Pursuit Attractions and Hospitality's (PRSU) Accelerating Growth Through Strategic Acquisitions and Organic Enhancements

The experiential travel sector, characterized by its high barriers to entry and inelastic demand for unique, transformative experiences, has emerged as a fertile ground for long-term value creation. Pursuit Attractions and Hospitality (PRSU) is capitalizing on this dynamic landscape through a dual strategy of strategic acquisitions and organic enhancements, positioning itself as a leader in a market poised for sustained growth. With a 15% year-over-year revenue increase in Q2 2025 and a 49.2% surge in adjusted EBITDA, PRSU's financial performance underscores its ability to scale profitably while expanding its portfolio of iconic, high-margin assets.

Strategic Acquisitions: Unlocking Geographic and Seasonal Diversification

PRSU's acquisition of Tabacón Thermal Resort & Spa in Costa Rica for $111 million in July 2025 exemplifies its disciplined approach to expanding into high-demand, perennial destinations. This luxury resort, with its thermal pools and immersive natural experiences, adds a year-round revenue stream to PRSU's portfolio, which historically relied on seasonal attractions in North America. The acquisition is projected to contribute $3 million in adjusted EBITDA for 2025 alone, while enhancing geographic diversification—a critical factor in mitigating regional economic volatility.

The company's acquisition history further reinforces its strategic focus. From the Jasper SkyTram in Canada to Glacier Raft in Montana, PRSU has consistently targeted assets that align with its “Buy” strategy: one-of-a-kind properties in iconic locations that cater to travelers seeking authenticity. These acquisitions not only diversify revenue but also create cross-selling opportunities, such as bundling lodging, transportation, and attractions to deepen customer engagement.

Organic Enhancements: Driving Margin Expansion and Guest Retention

While acquisitions provide a foundation for growth, PRSU's “Refresh” and “Build” initiatives are equally pivotal in driving margin expansion. The company has allocated over $200 million in capital expenditures through 2027 to renovate and reposition existing properties. For instance, the Forest Park Hotel Woodland Wing in Jasper National Park is undergoing a luxury-focused renovation to attract mass-affluent travelers, a demographic willing to pay a premium for differentiated experiences. Similarly, the Grouse Mountain Lodge in Whitefish, Montana, is being repositioned to offer high-end lodging adjacent to Glacier National Park.

These investments are not merely cosmetic; they reflect a strategic shift toward premiumization. By enhancing guest experiences through modern amenities and curated offerings, PRSU is capturing higher effective ticket prices and lodging RevPAR (revenue per available room). In Q2 2025, attraction ticket prices rose 11% and lodging RevPAR increased 9% on a same-store basis, demonstrating the effectiveness of this approach.

High-Barrier, Demand-Driven Sector: A Tailwind for PRSU

The experiential travel sector's structural advantages—such as inelastic demand for unique experiences and high switching costs for travelers—create a favorable environment for PRSU's long-term growth. Younger generations, particularly Gen Z and Millennials, are prioritizing experiences over material goods, with 52% of Gen Zers willing to splurge on travel experiences. This demographic shift aligns with PRSU's portfolio of adventure-based attractions, luxury lodges, and cultural immersion opportunities.

Moreover, the sector's operational complexity—requiring seamless integration of logistics, customer service, and digital platforms—acts as a barrier to entry for competitors. PRSU's ability to execute its “Refresh, Build, Buy” strategy while maintaining disciplined cost management (evidenced by its 49.2% EBITDA growth) highlights its operational excellence. The company's strong liquidity position ($208.6 million in Q2 2025) further enables it to pursue accretive acquisitions and reinvest in organic growth without overleveraging.

Risks and Mitigants

While PRSU's strategy is compelling, risks such as economic downturns, geopolitical instability, and currency fluctuations could impact its international operations. However, the company's diversified portfolio and focus on perennial destinations (e.g., Costa Rica's Arenal region) reduce exposure to seasonal volatility. Additionally, PRSU's pro forma net leverage ratio of 1.5x post-Tabacón acquisition remains well within its target range of 2.5x to 3.5x, ensuring financial flexibility.

Investment Thesis: A Compelling Case for Long-Term Value Creation

PRSU's combination of strategic acquisitions, margin-expanding organic investments, and a high-barrier sector position it as a standout in the experiential travel space. The company's raised 2025 guidance ($108–118 million in adjusted EBITDA) and $50 million share repurchase authorization signal confidence in its capital allocation strategy. For investors, PRSU offers exposure to a sector with structural tailwinds and a business model that balances growth with profitability.

Conclusion: Pursuit Attractions and Hospitality is not merely capitalizing on the experiential travel boom—it is shaping its future. By acquiring unique assets, enhancing guest experiences, and leveraging a demand-driven sector, PRSU is building a durable competitive advantage. For investors seeking long-term value creation in a high-margin, high-growth industry, PRSU presents a compelling opportunity.