A refurbished asset at the intersection of heritage and modernisation
Formerly the L’Hermine residence, Capella has been part of Avoriaz’s history since 1967. Its refurbishment illustrates Pierre & Vacances’ ambition to combine innovation, comfort and environmental performance, while preserving the resort’s emblematic architecture. This approach prioritises the qualitative transformation of existing assets, which has become a strategic lever in a context of constrained land availability and increasing regulatory pressure in mountain destinations.
A residential offer redesigned for new usage patterns
Capella is welcoming its first guests in apartments designed to meet current 4-star standards, combining functionality, comfort and contemporary design. The units, averaging around 30 sqm and accommodating up to four guests, have been conceived to optimise space utilisation. Bespoke furniture, integrated storage solutions and movable partitions allow for flexible living areas, while kitchens and bathrooms are equipped to modern standards, supporting efficient operations and high guest turnover.
Economic model and value creation in resort destinations
This repositioning takes place against a backdrop of rising construction costs, land scarcity and shifting demand towards more qualitative and better-segmented products. In this environment, upper-tier tourist residences appear to be a relevant format to improve revenue per key, secure pricing levels and strengthen margin resilience, while maintaining a controlled operating structure.
Strategic vision and territorial integration
Capella illustrates Pierre & Vacances’ strategy to reinforce the territorial integration of its residences, relying on local partnerships and a detailed understanding of each destination’s specificities.
“We are extremely proud of the Capella residence. This exemplary refurbishment reflects our vision of a new-generation mountain residence that is sustainable, respectful of its environment and fully integrated into its territory. Delivering this project in Avoriaz, an iconic location for Pierre & Vacances, was an obvious choice. Capella’s success is based on collaboration with our local partners, which is essential to offering our guests a comprehensive experience,” said Grégory Sion, Chief Executive Officer of Pierre & Vacances.
A structured trajectory of upmarket positioning and transformation
The opening of Capella forms part of a broader transformation trajectory undertaken by Pierre & Vacances, aimed at adapting its portfolio to the new fundamentals of mountain tourism: upmarket repositioning, value enhancement of existing assets and the pursuit of more resilient long-term models. This dynamic echoes the group’s transformation strategy towards 2030, previously detailed, which focuses on offer modernisation, asset sustainability and more refined customer segmentation.
It also aligns with the group’s openness to differentiated formats and partnerships, as illustrated by the recent development of Alpine projects in Switzerland alongside Swisspeak Resorts, confirming Pierre & Vacances’ appetite for premium mountain assets located in destinations with strong usage value.
For operators, investors and destinations, Capella illustrates a pragmatic approach to resort development: prioritising asset quality, territorial anchoring and operational performance over extensive expansion, at a time when project selectivity is becoming a key driver of sustainable value creation.
