        | Restricted                cash |   | -- |   |   | 27,673 |   |   | 12,735 |   |   | -- |   |   | 40,408 |
|                                                                        | Trade                receivables, net |   | -- |   |   | 32,769 |   |   | 2,489 |   |   | -- |   |   | 35,258 |
|                                                                        | Inventories,                net |   | -- |   |   | 7,855 |   |   | 34,772 |   |   | -- |   |   | 42,627 |
|                                                                        | Other                current assets |   | 13,991 |   |   | 13,207 |   |   | 5,635 |   |   | -- |   |   | 32,833 |
|                                                                        |   | Total                current assets |   | 13,991 |   |   | 354,607 |   |   | 98,967 |   |   | -- |   |   | 467,565 |
| Property,                plant and equipment, net                           |   | -- |   |   | 798,591 |   |   | 70,132 |   |   | -- |   |   | 868,723 |
| Real                estate held for sale and investment                     |   | -- |   |   | 112,253 |   |   | 192,832 |   |   | -- |   |   | 305,085 |
| Goodwill,                net                                                |   | -- |   |   | 121,611 |   |   | 14,328 |   |   | -- |   |   | 135,939 |
| Intangible                assets, net                                       |   | -- |   |   | 56,729 |   |   | 16,470 |   |   | -- |   |   | 73,199 |
| Other                assets                                                 |   | 4,824 |   |   | 27,691 |   |   | 12,092 |   |   | -- |   |   | 44,607 |
| Investments                in subsidiaries and advances to (from) parent    |   | 1,261,952 |   |   | 295,497 |   |   | (53,028 | ) |   | (1,504,421 | ) |   | -- |
|                                                                        | Total                assets | $ | 1,280,767 |   | $ | 1,766,979 |   | $ | 351,793 |   | $ | (1,504,421 | ) | $ | 1,895,118 |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current                liabilities:                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                        | Accounts                payable and accrued expenses | $ | 5,627 |   | $ | 152,999 |   | $ | 79,355 |   | $ | -- |   | $ | 237,981 |
|                                                                        | Income                taxes payable |   | 11,739 |   |   | -- |   |   | -- |   |   | -- |   |   | 11,739 |
|                                                                        | Long-term                debt due within one year |   | -- |   |   | 35 |   |   | 366 |   |   | -- |   |   | 401 |
|                                                                        |   | Total                current liabilities |   | 17,366 |   |   | 153,034 |   |   | 79,721 |   |   | -- |   |   | 250,121 |
| Long-term                debt                                               |   | 390,000 |   |   | 57,718 |   |   | 127,444 |   |   | -- |   |   | 575,162 |
| Other                long-term liabilities                                  |   | -- |   |   | 120,029 |   |   | 46,353 |   |   | -- |   |   | 166,382 |
| Deferred                income taxes                                        |   | 130,212 |   |   | -- |   |   | -- |   |   | -- |   |   | 130,212 |
| Minority                interest in net assets of consolidated subsidiaries |   | -- |   |   | -- |   |   | -- |   |   | 30,052 |   |   | 30,052 |
| Total                stockholders' equity                                   |   | 743,189 |   |   | 1,436,198 |   |   | 98,275 |   |   | (1,534,473 | ) |   | 743,189 |
|                                                                        |   | Total                liabilities and stockholders' equity | $ | 1,280,767 |   | $ | 1,766,979 |   | $ | 351,793 |   | $ | (1,504,421 | ) | $ | 1,895,118 |

| **Supplemental                Condensed Consolidating Balance Sheet**       |
|-----------------------------------------------------------------------------|
| **As                of July 31, 2006**                                      |
| **(in                thousands)**                                           |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                        |   |   |   |   |   | **100%                Owned** |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                        |   | **Parent** |   | **Guarantor** |   | **Other** |   | **Eliminating** |   |   |   |   |
|                                                                        |   | **Company** |   | **Subsidiaries** |   | **Subsidiaries** |   | **Entries** |   | **Consolidated** |
| Current                assets:                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                and cash equivalents                                    |   | $ | -- |   |   | $ | 179,998 |   |   | $ | 11,796 |   |   | $ | -- |   |   | $ | 191,794 |   |
| Restricted                cash                                              |   |   | -- |   |   |   | 14,787 |   |   |   | 5,535 |   |   |   | -- |   |   |   | 20,322 |   |
| Trade                receivables, net                                       |   |   | -- |   |   |   | 31,030 |   |   |   | 4,919 |   |   |   | -- |   |   |   | 35,949 |   |
| Inventories,                net                                             |   |   | -- |   |   |   | 8,595 |   |   |   | 33,683 |   |   |   | -- |   |   |   | 42,278 |   |
| Other                current assets                                         |   |   | 11,945 |   |   |   | 21,308 |   |   |   | 2,378 |   |   |   | -- |   |   |   | 35,631 |   |
| Total                current assets                                         |   |   | 11,945 |   |   |   | 255,718 |   |   |   | 58,311 |   |   |   | -- |   |   |   | 325,974 |   |
| Property,                plant and equipment, net                           |   |   | -- |   |   |   | 782,158 |   |   |   | 68,954 |   |   |   | -- |   |   |   | 851,112 |   |
| Real                estate held for sale and investment                     |   |   | -- |   |   |   | 154,330 |   |   |   | 105,054 |   |   |   | -- |   |   |   | 259,384 |   |
| Goodwill,                net                                                |   |   | -- |   |   |   | 118,475 |   |   |   | 17,336 |   |   |   | -- |   |   |   | 135,811 |   |
| Intangible                assets, net                                       |   |   | -- |   |   |   | 58,185 |   |   |   | 16,924 |   |   |   | -- |   |   |   | 75,109 |   |
| Other                assets                                                 |   |   | 5,356 |   |   |   | 20,510 |   |   |   | 14,387 |   |   |   | -- |   |   |   | 40,253 |   |
| Investments                in subsidiaries and advances to (from) parent    |   |   | 1,053,209 |   |   |   | (541,621 | ) |   |   | (51,690 | ) |   |   | (459,898 | ) |   |   | -- |   |
| Total                assets                                                 |   | $ | 1,070,510 |   |   | $ | 847,755 |   |   | $ | 229,276 |   |   | $ | (459,898 | ) |   | $ | 1,687,643 |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current                liabilities:                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts                payable and accrued expenses                        |   | $ | 19,857 |   |   | $ | 161,179 |   |   | $ | 49,726 |   |   | $ | -- |   |   | $ | 230,762 |   |
| Income                taxes payable                                         |   |   | 17,517 |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | 17,517 |   |
| Long-term                debt due within one year                           |   |   | -- |   |   |   | 4,045 |   |   |   | 1,870 |   |   |   | -- |   |   |   | 5,915 |   |
| Total                current liabilities                                    |   |   | 37,374 |   |   |   | 165,224 |   |   |   | 51,596 |   |   |   | -- |   |   |   | 254,194 |   |
| Long-term                debt                                               |   |   | 390,000 |   |   |   | 57,734 |   |   |   | 77,579 |   |   |   | -- |   |   |   | 525,313 |   |
| Other                long-term liabilities                                  |   |   | 359 |   |   |   | 121,995 |   |   |   | 36,136 |   |   |   | -- |   |   |   | 158,490 |   |
| Deferred                income taxes                                        |   |   | -- |   |   |   | 72,919 |   |   |   | 145 |   |   |   | -- |   |   |   | 73,064 |   |
| Put                option liabilities                                       |   |   | -- |   |   |   | 1,245 |   |   |   | -- |   |   |   | -- |   |   |   | 1,245 |   |
| Minority                interest in net assets of consolidated subsidiaries |   |   | -- |   |   |   | 13,285 |   |   |   | 19,275 |   |   |   | -- |   |   |   | 32,560 |   |
| Total                stockholders’ equity                             |   |   | 642,777 |   |   |   | 415,353 |   |   |   | 44,545 |   |   |   | (459,898 | ) |   |   | 642,777 |   |
| Total                liabilities and stockholders’ equity             |   | $ | 1,070,510 |   |   | $ | 847,755 |   |   | $ | 229,276 |   |   | $ | (459,898 | ) |   | $ | 1,687,643 |   |

| **Supplemental                Condensed Consolidating Balance Sheet**       |
|-----------------------------------------------------------------------------|
| **As                of April 30, 2006**                                     |
| **(in                thousands)**                                           |
| **(Unaudited)**                                                             |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                        |   |   |   |   |   |   | **100%                Owned** |   |   |   |   |   |   |   |   |   |   |
|                                                                        |   |   |   | **Parent** |   |   | **Guarantor** |   |   | **Other** |   |   | **Eliminating** |   |   |   |   |
|                                                                        |   |   |   | **Company** |   |   | **Subsidiaries** |   |   | **Subsidiaries** |   |   | **Entries** |   |   | **Consolidated** |   |
| Current                assets:                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                        | Cash                and cash equivalents | $ | -- |   | $ | 231,814 |   | $ | 8,302 |   | $ | -- |   | $ | 240,116 |   |
|                                                                        | Restricted                cash |   | -- |   |   | 28,776 |   |   | 3,531 |   |   | -- |   |   | 32,307 |   |
|                                                                        | Receivables,                net |   | -- |   |   | 30,482 |   |   | 5,136 |   |   | -- |   |   | 35,618 |   |
|                                                                        | Inventories,                net |   | -- |   |   | 7,434 |   |   | 29,396 |   |   | -- |   |   | 36,830 |   |
|                                                                        | Other                current assets |   | 13,191 |   |   | 15,494 |   |   | 6,059 |   |   | -- |   |   | 34,744 |   |
|                                                                        |   | Total                current assets |   | 13,191 |   |   | 314,000 |   |   | 52,424 |   |   | -- |   |   | 379,615 |   |
| Property,                plant and equipment, net                           |   | -- |   |   | 781,039 |   |   | 67,945 |   |   | -- |   |   | 848,984 |   |
| Real                estate held for sale and investment                     |   | -- |   |   | 142,101 |   |   | 98,514 |   |   | -- |   |   | 240,615 |   |
| Goodwill,                net                                                |   | -- |   |   | 135,811 |   |   | -- |   |   | -- |   |   | 135,811 |   |
| Intangible                assets, net                                       |   | -- |   |   | 42,137 |   |   | 34,450 |   |   | -- |   |   | 76,587 |   |
| Other                assets                                                 |   | 5,534 |   |   | 14,456 |   |   | 11,133 |   |   | -- |   |   | 31,123 |   |
| Investments                in subsidiaries and advances to (from) parent    |   | 1,065,247 |   |   | (561,556 | ) |   | (43,793 | ) |   | (459,898 | ) |   | -- |   |
|                                                                        |   |   | $ | 1,083,972 |   | $ | 867,988 |   | $ | 220,673 |   | $ | (459,898 | ) | $ | 1,712,735 |   |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current                liabilities:                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                        | Accounts                payable and accrued expenses | $ | 12,705 |   | $ | 143,768 |   | $ | 49,998 |   | $ | -- |   | $ | 206,471 |   |
|                                                                        | Income                taxes payable |   | 1,324 |   |   | -- |   |   | -- |   |   | -- |   |   | 1,324 |   |
|                                                                        | Long-term                debt due within one year |   | -- |   |   | 4,044 |   |   | 376 |   |   | -- |   |   | 4,420 |   |
|                                                                        |   | Total                current liabilities |   | 14,029 |   |   | 147,812 |   |   | 50,374 |   |   | -- |   |   | 212,215 |   |
| Long-term                debt                                               |   | 390,000 |   |   | 57,742 |   |   | 69,129 |   |   | -- |   |   | 516,871 |   |
| Other                long-term liabilities                                  |   | 358  |   |   | 115,215 |   |   | 34,308 |   |   | -- |   |   | 149,881 |   |
| Deferred                income taxes                                        |   | -- |   |   | 118,641 |   |   | 205 |   |   | -- |   |   | 118,846 |   |
| Put                option liabilities                                       |   | -- |   |   | 113 |   |   | -- |   |   | -- |   |   | 113 |   |
| Minority                interest in net assets of consolidated subsidiaries |   | -- |   |   | -- |   |   | 35,224 |   |   | -- |   |   | 35,224 |   |
| Total                stockholders' equity                                   |   | 679,585 |   |   | 428,465 |   |   | 31,433 |   |   | (459,898 | ) |   | 679,585 |   |
|                                                                        |   | Total                liabilities and stockholders' equity | $ | 1,083,972 |   | $ | 867,988 |   | $ | 220,673 |   | $ | (459,898 | ) | $ | 1,712,735 |   |

| **Supplemental                Condensed Consolidating Statement of Operations**             |
|---------------------------------------------------------------------------------------------|
| **For                the three months ended April 30, 2007**                                |
| **(in                thousands)**                                                           |
| **(Unaudited)**                                                                             |
|                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                        |   |   |   |   |   |   | **100%                Owned** |   |   |   |   |   |   |   |   |   |   |
|                                                                                        |   |   |   | **Parent** |   |   | **Guarantor** |   |   | **Other** |   |   | **Eliminating** |   |   |   |   |
|                                                                                        |   |   |   | **Company** |   |   | **Subsidiaries** |   |   | **Subsidiaries** |   |   | **Entries** |   |   | **Consolidated** |   |
| Total                net revenue                                                            | $ | -- |   | $ | 304,899 |   | $ | 67,994 |   | $ | (3,404 | ) | $ | 369,489 |   |
| Total                operating expense                                                      |   | 175 |   |   | 181,201 |   |   | 54,789 |   |   | (2,860 | ) |   | 233,305 |   |
|                                                                                        | (Loss)                income from operations |   | (175 | ) |   | 123,698 |   |   | 13,205 |   |   | (544 | ) |   | 136,184 |   |
| Other                (expense) income, net                                                  |   | (6,757 | ) |   | 3,397 |   |   | (1,071 | ) |   | 542 |   |   | (3,889 | ) |
| Equity                investment income, net                                                |   | -- |   |   | 1,660 |   |   | -- |   |   | -- |   |   | 1,660 |   |
| Loss                on sale of business                                                     |   | -- |   |   | (601 | ) |   | -- |   |   | -- |   |   | (601 | ) |
| Gain                on put options, net                                                     |   | -- |   |   | 690 |   |   | -- |   |   | -- |   |   | 690 |   |
| Minority                interest in income of consolidated                subsidiaries, net |   | -- |   |   | -- |   |   | -- |   |   | (5,343 | ) |   | (5,343 | ) |
|                                                                                        | (Loss)                income before income taxes |   | (6,932 | ) |   | 128,844 |   |   | 12,134 |   |   | (5,345 | ) |   | 128,701 |   |
|                                                                                        | Benefit                (provision) for income taxes |   | 2,704 |   |   | (52,901 | ) |   | 4 |   |   | -- |   |   | (50,193 | ) |
|                                                                                        | Net                (loss) income before equity in income |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                        | (loss)                of consolidated subsidiaries |   | (4,228 | ) |   | 75,943 |   |   | 12,138 |   |   | (5,345 | ) |   | 78,508 |   |
| Equity                in income (loss) of consolidated                subsidiaries          |   | 82,736 |   |   | -- |   |   | -- |   |   | (82,736 | ) |   | -- |   |
| Net                income (loss)                                                            | $ | 78,508 |   | $ | 75,943 |   | $ | 12,138 |   | $ | (88,081 | ) | $ | 78,508 |   |

| **Supplemental                Condensed Consolidating Statement of Operations**             |
|---------------------------------------------------------------------------------------------|
| **For                the three months ended April 30, 2006**                                |
| **(in                thousands)**                                                           |
| **(Unaudited)**                                                                             |
|                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                        |   |   |   |   |   |   | **100%                Owned** |   |   |   |   |   |   |   |   |   |   |
|                                                                                        |   |   |   | **Parent** |   |   | **Guarantor** |   |   | **Other** |   |   | **Eliminating** |   |   |   |   |
|                                                                                        |   |   |   | **Company** |   |   | **Subsidiaries** |   |   | **Subsidiaries** |   |   | **Entries** |   |   | **Consolidated** |   |
| Total                net revenue                                                            | $ | -- |   | $ | 284,472 |   | $ | 59,493 |   | $ | (2,576 | ) | $ | 341,389 |   |
| Total                operating expense                                                      |   | 7,742 |   |   | 167,605 |   |   | 45,373 |   |   | (2,576 | ) |   | 218,144 |   |
|                                                                                        | (Loss)                income from operations |   | (7,742 | ) |   | 116,867 |   |   | 14,120 |   |   | -- |   |   | 123,245 |   |
| Other                (expense) income, net                                                  |   | (6,758 | ) |   | 921 |   |   | (672) |   |   | -- |   |   | (6,509 | ) |
| Equity                investment income, net                                                |   | -- |   |   | 760 |   |   | -- |   |   | -- |   |   | 760 |   |
| Loss                on put options, net                                                     |   | -- |   |   | (113 | ) |   | -- |   |   | -- |   |   | (113 | ) |
| Minority                interest in income of consolidated                subsidiaries, net |   | -- |   |   | -- |   |   | (5,355 | ) |   | -- |   |   | (5,355 | ) |
|                                                                                        | (Loss)                income before income taxes |   | (14,500 | ) |   | 118,435 |   |   | 8,093 |   |   | -- |   |   | 112,028 |   |
|                                                                                        | Benefit                (provision) for income taxes |   | 5,655 |   |   | (49,408 | ) |   | 62 |   |   | -- |   |   | (43,691 | ) |
|                                                                                        | Net                (loss) income before equity in income |   |   |   |   |   |   |   |   |   |   |   |   |   |  |   |
|                                                                                        | (loss)                of consolidated subsidiaries |   | (8,845 | ) |   | 69,027 |   |   | 8,155 |   |   | --  |   |   | 68,337 |   |
| Equity                in income (loss) of consolidated                subsidiaries          |   | 77,182 |   |   | -- |   |   | -- |   |   | (77,182 | ) |   | -- |   |
| Net                income (loss)                                                            | $ | 68,337 |   | $ | 69,027 |   | $ | 8,155 |   | $ | (77,182 | ) | $ | 68,337 |   |

| **Supplemental                Condensed Consolidating Statement of                Operations** |
|------------------------------------------------------------------------------------------------|
| **For                the nine months ended April 30, 2007**                                    |
| **(in                thousands)**                                                              |
| **(Unaudited)**                                                                                |
|                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                           |   |   |   |   |   |   | **100%                Owned** |   |   |   |   |   |   |   |   |   |   |
|                                                                                           |   |   |   | **Parent** |   |   | **Guarantor** |   |   | **Other** |   |   | **Eliminating** |   |   |   |   |
|                                                                                           |   |   |   | **Company** |   |   | **Subsidiaries** |   |   | **Subsidiaries** |   |   | **Entries** |   |   | **Consolidated** |   |
| Total                net revenue                                                               | $ | -- |   | $ | 639,972 |   | $ | 213,097 |   | $ | (9,047 | ) | $ | 844,022 |   |
| Total                operating expense                                                         |   | 525 |   |   | 491,364 |   |   | 177,667 |   |   | (8,608 | ) |   | 660,948 |   |
|                                                                                           | (Loss)                income from operations |   | (525 | ) |   | 148,608 |   |   | 35,430 |   |   | (439 | ) |   | 183,074 |   |
| Other                (expense) income, net                                                     |   | (20,276 | ) |   | 2,319 |   |   | (3,115 | ) |   | 542 |   |   | (20,530 | ) |
| Equity                investment income, net                                                   |   | -- |   |   | 3,990 |   |   | -- |   |   | -- |   |   | 3,390 |   |
| Loss                on sale of business                                                        |   | -- |   |   | (601 | ) |   | -- |   |   | -- |   |   | (601 | ) |
| Gain                on put options, net                                                        |   | -- |   |   | 690 |   |   | -- |   |   | -- |   |   | 690 |   |
| Minority                interest in income of consolidated                subsidiaries, net    |   | -- |   |   | -- |   |   | -- |   |   | (9,707 | ) |   | (9,707 | ) |
|                                                                                           | (Loss)                income before income taxes |   | (20,801 | ) |   | 155,006 |   |   | 32,315 |   |   | (9,604 | ) |   | 156,916 |   |
|                                                                                           | Benefit                (provision) for income taxes |   | 8,113 |   |   | (69,437 | ) |   | 127 |   |   | -- |   |   | (61,197 | ) |
|                                                                                           | Net                (loss) income before equity in income |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                           | (loss)                of consolidated subsidiaries |   | (12,688 | ) |   | 85,569 |   |   | 32,442 |   |   | (9,604 | ) |   | 95,719 |   |
| Equity                in income (loss) of consolidated                subsidiaries             |   | 108,407 |   |   | -- |   |   | -- |   |   | (108,407 | ) |   | -- |   |
| Net                income (loss)                                                               | $ | 95,719 |   | $ | 85,569 |   | $ | 32,442 |   | $ | (118,011 | ) | $ | 95,719 |   |

| **Supplemental                Condensed Consolidating Statement of                Operations** |
|------------------------------------------------------------------------------------------------|
| **For                the nine months ended April 30, 2006**                                    |
| **(in                thousands)**                                                              |
| **(Unaudited)**                                                                                |
|                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                           |   |   |   |   |   |   | **100%                Owned** |   |   |   |   |   |   |   |   |   |   |
|                                                                                           |   |   |   | **Parent** |   |   | **Guarantor** |   |   | **Other** |   |   | **Eliminating** |   |   |   |   |
|                                                                                           |   |   |   | **Company** |   |   | **Subsidiaries** |   |   | **Subsidiaries** |   |   | **Entries** |   |   | **Consolidated** |   |
| Total                net revenue                                                               | $ | -- |   | $ | 571,776 |   | $ | 149,693 |   | $ | (6,643 | ) | $ | 714,826 |   |
| Total                operating expense                                                         |   | 15,592 |   |   | 428,751 |   |   | 126,753 |   |   | (6,643 | ) |   | 564,453 |   |
|                                                                                           | (Loss)                income from operations |   | (15,592 | ) |   | 143,025 |   |   | 22,940 |   |   | -- |   |   | 150,373 |   |
| Other                expense, net                                                              |   | (20,389 | ) |   | (652 | ) |   | (2,123 | ) |   | -- |   |   | (23,164 | ) |
| Equity                investment income, net                                                   |   | -- |   |   | 3,164 |   |   | -- |   |   | -- |   |   | 3,164 |   |
| Gain                on sale of businesses, net                                                 |   | -- |   |   | 4,625 |   |   | -- |   |   | -- |   |   | 4,625 |   |
| Loss                on put options                                                             |   | -- |   |   | (79 | ) |   | -- |   |   | -- |   |   | (79 | ) |
| Minority                interest in income of consolidated                subsidiaries, net    |   | -- |   |   | -- |   |   | (8,660 | ) |   | -- |   |   | (8,660 | ) |
|                                                                                           | (Loss)                income before income taxes |   | (35,981 | ) |   | 150,083 |   |   | 12,157 |   |   | -- |   |   | 126,259 |   |
|                                                                                           | Benefit                (provision) for income taxes |   | 14,033 |   |   | (63,442 | ) |   | 169 |   |   | -- |   |   | (49,240 | ) |
|                                                                                           | Net                (loss) income before equity in income |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                           | (loss)                of consolidated subsidiaries |   | (21,948 | ) |   | 86,641 |   |   | 12,326 |   |   | -- |   |   | 77,019 |   |
| Equity                in income (loss) of consolidated subsidiaries                            |   | 98,967 |   |   | -- |   |   | -- |   |   | (98,967 | ) |   | -- |   |
| Net                income (loss)                                                               | $ | 77,019 |   | $ | 86,641 |   | $ | 12,326 |   | $ | (98,967 | ) | $ | 77,019 |   |

| **Supplemental                Condensed Consolidating Statement of Cash                Flows** |
|------------------------------------------------------------------------------------------------|
| **For                the nine months ended April 30, 2007**                                    |
| **(in                thousands)**                                                              |
| **(Unaudited)**                                                                                |
|                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                           |   |   |   |   |   |   | **100%                Owned** |   |   |   |   |   |   |   |
|                                                                                           |   |   |   | **Parent** |   |   | **Guarantor** |   |   | **Other** |   |   |   |   |
|                                                                                           |   |   |   | **Company** |   |   | **Subsidiaries** |   |   | **Subsidiaries** |   |   | **Consolidated** |   |
| Net                cash (used in) provided by operating activities                             | $ | (7,730 | ) | $ | 204,319 |   | $ | 88,836 |   | $ | 285,425 |   |
| Cash                flows from investing activities:                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital                expenditures                                                            |   | -- |   |   | (72,270 | ) |   | (9,742 | ) |   | (82,012 | ) |
| Investments                in real estate                                                      |   | -- |   |   | (53,462 | ) |   | (67,652 | ) |   | (121,114 | ) |
| Proceeds                from sale of businesses                                                |   | -- |   |   | 3,544 |   |   | -- |   |   | 3,544 |   |
| Purchase                of minority interest                                                   |   | -- |   |   | (8,387 | ) |   | -- |   |   | (8,387 | ) |
| Other                investing activities, net                                                 |   | -- |   |   | (333 | ) |   | 786 |   |   | 453 |   |
| Net                cash used in investing activities                                           |   | -- |   |   | (130,908 | ) |   | (76,608 | ) |   | (207,516 | ) |
| Cash                flows from financing activities:                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Repurchases                of common stock                                                     |   | (15,007 | ) |   | -- |   |   | -- |   |   | (15,007 | ) |
| Proceeds                from borrowings under long-term debt                                   |   | -- |   |   | 1,242 |   |   | 111,758 |   |   | 113,000 |   |
| Payments                of long-term debt                                                      |   | -- |   |   | (5,263 | ) |   | (63,401 | ) |   | (68,664 | ) |
| Proceeds                from exercise of stock options                                         |   | 9,594 |   |   | -- |   |   | -- |   |   | 9,594 |   |
| Other                financing activities, net                                                 |   | 3,892 |   |   | 15,755 |   |   | (11,834 | ) |   | 7,813 |   |
| Advances                (to) from affiliates                                                   |   | 9,251 |   |   | 7,960 |   |   | (17,211 | ) |   | -- |   |
| Net                cash provided by (used in) financing activities                             |   | 7,730 |   |   | 19,694 |   |   | 19,312 |   |   | 46,736 |   |
| Net                increase (decrease) in cash and                cash equivalents             |   | -- |   |   | 93,105 |   |   | 31,540 |   |   | 124,645 |   |
| Cash                and cash equivalents:                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Beginning                of period                                                             |   | -- |   |   | 179,998 |   |   | 11,796 |   |   | 191,794 |   |
| End                of period                                                                   | $ | -- |   | $ | 273,103 |   | $ | 43,336 |   | $ | 316,439 |   |

| **Supplemental                Condensed Consolidating Statement of Cash                Flows** |
|------------------------------------------------------------------------------------------------|
| **For                the nine months ended April 30, 2006**                                    |
| **(in                thousands)**                                                              |
| **(Unaudited)**                                                                                |
|                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                           |   |   |   |   |   |   |   | **100%                Owned** |   |   |   |   |   |   |   |
|                                                                                           |   |   |   |   | **Parent** |   |   | **Guarantor** |   |   | **Other** |   |   |   |   |
|                                                                                           |   |   |   |   | **Company** |   |   | **Subsidiaries** |   |   | **Subsidiaries** |   |   | **Consolidated** |   |
| Net                cash (used in) provided by operating activities                             | $ | (33,877 | ) | $ | 171,180 |   | $ | 40,415 |   | $ | 177,718 |   |
| Cash                flows from investing activities:                                           |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                           | Capital                expenditures |   | -- |   |   | (56,879 | ) |   | (6,804 | ) |   | (63,683 | ) |
|                                                                                           | Investments                in real estate |   | -- |   |   | (37,949 | ) |   | (50,417 | ) |   | (88,366 | ) |
|                                                                                           | Proceeds                from sale of businesses |   | -- |   |   | 30,712 |   |   | -- |   |   | 30,712 |   |
|                                                                                           | Other                investing activities, net |   | -- |   |   | 6 |   |   | (4,425 | ) |   | (4,419 | ) |
|                                                                                           |   | Net                cash used in investing activities |   | -- |   |   | (64,110 | ) |   | (61,646 | ) |   | (125,756 | ) |
| Cash                flows from financing activities:                                           |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                           | Proceeds                from borrowings under long-term debt |   | -- |   |   | 26,645 |   |   | 9,421 |   |   | 36,066 |   |
|                                                                                           | Payments                of long-term debt |   | -- |   |   | (27,129 | ) |   | (9,652 | ) |   | (36,781 | ) |
|                                                                                           | Proceeds                from exercise of stock options |   | 44,036 |   |   | -- |   |   | -- |   |   | 44,036 |   |
|                                                                                           | Other                financing activities, net |   | 13,454 |   |   | (2,604 | ) |   | (2,597 | ) |   | 8,253 |   |
|                                                                                           | Advances                (to) from affiliates |   | (23,613 | ) |   | 34,953 |   |   | (11,340 | ) |   | -- |   |
|                                                                                           |   | Net                cash provided by (used in) financing activities |   | 33,877 |   |   | 31,865 |   |   | (14,168 | ) |   | 51,574 |   |
|                                                                                           |   |   | Net                increase (decrease) in cash and                cash equivalents |   | -- |   |   | 138,935 |   |   | (35,399 | ) |   | 103,536 |   |
| Cash                and cash equivalents:                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                           | Beginning                of period |   | -- |   |   | 92,879 |   |   | 43,701 |   |   | 136,580 |   |
|                                                                                           | End                of period | $ | -- |   | $ | 231,814 |   | $ | 8,302 |   | $ | 240,116 |   |

----

**ITEM      2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS      OF      OPERATIONS.**

**OVERVIEW**

**TRENDS,      RISKS AND UNCERTAINTIES**

| l | Potential                ownership changes of hotels currently under RockResorts management                could                result in the termination of existing RockResorts management contracts,                which could impact the results of operations of the Lodging segment.                In                March 2007, RockResorts was notified by the ownership of the Rosario                Resort & Spa (“Rosario”) that the management agreement was being                terminated, which will result in the Company receiving a termination                fee                in the fourth quarter of the year ending July 31, 2007, but loss                of future                management fees. RockResorts                recognized $241,000 in management fees from Rosario                in                the year ended July 31, 2006. In                February 2007, RockResorts was notified by the ownership of The Equinox                that the owner intended to sell the hotel, at which time the management                agreement was terminated, which resulted in the Company earning a                termination fee of $2.6 million (pursuant to the terms of the management                agreement), which the Company recorded as Lodging revenue in the                three and                nine months ended April 30, 2007. RockResorts                recognized $822,000 in management fees from The Equinox in the year                ended                July 31, 2006. In                August 2006, RockResorts' management agreement for The Lodge at Rancho                Mirage (“Rancho Mirage”) was terminated in conjunction with the closing of                the hotel as part of a redevelopment plan by the current hotel owner,                which resulted in the Company earning a termination fee of $2.4 million                (pursuant to the terms of the management agreement), which the Company                recorded as Lodging revenue in the nine months ended April 30, 2007.                RockResorts                recognized $644,000 in revenue related to the management of this                property                in the year ended July 31, 2006. Offsetting the impact from the loss                of                the above management contracts, the                Company continues to pursue new management contracts, which may include,                in addition to management fees, marketing license fees and technical                service fees in conjunction with a project’s development and sales. For                example, the Company recently announced that it will manage the Hotel                Jerome in Aspen, Colorado and will operate The Chateau at Heavenly                Village, currently under construction, at the base of Heavenly Ski                resort.                In addition, the Company also previously announced that it will manage                the                new Rum Cay Resort on Rum Cay Island, Bahamas, will assist in the                marketing of whole and fractional ownership units within the Rum                Cay                Resort and provide technical advisory services in the design and                construction of the resort as well as manage the new Eleven Biscayne                Hotel                & Spa in Miami, Florida and provide technical advisory services for                this resort. These projects are currently under construction. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| l | On                February 28, 2007, an arbitrator rendered a decision, awarding $8.5                million in damages in favor of RockResorts and against Cheeca Holdings,                LLC, the ownership entity of Cheeca Lodge & Spa, the former                RockResorts managed property located in Islamorada, Florida. Additionally,                in accordance with the arbitrator’s ruling, RockResorts will seek recovery                of costs and attorneys’ fees in the last stage of the proceedings. Upon                conclusion of that stage, the total award, which will incorporate                the $8.5                million damage award and any additional cost recovery award, is final,                binding and not subject to appeal. Upon completion of the cost recovery                stage, RockResorts will proceed with the collection of the award                and will                record the actual amount received, upon receipt, in “contract dispute                credit (charges), net.” The Company has incurred legal related costs of                $184,000 and $4.5 million in the three and nine months ended April                30,                2007, respectively, and $3.3 million for the year ended July 31,                2006 in                connection with this matter which are included in “contract dispute                charges” in the Consolidated Condensed Statements of Operations in the                respective periods.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| l | Real                Estate Reported EBITDA is highly dependent on, among other things,                the                timing of closings on real estate under contract. Changes to the                anticipated timing of closing on one or more real estate projects                could                materially impact Real Estate Reported EBITDA for a particular quarter                or                fiscal year. Additionally, the magnitude of real estate projects                currently                under development or contemplated could result in a significant increase                in Real Estate Reported EBITDA as these projects close, expected                in the                year ending July 31, 2008 and beyond. The profitability and/or viability                of current or proposed real estate development projects have been                and                could continue to be adversely affected by escalation in construction                costs. Real estate development projects are also subject to a slow-down                in                market demand, as well as project difficulties or delays and the                resulting                potential negative financial impact associated with design or construction                issues that may arise in the course of construction. For the three                and                nine months ended April 30, 2007, the Company has recorded $2.4 million                and $6.6 million, respectively, of estimated unanticipated costs                associated with construction and design issues related to its Jackson                Hole                Golf & Tennis Club (“JHG&TC”) residential development. These costs                include estimates to complete remediation work and take into consideration                performance requirements and recoveries of costs from other parties                involved in the design and construction of the JHG&TC residential                development, and as such are subject to change which could impact                future                operating results.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| l | In                recent years, the Company has shifted its Real Estate focus to vertical                development (versus land development), which requires significant                capital                investment prior to project completion (including the construction                of                related Resort depreciable assets). For example, in addition to                development projects currently under construction including The Arrabelle                at Vail Square, Vail’s Front Door and Crystal Peak Lodge projects, the                Company expects to move forward with the development of The Ritz-Carlton                Residences, Vail. The Company expects to incur between $545 million                and                $575 million of construction costs related to these projects subsequent                to                April 30, 2007. The Company has currently entered into non-recourse                financing agreements to borrow up to $298 million for The Arrabelle                at                Vail Square and Vail’s Front Door and expects to enter into similar                non-recourse financing agreements for The Ritz-Carlton Residences,                Vail                and Crystal Peak Lodge development projects.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |

**RESULTS      OF OPERATIONS**

***Summary***

|                                                    |   |    |   | **Three                Months Ended** |   | **Nine                Months Ended** |
|---------------------------------------------------------|--------|---------|--------|---------------------------------------|--------|--------------------------------------|
|                                                    |   |    |   | **April                30,**          |   | **April                30,**         |
|                                                    |   |    |   | **2007**                              |   | **2006**                             |   | **2007** |   | **2006** |
| Mountain                Reported EBITDA                 | $      | 157,375 |   |                                  | $      | 146,122                              |   |   | $ | 238,537 |   |   | $ | 211,977 |   |
| Lodging                Reported EBITDA                  |   | 12,517  |   |                                  |   | 8,977                                |   |   |   | 18,615 |   |   |   | 12,271 |   |
| Resort                Reported EBITDA                   |   | 169,892 |   |                                  |   | 155,099                              |   |   |   | 257,152 |   |   |   | 224,248 |   |
| Real                Estate Reported EBITDA              |   | (8,127  | )      |                                  |   | (4,266)                              |   |   |   | (1,498 | ) |   |   | (3,518) |   |
| Total                Reported EBITDA                    |   | 161,765 |   |                                  |   | 150,833                              |   |   |   | 255,654 |   |   |   | 220,730 |   |
| Income                before provision for income taxes |   | 128,701 |   |                                  |   | 112,028                              |   |   |   | 156,916 |   |   |   | 126,259 |   |
| Net                income                               | $      | 78,508  |   |                                  | $      | 68,337                               |   |   | $ | 95,719 |   |   | $ | 77,019 |   |

***Mountain      Segment***

|                                                  |   | **Three                Months Ended** |    | **Percentage** |
|-------------------------------------------------------|--------|---------------------------------------|---------|----------------|
|                                                  |   | **April                30,**          |    | **Increase**   |
|                                                  |   | **2007**                              |    | **2006**       |   | **(Decrease)** |
| Lift                tickets                           |   | $                                     | 158,380 |           | $ | 149,563 |   | 5.9 | % |
| Ski                school                             |   |                                  | 44,650  |           |   | 41,851 |   | 6.7 | % |
| Dining                                                |   |                                  | 28,624  |           |   | 27,973 |   | 2.3 | % |
| Retail/rental                                         |   |                                  | 53,401  |           |   | 53,091 |   | 0.6 | % |
| Other                                                 |   |                                  | 23,657  |           |   | 22,295 |   | 6.1 | % |
| Total                Mountain net revenue             |   |                                  | 308,712 |           |   | 294,773 |   | 4.7 | % |
| Total                Mountain operating expense       |   |                                  | 152,997 |           |   | 149,431 |   | 2.4 | % |
| Mountain                equity investment income, net |   |                                  | 1,660   |           |   | 780 |   | 112.8 | % |
| Total                Mountain Reported EBITDA         |   | $                                     | 157,375 |           | $ | 146,122 |   | 7.7 | % |
|                                                  |   |                                  |    |           |   |   |   |   |   |
| Total                skier visits                     |   |                                  | 3,307   |           |   | 3,412 |   | (3.1 | )% |
| ETP                                                   |   | $                                     | 47.89   |           | $ | 43.83 |   | 9.3 | % |

|                                                  |   | **Nine                Months Ended** |    | **Percentage** |
|-------------------------------------------------------|--------|--------------------------------------|---------|----------------|
|                                                  |   | **April                30,**         |    | **Increase**   |
|                                                  |   | **2007**                             |    | **2006**       |   | **(Decrease)** |
| Lift                tickets                           |   | $                                    | 286,997 |           | $ | 263,036 |   | 9.1 | % |
| Ski                school                             |   |                                 | 78,848  |           |   | 72,628 |   | 8.6 | % |
| Dining                                                |   |                                 | 54,978  |           |   | 52,745 |   | 4.2 | % |
| Retail/rental                                         |   |                                 | 141,210 |           |   | 131,708 |   | 7.2 | % |
| Other                                                 |   |                                 | 64,869  |           |   | 61,162 |   | 6.1 | % |
| Total                Mountain net revenue             |   |                                 | 626,902 |           |   | 581,279 |   | 7.8 | % |
| Total                Mountain operating expense       |   |                                 | 392,355 |           |   | 372,387 |   | 5.4 | % |
| Mountain                equity investment income, net |   |                                 | 3,990   |           |   | 3,085 |   | 29.3 | % |
| Total                Mountain Reported EBITDA         |   | $                                    | 238,537 |           | $ | 211,977 |   | 12.5 | % |
|                                                  |   |                                 |    |           |   |   |   |   |   |
| Total                skier visits                     |   |                                 | 6,219   |           |   | 6,288 |   | (1.1 | )% |
| ETP                                                   |   | $                                    | 46.15   |           | $ | 41.83 |   | 10.3 | % |

***Lodging      Segment***

|                                           |   | **Three                Months Ended** |   |           |
|------------------------------------------------|--------|---------------------------------------|--------|----------------|
|                                           |   | **April                30,**          |   | **Percentage** |
|                                           |   | **2007**                              |   | **2006**       |   | **Increase** |
| Total                Lodging net revenue       |   | $                                     | 43,643 |           | $ | 39,492 |   | 10.5 |   | % |
| Total                Lodging operating expense |   |                                  | 31,126 |           |   | 30,515 |   | 2.0 |   | % |
| Total                Lodging Reported EBITDA   |   | $                                     | 12,517 |           | $ | 8,977 |   | 39.4 |   | % |
|                                           |   |                                  |   |           |   |   |   |   |   |   |
| ADR                                            |   | $                                     | 271.58 |           | $ | 247.32 |   | 9.8 |   | % |
| RevPAR                                         |   | $                                     | 165.56 |           | $ | 149.74 |   | 10.6 |   | % |

|                                           |   | **Nine                Months Ended** |    | **Percentage** |
|------------------------------------------------|--------|--------------------------------------|---------|----------------|
|                                           |   | **April                30,**         |    | **Increase**   |
|                                           |   | **2007**                             |    | **2006**       |   | **(Decrease)** |
| Total                Lodging net revenue       |   | $                                    | 116,848 |           | $ | 113,321 |   | 3.1 |   | % |
| Total                Lodging operating expense |   |                                 | 98,233  |           |   | 101,050 |   | (2.8 | ) | % |
| Total                Lodging Reported EBITDA   |   | $                                    | 18,615  |           | $ | 12,271 |   | 51.7 |   | % |
|                                           |   |                                 |    |           |   |   |   |   |   |   |
| ADR                                            |   | $                                    | 234.15  |           | $ | 218.83 |   | 7.0 |   | % |
| RevPAR                                         |   | $                                    | 112.37  |           | $ | 103.15 |   | 8.9 |   | % |

***Real      Estate Segment***

|                                                |   | **Three                Months Ended** |     | **Percentage** |
|-----------------------------------------------------|--------|---------------------------------------|----------|----------------|
|                                                |   | **April                30,**          |     | **Increase**   |
|                                                |   | **2007**                              | **2006** | **(Decrease)** |
| Single                family unit sales             |   | $                                     | 15,088   |           | $ | -- |   | N/A |   |   |
| Multi-family                unit sales              |   |                                  | 593      |           |   | -- |   | N/A |   |   |
| Developer                land sales                 |   |                                  | 1,170    |           |   | 6,862 |   | (82.9 | ) | % |
| Other                                               |   |                                  | 283      |           |   | 262 |   | 8.0 |   | % |
| Total                Real Estate net revenue        |   |                                  | 17,134   |           |   | 7,124 |   | 140.5 |   | % |
| Total                Real Estate operating expense  |   |                                  | 25,261   |           |   | 11,370 |   | 122.2 |   | % |
| Real                Estate equity investment income |   |                                  | --       |           |   | (20 | ) | 100.0 |   | % |
| Total                Real Estate Reported EBITDA    |   | $                                     | (8,127   | )              | $ | (4,266 | ) | (90.5 | ) | % |

|                                                  |   | **Nine                  Months Ended** |     | **Percentage** |
|-------------------------------------------------------|--------|----------------------------------------|----------|----------------|
|                                                  |   | **April                  30,**         |     | **Increase**   |
|                                                  |   | **2007**                               | **2006** | **(Decrease)** |
| Single                  family unit sales             |   | $                                      | 16,338   |           | $ | -- |   | N/A |   |   |
| Multi-family                  unit sales              |   |                                   | 68,454   |           |   | -- |   | N/A |   |   |
| Developer                  land sales                 |   |                                   | 12,961   |           |   | 19,431 |   | (33.3 | ) | % |
| Other                                                 |   |                                   | 2,519    |           |   | 795 |   | 216.9 |   | % |
| Total                  Real Estate net revenue        |   |                                   | 100,272  |           |   | 20,226 |   | 395.8 |   | % |
| Total                  Real Estate operating expense  |   |                                   | 101,770  |           |   | 23,823 |   | 327.2 |   | % |
| Real                  Estate equity investment income |   |                                   | --       |           |   | 79 |   | (100.0 | ) | % |
| Total                  Real Estate Reported EBITDA    |   | $                                      | (1,498   | )              | $ | (3,518 | ) | 57.4 |   | % |

**,      **
** **

***Other      Items***

*Depreciation      and amortization*

*Relocation      and separation charges.*

*Mold      remediation credit*

*Investment      income.*

*Interest      expense, net.*

*(Loss)      gain on sale of businesses, net*

*Contract      dispute charges*

*Gain      (loss) on put option, net.*

*Income      taxes.*

***Reconciliation      of Non-GAAP Measures***

|                                                                         |                                      |    |    | **Three                Months Ended** |   | **Nine                Months Ended** |
|------------------------------------------------------------------------------|-------------------------------------------|---------|---------|---------------------------------------|--------|--------------------------------------|
|                                                                         |                                      |    |    | **April                30,**          |   | **April                30,**         |
|                                                                         |                                      |    |    | **2007**                              |   | **2006**                             |   | **2007** |   | **2006** |
| Mountain                Reported EBITDA                                      | $                                         | 157,375 |    |                                  | $      | 146,122                              |   |   | $ | 238,537 |   |   | $ | 211,977 |   |
| Lodging                Reported EBITDA                                       |                                      | 12,517  |    |                                  |   | 8,977                                |   |   |   | 18,615 |   |   |   | 12,271 |   |
|                                                                         | Resort                Reported EBITDA     |    | 169,892 |                                  |   |                                 | 155,099 |   |   |   | 257,152 |   |   |   | 224,248 |   |
| Real                Estate Reported EBITDA                                   |                                      | (8,127  | )       |                                  |   | (4,266                               | ) |   |   | (1,498 | ) |   |   | (3,518 | ) |
|                                                                         | Total                Reported EBITDA      |    | 161,765 |                                  |   |                                 | 150,833 |   |   |   | 255,654 |   |   |   | 220,730 |   |
| Depreciation                and amortization                                 |                                      | (23,513 | )       |                                  |   | (22,942                              | ) |   |   | (66,857 | ) |   |   | (63,296 | ) |
| Relocation                and separation charges                             |                                      | (166    | )       |                                  |   | (3,778                               | ) |   |   | (1,401 | ) |   |   | (3,778 | ) |
| Asset                impairment charge                                       |                                      | --      |    |                                  |   | --                                   |   |   |   | -- |   |   |   | (136 | ) |
| Mold                remediation credit                                       |                                      | --      |    |                                  |   | --                                   |   |   |   | -- |   |   |   | 852 |   |
| Loss                on disposal of fixed assets, net                         |                                      | (242    | )       |                                  |   | (108                                 | ) |   |   | (332 | ) |   |   | (835 | ) |
| Investment                income                                             |                                      | 4,334   |    |                                  |   | 3,156                                |   |   |   | 8,815 |   |   |   | 5,390 |   |
| Interest                expense, net                                         |                                      | (8,039  | )       |                                  |   | (8,849                               | ) |   |   | (24,885 | ) |   |   | (27,788 | ) |
| (Loss)                gain on sale of businesses, net                        |                                      | (601    | )       |                                  |   | --                                   |   |   |   | (601 | ) |   |   | 4,625 |   |
| Contract                dispute charges                                      |                                      | (184    | )       |                                  |   | (816                                 | ) |   |   | (4,460 | ) |   |   | (816 | ) |
| Gain                (loss) on put options, net                               |                                      | 690     |    |                                  |   | (113                                 | ) |   |   | 690 |   |   |   | (79 | ) |
| Other                income, net                                             |                                      | --      |    |                                  |   | --                                   |   |   |   | -- |   |   |   | 50 |   |
| Minority                interest in income of consolidated subsidiaries, net |                                      | (5,343  | )       |                                  |   | (5,355                               | ) |   |   | (9,707 | ) |   |   | (8,660 | ) |
| Income                before provision for income taxes                      |                                      | 128,701 |    |                                  |   | 112,028                              |   |   |   | 156,916 |   |   |   | 126,259 |   |
|                                                                         | Provision                for income taxes |    | (50,193 | )                                     |   |                                 | (43,691 | ) |   |   | (61,197 | ) |   |   | (49,240 | ) |
| Net                income                                                    | $                                         | 78,508  |    |                                  | $      | 68,337                               |   |   | $ | 95,719 |   |   | $ | 77,019 |   |

|                                              |   | **April                30,** |
|---------------------------------------------------|--------|------------------------------|
|                                              |   | **2007**                     |   | **2006** |
| Long-term                debt                     |   | $                            | 575,162 |   | $ | 516,871 |
| Long-term                debt due within one year |   |                         | 401 |   |   | 4,420 |
| Total                debt                         |   |                         | 575,563 |   |   | 521,291 |
| Less:                cash and cash equivalents    |   |                         | 316,439 |   |   | 240,116 |
| Net                debt                           |   | $                            | 259,124 |   | $ | 281,175 |

**LIQUIDITY      AND CAPITAL RESOURCES**

***Significant      Sources of Cash***

***Significant      Uses of Cash***

***Covenants      and Limitations***

**OFF      BALANCE SHEET ARRANGEMENTS**

**FORWARD      LOOKING STATEMENTS **

| *·  * | *economic                downturns;* |
|----------------------|--------------------------------------|

| *·  * | *terrorist                acts upon the United States;* |
|----------------------|---------------------------------------------------------|

| *·  * | *threat                of or actual war;* |
|----------------------|-------------------------------------------|

| *·  * | *unfavorable                weather conditions;* |
|----------------------|--------------------------------------------------|

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

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

| *·  * | *competition                in our Mountain and Lodging                businesses;* |
|----------------------|-------------------------------------------------------------------------------------|

| *·  * | *termination                of existing hotel management                contracts;* |
|----------------------|-------------------------------------------------------------------------------------|

| *·  * | *adverse                changes in real estate                markets;* |
|----------------------|-------------------------------------------------------------------------|

| *·  * | *failure                to commence or complete the planned real estate development                projects;* |
|----------------------|---------------------------------------------------------------------------------------------------------------|

| *·  * | *failure                to achieve the anticipated short and long-term financial benefits                from the                planned real estate development                projects;* |
|----------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *·  * | *shortages                or rising costs in construction                materials;* |
|----------------------|--------------------------------------------------------------------------------------|

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

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

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

| *·  * | *adverse                consequences of current or future legal                claims.* |
|----------------------|-----------------------------------------------------------------------------------------|

**ITEM      3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET      RISK.**

*Interest      Rate Risk. *

**ITEM      4.  CONTROLS AND PROCEDURES.**

**Disclosure      Controls and Procedures**

**Changes      in Internal Control over Financial Reporting**

**PART      II OTHER INFORMATION**

**ITEM      1.  LEGAL PROCEEDINGS.**

**ITEM      1A. RISK FACTORS.**

**ITEM      2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF      PROCEEDS.**

**ITEM      3.  DEFAULTS UPON SENIOR SECURITIES.**

**ITEM      4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY      HOLDERS.**

**ITEM      5.  OTHER INFORMATION.**

**ITEM      6.  EXHIBITS.**

| **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 on September 30, 2004).                                                                                                                                                                                                                                                                                                                                                                               |                                          |
|  4.1(a)                      |  Purchase                Agreement, dated as of January 15, 2004 among Vail Resorts, Inc.,                the                guarantors named on Schedule I thereto, Banc of America Securities                LLC,                Deutsche Banc Securities, Inc., Bear, Stearns & Co. Inc., Lehman                Brothers Inc., Piper Jaffray & Co. and Wells Fargo Securities LLC                (incorporated by reference to Exhibit 4.2(c) on Form 10-Q of Vail                Resorts,                Inc. for the quarter ended January 31, 2004). |                                          |
|  4.1(b)                      |  Supplemental                Purchase Agreement, dated as of January 22, 2004 among Vail Resorts,                Inc.,                the guarantors named thereto, Banc of America Securities LLC, Deutsche                Banc Securities, Inc., Bear, Stearns & Co. Inc., Lehman Brothers Inc.,                Piper Jaffray & Co. and Wells Fargo Securities LLC (incorporated by                reference to Exhibit 4.2(d) on Form 10-Q of Vail Resorts, Inc. for                the                quarter ended January 31, 2004).                 |                                          |
|  4.2(a)                      |  Indenture,                dated as of January 29, 2004, among Vail Resorts, Inc., the guarantors                therein and the Bank of New York as Trustee (incorporated by reference                to                Exhibit 4.1 on Form 8-K of Vail Resorts, Inc. filed on February 2,                2004).                                                                                                                                                                                                                                                  |                                          |
|  4.2(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).                                                                                                |                                          |
|  4.3                         |  Form                of Global Note (incorporated by reference to Exhibit 4.1 on Form                8-K of                Vail Resorts, Inc. filed on February 2, 2004).                                                                                                                                                                                                                                                                                                                                                                                          |                                          |
|  4.4                         |  Registration                Rights Agreement dated as of January 29, 2004 among Vail Resorts,                Inc.,                the guarantors signatory thereto, Banc of America Securities LLC,                Deutsche                Banc Securities, Inc., Bear, Stearns & Co. Inc., Lehman Brothers Inc.,                Piper Jaffray & Co. and Wells Fargo Securities LLC (incorporated by                reference to Exhibit 4.5(c) on Form 10-Q of Vail Resorts, Inc. for                the                quarter ended January 31, 2004). |                                          |
|  4.5                         |  Conversion                and Registration Rights Agreement between Vail Resorts, Inc. and                Apollo                Ski Partners, L.P. dated as of September 30, 2004 (incorporated by                reference to Exhibit 10.1 on Form 8-K of Vail Resorts, Inc. filed                on                September 30, 2004).                                                                                                                                                                                                                         |                                          |
|  4.6                         |  Termination                Agreement, dated as of October 5, 2004, by and among Vail Resorts,                Inc.,                Ralcorp Holdings, Inc. and Apollo Ski Partners, L.P. (incorporated                by                reference to Exhibit 99.6 on Form 10-Q of Vail Resorts, Inc. for                the                quarter ended October 31, 2004).                                                                                                                                                                                         |                                          |
|                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                          |
|  10.1                        |  Separation                Agreement and General Release, dated December 7, 2006 between Martha                D.                Rehm and Vail Resorts, Inc. and Amendment No. 1 thereto dated March                9,                2007 (incorporated by reference to exhibit 10.2 on Form 10-Q of Vail                Resorts, Inc. for the quarter ended January 31, 2007).                                                                                                                                                                                   |                                          |
|  10.2                        |  Limited                Waiver, Release, and Third Amendment to Fourth Amended and Restated                Credit                Agreement dated March 13, 2007.                                                                                                                                                                                                                                                                                                                                                                                                   |  16                                      |
|  10.3                *       |  Construction                Loan Agreement, dated March 19, 2007 among The Chalets at The Lodge                at                Vail, LLC, and Wells Fargo Bank, N.A.                                                                                                                                                                                                                                                                                                                                                                                            |  53                                      |
|  10.4                        |  Completion                Guaranty Agreement by and between The Vail Corporation and Wells                Fargo                Bank, N.A. dated March 19, 2007.                                                                                                                                                                                                                                                                                                                                                                                                   |  219                                     |
|  10.5                        |  Completion                Guaranty Agreement by and between Vail Resorts, Inc. and Wells Fargo                Bank,                N.A. dated March 19, 2007.                                                                                                                                                                                                                                                                                                                                                                                                     |  229                                     |
|  10.6                        |  Development                Agreement Guaranty by and between The Vail Corporation and Wells                Fargo                Bank, N.A. dated March 19, 2007.                                                                                                                                                                                                                                                                                                                                                                                                  |  239                                     |
|  10.7                        |  Development                Agreement Guaranty by and between Vail Resorts, Inc. and Wells Fargo                Bank,                N.A. dated March 19, 2007.                                                                                                                                                                                                                                                                                                                                                                                                    |  250                                     |
|  31.1                        |  Certifications                of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley                Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                |  261                                     |
|  31.2                        |  Certifications                of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley                Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                |  262                                     |
|  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.                                                                                                                                                                                                                                                                                                                        |  263                                     |
|  *                           |  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.                                                                                                                                                                                                                                                                                                |                                          |

| b)  Exhibits                                                                                                                                                            |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                              |
| The                exhibits filed herewith as indicated in the exhibit listed above                following                the Signatures section of this                report. |

**SIGNATURES**

| Date                June 8, 2007 | Vail                Resorts, Inc.                  |
|----------------------------------|----------------------------------------------------|
|                             |                                               |
|                             | By:                                                | /s/                Jeffrey W. Jones |
|                             | Jeffrey                W. Jones                    |
|                             | Senior                Executive Vice President and |
|                             | Chief                Financial Officer             |
|                             | (Chief                Accounting Officer and       |
|                             | Duly                Authorized Officer)            |