Strategic investments in the substance

Quality improvements and conversions in the hotel industry are currently more in demand than new buildings on the green meadow. More and more companies in the alpine regions are therefore facing strategic consideration: How do I best invest under the currently volatile market conditions?

A well thought -out revitalization is much more than an optical facelift. It is an economic necessity, a differentiation feature in the competition and an instrument for the long -term increase in value of the property. In view of always changing market conditions, increasing guest claims and scarce resources, the focus of many companies is shifting in the alpine hotel industry from new buildings to qualitative conversion and renovations. Revitalization will play an even more important role in the next few years, since the spatial planning and bed boundaries in some federal states do not allow new hotels and older existing hotels are under pressure. It is not just about visually effective investments, but also about targeted measures to increase value, differentiation in competition and securing the future of the company. However, the financing of such projects is increasingly becoming the crucial question.

Economic added value through substance reservations

The renewal of a hotel room can increase the average ADR (Average Daily Rate) by up to 20 % – with direct influence on the Revpar (Revenue via Available Room). A MIDSCALE operation can achieve almost half a million euros more sales every year by investing 30,000 ꞓ per room with the same. At the same time, the property value also increases noticeably.

Renovation costs 2025: Benchmarks at an overview

The investment amount per room for modernizations varies depending on the category:

• Economy: 8.000–15.000 Ꞓ

• Midscale: 20.000–40.000 Ꞓ

• Upscale: 50.000–90.000 Ꞓ

• Luxury: up to 120,000 ꞓ

Community areas such as the lobby, spa or F&B areas also cause high costs-especially for premium concepts. A high -quality sauna area with pool can cost up to 500,000 ꞓ. Investments in technology (IT infrastructure, fire protection, etc.) have up to 1 million ꞓ.

What is the cost of 2025?

The cost of revitalizations in 2025 are influenced by an interaction of several factors. Strong price fluctuations in building materials such as wood, steel or smart technologies lead to high volatility, while the recently tense order situation in the construction system is sometimes relaxed-which brings prize advantages to a selection. At the same time, ESG criteria gain relevance and cause additional but future-oriented investments. In addition, there are complex official requirements and regional peculiarities, especially in alpine locations, the construction costs increase noticeably.

New challenges in financing

Despite falling key interest rates, regulatory requirements make financing difficult. Higher equity requirements and stricter credit tests lead to increasing costs. The choice of the financing structure is therefore a strategic decision.

The following aspects should be observed in the financing:

1. Funding and afa: Programs of the federal and state governments (e.g. about Oeht, AWS) support energetic renovations, digitization and employee infrastructure.

2. Short -term financing lines: Working capital financing bridge liquidity bottlenecks-but be careful with high interest rates and additional fees for short-term financing lines.

3. Interest rate structure: A combination of a fixed and variable interest rate offers security in volatile markets and ensures a balanced risk of interest.

4. Financial period: Due to the short investment cycles, the term of the financing should not be a maximum of 10 to 12 years for smaller modernization measures, and no more than 20 years in the case of extensive structural investments.

Success factors for revitalization projects

Precise investment planning and professional support are crucial:

• Ongoing construction costs by architects or planning office

• Emergency buffer (5 to 15 % crossing the construction costs)

• Investment planning bill and benchmark comparison

The Prodinger Tourismusberatung recommends the
5 steps to the successful construction project to comply.

Those who strategically renovate remains competitive. Renovations are not a cost factor, but investments in product quality, brand strength and guest binding. In times of economic uncertainty, they ensure long -term resilience and create a strong foundation for future successes in the alpine hotel industry.