Nestled in the heart of the canton of Uri, the Swiss resort of Andermatt is now one of the most ambitious and successful tourism redevelopment projects in the Alps. Once an isolated military town, it has become a high-end Alpine destination in less than two decades, attracting international investors and wealthy skiers. This spectacular transformation bears the mark of an Egyptian visionary: Samih Sawiris.
From barracks to Alpine showcase: Samih Sawiris’ vision
The historic turning point for Andermatt came in 2005, when the Swiss army announced the partial closure of the local military garrison, freeing up large areas of land in the heart of the village. Aware of the economic impact of this withdrawal on the municipality, the Swiss Confederation opened the door to a tourism conversion. It was against this backdrop that Egyptian businessman Samih Sawiris, founder of the Orascom Development Holding group, proposed a bold vision: to turn Andermatt into an integrated luxury Alpine destination capable of rivalling St. Moritz or Zermatt.
In 2007, after several months of negotiations, a memorandum of understanding was signed between Sawiris, the municipality of Andermatt, the canton of Uri and the Swiss Confederation. This memorandum provided a series of guarantees, particularly in terms of environmental protection, local involvement and regional economic benefits. Public acceptance of the project was confirmed in a municipal referendum, which obtained nearly 96% of votes in favour.
To bring this transformation to fruition, the company Andermatt Swiss Alps AG (ASA) was officially founded in 2009, with Sawiris as the main investor. The total investment planned for the long term exceeds 1.8 billion Swiss francs, of which 1.67 billion CHF had already been invested by the end of 2023 according to the group’s latest publications. These funds have enabled the profound transformation of Andermatt’s built environment:
- Six luxury hotels, including the flagship The Chedi Andermatt, which opened in December 2013 with 123 rooms and suites, a 2,400 m² spa, two gourmet restaurants and integrated management geared towards international guests. This project required an initial investment of over CHF 300 million.
- 42 residential buildings with a total of over 700 apartments have been completed or are under construction in the new Andermatt Reuss district, a modern architectural extension of the historic village.
- A PGA-approved 18-hole golf course, opened in 2016, covering 1.3 km² between Andermatt and Hospental.
- More than CHF 500 million has been invested in modernising the ski area as part of the merger between the resorts of Nätschen and Sedrun, which was officially launched under the brand name Andermatt+Sedrun+Disentis (ASD) in 2018. This merger has created one of the largest interconnected ski areas in Central Switzerland, with a total of 180 km of slopes.
The project also benefits from the introduction of a flat tax for wealthy foreign residents, encouraging an international clientele to settle in Andermatt on a part-time basis. At the same time, ASA has ensured the construction of new shops, schools and sports facilities, and is committed to complying with strict Swiss environmental standards, with energy-efficient buildings and carbon offset projects.
The arrival of Vail Resorts in Andermatt: strategic acceleration and opening up to the North American market
In 2022, the transformation of Andermatt will take on a new dimension with the arrival of Vail Resorts, the American ski resort operator.
On 27 August this year, the American group Vail Resorts, Inc., listed on the NYSE (code: MTN), officially announced that it had finalised the acquisition of 55% of the shares in Andermatt-Sedrun Sport AG (ASSAG), the company that operates the ski area. The transaction is valued at 149 million Swiss francs, a significant sum that will be used to strengthen both the resort’s sports infrastructure and its commercial ambitions.
This transaction represents Vail Resorts’ first foray into Europe, after consolidating a portfolio of more than 40 resorts in North America and Australia, including giants such as Whistler Blackcomb (Canada), Vail, Park City and Beaver Creek (United States). The decision to enter the European market via Andermatt is no coincidence: the Swiss resort, which has already undergone extensive redevelopment by Orascom Development, has all the attributes of a future high-end Alpine hub, with efficient rail connections, a growing international clientele and a rapidly expanding range of premium accommodation.
Of the 149 million Swiss francs spent:
- 110 million Swiss francs are specifically earmarked for the modernisation of the ski area, including:
- the replacement or upgrading of several obsolete ski lifts, particularly on the Sedrun side,
- the extension of the snowmaking network with the latest generation of more efficient and energy-efficient snow cannons,
- improved accessibility and flow in the ski area through new inter-station connections.
- The remaining CHF 39 million will be reinvested in real estate through Andermatt Swiss Alps AG, strengthening the development of tourist accommodation, shops and services tailored to an international clientele.
Unprecedented American enthusiasm
At the same time, the resort is being integrated into the ‘Epic Pass’, Vail Resorts’ international ski pass, which provides access to more than 60 destinations around the world, including Whistler Blackcomb, Vail, Breckenridge, Park City, Hakuba Valley (Japan) and now Andermatt. This integration, effective from winter 2022/23, will allow North American pass holders to discover Andermatt as part of their annual subscription, thereby promoting an immediate increase in foreign visitor numbers. According to Orascom data, American visitors to Andermatt increased by +18% between winter 2022/23 and 2023/24.
This system generates several strategic benefits:
- A significant increase in international visitor numbers: in 2023, more than 10,000 North American skiers visited Andermatt via their Epic Pass, representing an increase of almost +30% in this segment compared to 2021.
- A smoother distribution of visitors throughout the season thanks to long-haul visitors who stay longer (average length of stay for Americans: 6.8 days compared to 4.1 days for Swiss visitors, according to Andermatt Swiss Alps AG).
- An increase in ancillary spending: Epic Pass customers spend more in mountain restaurants, sports shops and higher-end accommodation, generating an estimated additional turnover of +12% per visitor, again according to an internal Orascom study.
Since the beginning of 2025, Andermatt has seen a massive influx of American investors. They have invested more than 14 million Swiss francs in the purchase or reservation of new apartments, almost double the number of transactions in the previous year. In 2023, no American investors were recorded. The SRF channel reports more than 1,200 enquiries from American investors about properties in Andermatt.
This white gold rush can be explained by several factors: Switzerland’s political and economic stability, the strength of the Swiss franc, and the exceptional quality of life offered by the region. Donald Trump’s re-election in the United States has also prompted many wealthy Americans to seek safe havens abroad.
Andermatt, an economic model inspired by North American practices
The other component of the North American model deployed in Andermatt is real estate. Inspired by the concept of ‘condo hotels’ flourishing in Aspen and Whistler, it consists of developing luxury condominiums integrated into hotel structures, with shared services and centralised rental management.
This format, attractive to investors and part-time owners, makes it possible to:
- optimise occupancy rates, which are traditionally low in Swiss Alpine resorts (the average occupancy rate for second homes in Switzerland is estimated at 30-35% according to the Federal Statistical Office),
- generate regular rental income for owners through a revenue sharing system managed by the hotel operator,
- to enhance the tourist appeal of the property portfolio thanks to high hotel standards (housekeeping, room service, spa, concierge service, etc.).
The flagship project currently underway in Andermatt, called ‘The Alpinist’, fully embodies this strategy. Located in the Andermatt Reuss district, it offers 18 high-end residences, some with private jacuzzis and panoramic views of the Urner Alps. Each property has access to the services of The Chedi or partner hotels, with a potential rental yield of between 2.5% and 3.8% gross per annum, according to sales brochures published by Andermatt Swiss Alps AG and Barnes Suisse.
Since the project was launched in 2009, Andermatt Swiss Alps AG (ASA) has invested around 1.67 billion Swiss francs in the development of the region, including the construction of residences, hotels, leisure and service facilities, and the modernisation of existing facilities. These investments have created more than 500 direct jobs, making ASA one of the largest employers in the canton of Uri. The modernisation of infrastructure and the increase in tourist numbers have also boosted the local economy, benefiting shops, restaurants and service providers in the region.
The transformation of Andermatt, orchestrated by Samih Sawiris and reinforced by the arrival of Vail Resorts, illustrates how strategic vision, targeted investment and international collaboration can transform a locality into a leading tourist destination. This Egyptian-style success story demonstrates that innovation and boldness can redefine the Swiss Alpine landscape, attracting a global clientele in search of excellence and authenticity.
