the most international tourists are located in Europe. Tiny Austria ranks nineth with 30 million international visitors per year. Tourism is a huge market for this country – it generates steady growth and the supply of overnight accommodations is unable to meet the demand. In answer to your question on investment properties, which originally comes from the residential area, we first need to examine the real estate market as a whole. Vienna is a location with favourable apartment rents compared to other European capitals. In the hospitality area, the profitability situation looks completely different: In 2024, we had an average daily rate, or revenue per room, of 138 Euros. Residen- tial uses in Vienna generate substantially lower revenues than, as an example, Berlin. The hospitality segment, in contrast, produces higher revenues – and that clearly illustrates the inherent potential. I don’t believe this potential has been completely exhausted because the room turnover in Southern Europe, for instance, is much higher.
My conclusion: Tourism is an exciting business field for property owners because it allows them to generate higher income with real estate than on the investment property market. The final yields, however, will depend on the adaptation costs. Con- verting an investment property previously used for housing into a hotel is difficult and expensive. In contrast, the adapta- tions required by a serviced apartment
the whole, our attitude towards the Vienna market is very positive. We currently have nearly 400 units in the pipeline, many of which are not yet in operation. Our plan is to generate strong growth in Vienna because the market still has a great deal of potential. I expect growth of roughly six per cent annually over the next four or five years for the European hospitality market and believe Vienna will top this average.
operator like limehome can frequently be made at an economically reasonable cost. And as I indicted, the difference between apartment rents and hospitality rents in Vienna is currently very interesting.
The European hospitality market is projected to grow by roughly six per cent per year over the next four or five years and Vienna will top
this average. - Josef Vollmayr
If conversion for hospitality is allowed…
From an economic standpoint, there are a number of points in favour of the hospitality segment. But how would you judge the legal aspects? Are there a lot of stumbling blocks?
Vollmayr: There is a certain conversion risk which – just like the necessary structural measures – lies with the owner and not with us as the operator. Our focus as the tenant is on the operational aspects. On
Vienna | 2025
25
Powered by FlippingBook