For a comprehensive review of the Europe market, click below:
HVS In-Depth Europe Hotel Valuation Index:
2025
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2024
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2023
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2018
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2001
Vienna’s strategic location at the crossroads of Central and Eastern Europe makes it an ideal base for companies seeking to establish a presence in these markets. With a population of approximately 2 million in 2024, Vienna is not only Austria’s largest city but also one of its nine federal states. The city boasts a strong service sector, home to numerous European and international banks that facilitate operations across the region. Vienna’s robust business infrastructure supports around 200 of Europe’s leading corporations and hosts several major international organisations, including the United Nations Office at Vienna (UNOV), the International Atomic Energy Agency (IAEA), the Organization of the Petroleum Exporting Countries (OPEC), and the International Centre for Migration Policy Development (ICMPD). Moreover, Vienna stands out as a pre-eminent congress destination in Europe, owing to its strategic proximity to key business hubs and its rich historical heritage.
Following a period of political uncertainty in late 2024 and two years of negative GDP growth, Austria has entered a more stable phase. In March 2025, after five months of negotiations, a new three-party coalition government was formed, excluding the far-right party. This coalition has announced plans to reform Austria’s energy market to reduce costs and stimulate industrial growth – a move which is expected to benefit the hotel sector.
In the years leading up to the pandemic, Vienna’s hotel market experienced steady growth, reaching occupancy levels just shy of 80% in 2019. The domestic market remains the primary source of arrivals, accounting for just over 20% of visitors, followed by Germany. Visitor numbers from the USA, the UK, and more recently, China have also been on the rise. Following the initial pandemic disruption, the market began to recover in June 2021. By 2022, occupancy had recovered to roughly 70% of 2019 levels, while RevPAR had reached around 80%. The upward trend continued through 2023 and 2024, driven by solid gains in both occupancy and average daily rates, with particularly strong momentum in 2023. However, a significant increase in hotel supply – over 17% between 2019 and 2024, equating to a compound annual growth rate of more than 3% –outpaced demand recovery. As a result, occupancy remained five to seven percentage points below pre-pandemic levels. Despite notable boosts from a busy calendar of concerts and conferences, 2024 RevPAR remained approximately 8% below 2019 in real terms.
Looking ahead, approximately 2,100 new rooms, representing 5% of the existing supply, are expected to be added to the Vienna market over the next few years, the majority of which are limited-service properties. Just over 50% of these projects are branded, including the 67-room Bob W Wien (expected to open in June 2025), the 141-room Moxy One Donau-City-Strasse (October 2025) and the 246-room Mandarin Oriental (July 2025).
Vienna remains a relatively liquid hotel investment market, with nine transactions recorded in 2023 and eight in 2024. Notable deals in 2024 include the acquisition of the 152-room Anantara Palais Hansen Vienna by Wiener Städtische in March and the 251-room Courtyard Vienna Messe by Art Invest in October, both for undisclosed amounts, as well as the 202-room Ritz-Carlton Vienna, purchased by Eagle Hills in December for €109 million (approximately €540,000 per room).
According to our 2025 European Hotel Valuation Index, hotel values in Vienna increased by 3.2% in euro terms in 2024.
The widespread impact of the coronavirus (COVID-19) has had an unprecedented impact on hotels and hotel values worldwide.
Consequently, the latest HVI analysis may no longer reflect the most current measure of lodging industry strength or the
hospitality investment market.
In each of our offices across the globe, we are working tirelessly to analyze the impact of recent events and provide timely
insights to help you navigate these uncharted waters. Because it is unclear how long the pandemic will last or how long related
restrictions will be in place, we are updating our analyses on a weekly basis using the most current data.
Additionally, examination of value trends in prior cycles can provide useful information. Historical patterns, together with
an understanding of the market’s current expectations for the eventual recovery of the industry and its performance, can provide
insights on the likely trajectory of decline and recovery for hotel values.
For the Latest Information and Analysis on the Impact of COVID-19Click Here
If you’d like to speak to someone personally to review details of our most current analysis, please don’t hesitate to contact
us directly.
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