Further increase in real estate sales at Andermatt Swiss Alps
The destination developer Andermatt Swiss Alps AG made a profit from regular business for the first time in 2023.
Real estate sales increased by 2.2 percent to CHF 154.4 million in a challenging environment; Total sales increased by 41.3 percent to CHF 255.6 million. The hotels The Chedi Andermatt and Radisson Blu Reussen were able to hold their ground in 2023.
The Andermatt Swiss Alps Group recorded sales of CHF 255.6 million in the 2023 financial year (previous year: CHF 180.9 million, plus 41.3 percent). The operating profit or EBITDA (earnings before depreciation, interest and taxes) amounts to CHF 24.9 million. Compared to 2022, this corresponds to an increase of CHF 4.2 million or 20.3 percent.
For the first time since its founding, the Andermatt Swiss Alps Group achieved a positive consolidated net result from continuing operations of CHF 1.3 million (previous year: 34.3 million including one-off profit from the transaction with Vail Resorts, Inc.). From the start of the project in 2007 to the end of 2023, a total of around CHF 1.5 billion was invested in the development in Andermatt.
“The Andermatt Swiss Alps Group took a big step towards becoming a prime alpine destination in 2023 and achieved a profit from regular business for the first time,” said CEO Raphael Krucker.
Real estate sales continue to rise
Real estate sales amounted to CHF 154.4 million in 2023 (previous year: CHF 151.1 million). This corresponds to an increase of 2.2 percent, after peaks were achieved in the previous two years. The strong demand is due in particular to the variety, high quality and unique designs of the real estate offering. The company was able to sell 60 apartments in 2023. The average price per square meter increased by 11 percent to over CHF 19,000.
At the end of the 2023 financial year, 721 of a total of 757 completed or under construction apartments and hotel residences had been sold. 66 percent of buyers live in Switzerland, 14 percent come from the EU and 20 percent from the rest of the world. A total of 19 apartment buildings and 2 hotels were completed at the end of 2023.
BOX numbers 2020 – 2023
| 2023 | 2022 | 2021 | 2020 | |
| Real estate sales in CHF million | 154.4 | 151.1 | 122.0 | 76.9 |
| Average m2 price | 19,000 | 17,000 | 15,000 | 13,000 |
| Sold apartments | 60 | 70 | 92 | 71 |
High demand for hotels and rentals
The five-star deluxe hotel The Chedi Andermatt achieved a full-year occupancy rate of 58 percent in 2023 (previous year 68 percent). Sales fell slightly compared to the previous year to CHF 38.1 million (previous year CHF 41.4 million). The number of guests fell by 9.4 percent to 53,094 (previous year 58,585). The hotel celebrated its 10th anniversary in 2023 with numerous awards. The Schaffhausen twins Dominik Sato and Fabio Toffolon, executive chefs of The Japanese and The Japanese by The Chedi Andermatt, were awarded two Michelin stars and 17 GaultMillau points.
The Radisson Blu Hotel Reussen was able to increase sales to CHF 15.5 million (previous year: CHF 15.0 million). With 74,526 guests (plus 12 percent compared to the previous year), the Radisson Blu Hotel Reussen achieved an occupancy rate of around 55 percent (previous year 48 percent).
The rental of holiday apartments under the Andermatt Alpine Apartments brand also developed positively; Sales increased by 11 percent to CHF 3.5 million (previous year: 3.2 million). The number of holiday apartments in the rental pool increased by over 10 percent compared to the previous year and comprised over 160 properties at the end of 2023.
Great added value from tourism in the canton of Uri – over 600 employees
The Andermatt Swiss Alps Group with the hotels The Chedi Andermatt and Radisson Blu Reussen employed 620 people at the end of 2023. 69 percent work in a year-round position. This includes 8 apprentices and 15 interns. Employees from 47 nations work at the group of companies. 52 percent of employees are women and the proportion of female managers is 36 percent. On an annual average, the Andermatt Swiss Alps Group offers 511 full-time positions.
The Andermatt Swiss Alps makes an important contribution to the economic performance in the canton of Uri. A study by the tourism organizations in the canton of Uri shows that tourism not only plays a central role in the local economy, but also has significant growth potential. Tourism generated added value of CHF 184 million from May 1, 2022 to April 30, 2023. This corresponds to almost 10 percent of Uri’s total economic output.
Foundation laid for further growth
The Andermatt Swiss Alps Group is optimistic about the near future. In 2023, important steps were taken for further development. In October 2023, Andermatt Swiss Alps AG concluded a syndicate loan of CHF 125 million with a syndicate of Swiss banks with a term until 2028. The loan is used to refinance existing debt financing and to finance operations and further investments in destination development in Andermatt
Andermatt received attention in international property valuations in 2023, including fourth place among Swiss ski destinations in the Savills Ski Report 2023/24 and fifth place among the top destinations in the Alps in the Knight Frank Report.
New shopping and dining zone from December 2024
The start of construction on two apartment buildings is planned for 2024, which will contain 39 first homes for the first time. Six houses are already under construction. The new Furkagasse shopping and dining area will open in the Andermatt Reuss village section in December. This complements the existing range of restaurants (Spun at Radisson Blu Reussen, Biselli and La Bonne Cave) and shops (Imholz Sport, Mammut, Victorinox, drugstore Andermatt). Already known are the IGNIV restaurant by Andreas Caminada in Haus Maya with the collaboration of the well-known designer Patricia Urquiola, as well as an offshoot of nooba, the successful pan Asian cuisine concept. Andermatt Swiss Watches will also open an exclusive boutique for timepieces, jewelry and writing instruments. Other brands will follow by December. In May 2024, the year-round offering in Andermatt Reuss will be supplemented with additional sports such as squash and bouldering in a multi-sports hall open to the public.
