Hotels in Austria: High Quality Tourism Attracts Real Estate Investors

Travel in style seems to be the motto for tourism in Austria. Whilst the segment of 4-5 star hotels is continuously growing, the private accommodation offer with 1 or 2 stars is decreasing. In the segment for business hotels the continuing internationalisation and standardisation of the market attracts more and more real estate investors.

Austria has gained the renown of a high quality tourism country in the past decades. Since 1986 the bed numbers in the 4-5 star hotel segment are continiously increasing. Also the 3 star hotel segment is developing constantly. In contrast to that the bed numbers of cheap private accommodations are dropping. Today they make only around 30% of the total bed supply in the Austrian hotel sector.

Whilst the Austrian holiday hotel market remains a field for single investors, the field of business hotels however has some potential for real estate investments. With international names as hotel operators, like NH Hotels, Mercure, Best Western, Novotel or Accor, real estate investors can now find the right partners for hotel investments in Austria.

According to RegioData Research the total existing stock of 3-5 stars hotels lies at around 8 000 objects. The new supply per year is about 50 hotels, from which around 30 are private hotels. The rest would be suitable for investors. In Germany around new 300 hotels are delivered on the market each year, in Eastern Europe (without Russia and Turkey) the supply per year lies at about 700 per year.