The Park Hyatt Vienna is regarded as one of the best Hyatt properties in the system. Not only is it a gorgeous, historic property, but it’s known for having great elite treatment. Well, unfortunately there are now some questions about the hotel’s future.
In this post:
Austrian real estate giant restructuring to avoid liquidation
Austrian real estate empire Signa, founded be Rene Benko, is having major financial problems. The company has become the biggest casualty in Europe’s real estate crisis, as creditors have filed claims worth billions of dollars against the company.
The company owns all kinds of real estate projects in Austria and Germany. Most notably, the company owns the Park Hyatt Vienna, and also owns luxury superstore KaDeWe Berlin.
Without intervention, the company would be liquidating shortly, leading to a fire sale of all assets. However, creditors have agreed to a restructuring plan. With this, a trustee has been appointed to the company, and now has up to five years to sell all of the company’s assets for as much as possible.
The belief is that creditors will be able to recoup around 32% of their investment this way, which is better than the fire sale alternative.
What this means for the future of the Park Hyatt Vienna
The way I see it, there are two potential implications to this news.
For one, you can expect that the current owners of the Park Hyatt Vienna will no longer be putting any money into the property. This shouldn’t immediately impact the day-to-day guest experience, since hotels typically run pretty independently (assuming they’re not losing massive amounts of money). But at some point this could start to have an impact when it comes to renovations, upkeep, etc., depending on how long this sale takes.
The other thing is that it’s anyone’s guess how the Park Hyatt Vienna’s new owners want to brand the property. While the hotel presumably has a very long term contract with Hyatt, that’s typically thrown out the window in a situation like this.
Once the hotel has new owners, it’s entirely possible that it remains a Hyatt, but also keep in mind that many property investors have their preferred hotel groups that they like to do business with, typically as part of a larger strategy. So depending on which company buys the property, it could mean the hotel is eventually rebranded.
Bottom line
One of Austria’s largest real estate companies is on the brink of liquidation, and is now undergoing a restructuring, for which a trustee has been appointed. The Park Hyatt Vienna will be sold in the next five years, and it’s anyone’s guess what company will acquire the hotel, and what that means for its future.
What do you make of the current Park Hyatt Vienna situation?
We have stayed at the Park Hyatt Vienna twice and both times it has been an outstanding stay. Staff, wonderful, concierge, friendly, helpful and always ready to assist. Had a small problem with an employee at the bar desk, mentioned it to the front desk and it was taken care of in the most subtle way possible. Park Hyatt Zurich and Adaire Manor are the only other hotels that compare.
Stayed there last year on points. Gorgeous hotel in a great location. It was a very memorable stay. I hope the hotel doesn’t slide whilst in the process of being sold.
I could see this property being sold to ARTIC (Al Rayyan Tourism Investment Company) from Qatar, as they already own the Grand Hyatt in Berlin in Potsdamer Platz. I think it would be a fantastic investment opportunity for them, as they have familiarity with the Hyatt brand, and are established in the German speaking world. Plus the Qataris are finding ways to diversify their economic portfolio outside of the energy sector.
It would be ideal if they'd sell it to the Hyatt corporation. (Wishing I could tag them here. ;o)
Well if the Hotel went to Four Seasons or Raffles (top end of Accor) it would be even better. Here’s hoping it doesn’t go to Marriott.
It would never fit into the context of Four Seasons. It has a harder industrial feel to the interior that works for Park Hyatt as a brand, but not FS. As well The Bank (bar and restaurant) is iconic in Vienna with locals, as is Cafe am Hof. FS would destroy this by making it more exclusive rather than inclusive and ultimately alter the love of the property with 1st District locals. The beauty of...
It would never fit into the context of Four Seasons. It has a harder industrial feel to the interior that works for Park Hyatt as a brand, but not FS. As well The Bank (bar and restaurant) is iconic in Vienna with locals, as is Cafe am Hof. FS would destroy this by making it more exclusive rather than inclusive and ultimately alter the love of the property with 1st District locals. The beauty of the hotel is in the way it intersects with Viennese life. The magic is the way it IS Vienna rather than just being there for people VISITING Vienna.
As an example, the Ritz Carlton on the other side of the 1st district is perfectly fine. But it has little cultural identify with the Viennese. It was built for guests. Park Hyatt was built for community.
I love FS, don't get me wrong, but this would not be a good fit. Park Hyatt was and is the perfect brand for this space. It's casual enough to feel inclusive while providing a luxury feel. Which is exactly Vienna.
By the by, a piece of PH Vienna trivia, the property was originally being built by Shangri La as (I believe then) their first hotel in Europe. They abandoned the project half way through in 2011. It was completed though in partnership with Hyatt. Oh, and did you know the mirror in the ladies room at The Bank is one of the most instagrammed spots in Vienna for selfies? I know, odd, but there it is!
@Antwerp,
I don't know who you are, but between your above comment and your prior comment on this post, I like you. Very insightful.
Fantastic location. I remember being at the Burgenland Festival being held outside in Am Hof square the year Austria hosted Eurovision, and looking up at it thinking, “One day…” ;-)
Adore the Park Hyatt Vienna. Fingers crossed it stays in the Hyatt portfolio...
Oh tafelspitz!
I am a regular at this property nearly every month as Vienna is my base for European logistics. Been so since it opened. I also know a lot of the staff very well. So, a few comments.
1. The property is perfectly up to date and needs nothing in the way of updates. It would be turn key for any buyer. It is meticulously maintained as well.
2. It is an institution with locals...
I am a regular at this property nearly every month as Vienna is my base for European logistics. Been so since it opened. I also know a lot of the staff very well. So, a few comments.
1. The property is perfectly up to date and needs nothing in the way of updates. It would be turn key for any buyer. It is meticulously maintained as well.
2. It is an institution with locals and every 1st District rat reveres the name Park Hyatt. The Bank is hugely popular (both bar and restaurant) and Cafe am Hof is one of the most popular cafes in the city. Regulars are there every day and pack in the outdoor tables as well. They generate incredible F&B revenue.
3. It has a significant following and brand for travelers from the Middle East. Often half the hotel is such. Perhaps why OPEC has so many meetings there. Much of this because Park Hyatt is already a familiar brand in the ME.
4. The location is extraordinary. Not only accessible by road with an easy pull up, it is also right at the start of the pedestrian zone. As well they do a massive business during the Christmas Market season as the hotel adjoins a small market at Am Hof.
5. The staff have been fairly consistent for years. Regulars know everyone. Sebastian running the F&B. Oliver running the Desk. The doormen. All been there for ages and very in tune with regular guests and locals.
That of course does not preclude the changing from Hyatt. But I seriously doubt it. Other major brands already have a strong presence now in Vienna with Mandarin the newest. As well, everyone there knows the Park Hyatt name. And many of the employees are there (and stay there) because of Hyatt and the perks they get with corporate for travel etc.
Very grateful for this extremely thoughtful and useful comment. Frequently the comments thread from unregistered users is... not very good around here.
I am now staying at the hotel, which is my favorite Hyatt property anywhere. It’s a beautiful property that was originally a bank. Perfect location for exploring the city.
One of the best Park Hyatt hotels for sure.
Does Signa just own the property (building)?
Is there a Hyatt franchisee that leases the space from Signa?
Sounds like an alarmist article to get clicks until these questions are answered.
I am staying there in August. Do you think there are any risks (service, no longer being a hyatt), or its business as usual a few months from now?
Reflagging is a big task, I don't think there's much chance that the hotel will leave Hyatt before August.
Service is something no one can predict. If the company struggles financially it can show, I guess, but if the idea is to sell the hotel it would be foolish to lower its value by ruining the product (which doesn't mean they won't do it though).