For a comprehensive review of the Europe market, click below:
HVS In-Depth Europe Hotel Valuation Index:   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 1.9 million, it is the largest city in Austria and also one of its nine federal states. 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.

In the years prior to the pandemic, the market enjoyed constant growth, achieving occupancies of close to 80%. Tourism statistics clearly reflect this increase in popularity, with average year-on-year growth of around 5% for accommodated bednights since 2013 (18.6 million in 2019). During this time, average rate growth was more modest, although it had picked up momentum up to the onset of the pandemic. 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. Austria was particularly strict in imposing pandemic-related restrictions, which had a substantial impact on the hotel industry in both 2020 and 2021. The market experienced a pick-up in volume from June 2021 onwards, until the arrival of the Omicron variant which impacted the latter part of the year. In 2022, room nights were 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.

There are currently around 4,000 rooms (10% of current supply) due to enter the Vienna market in the next couple of years. The majority of the pipeline consists of midscale and upscale properties, around 50% and 40%, respectively. Some of the most notable hotels in the pipeline are the 196-room Hoxton Vienna (expected to enter the market in June 2023), the 214-room Radisson RED Vienna (December 2023) and the 138-room Mandarin Oriental (January 2026).

In 2021, the most notable transactions in Vienna included the 305-room Hotel Renaissance which sold in June of that year for €31.4 million, or €103,000 per key, and (coincidentally) the 369-room Imperial Riding School Renaissance Vienna Hotel which sold in December for approximately €51 million, or €140,000 per key. In 2022, there was a total of six hotel transactions, including the 81-room HB1 Seehotel Bock which transacted in January for €15 million, and the 102-room MEININGER Hotel Wien Downtown Sissi sold in January for more than €16 million.

Hotel values in Vienna increased by 4% in 2022, driven by the removal of travel restrictions and the return of international travel, as recorded in our 2023 European Hotel Valuation Index. This would place values around 12% below 2019 values, but solid investor interest in this market, coupled with a well-diversified demand base, bodes well for the long-term value recovery of Vienna.

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

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Market Demand Change
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Market Supply Growth

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)