Hotel in Vienna, Austria, 7 000 m²

4-Star Hotel Development opportunity (Austria)

Opportunity Overview
This opportunity involves the acquisition and development of a proposed 4-star hotel in Austria. The transaction framework features a stated total investment of €32 million, split into an indicative acquisition price of €13 million and a development budget of €19 million (prior to unlisted costs, financing, or operational adjustments).
The project is structured to offer an income-led investment profile post-completion, supported by a proposed 20-year long-term lease.
Key Financial & Transaction Highlights
● Stated Total Investment: €32.0M
○ Acquisition Cost: €13.0M (indicative)
○ Development Budget: €19.0M (indicative)
● Projected Stabilised NOI (Net Operating Income): approximately €2.2M per annum
● Target Return / Yield on Cost: approximately 7% (calculated based on stated total investment at stabilisation, before financing, tax, and contingencies)
● Lease Structure: Proposed 20-year lease agreement
● Operator Status: Discussions with the operator are currently at the Heads of Terms stage
● Room / Key Count: To be confirmed
Investment Rationale
1. Attractive Income Yield: The projected stabilised NOI of ~€2.2M per annum delivers an approximate 7% yield on total cost, offering an attractive return relative to development expenditure.
2. Long-Term Cash Flow Stability: The proposed 20-year lease structure provides cash flow stability and predictability once the property becomes operational.
3. Defined Cost Framework: The project provides a clear preliminary cost framework (€13M acquisition + €19M development), enabling investors to stress-test budget assumptions, delivery timelines, and contingencies during due diligence.
Key Information to Verify During Due Diligence
To proceed with formal evaluation, detailed information to be reviewed includes:
● Exact property identity, micro-location, site plans, and final key count.
● Detailed development plans, itemised cost breakdowns, and construction timetable.
● Operator profile, covenant strength, draft lease documentation, and key lease terms (rent structure, indexation, guarantees, and delivery obligations).