Christie & Co report reveals positive developments in the Austrian hotel market in 2024
The Austrian hotel market is showing positive trends again after the uncertain years of 2020-2023. Overnight stays in Austria reached a new all-time high in 2024, highlighting the strong tourist demand. Vienna Airport also recorded a new record high with around 32 million passengers, surpassing 2019 levels.
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Despite these positive tourist developments, the investment market is still lagging somewhat behind: although the transaction volume increased in 2024 compared to 2023, it remains below the 10-year average. The most active players were primarily hotel operators and developers, in addition to opportunistic buyers.
A highlight of the year was the largest single transaction, the Austria Trend Hotel Ananas, which significantly contributed to the investment volume of 190 million euros in the first half of the year with its 539 rooms. In the second half of the year, hotels worth 160 million euros changed hands, resulting in a total transaction volume of 350 million euros – about 25% below the 10-year average. The majority of transactions took place in Vienna, but there were also significant sales in other regions such as Vorarlberg and Styria.
The financing landscape eased due to the lower key interest rate, and hotels are once again considered an attractive asset class. Nevertheless, hotel transactions still take longer compared to before the interest rate hike in 2022. The average duration from market approach to contract signing is usually over six months. However, there are exceptions: Christie & Co successfully completed two transactions for institutional investors in approximately four months in 2024.
Significant transactions in Vienna included the Austria Trend Hotel Ananas, the Courtyard by Marriott Vienna Messe Prater, the Moxy/Residence Inn Erdberg, and the NH Wien City. Other notable sales were the Night Inn in Feldkirch, the Mozart Vital Hotel near Serfaus-Fiss-Ladis, and the Hotel Tauernblick in Schladming.
Manuel Strasser, Associate Director at Christie & Co, comments: "The strong tourist demand combined with a slow relaxation in the real estate industry and a more relaxed interest rate policy, coupled with the attractiveness of the hotel asset class, are positive signs for a transaction-rich year in 2025."
To read the full report, click here: https://www.christie.com/news-resources/publications/austrian-hotel-investment-market-report-2024/
For further information on this press release, contact:
Jasmine Davis, Corporate Communications Manager
P: 07561 115179
E: jasmine.davis@christie.com