EXHIBIT 99.3
Doral Announcement Script for LBO
Les:
Thank you Paul and good afternoon everyone. The merger between MeriStar
Resorts & Hotels and American Skiing Company and the formation of Doral
International is an incredible combination for us. Not only does this
transaction accelerate the realization of opportunities for the two respective
entities, but it also creates entirely new channels for growth. This allows us
to deliver shareholder value faster and with greater surety than we could
separately with our existing business.
I'd like to start by briefly discussing how this merger creates value
for American Skiing Company customers and shareholders and how Doral
International will be able to leverage it's internationally recognized brands
into the premier leisure and hospitality company worldwide.
We believe this merger is strategic to American Skiing Company for
several reasons: First, Doral International combines American Skiing Company's 9
premium resorts and extensive real estate development potential with the stable,
year-round revenues of MeriStar's hotel and resort management business. This
significantly reduces the volatility of our financial performance due to the
weather, results in more stable and predictable cash flow stream, and diminishes
the seasonality of our earnings. Over the years, American Skiing Company has
demonstrated that it is the most progressive player in the alpine resort
industry. Our real estate business has over $1.5 billion in project development
opportunities in the pipeline at The Canyons alone. And with the improved access
to capital and complementary relationship with MeriStar Hospitality (the REIT),
we are optimistic about the growth prospects in both our resort and real estate
divisions going forward.
Secondly, this combination results in a wider selection of year-round
leisure offerings for our over 5 million annual visitors. Additionally we will
gain access to the 18 million additional customers that visit the MeriStar
properties each year. This will allow us to significantly broaden our marketing
exposure and effectively compete year round in the $2.8 trillion leisure market.
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Next, this transaction reduces our dependence on debt creating a more
stable financial foundation for American Skiing Company. As a company, we have
made highly targeted on-mountain investments over the last several years. With
the last two ski seasons being the worst in recent memory, we have not realized
our desired return on these investments. Consequently, as we have grown the
Company over this time period, leverage has become an issue. With a strong early
start to this ski season, we are finally teed up to capitalize on these
strategic investments. From the build out of Canyons and the introduction of the
Heavenly gondola -- to increased snowmaking across the entire network,
highlighted by a 30% expansion at Killington, we are set to naturally de-lever
the business through harvested returns on our investments and improved operating
performance. The merger and formation of Doral International will serve to
accelerate that process. Additionally, the restructuring of both series of
preferred stock, the expansion of the senior credit facility, and the improved
terms of our real estate facility, will result in meaningful interest savings
and a more secure over all capital structure.
From a management and organizational standpoint, MeriStars's hotel
management capabilities are an ideal complement to those of our resort operating
staff, who are among the most experienced in the ski industry. Efficiencies are
immediately recognizable as we eliminate overhead redundancies, centralize
processes, and benefit from the increased purchasing power available to Doral.
We would also anticipate greater accessibility to human resources as the
combined companies can now tap into a much larger pool of management and
operating personnel both internally and externally.
All in all, the combination of American Skiing and MeriStar assets
results in a much stronger engine for growth and value creation than either
company has on a stand-alone basis. This is a powerhouse combination that will
not only give us a dominant presence in the U.S. leisure and hospitality market,
but also enhance our ability to serve our guests and employees by providing the
financial strength and management depth to accelerate our growth opportunities
internationally.
Now, I would like to turn it over to John Emery for the Doral
International Presentation.
John?
