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Analysis

Vienna: new projects to absorb demand

Hotel developments are flourishing in the Austrian capital as tourist arrivals continue to intensify in 2015. Close to a dozen properties should complete the city's hotel supply over the next three years, to strengthen a supply that is already well established.

Each year the imperial city attracts a growing number of international tourists. On the first eleven months of 2015, foreign nights recorded in Viennese hotels increased by 6.3% with respect to the same period in 2014. They amount to close to 13 million, according to data from the tourist office. The Austrian capital's positioning on the business market also experienced this growth. Close to 11% of this occupancy is due to the organization of more than 3,500 conventions, meetings and seminars each year in the city. In 2014, the International Congress and Convention Association (ICCA) ranked Vienna second worldwide in terms of destinations for organizing international events.

Growth in arrivals observed between January and November may also be accounted for by the dynamism of the destination's key supply markets. Only Russian tourists to Vienna fell in terms of nights, although this did not impact the overall result. The drop was compensated for in great part by the increased presence of German, British, Spanish and Romanian clientèle (of which Romanian clientèle increased by 32%, to 34,000).

Vienna's hotels benefited directly from this abundance of foreign arrivals. On the first ten months of the year, hotel results in the capital performances followed an uptrend with growth by 5.1% in Revenue per available room (RevPAR). According to data published by MKG Hospitality, this growth is due to a 0.8 point increase in occupancy rate and by 4.1% of the average daily rate.





With growing demand over the years, the hotel supply in the has grown more dense and is changing to absorb it. Several projects are currently under development and should grow the number of operational hotels in the city to to 446, for some 34,988 rooms, versus 437 hotels and 33,335 rooms today. The majority of this new supply will be positioned on the mid and upscale categories (as detailed in the map above), that attract business clientèle in particular.

The hotels, already established or being launched on the Viennese market, have fine years ahead. The goal of authorities to reach 18 million international nights by 2020 should, in fact, guarantee them good occupancy rates in the years to come.

Also read:



  • Vienna hopes to reach 18 million nights in 2020
  • Austria: tourism climbs every mountain
  • September 2014: the Austrian market is in good shape

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