In 2024, Austrian tourism experienced a notable increase compared to the previous year. The total number of overnight stays from January to August reached a record of 116 million, surpassing the previous high set in 2019. The summer season alone saw 61 million overnight stays, a 1.7% rise compared to the previous year, highlighting the country’s growing ability as a year-round destination. The growth was driven by both domestic and international visitors, with a significant 9.6% increase in the number of guests in August 2024 compared to August 2023. This positive trend highlights the resilience and appeal of Austria as a top travel destination and is set to continue into 2025.

2024 was a year of elections, from the United Kingdom to France, from the EU to the presidential election in the USA, and not least the National Council election in Austria. For the first time, a rather right-wing party won the elections in Austria. However, since the other parties refused to form a coalition with it, the formation of the government took longer and was not without controversy. This may have led to uncertainty for domestic investors, which will only subside over the course of 2025.

Many of the current hotel investors in Austria have substantial experience with hotel properties, often having previously invested in or operated hotels. Prior to early 2020, numerous buyers with little hotel experience entered the market, attracted by higher returns compared to zero interest rates. This influx led to high transaction volumes and further declining yields. With these buyers now absent, marketing hotels requires an understanding that buyers are knowledgeable and will not pay inflated prices.

Parallel to extensive media coverage, sustainability and Environmental, Social, and Governance (ESG) have significantly ascended the priority list for hotel investors in the past 24 months. This trend is particularly pronounced among institutional investors and corporate lenders, for whom the absence of any certification would raise concerns. To a lesser extent, this shift has been observed among local/regional investors and banks.