In the last decade, the number of arrivals has increased by one third and overnight stays by more than 10%. Expressed in actual numbers, this represents an increase of over 10 million arrivals and an increase of nearly 17 million overnight stays. Not only has demand increased, but also the offer of accommodations has increased significantly in recent years.
The latest city comparison conducted by Christie & Co brings interesting facts to light.
In the last 10 years, the number of hotels in Austria's provincial capitals has dropped significantly. Exceptions are Vienna, with a plus of more than 12% and currently 434 businesses and Eisenstadt, where the number of hotels has remained the same. At the same time, it can be seen that despite the decline in the number of hotels, the number of rooms has increased. While in 2008 all 9 Austrian provincial capitals together offered just under 42,400 rooms, in 2017 the offer could be increased by 9,000 rooms. Particularly noteworthy is the Viennese hotel market, which was able to significantly increase the number of rooms by more than 30% to the current 33,610 rooms. In the vicinity of the large construction project of the Vienna central station alone, over 6,000 rooms were created. In the future it can be assumed that the number of hotels will develop more slowly than the number of rooms, which means that the size of the hotels is increasing.
The direct comparison between the Austrian provincial capitals has remained unchanged with Salzburg, Vienna and Innsbruck in the lead. With 6.5 million arrivals and 13.8 million overnight stays, demand is highest in the capital city of Vienna. The strongest positive development on the other hand was shown by the Salzburg hotel market, whose annual growth rate compared to the last 10 years has risen by 5.3% in arrivals and 4.6% in overnight stays. In the strong midfield are the western provincial capitals of Innsbruck and Bregenz, which also showed a significant increase in arrivals. Innsbruck registered over 860,000 arrivals in 2017 (+31%) and more than 1.4 million overnight stays (+26%). At the back of the pack are the hotel markets of St. Pölten and Eisenstadt, with St. Pölten recording a slight increase in overnight stays while the capital of Burgenland actually saw a decline in overnight stays.
The highest average daily rate (ADR) of all the provincial capitals in 2017 was achieved by Salzburg at 100 euros, an increase of 4% compared to 2016, followed directly by Vienna at 97 euros (+0.5%) and Innsbruck at 96 euros (+4%). With an increase of 1.9 percentage points compared to the previous year, Innsbruck achieved the highest occupancy rate in Austria with 80%. With 79% and an increase of 2.4 percentage points, Salzburg also achieved a top occupancy rate. With an increase of 5.4 percentage points, Graz (74%) joined Vienna (75%) and Linz (74%), which recorded only slightly smaller increases. Due to the high ADR, Salzburg was also able to achieve the highest RevPAR with 79 Euro (+7%), followed directly by Innsbruck with 77 Euro (+7%) and Vienna with 73 Euro (+2%). Despite the growth achieved in the previous year in Linz with 55 euros (+3%) and Graz with 47 euros (+8%), there is still potential for these cities.
“In general, the development of the Austrian hotel market is very good. With the decrease of the VAT rate for overnight stays to 10%, Austria’s accommodation businesses will be sustainably strengthened and made more internationally competitive. As a result, an increase in the average rate for 2019 can be expected. From an investor perspective, we also expect increasing interest in hotel real estate,” says Lukas Hochedlinger, Managing Director Central & Northern Europe at Christie & Co, summarizing the market situation.
For a detailed description of the individual provincial capitals, follow the link below and download the publication for free.
This press release is also available online here
You can download the publication here