Latest hotel investment figures for Austria

Hotel companies that are currently in the planning, implementation or conversion phase (reinvestment phase) are faced with significant challenges due to the higher construction costs. Supply bottlenecks and raw material prices have driven inflation up rapidly. The construction price index has increased by over 2020 percent compared to 20, which has a self-explanatory effect on all new construction and renovation projects. The construction costs per room in a 4-star hotel have risen by around 40% in the last three years. Construction activity is currently stagnating, but with no significant impact on construction costs, the report concludes.

The hotel industry performed well in terms of revenue and occupancy in the summer months, but was still unable to achieve or maintain the operating result of the past. This is also a concern for the banks, who are showing increased reluctance when it comes to financing hotel properties. The combination of weak operating results, high interest rates and hardly any changes in investment and construction costs is not a good prerequisite for maintaining quality for a capital-intensive service industry.

Prodinger Tourismusberatung took this development as an opportunity to review the existing investment figures for the Alpine holiday hotel industry and adapt them to the current market environment. The “Investment 1×1” is the result of available values ​​for construction, furnishing and planning costs for around 50 new buildings and conversion projects as well as findings from expert discussions.

“This overview is intended to help investors, project developers and hoteliers to plan their upcoming investments. The better the planning, the faster and less risky the implementation. In addition to cost overruns, functional deficiencies and a lack of market conformity are the most common errors in project development,” explains Thomas Reisenzahn from Prodinger.

The current benchmark comparison was carried out in cooperation with the Austrian Hotel Association (ÖHV) and comes from hotel developments by the Prodinger consulting group. The values ​​listed can be used as target values ​​for individual holiday hotels.