Europe -  Vienna, Austria

Vienna’s proximity to its neighbours in Central and Eastern Europe makes it a desirable starting place for companies establishing themselves in these markets. The city has a strong service sector, and several European and international banks have divisions in Vienna that support operations in Eastern Europe. Vienna enjoys a solid business infrastructure and is home to more than 200 of Europe’s largest companies and the headquarters of important international organisations, such as the UN, UNIDO, the IAEA and OPEC. Additionally, Vienna is one of Europe’s premier congress destinations, owing to the proximity of business generators and its historic heritage.

Vienna’s hotel market experienced a tough year in 2013, partly owing to fewer congresses and events taking place in the city, as well as new hotels establishing themselves in the market. Average rate and occupancy decreased, leading to a RevPAR decrease of around 5%. In 2014 the market rebounded, owing to a good congress calendar, and recovered the ground lost the previous year. Hotel performance for the market continued to show good growth in 2015, particularly in average rate, while occupancy remained relatively stable. The improved performance in 2015 was also due to the strong conference calendar, as well as a general increase in demand and the new supply that opened in previous years starting to be absorbed. Although 2016 was more of a challenging year owing to a decrease in the number of events and congresses, the impact on RevPAR was minimal. Growth in 2017 was relatively flat with only modest occupancy and average rate improvements.

The Austrian transaction market had a bumper year in 2016. Almost €1 billion worth of hotels transacted in single asset and portfolio deals, of which €600 million represented single assets. This was driven by trophy deals in Vienna, such as the 579-room Hilton Vienna, which was bought by local investors BETHA Zwerenz & Krause with amp Holding for €169 million, and the Hotel Imperial Vienna in a sale-and-manage-back transaction between Starwood Hotels & Resorts and Al Habtoor Group for €73 million (€527,000 per key). While 2017 was not quite as eventful, it was still an extremely busy year for the market with a dozen hotel transactions.

Change In Value For Market: (€Euro)

Significant Value Increase: Greater than +10%
Moderate Value Increase: Between +3% and +10%
Stable Values: Between -3% and +3%
Moderate Value Decline: Between -3% and -10%
Significant Value Decline: Less than -10%

Vienna RevPAR Change (€Euro)

Vienna RevPAR (€Euro)

For more information, please contact:

Sophie Perret, MRICS, MBA
  • +44 20 7878 7722 (w)
Simon Hulten
  • +44 020 7878-7775 (w)