Andermatt Swiss Alps AG Achieves Net Profit For The First Time
The Andermatt Swiss Alps Group recorded a significant increase in demand in 2022. Real estate sales increased by 24 percent to CHF 151.1 million compared to the previous year. Taking into account the one-off effect from discontinued operations (transaction with Vail Resorts, Inc. regarding Andermatt-Sedrun Sport AG), the Andermatt Swiss Alps Group achieved a net profit of CHF 34.3 million in the 2022 financial year. Due to the strong demand from the Switzerland and various international markets, the Andermatt Swiss Alps Group is planning investments of around CHF 500 million in Andermatt and Sedrun in the coming years.
The Andermatt Swiss Alps Group recorded sales of CHF 180.9 million in the 2022 financial year (previous year adjusted CHF 180.5 million). Gross profit amounts to CHF 42.4 million. Compared to 2021, this corresponds to an increase of CHF 1.4 million; the gross profit margin improved by almost 1 percentage point to 23.5 percent. The Andermatt Swiss Alps Group is able to achieve a consolidated positive net result for the first time since it was founded. Together with the result from discontinued operations and the one-time gain from the transaction with Vail Resorts, Inc. regarding Andermatt-Sedrun Sport AG, there is a net profit of CHF 34.3 million (previous year: net loss of CHF -8.0 million). From the start of the project in 2007 to the end of 2022, a total of around CHF 1.4 billion has been invested.
“The continued growth in demand in Andermatt and the renewed increase in gross profit despite a challenging market environment are very encouraging. The fact that we were able to make a profit for the first time, including the one-off gain from the transaction with Vail Resorts, Inc., is a milestone for the Andermatt Swiss Alps Group,” says CEO Raphael Krucker. «This result was only possible thanks to the extraordinary commitment of all employees, partners, customers, guests and shareholders. We are confident that the Andermatt Swiss Alps Group is optimally positioned and will continue to develop positively in the future.»
Real estate sales up 24 percent
Real estate sales amounted to CHF 151.1 million in 2022 (previous year CHF 122.0 million). This corresponds to an increase of around 24 percent. Demand has thus accelerated further, after having reached a high in the two previous years. The strong demand is due in particular to the diversity and high quality standards of the real estate on offer, as well as to the modernization of the destination as a whole.
The company was able to sell 70 apartments in 2022 (previous year: 92 apartments). The average price per square meter increased by 17 percent to over CHF 17,500. Between 2012 and 2022, prices per square meter in Andermatt Reuss increased by more than 50 percent on average. At the end of the 2022 financial year, 650 of a total of 665 apartments and hotel residences that were completed or under construction had been sold.
70 percent of the buyers live in Switzerland, 15 percent are divided between Europe and the rest of the world.
High demand for hotels and rentals
The five-star deluxe hotel The Chedi Andermatt achieved a full-year occupancy rate of 68 percent in 2022 (previous year 70 percent). Sales fell slightly compared to the previous year to CHF 41.4 million (previous year CHF 43.5 million). The number of guests fell by 9.7 percent to 58,585 (previous year 64,887). The slight decrease is due to the fact that the hotel had to be closed longer than in the same period of the previous year due to maintenance work.
The Radisson Blu Hotel Reussen was able to increase sales to CHF 15.0 million (previous year CHF 14.6 million). With 66,618 guests (plus 1 percent compared to the previous year), the Radisson Blu Hotel Reussen achieved an occupancy rate of around 48 percent, which was already significantly exceeded in the first months of 2023.
The rental of holiday apartments under the Andermatt Alpine Apartments brand also developed well; sales increased by 24 percent to CHF 3.2 million (previous year CHF 2.6 million). The number of holiday apartments in the rental pool increased by around 50 percent compared to the previous year and comprised 143 objects at the end of 2022.
Almost 600 employees
The Andermatt Swiss Alps Group with the hotels The Chedi Andermatt and Radisson Blu Hotel Reussen employed 576 people at the end of 2022. 84 percent are in full-time employment. The group of companies employs people from 42 nations. These include 13 apprentices and 19 interns. On an annual average, the Andermatt Swiss Alps Group offers 483 full-time positions. Another 452 people are employed at Andermatt-Sedrun Sport AG (of which 96 full-time positions).
Further investments of over CHF 500 million
The Andermatt Swiss Alps Group is optimistic about the near future. «Thanks to the partnership with Vail Resorts and the stronger cooperation with Orascom Development Holding, the course has been set for profitable growth. Planned investments of around CHF 500 million in the coming years will further increase the attractiveness of the destination and thus the value of existing and new properties," says CEO Raphael Krucker.
The construction of six apartment buildings and initial work on the new lifestyle and sports hotel are planned for 2023. A new shopping and gastronomy zone will be built in the Andermatt Reuss district by the end of 2024. This includes twelve areas for retail and three for gastronomy.
Andermatt Swiss Alps is focusing on working with strong partners such as the Cotton Club, known from Mallorca, Ibiza and Zaknythos, which will run The Swiss House on the golf course from winter 2023/24. Three-star chef Andreas Caminada will open a restaurant under the Igniv brand in late autumn 2024. Further cooperations with strong national and international brands are in preparation. A drugstore will open as early as August 2023.
Andermatt Swiss Alps AG – Welcome home.
Andermatt Swiss Alps AG, based in Andermatt, plans, builds and develops the year-round destination of Andermatt. Since 2009, Andermatt Reuss has been developing with apartment buildings, hotels and chalets. The Andermatt Swiss Alps Group includes the hotels The Chedi Andermatt and Radisson Blu Reussen, an 18-hole, par-72 championship golf course and the Andermatt concert hall. There is a close partnership with Andermatt-Sedrun Sport AG (SkiArena Andermatt Sedrun, Gastrobrand Mountain Food and Schweizer Schneesportschule Andermatt) and its majority shareholder Vail Resorts, Inc. for the development of the destination. Vail Resorts, the largest ski resort operator in the world, and the Andermatt Swiss Alps share the vision of becoming The Prime Alpine Destination. They are committed to an intact environment,
Andermatt Swiss Alps and Andermatt-Sedrun Sport AG employ more than 1,000 people at the Altdorf, Andermatt and Sedrun locations during the high season.
andermatt-swissalps.ch / andermatt-responsible.ch
