Carinthia's Hotel Market enjoys increasing Popularity
According to hotel property specialist Christie & Co, Carinthia’s hotel market has become a popular destination for investment. This is demonstrated by the positive hotel market data as well as strong demand for attractive properties by investors and operators. Close to Villach, the 4-star Thermenhotel Bleibergerhof is currently for sale.
As Christie & Co suggests, Austria’s most southern federal state is experiencing a tourism boom at present – a phenomenon which seems to be confirmed by the current destination study of Austria’s hoteliers’ association (ÖHV), according to which mountain and lake destinations experienced the highest growth rates in the tourism year of 2016.
The attractiveness of Carinthia’s hotel market has not gone unnoticed by investors. Carinthia has been recording a number of hotel transactions for years. In the past 18 months several prominent hotels changed hands, including the Falkensteiner Hotels Carinzia and Funimation Katschberg, the Hapimag Resorts Kanzlerhöhe and Bad Kleinkirchheim as well as the Hotel Sonnalpe am Nassfeld, to name but a few. A few months ago, with the disposal of 110-bedroom Blumenhotel in St. Veit an der Glan, another large hotel was sold in the region.
The Thermenhotel Bleibergerhof in Bad Bleiberg, close to Villach, which Christie & Co currently offers for sale on behalf of the owner, is of a comparable size. The property comprises 108 bedrooms, four variable conference rooms as well as an extensive spa- and wellness area, which includes, amongst others, two thermal water pools and several saunas. The business is operated by the German leisure hotel chain Fidelity Hotels & Resorts on the basis of a long-term lease contract. Fidelity Hotels & Resorts runs several hotels in Austria and South Tyrol, destinations in Germany are in the pipeline.
Marvin Kaiser, Senior Consultant Investment & Letting at Christie & Co, says: “Carinthia recorded three million arrivals and 12.7 million overnight stays in 2016, which equals an increase of more than four per cent compared to the previous year. Tourism is an important economic factor for the region.
“In view of the very limited supply of high-quality properties in Vienna and Salzburg and shrinking yields as a result, properties such as the Thermenhotel Bleibergerhof offer an attractive investment opportunity.”