The contract covers lodging, retail sales, restaurants, and many other services provided to visitors to Yellowstone.
The new 20-year contract includes a 4.5-percent franchise fee and a 6-percent repair and maintenance reserve account.
The contract also requires an estimated $134.5 million investment in facilities improvements. Roughly half of the money will be invested in redevelopment of lodging at Canyon. The current cabins, which were constructed as temporary facilities in the 1960s, are in poor condition.
Other projects include renovation of the Fishing Bridge RV Park, continued renovation of the Lake Yellowstone Hotel, construction of new concession employee housing at Lake and Old Faithful, rehabilitation of the Mammoth Haynes Photo Shop, and changes necessary to provide year-round lodging at the Mammoth Hot Springs Hotel.
Work on these facility improvement projects is scheduled to begin in 2014 and to be completed by 2018.
Xanterra Parks & Resorts holds the current contract to provide these services, which began in December 2005 and expires at the end of November 2013. The company reported gross receipts of approximately $89 million for calendar year 2011.