Increase in property sales revenue at Andermatt Swiss Alps – net profit achieved for the first time in 2023

March 26, 2024

The destination developer Andermatt Swiss Alps AG generated a profit from ordinary business for the first time in 2023. In a challenging environment, property sales revenue increased by 2.2 per cent to CHF 154.4 million, while total revenues rose by 41.3 per cent to CHF 255.6 million. The Chedi Andermatt and Radisson Blu Reussen hotels were able to hold their own in 2023.

The Andermatt Swiss Alps Group recorded revenues of CHF 255.6 million in the 2023 financial year (previous year: CHF 180.9 million, up 41.3 per cent). The operating profit or EBITDA (earnings before interests, taxes, depreciation and amortisation) amounts to CHF 24.9 million. Compared to 2022, this corresponds to an increase of CHF 4.2 million or 20.3 per cent.

The Andermatt Swiss Alps Group was able to achieve a consolidated net profit from continuing operations of CHF 1.3 million for the first time since its foundation (previous year: CHF 34.3 million including the one-off gain from the transaction with Vail Resorts, Inc.). A total of around CHF 1.5 billion was invested in the development of Andermatt between the start of the project in 2007 and the end of 2023.

"The Andermatt Swiss Alps Group has taken a major step towards becoming the Prime Alpine Destination in 2023, generating a profit from ordinary business for the first time," says CEO Raphael Krucker.

Property sales continue to rise

Property sales totalled CHF 154.4 million in 2023 (previous year: CHF 151.1 million). This corresponds to an increase of 2.2 per cent, following the record levels achieved in the two previous years. The strong demand is due in particular to the variety, high quality and unique designs of the properties on offer. The company was able to sell 60 apartments in 2023. The average price per square metre rose by 11 per cent to over CHF 19,000.

As at the end of the 2023 financial year, 721 of a total of 757 apartments and hotel residences completed or under construction had been sold. 66 per cent of buyers live in Switzerland, 14 per cent come from the EU and 20 per cent come from the rest of the world. A total of 19 apartment houses and 2 hotels had been completed by the end of 2023.

BOX figures 2020 – 2023

Property sales in CHF million154.4151.1122.076.9
Average m2 price19,00017,00015,00013,000
Sold apartments60709271

High demand for hotels and rentals

The five-star deluxe hotel The Chedi Andermatt achieved a year-round occupancy rate of 58 per cent in 2023 (previous year: 68 per cent). 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 per cent 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, have been awarded two Michelin stars and 17 GaultMillau points.

The Radisson Blu Hotel Reussen increased sales to CHF 15.5 million (previous year: CHF 15.0 million). With 74,526 guests (up 12 per cent on the previous year), the Radisson Blu Hotel Reussen achieved an occupancy rate of around 55 per cent (previous year: 48 per cent).

The rental of holiday apartments under the Andermatt Alpine Apartments brand also performed well, with turnover increasing by 11 per cent to CHF 3.5 million (previous year: CHF 3.2 million). The number of holiday apartments in the rental pool increased by around 10 per cent compared to the previous year and comprised over 160 properties at the end of 2023.

High added value of 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 per cent are employed year-round. This includes 8 apprentices and 15 interns. Employees from 47 nations work at the company group. 52 per cent of the employees are women and the proportion of female managers is 36 per cent. The Andermatt Swiss Alps Group offers 511 full-time posts per year on average.

Andermatt Swiss Alps makes an important contribution to the economic performance of the canton of Uri. A study by the tourism organisations of the canton of Uri shows that tourism not only plays a central role in the local economy, but also has considerable growth potential. From 1 May 2022 to 30 April 2023, tourism generated an added value of CHF 184 million, which corresponds to just under 10 per cent 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 syndicated loan totalling CHF 125 million with a syndicate of Swiss banks with a term until 2028. The loan serves to refinance existing debt financing and to finance operations and further investments in destination development in Andermatt.

Andermatt attracted 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 gastronomic zone from December 2024

The start of construction of two apartment houses is planned for 2024, which will also include 39 first homes for the first time. Six houses are already under construction. The new Furkagasse shopping and gastronomic zone will open in the Andermatt Reuss village district in December. This complements the existing range of restaurants (Spun in the Radisson Blu Reussen, Biselli and La Bonne Cave) and shops (Imholz Sport, Mammut, Victorinox, Drogerie Andermatt). The IGNIV by Andreas Caminada restaurant in Haus Maya, with the collaboration of well-known designer Patricia Urquiola, and an offshoot of nooba, the successful Pan-Asian cuisine concept, are already well known. Andermatt Swiss Watches will also open an exclusive boutique for timepieces, jewellery and writing implements. Further brands will follow by December. In May 2024, the year-round offer in Andermatt Reuss will be supplemented with additional sports such as squash and bouldering in a multi-sports hall open to the public.

Andermatt Swiss Alps AG – Welcome home.

Andermatt Swiss Alps AG, with registered office in Andermatt, plans, builds, and develops the year-round destination of Andermatt. In 2009 Andermatt Reuss came into being, with apartment buildings, hotels, and villas. The Andermatt Swiss Alps Group owns the The Chedi Andermatt and Radisson Blu Reussen hotels, the holiday apartments Andermatt Alpine Apartments, an 18-hole, par-72 championship golf course and the Andermatt Concert Hall. A close partnership is in place with Andermatt-Sedrun Sport AG (Andermatt-Sedrun mountain railways, various restaurants, the Swiss Snowsports School Andermatt and the sport shop Gleis 0) and its majority shareholder Vail Resorts, Inc. for developing the destination. Vail Resorts, the largest operator of ski resorts, and Andermatt Swiss Alps are together pursuing the vision of becoming The Prime Alpine Destination. In doing so, they are committed to an intact environment and a sustainable future that will enable coming generations to have an extraordinary home. During high season, Andermatt Swiss Alps and Andermatt-Sedrun Sport AG have more than 1,000 employees working at the locations in Altdorf, Andermatt and Sedrun.

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