“The result lies thereby only slightly behind the record year 2016 in the amount of both individual transactions and total volume. Furthermore, the transaction volume of 350 million euro is only marginally behind the whole year 2018, in which 420 million euro were generated in 12 months”, explains Simon Kronberger, Associate Director of Christie & Co.
In fact, the transactions volume of the first 6-months initialled a trend over the recent years. The rather weak year 2017 (130 million euros) was followed in 2018 by a result of just over 200 million euros, which is almost in line with the average of the last 5 half-years (H1). With just over 360 million euros, the result of 2019 is almost twice as high and only just behind the absolute record of 2016 (440 million euros).
The overall volume is also a surprise as the highest individual transactions were in total significantly smaller than in the previous years. That includes this year predominantly again city hotels like the former Falkensteiner Margareten, which is now conducted as Maxx by Steigenberger, but also the renewed sale of the K+K portfolio with both, the K+K Palais Hotel as well as the K+K Hotel Maria Theresia, located in Vienna. But there was also a lot of movement in the other cities in Austria. With the sale of the Best Western Amedia Wels, Best Western Plus Amedia Graz and Best Western Plus Amedia Art Hotel in Salzburg a small portfolio changed its ownership and are now belonging to the Plaza Hotelgroup. In addition, the Meininger Hotel Salzburg City Centre was sold as part of a mixed-use property to a fund of Sofidy and Deka acquired the InterCity Hotel located at the central station of Graz, which is currently being developed.
As in previous years, leisure hotels recorded also movements in 2019. Right at the start of the year, the Cordial leisure hotels of the Imperial-Group with the Cordial Hotel Reith, Cordial Hotel Achenkirch and the Cordial Hotel Going were sold. Only recently, the “Romantik Hotel im Park Bad Radkersburg” has a new owner, which was bought by the German hotelier “Dr. Lohbeck Privathotels”. A new owner was also found for the Hotel Ottenstein at the eponymous reservoir near Zwettl, sold by the EVN.
“As in the second half of the year is historically obtained a higher transactions volume, the year 2019 has potential to become the new record-year. This is also demonstrated by diverse hotels throughout Austria which are currently on the market”, says Kronberger as a cautious forecast for the full year.
“At least we are very delighted that hotels currently experience an incomparable demand and are named on the purchase list of many investors. Thereby, Austria could establish itself over the last years as an investment market in Europe and is not at least because of the strong touristic sector an important target market for investors. We see a good omen for a successful 2019 and possibly even a new record in the transaction volume”, summarises Lukas Hochedlinger, Managing Director Central & Northern Europe, the positive investment climate.