Future of Benko Villa Igls Uncertain After All: City of Innsbruck Rejects Hotel Plans
The planned rededication of Villa Igls, once a renowned castle hotel and later the residence of the now-imprisoned real estate entrepreneur René Benko, has met with resistance from the city of Innsbruck. The Laura Private Foundation, whose sole benefactor is Benko's mother, was planning to use the building for tourism, but the city council has now clearly rejected these plans. At the same time, Benko remains in custody as the judiciary has made serious allegations against him.
The city of Innsbruck has rejected hotel plans for the Igl villa of former real estate tycoon Rene Benko. / Picture: © Wikimedia Commons; Hafelekar, CC BY-SA 3.0 (https://creativecommons.org/licenses/by-sa/3.0/deed.en)
Villa Igls, which is located at the foot of the Patscherkofel, was once known as a castle hotel and was taken over by the Laura Private Foundation in 2006. A German magazine recently reported that the foundation wanted to convert the historic property into a luxury wellness hotel. The idea of repurposing the property only came up after Benko's wife and children moved out.
However, it is unlikely that the property will be repurposed for the time being, as reported by ORF. The mayor of Innsbruck, Johannes Anzengruber (JA - Jetzt Innsbruck), made it clear that there are currently no official inquiries or concrete building plans for the site. He also ruled out a rapid rezoning from today's perspective, which would make it considerably more difficult to use the property for tourism.
René Benko still in custody
While the future of Villa Igls remains uncertain, its former resident is still in custody, as reported by ORF. René Benko, once a celebrated star of the European real estate industry and founder of the Signa Group, was arrested in his office in Innsbruck on January 23, 2025. Since then, he has been sitting in a solitary cell in Vienna-Josefstadt prison.
The Public Prosecutor's Office for Economic Affairs and Corruption (WKStA) is investigating him on suspicion of fraud, breach of trust, and fraudulent Benko is alleged to have deceived investors and harmed creditors. According to the judiciary, there is also a risk that he will continue to attempt to move or conceal existing assets. The penalty for the charges against him is up to ten years in prison.
Decision on prison extension at the end of April
Benko's lawyers argued at the last detention hearing that their client was not a flight risk and was behaving cooperatively. However, the judge decided otherwise: the pre-trial detention was extended by two months because there was still a risk of fleeing. A decision on whether to extend the pre-trial detention must be made again on April 28 at the latest.
Political and economic impact
The insolvency of the Signa Group has far-reaching consequences for the European real estate landscape, as reported by Vindobona.org. Numerous construction projects in Germany, Austria, and Switzerland have come to a standstill or are affected by massive delays. The uncertain future of Villa Igls is just one small detail in a much larger economic and legal drama.
Meanwhile, the city of Innsbruck is also standing firm. It remains to be seen whether the plans of the Laura Private Foundation can still be realized. As long as the property is not rededicated, it cannot be used for tourism. The villa, which was once a symbol of Benko's success, now stands as a silent witness to his deep fall.