The MAGDAS Story. Doing business where it makes sense.
How does one actually become Austria’s first social business hotel? The answer is simple: by refusing to accept the status quo and proving that social commitment and economic success are not mutually exclusive.
We were founded in 2012 by Caritas of the Archdiocese of Vienna. The goal was clear from day one: to solve social problems where the traditional job market fails—and to do so without lecturing, but rather with top-notch hospitality and genuine Viennese charm.
In 2015, armed with this courage, we opened our first MAGDAS Hotel at Vienna’s Prater—the starting point for a success story that shows how open doors can change people’s lives
What does “social business” actually mean?
Many people confuse a social business with a donation-funded NGO. But we operate differently: We fund ourselves entirely through the sale of our rooms, meals, and services. We rely 0% on donations or subsidies for our day-to-day operations.
The concept was pioneered by Nobel Peace Prize laureate Muhammad Yunus (after whom, by the way, we’ve named one of our most beautiful seminar rooms at MAGDAS Hotel Vienna City!). His definition of social business is our foundation:
A social mission
The company is founded to solve a social problem (in our case: fair training and long-term jobs). Not to maximize private profit.
Financial Sustainability
The company must cover its operating costs through the sale of its own services (in our case: through the hotel and restaurant operations).
No Profit Distribution
All revenue generated remains within the business and is directly reinvested (in our case: in new apprenticeship positions). Not to enrich private owners or investors.
2012: The Beginning
Caritas Vienna founded the MAGDAS umbrella brand to address social issues through entrepreneurial solutions. Over the years, in addition to the hotel, the divisions MAGDAS Essen, MAGDAS Recycling, MAGDAS Cleaning, and MAGDAS Talent Bridge were established , employing a total of over 250 people today.
2015: The Prater Miracle Goes Global
As a pioneering global project, we open the first MAGDAS Hotel as a cool pop-up in a former senior citizens’ home right next to Vienna’s Prater. Media outlets from the U.S. to Europe to Asia report on the hotel, where people with refugee backgrounds become hosts.
2022: The Big Move to the 3rd District
After seven successful years at the Prater, we’re moving. We’re setting up our new headquarters at Ungargasse 38. In the former priests’ residence, we’re now combining our social mission with groundbreaking, ecological sustainability.
2027: Back to Our Roots
What works at one location will work at two! After an intensive planning and construction phase, we’re revitalizing our original site at the Prater and opening a second, all-around green MAGDAS Hotel in 2027.
Want to be part of the story?
We’re far from done making the world a little fairer and more sustainable. We’re glad you’re joining us on this journey!
