The renowned architect Zaha Hadid, who had already planned the Bergisel ski jump in Innsbruck, won an open competition to design the stations for the line.

The project was financed and implemented as a public private partnership between the city of Innsbruck, STRABAG and Leitner AG.

The new Hungerburgbahn is unusual for a funicular in that, although it does not reach the maximum gradient of its former incarnation, it experiences rapidly changing inclination both during the course of the route and at the various stops, transitioning between a relatively flat southern section (with ramps leading in and out of the two tunnels on either side of the river crossing), and a steeply inclined northern section more typical of a funicular.

At the lower end, the route begins underground at Kongresshaus station at the eastern end of the Kongresshaus (a conference and concert venue) in the city centre, then runs beneath local streets in a 371.5 m long single-track tunnel before surfacing immediately south of Löwenhaus intermediate station.

The line rises sharply from the tunnel and follows a curved alignment, stopping at the Alpenzoo intermediate station, and crossing a 462 m long reinforced concrete bridge.

The line has relatively lower utility as a commuting route, as its upper station is located at the far eastern end of the Hungerburg district, away from most housing estates.

The city of Innsbruck finances additional off-peak hours, and normal transport network core zone tickets (monthly, half-yearly and annual) are accepted as valid payment.

The formerly historically listed railway was to be preserved as a symbol of the city of Innsbruck just a few weeks before its 100th anniversary of service, and last-minute demolition was to be prevented.

There was also criticism of the planned de facto privatization of the railway as part of the new construction project and associated fears that fares could rise significantly.

The lower station was situated in the city district of Saggen [de], near the southern bank of the Inn river.

From there the line ascended steeply, crossing the river on a sloped steel truss bridge, and proceeding on a straight alignment up to the Hungerburg district.