To highlight the latest development in the Austrian Hotel Market, we added Austria to the EMEA Hotels Market Update 2021. The report contains an overview of the performance of key European markets, an analysis of the impact the corona crisis had on local markets as well as the investment sentiment and forecasts about what to expect further.
A high number of hotel projects in Austria have been postponed to 2021. Some already existing hotels and projects are going to be converted into more crisis-resistant residential or serviced apartments schemes.
While MICE and corporate travel will be taking longer to reach former rates, leisure travel is going to recover earlier, as soon as Austrian mass vaccination programs are showing the expected effects.
Although investment interest exists, due to a significant imbalance in pricing expectations of potential sellers and buyers, there were hardly any investment deals in 2020. A situation that is expected to normalize during H1 2021.
Some deals can also be expected after the expiration of state funded aid programs. Investors are already scanning the Austrian market for emergency sales.