The discussion surrounding second and holiday homes in established tourist regions of Germany and Austria has intensified in recent years. Many of these properties remain unused for large parts of the year, while simultaneously contributing to rising land and property prices. EPH Group AG, a company headquartered in Vienna whose shares are traded on several German stock exchanges, is pursuing a differentiated approach. The company focuses on the development of high-quality hotels that are intended to contribute permanently to tourism value creation and job creation in the respective regions.
Alpine regions are increasingly faced with the challenge of balancing the economic success of tourism with the availability and affordability of housing for the local population. Holiday properties and tourism-dedicated projects, whose units sometimes serve purely as investment objects or are only used temporarily, exacerbate this situation. Politically controversial second homes also contribute to this debate. For municipalities, this can result in increased land sealing and rising property prices, coupled with little additional employment and regional value creation. The crucial question has therefore shifted from merely creating guest beds to the quality and sustainability of this tourist infrastructure.
According to EPH Group AG, the answer to this question begins with the specific type of project, as tourist beds do not inherently guarantee tourism value creation. The Vienna-based company therefore develops hotels in the premium and luxury segments at established locations in the Austrian Alpine region and in Bavaria that have consistent year-round demand. Yasmin Wilfling, Board Member of EPH Group AG, emphasises that the company does not develop disguised second homes or holiday properties that are sold individually after completion. Instead, the focus is on professionally operated hotels whose primary economic purpose is the accommodation of guests. The creation of a permanently functioning tourist infrastructure that benefits guests, municipalities and locals equally is the actual product.
Sustainable project development and operational structures
EPH Group AG is responsible for the entire project development process: from selecting and securing suitable locations to planning and approval, right through to construction readiness. Selected projects are realised by the company itself. For operational management, EPH Group relies on established international hotel groups that have previously been underrepresented in the Alpine region. These partners bring their brand recognition, professional operational structures, global distribution channels and existing customer bases to the respective destinations. The aim is to open up new guest segments for the regions and establish a hotel infrastructure that will be used for tourism in the long term. Ms Wilfling explains that a hotel generates its economic success not through a one-off property sale, but through long-term guest service and successful operation over many years.
Another essential aspect of the development model is the creation of jobs. A hotel in the EPH Group AG segment can generate over 100 jobs during ongoing operation, from reception to housekeeping, gastronomy, wellness and building services, as well as management and administration. Furthermore, additional employment opportunities are created during the planning and construction phases, as well as through regional suppliers and service providers. The projects also address a central challenge for many tourism communities: the accommodation of employees. The hotel projects include dedicated staff accommodation to prevent newly arriving hotel employees from competing with locals for scarce housing. Ms Wilfling highlights that future employees will live and work in the region, pay taxes, and strengthen local consumption without placing additional strain on the housing market.
Supplementing the offering with international hotel brands
EPH Group AG cooperates for its projects with established international hotel brands that, in addition to many years of expertise in hotel operations, also have global distribution systems, customer loyalty programmes and a worldwide customer base. EPH Group's projects are not designed to compete with existing family-run hotels and guesthouses, but rather to complement the tourist offering. They aim to open up additional international guest segments for the entire destination. Local catering businesses, mountain railways, ski schools, retailers, craft businesses and other tourist service providers can also benefit from this approach. Ms Wilfling concludes that a strong international hotel brand can bring new guests to the region who may not have previously considered this destination. In the best-case scenario, such an expansion into new target groups benefits the entire regional tourism industry.
