The work explores whether there is potential for new hotel projects in Austrian district towns. It analyzes location factors for the hospitality industry in secondary cities. The empirical study evaluates seven Austrian secondary cities or district towns through a utility analysis and subsequent expert interviews. The investigation aims to provide potential investors with an overview of the current situation. At the same time, it seeks to offer city and tourism officials an objective assessment of the hotel situation and to highlight possible courses of action. Furthermore, the work provides insights into generally important and success-critical location criteria for new hotel projects in secondary cities.