For a comprehensive review of the Europe market, click below:
HVS In-Depth Europe Hotel Valuation Index:   2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | 2002 | 2001

Vienna’s proximity to its neighbours in Central and Eastern Europe makes it a desirable starting place for companies establishing themselves in these markets. With a population of approximately two million as of 2023, it is the largest city in Austria in addition to being one of its nine federal states. Vienna boasts a robust service sector, with numerous European and international banks maintaining divisions in the city to facilitate operations across Eastern Europe. Benefitting from a sturdy business infrastructure, Vienna hosts around 200 of Europe's leading corporations alongside the headquarters of important international organisations such as the UN, UNIDO, the IAEA and OPEC. Moreover, Vienna stands out as a preeminent congress destination in Europe, owing to its strategic proximity to key business hubs and its rich historical heritage.

In the years prior to the pandemic, the market enjoyed constant growth, achieving an occupancy of just under 80.0% in 2019. Tourism statistics clearly reflect this increase in popularity, with average year-on-year growth of around 5.0% for accommodated bednights since 2013 (18.6 million in 2019). The main source market in terms of arrivals to Vienna remains the domestic market, followed by Germany. Additionally, Vienna has seen increased visitation from the USA, the UK and, more recently, China. Following the pandemic, Vienna experienced a pick-up in volume from June 2021 onwards. In 2022, occupancy was roughly around 70% of 2019 levels. Even strong rate growth, pushed up further by inflation, resulted in RevPAR only reaching about 80% of 2019 levels. In 2023 occupancy levels for the market were around the 70% mark, which combined with a healthy increase in average rates, resulted in RevPAR levels benefiting from an increase of almost 40% year-on-year. In real terms, however, RevPAR remains more than 10% below the 2019 levels.

There are currently around 3,600 rooms due to enter the Vienna market in the next couple of years. More than half the pipeline consists of upper midscale properties, the rest being spread equally amongst the upscale, upper upscale and luxury segments. The pipeline includes lifestyle and luxury hotels, some of which are the 196-room Hoxton Vienna (planned for April 2024) and the 150-room Mandarin Oriental Vienna (opening September 2025).

Nine transactions occurred in Vienna in 2023. Notable deals included the sale of the Hotel Savoyen in February for around €84.4 million, slightly more than €273,000 per key, and the 81-room Hotel Strudlhof Wien, which transacted at €286,000 per room in September.

After having increased by 4.4% in 2022, Hotel values in Vienna further increased by 2.6% in 2023, as recorded in our 2024 European Hotel Valuation Index. Despite the ongoing recovery in the past three years, values are still 10% short of pre-pandemic levels.

ADR, Demand, Occupancy, RevPAR, and Supply Projections:

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Change In Value For Market: (€Euro)

Vienna RevPAR Change (€Euro)

Vienna RevPAR (€Euro)

For more information, please contact:

	Sophie Perret, MRICS, MBA Managing Director [email protected] +44 0 2078787722 (w) +44 0 7725781037 (m)
	Julia Dzerkach Associate [email protected] +44 0 2078787742 (w) +44 0 7912240964 (m)
	Clemence Sennavoine Senior Associate [email protected] ++44 0 7736273439 (m)