Pursuit Attractions and Hospitality, Inc. Reports Financial Results for the Quarter Ended March 31, 2025

Financial Performance Overview

Pursuit Attractions and Hospitality, Inc. is an attractions and hospitality company that owns and operates a collection of travel experiences including iconic attractions, distinctive lodges, restaurants, retail, and transportation. The company recently completed the sale of its former GES Exhibitions and Spiro reportable segments, allowing it to focus solely on its attractions and hospitality business.

For the first quarter of 2025, Pursuit reported total revenue of $37.6 million, a 0.9% increase from the same period in 2024. This was driven by a 4.4% increase in attractions revenue, offset by a 3.3% decrease in hospitality revenue. The company saw a 1.7% increase in the number of attraction visitors and a 3.8% increase in revenue per available room (RevPAR) at its hospitality properties.

However, Pursuit reported a loss from continuing operations of $31.2 million in Q1 2025, compared to a loss of $29.9 million in the prior year period. This was primarily due to higher selling, general and administrative expenses, which increased 33.7% year-over-year, largely driven by transaction-related costs associated with the sale of the GES Business.

Segment Performance

Attractions Pursuit’s attractions business saw a 4.4% increase in revenue, driven by a 1.7% rise in the number of visitors and a 2.7% increase in revenue per attraction visitor. The company’s new Flyover Chicago attraction, which opened in March 2024, contributed $1.0 million in incremental revenue during the quarter.

On a same-store basis, which excludes new or recently renovated attractions, attractions revenue increased 2.4% as a 9.5% rise in effective ticket price offset a 6.1% decline in visitor numbers. This was primarily due to the expansion of the Sky Lagoon experience in Iceland, which added a larger ritual area and the new Skjól seven-step ritual.

Hospitality Hospitality revenue decreased 3.3% year-over-year, primarily due to a 3.5% decline in rooms revenue. This was driven by fewer room nights available at the Forest Park Woodland Wing due to refresh renovations, partially offset by a 3.8% increase in RevPAR.

On a same-store basis, hospitality revenue increased 6.2%, with a 6.6% rise in rooms revenue driven by an 8.6% increase in RevPAR, reflecting higher occupancy and average daily rate (ADR).

Strengths and Weaknesses

Strengths

• Diversified portfolio of high-quality attractions and hospitality offerings in iconic destinations
• Ability to drive revenue growth through new experiences, expansions, and pricing power
• Improving hospitality performance, with increases in RevPAR, occupancy, and ADR
• Strong liquidity position with $212 million in available cash and credit facility capacity

Weaknesses

• Significant losses from continuing operations, driven by higher operating expenses
• Reliance on seasonal visitation, with 77% of revenue generated in the second and third quarters
• Exposure to foreign exchange fluctuations, with 21.5% of cash held outside the U.S.
• Ongoing capital expenditure requirements to maintain and expand the business

Outlook and Risks

Looking ahead, Pursuit faces a number of risks and uncertainties that could impact its financial performance, including:

• General economic and geopolitical uncertainty in key global markets
• Seasonality of the business and potential changes in consumer preferences
• Natural disasters, accidents, and other catastrophic events that could disrupt operations
• Ability to successfully integrate and achieve benefits from acquisitions
• Exposure to cybersecurity threats and data privacy regulations
• Labor shortages and the importance of key personnel to the business

To mitigate these risks, Pursuit is focused on executing its “Refresh, Build, Buy” growth strategy, which involves refreshing existing attractions and hospitality offerings, building new experiences, and selectively pursuing strategic acquisitions. The company has planned capital expenditures of $70-75 million for 2025, including $38-43 million on growth projects.

Pursuit’s strong liquidity position, with $212 million in available cash and credit facility capacity, should provide the financial flexibility to fund these initiatives and weather any near-term challenges. However, the company will need to carefully manage its operating expenses and continue to drive revenue growth to return to profitability and create long-term value for shareholders.

Conclusion

Pursuit Attractions and Hospitality, Inc. is a diversified attractions and hospitality company that has recently undergone a strategic transformation to focus solely on its core business. While the company has faced some near-term headwinds, including higher operating expenses and seasonal fluctuations, it has a strong portfolio of iconic experiences and a solid liquidity position to fund its growth plans.

To succeed in the long run, Pursuit will need to effectively execute its “Refresh, Build, Buy” strategy, manage its costs, and navigate the various risks and uncertainties facing the industry. By delivering unforgettable experiences to its guests and driving sustainable financial performance, the company has the potential to emerge as a leading player in the attractions and hospitality space.