MIPIM 2022 (21 MB)

Investing in Austria
innovation is essential in project planning.
The federal government, together with the
provincial administrations, envisages a number
of measures. By surveying and mobilising
vacancies, for example, the existing supply of
living space can be expanded and used more
effectively. In addition, a nationwide monitoring
of land consumption is planned.
In connection with these developments the
resurgence of Grätzl (neighbourhood development)
in larger cities should also be strengthened
and further developed. Grätzl are characterised
by their small-scale structure, short
distances, and accessibility by bicyde or on foot
to infrastructural facilities and workplaces.
Upward trend on the hotel investment
market
Although the ongoing pandemic continues
to affect the hotel investment market, there
is a clear upward trend. In 2021 more than
twice as much capital was invested in hotel
properties as in 2020, and prime yields have
registered stable development. Thanks to the
government‘s stimulus package the distressed
sales initially predicted continue to be averted.
Subsidies to the hotel industry were originally
scheduled to expire at the end of 2021. In November
it was decided to extend and partially
adjust the existing subsidy programme until
mid-2022. This includes, among other things,
an increase in the default bonus to a maximum
of EUR 2.3 m per business in place of the original
EUR 1.8 m upper bound.
The upturn should continue in 2022. We are
observing that investors are once more looking
for appropriate hotel properties as pressures
related to capital availability remain high. Meanwhile,
buyers are again willing to pay prices
similar to pre-crisis levels, something that has
also been demonstrated by recent transactions.
However, the result could be dampened by
insufficient supply as some new construction
projects have been postponed or stopped, with
others put to a different use owing to the impact
of the pandemic.
Leisure hotel industry
recovers the fastest
As already observed in 2021 we now expect
that a recovery will be feit most quickly in the
leisure hotel industry. Vacation demand in the
domestic market, often labelled „staycations“,
has increased enormously due to the pandemic
and associated travel restrictions. In this
context strong domestic tourism, combined
with a trend towards earthbound, eco-friendly
and decelerated travel, will precipitate a rapid
recovery of the vacation hotel market.
New concepts enter the hotel market
Hospitality start-ups are increasingly up-andcoming.
These are young companies with an
investor in the background, most of whom
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